Desktop virtualization market is Segmented By Type (Virtual desktop infrastructure (VDI), Desktop-as-a-service (DaaS), Remote Desktop Services (RDS), By Organization (Small and medium-sized enterprises, Large enterprises), By End-User (Banking, Financial Services and Insurance, Education, Healthcare and Life Sciences, IT and ITeS, Telecom, Retail, Automotive, Transportation, and Logistics, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
Global Desktop Virtualization Market reached USD 12.1 billion in 2022 and is expected to reach USD 22.3 billion by 2030, growing with a CAGR of 10.2% during the forecast period 2024-2031. The adoption of desktop virtualization is the potential for cost savings.
By centralizing desktops on servers and delivering them over the network to end-user devices organizations can reduce hardware costs, lower energy consumption and which streamline IT management and support.
North America is expected to hold around 1/3rd of the global desktop virtualization market during the forecast period. The companies in the region are following marketing strategies to expand their market presence. For instance, on 29 September 2022, Kyndryl, the world's largest IT infrastructure services provider, announced a global alliance with Citrix to enhance workplace collaboration and employee productivity for the hybrid workforce.
Market Summary
| Metrics | Details |
| CAGR | 10.2% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type organization, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | North America |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Demand for Desktop Virtualization in Gaming
The rise of cloud gaming platforms is being a major driver of desktop virtualization in gaming. Cloud gaming services provide the virtual desktop infrastructure to stream games directly to users' devices, eliminating the need for high-end gaming hardware. The easy accessibility and convenience have attracted an audience and promoted the adoption of gaming using virtual desktops.
For instance, On 28 April 2023, Virtual Desktop popularly known for a VR app that allows users to stream PC VR games to their VR headsets. The recent major update, Virtual Desktop introduces a new feature called "Super Resolution," which utilizes Snapdragon Game Super Resolution (SGSR) support. The technology is specifically optimized for Qualcomm's Snapdragon mobile chips and is commonly used in VR headsets.
Adoption of Virtual Desktop in Hybrid Work Culture
Virtual desktops enable seamless collaboration among remote and office teams. Employees can easily share files and access shared resources, which also promotes teamwork and productivity. Centralized management of virtual desktops simplifies IT administration. IT teams can efficiently deploy updates, manage applications and troubleshoot issues from a single interface.
For instance, on 30 August 2022, virtual desktop infrastructure and desktop as a Service played a crucial role in supporting the hybrid work model. VMware is introducing a next-generation VMware Horizon Cloud that enables multi-cloud agility and flexibility. Additionally, VMware is collaborating with Google to provide access to any app on any device for the hybrid workforce.
High Cost and Network Downtime
Virtual desktops run on end devices, the host infrastructure requires powerful hardware to support multiple virtual machines and ensure smooth performance. Setting up and maintaining this infrastructure can be costly. Also, Investment is required for purchasing hardware and software licenses.
Virtual desktops majorly rely on real-time communication between the client side and the machine side that is hosted on the backend servers. Even small delays in the network affect the whole server which causes major loss. Network downtime leads to interrupt workflows, data loss and decreased productivity.
Market Segment Analysis
The global desktop virtualization market is segmented based on type organization, end-user and region.
Rising Demand for DaaS in Desktop Virtualization Market
Desktop-as-a-service (DaaS) is expected to hold around 1/3rd of the global desktop virtualization market in 2022. Implementing DaaS leads to cost savings for businesses. By centralizing desktop management it reduces the need for expensive hardware upgrades, businesses can optimize their IT infrastructure and reduce overall costs. DaaS also offers scalable solutions that would be easily adaptable by organizations.
For instance, on 23 May 2023 orka Pulse is a system for virtual desktop delivery, specifically for macOS, offered by MacStadium. It utilizes WebRTC technology to enable high-definition audio and visual streaming on virtual Mac desktops through web browsers that support HTML5. The latest development in DaaS provides solutions for virtual desktops and is marked as the first application of WebRTC.
Market Geographical Share
The Rising Adoption of Desktop Virtualization in Asia-Pacific
Asia-Pacific is expected to grow at a significant rate holding a market share of around 1/4th of the global desktop virtualization market during the forecast period. The rise in adoption of remote work across Asia-Pacific, leading businesses to seek flexible and secure ways to enable their employees to work from anywhere. Desktop virtualization solutions played a crucial role in providing remote access to corporate desktops and applications.
For instance, on 14 July 2021, Microsoft announced a new virtual desktop infrastructure (VDI) service called "Windows 365" that allows remote access to Windows 10 or Windows 11 desktops and applications. It is designed for Businesses and enterprises. The Windows 365 service allows users to access their desktops and applications from any device or location. It offers a consistent user experience, instant-on system boot, personal customizations and management support via Microsoft Endpoint Manager.
Major Key Players
The major global players include Oracle, IBM, Huawei, DXC Technology, Citrix systems, VMware, Microsoft, Cisco Systems, Amazon Web Services (AWS) and Ericom Software.
COVID-19 Impact Analysis On Market
During the pandemic government announced lockdowns and social distancing measures, so businesses quickly adapt to remote work to ensure business continuity. Desktop virtualization provides a crucial solution that enables employees to access their work desktops and applications securely from home or other remote locations.
The sudden shift towards remote work led to increasing demand for virtual desktops and Desktop-as-a-Service (DaaS) solutions. Organizations provide scalable and flexible virtual desktop infrastructures to accommodate remote employees and maintain productivity. Due to these factors, the pandemic boosts the market demand.
AI Impact
AI-powered virtual desktop solutions can analyze user behavior, preferences and work patterns to optimize the user experience. By understanding user habits, AI can proactively allocate resources, prioritize applications and personalize the desktop environment which leads to increase better performance and increased productivity.
AI algorithms dynamically allocate computing resources based on real-time demand. The intelligent resource management ensures that virtual desktops receive the necessary processing power, memory and network bandwidth to deliver a smooth and responsive user experience, even during peak usage hours.
Russia- Ukraine War Impact
During the conflict, schools and colleges have been directly affected. Many educational institutions have been damaged, destroyed or used for military purposes, leading to the suspension of classes and educational activities. Due to these, the market witnessed a downfall the in region.
The war caused mass displacements of people, including students and educators. Many families have been forced to flee their homes, leading to disruptions in students' education and access to schools. The conflicts limited access to the war region. Schools and universities are less accessible due to security concerns, lack of resources and logistic challenges.
Key Developments
- On, 15 July 2021, Nerdio announced its partnership with Teradici for offering support for Azure Virtual Desktop in which Nerdio enterprise users enhance their display protocol performance and strengthen security measures in their virtual desktop environments.
- On, 12 November 2021, Vodafone successfully expanded its virtualization journey with VMware by deploying the vendor's Telco Cloud Platform across all 11 of its European markets, this partnership positions VMware as the central system for Vodafone's networks and IT systems.
- On, 19 July 2023, DigiBoxx, a digital file-sharing and cloud storage service provider, launched a new data storage solution called Megh3. The platform offers fast, simple and elastic storage solutions for both corporates and individuals.Megh3 is powered by Hitachi through Hitachi Systems India in India and it sets a new standard for digital storage, offering accessibility and top-notch security for data sharing needs across platforms.
Why Purchase the Report?
- To visualize the global desktop virtualization market segmentation based on type organization, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of desktop virtualization market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global desktop virtualization market report would provide approximately 61 tables, 61 figures and 181 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
