The Desktop as a Service (DaaS) Market is expected to increase at an 18.3% CAGR from 2023 to 2033. The market is anticipated to be valued at USD 6,484.3 million in 2023 and estimated to be worth USD 34,908.8 million in 2033.
The Desktop as a Service's Adaptability is Fuelling Market Expansion
For businesses of all sizes, managing a considerable number of desktop and laptop workstations with locally installed software is a headache. Additionally, time is wasted on failure investigation and repair, user assistance, and data backup. Desktop as a service addresses these problems by consolidating everything into a business or cloud data center.
The user apps don’t need to be set up or run locally on each device. Users may immediately switch to another physical device and continue where they left off if any of the physical devices malfunction. The cloud also be safe for enterprise data, which is advantageous for the DaaS. For many IT teams, daily challenges include a lack of data center space, tight budgets, and staffing scarcity.
Finding skilled administrators and architects might be difficult, even when funding is available, as the team may already be overcrowded. With a desktop as a service, administrative and maintenance chores may be easily handled and controlled in the cloud infrastructure. It is no longer essential to personally visit each desktop for many professions. As a result, a lot of businesses are converting to the Desktop as a service model to increase productivity.
The market is expected to grow as a result of the rising popularity of the IT centralization trend and the expanding availability of smart devices worldwide. The market is expected to be driven by the rising use of cloud-based services and solutions in several emerging economies, particularly in Indonesia, India, and China.
Virtual desktop services become popular among various enterprises as a result of their affordable subscription structure and simple operation. These services also make it possible for workers to do business from anywhere in the globe because they are independent of network, location, and device.
| Report Attribute | Details |
|---|---|
| Desktop as a Service (DaaS) Market Value (2023) | USD 6,484.3 million |
| Desktop as a Service (DaaS) Market Anticipated Value (2033) | USD 34,908.8 million |
| Desktop as a Service (DaaS) Market Growth Rate (2023 to 2033) | 18.3% CAGR |
The Desktop as a Service (DaaS) Market accounted for USD 3,042.4 million in 2018 to USD 5,556.4 million in 2022, expanding at a 16.2% CAGR from 2018 to 2022.
Organizations are finding themselves in a growingly complicated network as a result of the continual advancement of technology. They are forced to use DaaS solutions to automate and virtualize their operations due to the startling amount of data being created.
DaaS solutions aid businesses in maximizing the expense and scope of the experience they wish to provide. The workplace thus changes from being desktop-centric to being multi-device anytime, anywhere in the next years.
Governments from different nations are investing money in digitizing and changing their IT infrastructure. Together, these elements are anticipated to fuel demand for virtual desktops soon and propel market expansion.
| Historical CAGR (2018 to 2022) | 16.2% |
|---|---|
| Forecast CAGR (2023 to 2033) | 18.3% |
As per the FMI analysts, a valuation of USD 34,908.8 million by 2033 end is estimated for the market.
| Year | valuation |
|---|---|
| 2018 | USD 3,042.4 million |
| 2022 | USD 5,556.4 million |
| 2023 | USD 6,484.3 million |
| 2033 | USD 34,908.8 million |
Due to the necessity to boost their positions and stay competitive in the market, many businesses are racing to implement cutting-edge technology at a quick rate. DaaS is regarded as the ideal answer for boosting enterprises' adaptability, mobility, and productivity.
Bring-Your-Own-Device (BYOD) is expected to gain popularity as people use tablets, computers, smartphones, and other internet-enabled devices. In 2019, the World Bank reported that 56.7% of people worldwide used the Internet. The rate was 49.9% in 2018, and this indicates that the figures are expected to increase throughout the projection period, driving up demand for virtual desktops.
Another element that is anticipated to grow the market is the availability of different virtual cloud PC providers throughout the world. These solutions are expected to gain traction thanks to cloud PCs' capability to securely process, manage, and store sensitive data on remote servers via the Internet.
DaaS is being used Hugely in SMEs and MSME
IoT Infrastructure Adoption is Growing, and IT spending is Rising Alongside it
The Global Population now has Many Desktop and Smartphone Owners
Growing Preference for Working from Home
Spiking 5G Technology Implementation and Cloud Computing
Lack of Knowledge about the Advantages of DaaS
The market's expansion is being hampered by a lack of knowledge about the advantages of DaaS. Unbelievably many individuals are unaware that DaaS even exists. DaaS adoption is also being hampered by worries about data security and privacy, which is further posing a challenge to the market's expansion.
DaaS is less expensive than VDI when it comes to the first expenditure, but over time, DaaS's subscription expenses may surpass VDI's upfront costs. Additionally, given the expense of hosting virtual desktops, DaaS license prices may be great depending on the licensing arrangement provided by the vendor. The monthly cost of a virtual desktop for desktop as a service range from USD 40 to USD 250.
The type of virtual desktop, the length of the session, and the requested features can all affect these rates. Organizations analyze their alternatives and consider these aspects to determine if desktop as a service is the cost-effective option, even though the majority of DaaS providers bundle the cost of operating system licenses and virtual desktops. While DaaS pricing is constant and predictable compared to VDI, it is not always less expensive over the long term.
It takes a lot of time and effort for SMBs to set up the proper infrastructure to satisfy the demands of their employees. Setting up servers and PCs, purchasing new gear, and getting rid of the old are expensive tasks. Providers of desktops as a service take charge of all the difficult IT tasks and administer their services.
The virtual desktops are hosted in the cloud, so the business does not need to set up office workstations and servers. As a result, the business may spend less money maintaining desktops and cables at other sites.
All updating and upgrading procedures are completed without interfering with business hours by providers' IT professionals. DaaS services allow small firms to convert from Capex to Opex since they may select the pay-as-you-go model from the suppliers. Using this method, the business may sign up for a monthly or yearly subscription for a nominal charge.
| Countries | CAGR Value (2023 to 2033) |
|---|---|
| The United States | 22.3% |
| Germany | 9.2% |
| Japan | 6.5% |
| Australia | 3.7% |
| China | 15.8% |
| India | 18.6% |
| The United Kingdom | 16.5% |
The market in North American region is anticipated to increase significantly. The great acceptance rate of IT infrastructure along with IoT, AI platforms, and voice assistants is credited with driving the growth of the industry in the area. Additionally, it is anticipated that over the course of the projection period, the region's market increase favorably due to the factors such as:
Sales of virtual cloud personal computers in North America are probably driven by the enterprises' quick shift away from traditional desktops and toward cloud-based workspace virtualization in the United States of America. It is also projected that the growing use of DaaS devices across a few business verticals boost market expansion in the United States of America.
One important reason that is expected to drive the DaaS market in Europe is the rise of industrial and IT projects in the United Kingdom. Due to the United Kingdom’s established IT infrastructure, numerous service providers with operations in other countries are attempting to establish or extend their operations there.
It is anticipated that South Korea's significant use of virtual cloud PCs and artificial intelligence (AI) in data labeling applications favorably impact Asia Pacific market outside of Japan. Due to the integration of machine learning and AI models, data labeling has become a laborious and time-consuming procedure. As a result, many new players in South Korea are attempting to provide creative DaaS solutions to speed up operations.
Gyeonggi-do startup AIMMO secured USD 12 million in a Series A round ;in January 2022 to hasten its worldwide expansion and support the advancement of its data tagging technology. Three important data automation technologies are available from the company: AIMMO Enterprises, AIMMO GtaaS, and AIMMO DaaS.
Through the AIMMO DaaS platform, the company's volume and revenues of data labeling rose by 200% in 2021. It aims to provide this platform to the industry of autonomous vehicles. South Korea advances if more desktop service providers tried to offer their in-house solutions.
A strong growth rate is anticipated in the anticipated timeframe. China, Japan, and India are a few of the key countries propelling this region's desktop-as-a-service market expansion. Because there are many start-ups and SMEs in the Asia Pacific area, the market for desktop-as-a-service is growing swiftly. For instance,
In April 2021, the United States (290) was the only country to have many unicorn businesses valued at USD 1 billion or more than the 200 unicorn startups in Asia Pacific. Innovating new business models like Grab and other Southeast Asian super apps or taking on global issues like Japan's Cog Smart, many of Asia's most successful businesses are having an impact on the globe. The expansion of the desktop as a service market is being supported by such a start-up ecosystem.
The market's expansion may be significant due to the quick uptake of cloud-based products and services. In addition, the market is anticipated to benefit from the notable economic development of nations like China and India, expanding digitalization, and growing investments in IT infrastructure.
Based on the solution, the services segment is anticipated to hold the top spot in the DaaS market during the anticipated time frame at a CAGR of 68.7%. Sales of remote desktop services are projected to increase as a result of the growing need among businesses for solutions that are affordable, easy to use, and secure.
Customers like the administration, security, and centralization of Virtual Desktop Infrastructure (VDI). And yet they are drawn to the ease of having a reputable firm handle basic desktop maintenance on their behalf and are seen to have a viable choice in DaaS. As a result, it is projected that the DaaS services category demonstrates significant expansion and command the market.
The application market for small and medium-sized organizations is anticipated to expand at a CAGR of more than 86.5% starting in 2022. It is driven by the rising need for cost-cutting measures and evolving storage and processing capabilities provided by these platforms.
Small and medium-sized businesses are predicted to dominate the DaaS market in the future years in terms of company size. The category is expected to be driven by the simple accessibility of relatively affordable subscription-based models of virtual desktop servers.
Small and medium-sized businesses are being helped by developing country governments by giving them money to adopt cutting-edge technologies that boost production. The category grows because subscription-based DaaS models give these businesses the ability to quickly scale up or down in response to the current business requirements and operational environment.
According to FMI, the public sector is anticipated to have around 61.0% of the DaaS market share by deployment in 2022. Organizations with varying or rising demands are best suited for the public cloud deployment of remote desktops.
Additionally, because the information is available to the general public, it is ideal for businesses with little security concerns. For test environments, it is frequently favored because of its prominent and simple deployment and configuration. It is economical since businesses only pay for networking, virtualization, and storage services that are offered on the open internet by cloud service providers.
According to the industry, it is anticipated that the IT & telecom category accounts for the key share of the DaaS market during the forecast period. This expansion is related to regulatory authorities' increasing spending on the construction of IT and communications infrastructure throughout the world.
Users in this sector can minimize the total cost of ownership (TCO) of their desktop environment, accommodate expansion, and make better use of their present assets with virtual desktop servers. These servers can be set up by a virtual machine working from a distance. For business continuity to be achieved cost-effectively, the machine must be close to the end user.
To meet the rising demand for cutting-edge goods from clients, the desktop as a service (DaaS) market is fairly fragmented globally. Most of the leading companies are concentrating on offering updated and new solutions. Some of the other desktop service providers are forming alliances and working together with well-known organizations to expand globally and fortify their positions.
Recent Developments:
| Attribute | Details |
|---|---|
| Market Size Value In 2023 | USD 6,484.3 million |
| Market Size Value in End of Forecast (2033) | USD 34,908.8 million |
| Market Analysis | USD million for Value |
| Key Region Covered | North America; Latin America; Western Europe; Eastern Europe; Asia Pacific excluding Japan; Japan; The Middle East & Africa |
| Key Segments | By Solution, By Enterprise Size, By Deployment, By Industry, By Region |
| Key Companies Profiled | Cisco Systems, Inc.; Fujitsu; NetApp; Citrix Systems, Inc.; NTT Communications Ltd.; VMware; Microsoft Corporation; IBM Corporation; Cloudalize; Amazon Web Services |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is predicted to expand at an 18.3% CAGR through 2033.
The primary drivers supporting the market are the quick growth of IT infrastructures and the growing habit of working from home.
The market is expected to surpass USD 34,908.8 million by 2033.
The market is anticipated to be USD 6,484.3 million in 2023.
North America is dominating the global desktop as a service (DaaS) market by 2033.
The market is valued at USD 6,484.3 billion in 2023.
Cisco Systems, Inc., Fujitsu, NetApp, and VMware are the leading industry market players.
The market’s CAGR from 2023 to 2033 will be 18.3%.
North America is likely to dominate the market.
The services segment is estimated to account for 68.7% CAGR until 2033.
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Desktop as a Service (DaaS) Market
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