Fog Computing Market worth over $700 million by 2024
Fog Computing Market size is set to exceed USD 700 million (€567.51 million) by 2024; according to a new research report by Global Market Insights, Inc. Increasing penetration of cloud computing platforms is fostering the fog computing market growth.
Over the past decade, cloud computing has emerged as a driving force in the IT ecosystem. It is estimated that approximately 80% of the enterprises are utilising the capabilities of the cloud computing platform in their business and the number is further anticipated to increase in the future.
As cloud computing platforms offers computing, storage, and networking services across all the business sectors, it frees the customer and enterprises from the specifications of various details, which may result issues in latency sensitive applications in sector such as healthcare, energy & utility. These inherent challenges of cloud computing are forecast to positively impact the market adoption.
Fog computing solutions offer several benefits to the business, as they extend the cloud near the edge devices that generate and act on data. The model increases the business agility as it offers rapid innovation and affordable scaling options. It is cost effective and comparatively faster than cloud computing platforms. Furthermore, it provides better security, deeper insights, and privacy control. It also reduces the operating expenses by conserving the network bandwidth and locally processing the data rather than forwarding to the cloud platform.
The growth of the fog computing market is attributed to the paradigm shift in the U.S. healthcare reimbursement systems from fee-for-service model to the outcome-based reimbursement model. This will encourage healthcare organisations to adopt IoT devices to reduce power consumption, improve operational efficiency, reduce cost, and enhance overall performance of business.
Furthermore, healthcare applications are latency sensitive and requires real-time analysis, any delay in transmitting data leads to serious consequences. Since fog computing enables the analysis of data at the edge of devices, its adoption among healthcare organisation is further estimated to increase.
The manufacturing sector is also one of the major end-users of the fog computing market solutions and holds huge potential for the industry revenue. The growth can be credited to the increasing demand for process automation in the manufacturing sector to gain an edge over competitors. Furthermore, fog computing solutions enhance the operational efficiency by providing actionable insights and real-time monitoring of the operations, which is estimated to increase the adoption among manufacturing plants.
Asia Pacific fog computing market is estimated to be the fastest growing region owing to the increasing adoption of the cloud computing platform in countries such as India and China. Furthermore, rapidly developing smart infrastructure such as smart cities and government initiatives in the developing countries are also estimated to have significant impact on the growth of the industry.
For instance, Indian government’s smart city development initiative, Digital India program and Make in India campaign is estimated to fuel the development of smart infrastructure, therefore increasing the demand for streaming data from cloud computing platform.