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Fog Computing Market Size, Growth, Trend And Forecast To 2022

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  • Millions of our best-in-class, outdoor, ruggedized radios have seen action in some of the harshest and most dangerous places in the world.
  • Cisco’s, Product line manager, Ginny Nichols has originally coined the term fog computing.
  • These fog nodes are capable of handling the operations that required less computing power and less storage.
  • Companies are engaging in partnerships and collaborations to develop effective solutions in the fog and edge landscape.
  • Fog computing versus cloud computing requires information to be sent back and forth from IoT devices to a central system, to store and compute data on nodes closer to the data source.

As a key benefit of cloud on businesses, it eliminates the in-house data storage and by that, it helps to decrease the storage and operational cost. Though the cloud computing provides comprehensive data management facilities to the businesses, it also has some major downsides as well. Since the cloud computing depends on the internet, it consists of downtime issues, security risks, data latency and bandwidth problems etc. With more devices being connected to the internet, the cloud computing ecosystem is becoming crowded.

Software Development

Since 2012, Johan has been focusing on real-time communication, and the business and operational benefits that comes with analyzing streaming data close to the data sources. The Edge Analytics software is installed on a server/virtual machine and processes sensor data from multiple on-premise machines and data sources. During 2015 Microsoft, Cisco, Intel and a couple of other enterprises were gathered in a joint consortium to push for the idea of Fog Computing, called Open Fog Consortium.

What is fog computing

It helps the cloud to better deal with technical complications in accessing data and operating it on different devices without a cloud repository. The growth can be attributed to the increasing penetration of Software as a Service cloud framework. Moreover, the capability of the software to address the broad business functions, including collaboration, analytics, and e-commerce, is expected to impact the growth positively over the forecast period.

In fog computing, data processing takes place closer to the edge devices, therefore IoT systems can eliminate many cloud computing related problems such as security risks, data latency and bandwidth issues etc. In fog environment, data generated by sensors, smart devices or IoT devices will transmit to the middle layer called fog nodes which placed closer to the data source. These fog nodes are capable of handling the operations that required less computing power and less storage. Therefore, no need to transmit every bit of data to cloud for processing, since, fog nodes are able to process that data more efficient manner and provide responses quicker than cloud.

Smart sensors can be used to automate the processes such as security entrance, car park operations, energy usage etc. With fog computing, data collects from IoT devices can be processed and analysed in fog nodes placed in building environment, rather than transmits to the cloud. Smart traffic light systems, smart grids, urban mobility, waste management systems can be identified as the key areas in smart cities and productivity and efficiency of these systems can be optimized by fog computing. This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2025. For the purpose of this study, Grand View Research has segmented the global fog computing market based on solution, hardware, application, and region.

Medical Devices

Moreover, the presence of several players in the region is expected to lead to the early adoption of the technology. Fog computing is a term created by Cisco that refers to extending cloud computing to the edge of an enterprise’s network. In a fog computing environment, much of the processing takes place in a data hub on a smart mobile device or the edge of the network in a smart router or other gateway devices. The need for leveraging the advantage of hybrid IT environments to deliver flexibility and agility is driving the industry growth.

What is fog computing

Cisco’s, Product line manager, Ginny Nichols has originally coined the term fog computing. This term, fog, has a connection with the real world weather phenomenon, a cloud formed close to the ground. In fog computing, fog nodes are placed in a logical position between the cloud and the data source, more precisely closer to the data source. So if you thought that cloud computing was the pinnacle of infrastructure designs for the foreseeable future, think again. If we’re talking billions of devices and instant communication, current cloud models won’t be able to handle the load. Fortunately, advances in mobile processing power and wireless bandwidth have allowed many to design a far more capable architecture that brings us out of the clouds and into the fog.

Introduction To Fog Computing

In cloud computing, remote servers hosted on the internet use to store, manage and process data which sends from IoT devices or sensors. Data generated through these devices will send to the cloud over the internet, instead of store them in in-house storage devices. For instance, most of the smart device operations depend on the connectivity with cloud systems. All your contact details, images, documents, music will be transferred to the cloud as soon as they generated.

The main feature of fog computing is its ability to support applications that require low latency, location awareness and mobility. This ability is made possible by the fact that the fog computing systems are deployed very close to the end users in a widely distributed manner. Fog computing nodes hosted must possess sufficient computing power and storage capacity to handle the resource intensive user requests. Key factors driving the regional growth include the high adoption of IoT and increasing investment in ongoing research on the development of fog architecture. For instance, in the U.S., a project has been initiated which enables the traffic lights to integrate with connected vehicles to reduce the travel time.

What is fog computing

Fog computing would also help in monitoring and controlling engine idle time to reduce emissions, conserve fuel, and in turn, maximize profits for the organizations. The gateways segment contributed significantly to the industry growth in 2016 due to the need for preprocessing data that is sent to the cloud. These gateways strengthen the infrastructure by processing the data, which enables the solutions to meet the requirements of low latency responses. Since the data processes closer to the data source, this technology has some significant benefits over cloud computing. Fog computing is a paradigm that extends cloud computing to the edge of the network. The evolution of IoT and the huge amount of data that it generates has created the problem of high internet traffic, which further increases the problem of latency that the world is facing.

Fog Computing Vs Edge Computing: What Higher Education It Teams Need To Know

Cisco, forecasts that, IoT devices will generate 600 zettabytes of data by 2020. It means in future, immense volume of data will transfer between the cloud and data sources and essentially, current network infrastructures cannot cope with that amount of data. It also a time consuming and costly process to transmit the large volume of data generated by IoT devices, to cloud data centres. But, in near future, with the expansion of IoT technologies, it will be a major problem where all organisations need to find solutions.

Fog computing essentially extends cloud computing and services to the edge of the network, bringing the advantages and power of the cloud closer to where data is created and acted upon. For higher education, fog computing could be a powerful support for applications requiring faster data speeds, such as artificial intelligence, mixed reality devices, high-performance computing and even 5G network integration. The Fog is not just a source of gathering data for transmitting it across the cloud but it also helps you in processing, evaluating, and utilizing that data at the fog within just seconds. This technology helps you in analyzing industrial data optimally at all operational levels. The major challenge faced by production businesses is the transmission of real-time large volumes of data in a cost-effective way. In the past three years, several companies have shifted their focus towards providing comprehensive fog computing solutions apart from their core business processes.

What is fog computing

“Tkxel redeveloped the application on time and within the budget, meeting all of the project’s milestones and pleasing the client. Their development skills and proactiveness accelerated the timeline and delivery of the project.” 80% of fortune https://globalcloudteam.com/ 2000 companies rely on our research to identify new revenue sources. In a nutshell the Internet of Things is the convergence of connecting people, things, data and processes is transforming our life, business and everything in between.


As healthcare organizations are increasingly deploying IoT technologies to their infrastructure, there has been a need for ensuring a smarter communication network. It provides a communicating environment that enables devices to access the required information through a cloud network. Due to increased level of digital integration fog vs cloud computing and the compact size of these sensors. Additionally, hardware manufacturers are collaborating with machine learning and IoT vendors to deliver routers and gateways that support fog computing. Furthermore, analytics software companies are focusing on scaling their products for developing new tools for edge computing applications.

The OpenFog Consortium is formed by a group of high tech companies and academic institutions including Cisco, Intel, Microsoft, Dell, ARM and Princeton University in 2015, to standardize the fog computing. Further breakdown of the European fog computing market into France, the U.K., Italy, Germany, and Rest of Europe. Further breakdown of the Americas fog computing market into North America (U.S., Canada, and Mexico) and South America .

This means small IoT sensors can rely on the fog network to handle the bulk of the security responsibilities. Since fog computing works with the cloud and not outside of it, it acts as an added layer of security between IoT devices and the server beyond. For IoT-connected devices that generate large quantities of data, this can be extremely helpful in cutting down the time it would take to send data back and forth to a cloud network. Some universities have already started to research applications that could benefit from fog computing, including autonomous vehicles, agriculture technology and remote surgery. With the help of fog, you can process the data at the source where it is produced, reducing the response time and cost to an event rather than sending it to the cloud for evaluation and then responding to an event.

Fog Computing Explained

The technology is gaining prominence in Japan as the OpenFog Consortium has signed a liaison with IoT Acceleration Consortium to collaborate and test the standards and developments. Moreover, the growth of connected cars in the country is expected to increase the need for efficient data handling and communication platform. In June 2016, Cisco released IOx, an application enablement platform that provides uniform and consistent hosting capabilities for various types of apps across various Cisco platforms in fog computing.

In March 2016, PrismTech announced Vortex 2.1, a set of the most comprehensive, real-time data sharing platforms for IoT, which also support fog computing, with the name Vortex Fog. Datafloq is the one-stop source for big data, blockchain and artificial intelligence. We offer information, insights and opportunities to drive innovation with emerging technologies.

Major Market Developments

The fog computing technology enables you to process the data at its source or on the edge of your local network which is close to your data hub. The fog/edge empowered network allows you to process the time-critical data collected from the nearest IoT device locally. Smart buildings, smart cities are some new concepts emerged with the invention of Internet of Things. In smart buildings, IoT devices install to streamline the building maintenance activities.

Additionally, the region has witnessed a high adoption of cloud services in key economies of China, Japan, and Australia, thereby providing growth avenues for the implementation of fog network. Moreover, the Indian Government’s Make in India campaign is expected to boost the smart manufacturing growth, thereby propelling the demand for streaming data from the cloud and back. The connected healthcare segment captured a revenue share of close to 15% in 2016. Fog streamlines the healthcare cloud to offer users better control over data storage and access to the necessary information.

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