Fog computing, also known as fog networking, is a decentralized computing infrastructure that is likely to emerge as next generation cloud computing. In fog computing, computing and storage of data are distributed in the most logical and efficient manner between the data source and the cloud. This is because the Internet of Things (IoT), a technology closely associated with cloud, is creating enormous volumes of data, but by the time it finds its way to the cloud for analysis, it is often late to act upon it. Fog computing helps to do away with this drawback by analyzing the most time sensitive data at the network edge, close to its generation source, instead of sending large volumes of data to the cloud for historical analysis and storage.
The two main components in the
fog computing market are hardware, comprised of servers,
routers, switches, gateways, and controller, and software comprised of
customized application software and fog computing platform. Of the two, the
software segment generates maximum revenue because of the low capital requirement.
Fog computing is finding application in building and home automation, smart
energy, connected health, smart manufacturing, transportation and logistics,
security and emergencies systems among others.
Geographically, North America currently leads the global fog
computing market and going forward too, is slated to maintain its leading
position on the back of substantial investments made in the region to develop
this technology. High penetration rate of the fog computing technology is
primarily responsible for the growth in market of North America.
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Fog computing is a computing technology which decentralizes
application and computing resources in the most efficient and effective point.
Fog computing technology is also known as fog networking. Fog computing enhances
efficiency and helps in reducing the size of the data which would be uploaded
to the cloud for the purpose of analysis, data processing and storage. Fog
computing also helps in enhancing compliance and security for the end users. In
fog computing atmosphere, most of the data processing is done over smart mobile
devices and data hubs. Moreover, other devices like gateway and smart router
are also used in fog computing. Due to this distributed approach fog computing
is gaining popularity. The demand for fog computing is driven by the
requirement for managing enormous amount of data which is generated by the
sensors. Further fog computing enable portability, the fog enables the cloud to
be more conveniently positioned to act and produce on Internet of things (IoT)
data.
The Fog computing market is segmented by components and by
application. The market by components has been further segmented into hardware
and software. The hardware segment is further segmented into servers, switches,
routers, gateways and controller. Software has been further segmented into
customized application software and fog computing platform. The fog computing
market by application is segmented into smart energy, building & home
automation, smart manufacturing, connected health, transportation &
logistics, security and emergencies systems among others. The software segment
in the fog computing market segmented by component is expected to account for
the largest revenue share. A lot of programs are operated on virtual machines
with singular host hardware. It is easy to enter the software market for fog
computing due to multiple factors low capital requirement and availability of
intellectual capital. Smart manufacturing applications in the fog computing
market segmented by application are expected to grow at the fastest rate. High
demand for process automation across a wide range of industry is expected to
drive the smart manufacturing application segment in the fog computing market.
The fog computing market by region has been broadly segmented
into North America, Asia Pacific, Rest of the World (RoW) and Europe. North
America led the global fog computing market in 2015 and is expected to dominate
the market over the next few years. A lot of investment is made in the region
to develop this technology. High penetration rate of the fog computing
technology is driving the market in North America.
The key players operating in the fog computing market
includes Microsoft Corporation (U.S), Cisco Systems, Inc. (U.S), Dell Inc.
(U.S), ARM Holding Pl. (U.K.), Fujitsu (Japan), Intel Corporation (U.S) and
Schneider Electric Software, LLC (Japan) among others.
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