Increasing Adoption of Smart Devices to Augment the Fog Computing Market Growth

Fog computing (also known as edge computing) uses edge devices to accomplish substantial amounts of computation, storage, and communication locally and is routed over the Internet backbone. It is an emerging paradigm that extends cloud computing by adding a new layer between the cloud and its end users. It facilitates the functions such as computing, storage, and networking services between the cloud data centers, end enterprise, and user devices.

Market Dynamics:

Increasing adoption of smart devices to facilitate smart cities, smart buildings, smart grids, vehicles, and software-defined networks and the need for addressing challenges associated with mobile traffic is expected to augment the growth of the fog computing market. For instance, according to the Pew Research Center, the vast majority of Americans, around 96%, own a cellphone of some kind, of which around 81% own a smartphone.

Moreover, huge volume of data generation due to increasing adoption of internet enabled devices and proliferation of IoT (Internet of Things) is expected to propel the growth of the fog computing market. For instance, in January 2021, Cloud Security Alliance (CSA) announced Internet of Things (IoT) Security Controls Framework Version 2 and the accompanying Guide to the Internet of Things (IoT) Security Controls Framework. Connected devices are expected to generate 79 Zettabytes of data by 2025.

However, lack of knowledge about fog computing, the complexity of architecture due to the decentralized computing, absence of uniformed standards, and concerns regarding the risk of cyber-attacks are expected to restrain the growth of the fog computing market.

Asia Pacific is expected to witness substantial growth in the fog computing market, owing to the increasing demand and increasing urbanization and industrialization in countries such as India, China, Indonesia, Malaysia, Thailand, Japan, and South Korea. For instance, in February 2020, Kakatiya Institute of Technology and Science Warangal (India) organized an AICTE sponsored Short Term Training Program on IoT simulation by Fog computing and Edge computing using Open-source. The second phase will be held in March 2020.

Competitive Analysis:

Major players active in the fog computing market are Fujitsu Ltd., Schneider Electric Software LLC, Intel Corporation, GE Digital, Cisco Systems, ARM Holdings PLC, and Microsoft.

Major players in the market are adopting various strategies, such as product launch, partnership, collaboration, etc., to strengthen their market position. For instance, in February 2021, Microsoft and Hewlett Packard Enterprise (HPE) partnered to deliver Azure cloud computing, artificial intelligence, and edge computing capabilities on the International Space Station (ISS).