Fog Computing Market

Fog Computing Market by Type, Stage, End-User Outlook and
2026
Fog computing Market study provides key insights about market drivers,
restraints, opportunities, new product launches or approval, regional
outlook, and competitive strategies adopted by the leading players.
Fog computing also called as fog networking or fogging is used for the architecture provided in
the proximity of the users to provide seamless cloud computing user experience. It is also known
as edge computing, as it facilitates the functions such as storage, computing, and networking
services between the cloud data centers, end enterprise and user devices. Requirement of
managing service offerings at the network edge to enhance the efficiency and avoid the network
bottlenecks, is expected to propel the growth over the forecast period. Proliferation of IoT and
internet enabled devices has led to exponential increase in data generation and access
requirement at the end user leading to significant increase in the traffic generated. Traffic
patterns vary based on the user inclination, however, they are concentrated in the metropolitan
areas across the globe. Inadequacy of the cloud and internet networks to efficiently manage the
data stream across its regional expanse also adds to the requirement of infrastructure in the
proximity of the users.
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Advent of connected technologies such as connected homes, buildings, smart energy,
connected factory operations, connected vehicles, and OTT content are among the prominent
factors anticipated to fuel the demand for fog computing methodologies to avoid the network
bottlenecks.
Low latency requirement and high scalability for real time applications are expected to
provide high traction to the fog computing market
Mission critical applications such as cloud robotics, fly-by wire aircraft control, and automotive
anti-lock brakes require real time data processing. Control and management of the operations
is directly dependent on the information collected by the sensors and the control system
feedback. Event of the control system being run on cloud may negatively impact the senseprocess-actuate
loops or unavailable due to communication failures. However, low latency
requirement of the fog computing can be used to perform the control system processing making
the real-time reaction feasible. This methodology primarily aims at processing the incoming data
in proximity to the data source itself and reduces the burden on the cloud processing, thus
addressing scalability requirements, owing to increasing number of endpoints.
Software segment contributed to around 65% revenue of the fog computing market, is
expected to remain the dominating revenue segment through the forecast period
Overall IT components costs have witnessed substantial decline over the past few years, in
conjunction with considerable advancement leaps in the processing and compactness over the
past few years. Connectivity costs have witnessed consistent price reductions with the advent
of fast communication technologies such as 3G, 4G, and LTE. Software as a Service (SaaS) and
the usability of these in analytics, e-commerce, collaboration, and other business functions has
witnessed increased penetration at exponential rates. Thus, software solution segment is
expected to dominate the market over the forecast period.
The U.S. dominated overall fog computing market share, owing to the high adoption in the
country
Major investment in the R&D activities in the region, primarily in the automotive segment is
expected to fuel the industry growth. The government has introduced a number of initiatives to
revolutionize the automotive technologies, so as to reduce the number of road accidents and
fatalities. Introduction of V2V communication, and V2I communication (or V2X) technologies
are few of the initiatives in the process, which is expected to provide considerable growth

prospects over the forecast period. The exponential rate of urbanization and industrialization in
the Asia Pacific countries such as China, India, Indonesia, Thailand, Malaysia, South Korea, and
Japan are expected to provide growth opportunities to key players in the market.
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Key players operating the fog computing market include Microsoft Corporation, ARM Holdings
PLC, Cisco Systems, GE Digital, Intel Corporation, Schneider Electric Software LLC, and Fujitsu
Ltd.
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