The worldwide market size for fog computing market is estimated to be USD 12.87 million in 2017 and is estimated to grow at a CAGR of 62.6% during the forecast period. Some of the factors propelling the global market growth of fog computing includes increasing proliferation of smart sensors, widespread usage of smart applications, increase in adoption of IoT devices resulting in gaining traction of fog computing in industries such as manufacturing, healthcare, logistics and energy & power among others. However, absence of adequate skilled workforce as well as lack of standardization are the few factors responsible for restraining the market growth of fog computing. Additionally, decentralized architecture resulting in technology complexity along with rising cyber threat are significant challenges in the market for fog computing. However, with the rapidly increasing market for IoT-enabled devices, the market is expected to flourish in the near future. The market for fog computing is expected to account for USD 934 million in 2026.
The market for fog computing is highly fragmented with the presence of several local as well a global players operating in the market place. Also, currently the market is at its developing phase and is expected to gain a high pace during the coming years. The players are adopting technological innovation and product developments as their key strategies to expand their customer base and to attain market share.
The global fog computing market is segmented on the basis of component, service and application. The component segment is further bifurcated into hardware and software. The software segment is expected to grow at a higher growth rate as several software programs are capable to function on single hardware. Also, several existing software providers are offering solutions and services for IoT as well as Cloud ecosystem and are anticipated to exploit the opportunities offered by fog computing market at different layers of architecture including, applications and platforms. Moreover, due to requirement of limited capital for entering software market as compared to hardware, the new players can easily enter the market.
Furthermore, on the basis of application, the market for fog computing is segmented into smart homes/smart cities, smart energy, smart manufacturing, connected healthcare, smart transport, and others. The smart manufacturing application is anticipated to grow at the highest CAGR attributed to the increased competition thus, resulting manufacturing companies to demand for process automation. Fog computing facilitates manufacturing companies to increase their operational competence besides real-time monitoring as well as action taking ability.
North America is leading the market for fog computing currently and is further expected to grow significantly during the forecast period. This growth is highly attributed to the presence of developed economies i.e. US and Canada in the region. These countries provides efficient internet infrastructure to the fog computing market thus, have a wide potential for IoT applications. Being the most technologically advanced region, North America helps new technologies to flourish and provides them with potential opportunities.
Major industry players operating in the global fog computing market include GE Digital, Cisco Systems, Inc., Toshiba Corporation, Nebbilo Technologies, Microsoft Corporation, Intel Corporation, Dell Inc., Fujitsu, Schneider Electric Software, LLC, ARM Holding Plc., and PrismTech Corporation.