Fog computing global market will exceed US$18 billion by 2022
The fog computing market opportunity will exceed $18 billion (€15.48 billion) worldwide by the year 2022, according to a new report by 451 Research. Commissioned by the OpenFog Consortium, the Size and Impact of Fog Computing Market projects that the largest markets for fog computing will be, in order, energy/utilities, transportation, healthcare and the industrial sectors.
New use cases created by the OpenFog Consortium were also released that showcase how fog works in industry. These use cases provide fog technologists with detailed views of how fog is deployed in autonomous driving, energy, healthcare and smart buildings.
“Through our extensive research, it’s clear that fog computing is on a growth trajectory to play a crucial role in IoT, 5G and other advanced distributed and connected systems,” said Christian Renaud, research director, Internet of Things, 451 Research, and lead author of the report. “It’s not only a technology path to ensure the optimal performance of the cloud-to-things continuum, but it’s also the fuel that will drive new business value.”
Key findings from the report were presented during an opening keynote at the inaugural Fog World Congressconference.
In addition to projecting an $18 billion (€15.48 billion) fog market and identifying the top industry-specific market opportunities, the report also identified:
- Key market transitions fueling the growth include investments in energy infrastructure modernisation, demographic shifts and regulatory mandates in transportation and healthcare.
- Hardware will have the largest percentage of overall fog revenue (51.6%), followed by fog applications (19.9%) and then services (15.7%). By 2022, spend will shift to apps and services, as fog functionality is incorporated into existing hardware.
- Cloud spend is expected to increase 147% to $6.4 billion (€5.50 billion) by 2022.
“This is a seminal moment that not only validates the magnitude of fog, but also provides us with a first-row seat to the opportunities ahead,” said Helder Antunes, chairman of the OpenFog Consortium and senior director, Cisco. “Within the OpenFog community, we’ve understood the significance of fog—but with its growth rate of nearly 500 percent over the next five years—consider it a secret no more.”
The fog market report includes the sizing and impact of fog in the following verticals: agriculture, datacentres, energy and utilities, health, industrial, military, retail, smart buildings, smart cities, smart homes, transportation, and wearables.
Fog computing is the system-level architecture that brings computing, storage, control, and networking functions closer to the data-producing sources along the cloud-to-thing continuum. Applicable across industry sectors, fog computing effectively addresses issues related to security, cognition, agility, latency and efficiency.
Download the full report here.