Fog computing market to witness a robust CAGR of 65% over 2017-2024, healthcare applications to drive the industry trends
Fog computing market, a rather inherent extension of cloud computing industry, is expected to find its way among the most remunerative business spheres of recent times. As the explosive amplitude of IoT continues to touch almost every business vertical, conventional cloud computing platforms are showing their limitations in quickly processing the vast volume of data. The operational challenges of current cloud computing structure are in a way prompting tech giants to move from centralized to decentralized architecture. Fog computing market seems to be one of the major benefactors of this transition. Subject to its outstanding credibility to support vertically-isolated and latency sensitive applications, by means of offering a distributed, ubiquitous, multi layered activity, fog computing aims to simplify the IoT infrastructure.
According to the definition given by U.S. NIST (National Institute of Standards and Technology), fog computing decentralizes management, data analytics, and applications within the network itself. This, in turn, minimizes the intervention time between requests and responses, providing local computing resource to devices and network connectivity to centralized services. Additionally, against the backdrop, where reliable estimates suggest that the number of IoT connected devices would surpass 50 billion by 2020, fog computing market, undoubtedly would witness a plethora of opportunities on a global scale. The prediction is aptly validated by a market assessment report that forecasts the overall business space to witness a stupendous CAGR of 65% over 2017-2024.
Experts believe, the widening outreach of the application spectrum of fog computing industry is one of the primary factors backing the humongous growth. In this regard, it is prudent to mention that unlike cloud-based model, where data can be accessed only from a centralized platform, fog computing allows end-users even to access smaller intricate, and specific information.
Unveiling the potential of fog computing market from healthcare applications
The healthcare sector, unquestionably is one of the lucrative growth avenues for fog computing market. Over the past few years, healthcare fraternity has undergone a paradigm shift from volume to value-based model, the fundamental factor that has led to an increased penetration of IoT devices in the business space. In fact, as per reliable estimates, worldwide healthcare IoT installations is expected to reach 161 million by 2020. Against this backdrop, it goes without saying that the necessity to transmit healthcare cloud to all health sectors has become much important, in a bid to ensure real time smart communications. This, in consequence, would fuel the demand for advanced fog solutions that simultaneously deliver low latency and holistic intelligence, subsequently driving fog computing market size.
In fact, as per analysts’ opinion, fog computing industry is set to remarkably influence the transformed supply chain model of healthcare fraternity, with an appreciable improvement in operational efficiency, cost reduction, and power consumption. With the help of particular user protocols and predefined authorization, fog computing allows any data with regards to patient health to share among all the integrated platforms through a common interface. Still being considered at a budding stage, the true potential of fog computing industry can only be achieved through extensive research both from private and government entities.
In this regard, scientists of Wayne State University recently made to the headlines with the announcement of its plan of developing a collaborative edge computing ecosystem. Reportedly, the envision comes on the heels of creating a platform that would be able to connect all healthcare related information from disparate organizations via a common IoT platform. It has been also speculated that 40% of the global IoT generated data by the end of 2019 would be handled at the edge of the network – estimates further backing the steeping growth curve of fog computing market.
Challenges| Fog computing market
One of the foremost restraints in fog computing industry growth is lack of proper standardization of its deployment, cite experts. In effect of which, end users sometimes find inconsistency which ultimately result in unreachable information and decreased data retrieval. Add to it, fog also inherits some of the existing problems of cloud computing, security concerns being at the pinnacle. Perhaps marred by the fact that fog devices are generally set up at public places, they are vulnerable to unnecessary interference. With inadequacy of surveillance, transmitting a computation logic to the edge of network has turned out to be a vital potential threat for fog computing industry.
However, renowned tech juggernauts such as Intel, Dell, Cisco, ARM Holdings, and Microsoft, appear to show quite proactiveness in overcoming these limitations. Say for instance, in a bid to standardize fog computing technology for future deployment, the aforementioned organizations in association with Princeton University have brought forth OpenFog Consortium in the year 2015. The forum mainly aims to solve challenges associated with innovative digital IT infrastructure pertaining to communication, latency, and bandwidth. The competitive landscape is anticipated to witness similar kind of encouraging research initiatives over the ensuing years. All in all, with severe network bottleneck and subsequent requirement of addressing cloud computing deficiencies, fog computing market undeniably would be the next opportunistic investment spot for tech giants. As per a report by Global Market Insights, Inc. the business is forecast to surpass a global share of USD 700 million by 2024.