Desktop as a Service (DaaS) Market Size, Share, Trends, Growth, 2032

Desktop as a Service (DaaS) Industry Prospective:

The global Desktop as a Service (DaaS) market size was worth around USD 5.9 billion in 2023 and is predicted to grow to around USD 34.3 billion by 2032 with a compound annual growth rate (CAGR) of roughly 21.5% between 2024 and 2032.

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Desktop as a Service (DaaS) Market: Overview

Desktop as a service (DaaS) is a method of delivering whole virtual desktop environments to customers via the cloud, including operating systems, programs, data, and user preferences. Desktops run in virtual machines that are hosted on cloud-managed computing, storage, and network infrastructure. Users can use their desktop environment through PCs, laptops, tablets, and smartphones. Several organizations are looking for an alternative to the traditional desktop deployment strategy, which involves IT managers installing an operating system and software on each employee’s device. With that strategy, administrators frequently spend too much time and money installing software, managing upgrades and updates, and securing devices.

Key Insights

• As per the analysis shared by our research analyst, the global Desktop as a Service (DaaS) market is estimated to grow annually at a CAGR of around 21.5% over the forecast period (2024-2032).
• In terms of revenue, the global Desktop as a Service (DaaS) market size was valued at around USD 5.9 billion in 2023 and is projected to reach USD 34.3 billion by 2032.
• The increasing remote and hybrid work culture is expected to drive the Desktop as a Service (DaaS) market over the forecast period.
• Based on enterprise size, the large enterprise segment is expected to dominate the Desktop as a Service (DaaS) market over the forecast period.
• Based on end user, the BFSI segment is expected to hold the largest market share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Desktop as a Service (DaaS) Market: Growth Drivers

Growing demand for work flexibility drives market growth

To boost output and job happiness, organizations must effectively manage their personnel. As a result, it employs a range of working paradigms, including a hybrid one. Using a hybrid working style has several advantages for employees, companies, and the environment. Employee freedom, output, and job happiness all rise as a result. It expands the talent pool and lowers office space maintenance and rental costs for businesses. About 52% of workers are anticipated to think about working for a fully remote or hybrid organization in the upcoming year, per a Microsoft study. As a result, desktops as a service are becoming more and more popular due to the growing need for work flexibility. Businesses that need to quickly expand or contract their workforce in response to shifting market conditions may find this flexibility advantageous. 82% of IT leaders want to work with technology that supports the emerging ideals of the workplace, per a Lenovo survey conducted in 2022. Together with rising consumer spending on smartphones and digitalization, these developments are fueling the Desktop as a Service market expansion.

Desktop as a Service (DaaS) Market: Restraints

Security and privacy concern hinders market growth

The Desktop as a Service (DaaS) market takes security and privacy issues very seriously since companies have to guarantee the integrity, confidentiality, and availability of their data as they migrate to cloud-based solutions. These issues can be a focus for innovation among service providers as well as a deterrent to market acceptance. Especially if the DaaS provider's infrastructure is not appropriately secured, keeping data on outside servers raises the danger of cyberattacks, illegal access, or breaches. Furthermore, under strict regulations (e.g., GDPR, HIPAA), companies in sectors including government, finance, and healthcare ensure compliance when data lives on outside servers can be difficult, especially in cases when providers lack required certifications.

Desktop as a Service (DaaS) Market: Opportunities

The introduction of sustainable device-as-a-service offers a lucrative opportunity for market growth

The growing introduction of sustainable device-as-a-service will provide a potential opportunity for the Desktop as a Service (DaaS) industry over the projected period. For instance, in April 2024, leading digital business and IT services provider NTT DATA partnered with HP to create a Sustainable Device-as-a-Service solution that integrates the circular economy and sustainability into end-to-end device lifecycle management. Sustainability may be operationalized and integrated into the endpoint device lifecycle by enterprises due to the solution. As part of its comprehensive strategy, NTT DATA assists businesses in expediting their whole sustainable transformation process, from reaching Net Zero goals to beyond.

Desktop as a Service (DaaS) Market: Challenges

Dependency on network infrastructure poses a major challenge to market expansion

Real-time data transmission is necessary for virtual desktop performance. Particularly for resource-intensive applications like design or video editing, network latency, jitter, or packet loss can cause responsiveness delays that impair user experience. Furthermore, seamless access to virtual desktops requires reliable and fast internet connections. Workflows can be disrupted by slowdowns caused by insufficient bandwidth, especially in rural or distant locations with few access options. Therefore, the dependency on network infrastructure poses a major challenge for the Desktop as a Service (DaaS) market growth.

Desktop as a Service (DaaS) Market: Report Scope

Desktop as a Service (DaaS) Market: Segmentation

The global Desktop as a Service (DaaS) industry is segmented based on enterprise size, end user, and region.

Based on enterprise size, the global Desktop as a Service market is segmented into small and medium enterprises and large enterprises. The large enterprise segment is expected to dominate the Desktop as a Service (DaaS) market over the forecast period. Large companies frequently employ thousands of people and operate in several locations. The scalability provided by DaaS allows for the rapid deployment of virtual desktops, guaranteeing smooth access for a geographically distributed or expanding workforce. Additionally, by eliminating the requirement for hardware and infrastructure on-premises, DaaS enables large companies to switch from capital expenditures (CapEx) to operational expenditures (OpEx). Large corporations' finance practices fit quite nicely with this approach.

Based on end user, the global Desktop as a Service industry is bifurcated into BFSI, media & entertainment, government, IT & Telecom, healthcare, manufacturing, education, and others. The BFSI segment is expected to hold the largest market share over the forecast period. BFSI firms are subject to stringent regulatory obligations, such as GDPR and PCI DSS, and handle sensitive client data. To prevent data breaches, DaaS provides sophisticated security features, including encryption, endpoint protection, and multi-factor authentication, in addition to centralized data management.

Desktop as a Service (DaaS) Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global Desktop as a Service (DaaS) market. The regional expansion of the market is attributed to the increasing trend of remote and hybrid work. The demand for desktop solutions that are safe, adaptable, and scalable has significantly increased as a result of the COVID-19 pandemic's acceleration of the adoption of remote work. For many North American organizations, hybrid labor has become the standard even after the pandemic. Additionally, businesses with a significant presence in the area, like Citrix, Amazon (WorkSpaces), and Microsoft (Azure Virtual Desktop), are propelling market innovation and adoption. These suppliers provide complete and reasonably priced DaaS solutions by utilizing their vast ecosystems.

Desktop as a Service (DaaS) Market: Competitive Analysis

The global Desktop as a Service (DaaS) market is dominated by players like:

• Cisco Systems Inc.
• Fujitsu
• NetApp
• Citrix Systems Inc.
• NTT Communications Ltd.
• VMware
• Microsoft Corporation
• IBM Corporation
• Cloudalize
• Amazon Web Services

The global Desktop as a Service (DaaS) market is segmented as follows:

By Enterprise Size

• Small and Medium Enterprises
• Large Enterprises

By End User

• BFSI
• Media & Entertainment
• Government
• IT & Telecom
• Healthcare
• Manufacturing
• Education
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa