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The desktop virtualization market size is projected to increase by USD 8.12 billion at a CAGR of 10.86% between 2023 and 2028. The growth rate of the market depends on several factors including the growing adoption of cloud-based VDI for SMEs, high integration of Artificial Intelligence (AI) and an increase in the development of new VDI solutions. Desktop virtualization refers to the technology that separates the desktop environment and associated application software from the physical device used to access it. Instead of running applications and storing data on a local device, desktop virtualization allows these processes to occur on a remote server.
The report includes a comprehensive outlook on the desktop virtualization market offering forecasts for the industry segmented by Type, which comprises virtual desktop infrastructure (VDI), desktop-as-a-service (DaaS), and remote desktop service (RDS). Additionally, it categorizes End-user into large enterprises, small, and medium enterprises and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The market analysis and report provide market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The growing adoption of cloud-based VDI for SMEs is notably driving market growth. An increase in the adoption of cloud computing services globally is driving the demand for cloud-based VDIs. Most companies are migrating their business operations from on-premises to the cloud for increased efficiency, along with reduced operational costs. Further, SMEs are finding it difficult to implement VDI due to the high initial costs involved. Hence, most such enterprises prefer operating through desktops. However, the scenario changed after the introduction of cloud-based VDI solutions, where the cost of initial VDI deployment is cheaper when compared with on-premise VDI.
Moreover, the hardware that runs hundreds of virtual machines is extremely costly for SMEs with a tighter VDI implementation budget. Operating these infrastructures requires higher skill sets than operating a physical desktop. Cloud-based VDI, SMEs can easily deploy a VDI solution and pay monthly for the service. Therefore, the adoption of cloud computing services will boost the growth of the market during the forecast period.
Remote work and hybrid work environments an emerging shaping the market growth. The rise of remote and hybrid work models has accelerated the demand for desktop virtualization. Employees need secure access to their work environments from anywhere, driving the adoption of VDI and DaaS solutions. Virtual desktops provide flexibility by allowing users to work from different devices while maintaining a consistent experience. Employees can seamlessly switch between personal and work devices without compromising security or productivity. Desktop virtualization offers scalability, making it easier for organizations to adapt to changing workforce sizes.
Further, organizations benefit from cost savings through reduced hardware requirements. Instead of investing in individual devices for each employee, they can leverage shared resources in virtualized environments. The ongoing shift toward remote and hybrid work setups due to evolving work cultures and technological advancements has accelerated the adoption of desktop virtualization solutions, which will have a positive impact on the growth of the market during the forecast period.
Increasing cyber threats is a significant challenge hindering market growth. VDI environments, being centralized, become prime targets for cybercriminals. Breaches in these environments can potentially expose sensitive data from multiple users or organizations at once. Implementing and managing security measures in a VDI environment can be complex. Misconfigurations or inadequate security protocols can create vulnerabilities. Centralizing data within a VDI environment means that a breach can potentially expose a large amount of sensitive information all at once. This could occur due to vulnerabilities in the VDI software, misconfigurations, or compromised user credentials.
However, in multi-tenant environments, where multiple users or organizations share the same VDI infrastructure, there is a risk of one entity's actions affecting the security of others if proper isolation measures are not in place. Thus, cyber threats may hamper the growth of the market during the forecast period.
The market share growth by the virtual desktop infrastructure (VDI) segment will be significant during the forecast period. VDI refers to the technology used to create virtualized desktop environments on a remote server rather than on a local computer or device. It allows users to access their desktop operating systems and applications from a centralized server, typically hosted in a data centre or the cloud.
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The virtual desktop infrastructure (VDI) segment was the largest and was valued at USD 3.21 billion in 2018. Further, the adoption of VDI solutions enables computing devices to use enterprise applications from remote locations. This enhances employee productivity and reduces the per-seat cost of enterprises. For instance, VDI allows end-users of an enterprise, those spending most of their productive time on the go, to access the required documents and applications on mobile devices in real-time. In the long run, the information and technology (IT )sector is expected to adopt the work-from-home scenario, which may boost the growth of the VDI segment as well as the market during the forecast period.
Desktop virtualization solutions are becoming more accessible and affordable for SMEs, allowing them to leverage the benefits of centralized management, security, and scalability without the need for extensive resources. VDI allows SMEs to scale their infrastructure easily. VDI supports these applications by providing the necessary infrastructure without requiring specific hardware upgrades for each user. Centralized data storage in VDI facilitates easier backup and disaster recovery planning. In case of hardware failure or data loss, recovery is smoother compared to traditional setups. The increased reliability toward operating through cloud-based services will lead to the adoption of cloud-based VDI in SMEs, which will boost the growth of the SME segment as well as the global market during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America, being a hub for technological innovation, sees rapid adoption of new technologies. This region often leads in the development and deployment of advanced desktop virtualization solutions. The shift towards remote and hybrid work models, especially accelerated by the COVID-19 pandemic, has propelled the adoption of desktop virtualization solutions. Companies in North America seek flexible, secure, and scalable ways to enable remote work, driving demand for VDI and DaaS solutions. Enterprises in North America prioritize efficiency, cost savings, and centralized management. Desktop virtualization offers these benefits by streamlining IT operations, reducing hardware costs, and providing a centralized platform for managing desktop environments.
In addition, the adoption of cloud-based VDI solutions will add to the regional market growth. Businesses with a broad range of end-user segments obtain enterprise licenses that enable them to host virtual desktop images on their internal servers, enabling the efficient internal management of their enterprise solutions. Such factors are expected to drive the regional market growth during the market forecasting period.
Desktop Virtualization Market forecasts include the adoption lifecycle of the market research and growth and market growth and forecasting, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their desktop virtualization market trends and analysis and market growth and trends strategies.
Global Desktop Virtualization Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ace Cloud - The company offers desktop virtualization namely Ace Cloud application virtualization that enables the deliverance of applications on endpoint devices, which are installed on remote cloud servers.
Amazon.com Inc. - The company offers a desktop virtualization solution namely Amazon WorkSpaces, which is a fully managed desktop computing service in the cloud.
Cameyo Inc.- The company offers desktop virtualization software that securely delivers business-critical Windows apps to any device.
The Desktop Virtualization Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Desktop virtualization market growth analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The desktop virtualization market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Desktop Virtualization Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.86% |
Market Growth 2024-2028 |
USD 8.12 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.64 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ace Cloud, Amazon.com Inc., Apporto, Cameyo Inc., Cisco Systems Inc., Cloud Software Group Inc., Deloitte Touche Tohmatsu Ltd., E Shells Inc, Evolve IP LLC, International Business Machines Corp., Kasm, Microsoft Corp., Ncomputing Co. Ltd., Nerdio Inc., Nutanix Inc., Oracle Corp., Parallels International GmbH, Red Hat Inc., V2 Cloud Solutions Inc., and VMware Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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