The Global Device as a Service (DaaS) Market size is expected to reach USD 455 billion by 2030 from USD 43.06 billion in 2021, growing at a CAGR of 39.40% during the forecast period 2022–2030.
PCs, smartphones, and other mobile computing devices can be rented on a pay-per-use basis through the device as a service, or DaaS, model. Outsourcing a company's hardware, software, and device management to an external provider can make a company's information technology requirements more manageable. This process is known as the device as a service. If a company were to subscribe to a provider, they would be able to upgrade their hardware after their lease term without incurring the costs typically associated with a device refresh.
Hardware products such as personal computers, laptops, desktops, tablets, two-in-ones, and mobile phones may be included in an offering of devices.
A contract outlining the hardware, software, services, amounts, and lengths of time required for the device as the vendor usually provides a service. Payment for the device as a service is typically determined per device. Some original equipment manufacturers (OEMs) provide "device as a service," but their customers only have access to a select few options from the full range of their available devices. Users cannot replace the hardware they currently use whenever they choose from a given vendor. In most cases, a contract will outline a timeline for device replacement two, three, or five years in the future.
Typically, organizations can purchase devices that already have the required software. A vendor will typically also include an upgrade path visible for patches and updates.
Typically, small and medium-sized businesses do not have a substantial capital for updating their devices. DaaS enables businesses to convert their IT budgets into more manageable cash flows by utilizing subscription-based hardware devices. It reduces repair and ownership costs, allowing customers to make more strategic business decisions. Since DaaS is a subscription-based model that provides services at a low cost, organizations can quickly scale up or down based on their current business requirements. As a result, consumers worldwide are increasingly opting for DaaS due to its adaptability, cost savings, and data security.
The rapid adoption of the subscription-based services model is one of the key factors driving the market for device-as-a-service. Subscription-based device-as-a-service models enable clients to convert the high cost of acquiring new technology from a capital expenditure (CapEx) to an operating expense (OpEx) (OpEx). This allows small, medium, and large businesses to free up capital for investment in revenue-driving strategic initiatives. In addition, additional benefits, such as policy compliance and the ability to use the latest technologies and access customized services, such as device configuration, installation, data migration, on-site support, and technology recycling, are gained. As a subscription service, the device-as-a-service model enables a company to quickly scale up or down based on its current operating environment and business requirements. Whether expanding or contracting, organizations can pay for precisely what they require when they need it.
BYOD and CYOD can slow down the growth of the global DaaS market because it prevents manufacturers from entering into contracts and maintaining long-term relationships. It is also possible to harm DaaS providers due to customers selecting their collaboration models and software to use with their teams and clients. Bring-Your-Own-Device, also known as BYOD, is a concept that is gaining popularity worldwide due to its many benefits, including lower hardware and services costs, increased user satisfaction, and the convenience of not requiring organizations to use a specific wireless carrier.
On the other hand, the Choose-Your-Own-Device (CYOD) model allows companies to give their employees access to a pre-approved selection of mobile devices from which they can make their selection. These devices are owned by the company or the employees who have paid for them. In addition to that, the mobile plan's expenses are taken care of by the model. As a result, the swift adoption of these models is a barrier to expanding the DaaS market.
Wearable devices like smartwatches, virtual reality headsets, augmented reality glasses, and medical patches are convenient and are gaining popularity among end-users, including business enterprises. These businesses are primarily trying to benefit from the mobility and interoperability of wearable devices and the vast amount of data they generate. Wearable devices include smartwatches, VR headsets, AR glasses, and medical patches. In recent years, many businesses have initiated the production of wearable technology to market solutions known as wearables as a service (WaaS). For instance, Omate is a Chinese company that provides a solution for wearables offered as a service.
Similarly, the French banking and insurance company Arkéa recently introduced its WaaS model, enabling end-users or institutions to rent wearable devices. Because of this, there is no longer a requirement for an initial purchase of wearable devices, which removes a potential additional barrier during the sales process. As a result, some device manufacturers have begun developing smartwatches with the end-user demographics of recreational athletes, children, and the elderly in mind. The management of elderly care is now being accomplished by using wearable technology in government offices, healthcare organizations, insurance companies, and even within families.
The device as a service (DaaS) market share is segmented based on Offering, Device Type, Organization, Industry Vertical, and Regional.
The market is segmented by offering into hardware, software, and services. The hardware segment comprises desktops, laptops, tablets, notebooks, smartphones, and peripherals. Businesses' increasing interest in multiple hardware solutions, such as desktops, laptops, and laptops in a single offering, is anticipated to drive market expansion. Additionally, IT infrastructure quickly becomes obsolete, necessitating an upgrade every few years. Hardware leasing allows small and medium-sized businesses to adopt the most recent technologies without purchasing them outright. The device-as-a-service model includes support and maintenance services. It consists of device lifecycle services, such as deployment & integration, installation, asset recovery services, and maintenance & repair based on the end needs. User's Frequently, the benefits are adaptable and can be optimized and customized. Due to the increasing demand for DaaS services, several managed service providers and value-added resellers have partnered with hardware manufacturers and software vendors to provide device-as-a-service solutions under their brands.
The market is segmented into small and medium enterprises and large enterprises based on business size. Small- and medium-sized business owners and IT leaders have a variety of responsibilities, such as managing inventories and preventing cyberattacks. Moreover, small and medium-sized businesses favour the operating expenses business model over capital expenditures due to its lower cost and greater flexibility. These factors contribute to the adoption of the device-as-a-service model in small and medium-sized businesses.
Based on Industry Vertical, the market is further segmented into Banking, Financial Services, and Insurance (BFSI), educational institutions, healthcare and life sciences, information technology and telecommunications, public sector and government offices, and others. Information technology and telecommunications dominated the market. Internet service providers, telecommunications companies, and cable and satellite companies comprise the IT and telecommunications vertical. This segment generates the highest demand for desktops, laptops, notebooks, tablets, and smartphones due to the importance of security, dependability, and high performance of IT devices to the fundamental operations of the sector.
The market has been segmented by device type into desktop; laptop; notebook, tablet; smartphone, and peripherals. Government initiatives to better the infrastructure and increase demand for cloud-based virtual services are anticipated to increase demand for the desktop segment's device-as-a-service model. Additionally, an increase in the number of intelligent devices and a growing trend toward IT centralization are anticipated to fuel the segment's growth.
The device as a service (DaaS) market growth is segmented based on region: North America, Europe, Asia Pacific and LAMEA. North
America is an early adopter of cutting-edge technologies like cloud computing, the Internet of Things, and new service models like device-as-a-service. The regional market is also viable in government regulations for small businesses and large corporations. These factors are most likely to drive market expansion. Rising demand from IT and telecommunications for the device-as-a-service model and rising demand for mobile devices in various industries are anticipated to contribute to the market's expansion.
Asia-Pacific is anticipated to grow at the fastest rate during the forecast period. Asia-Pacific is home to some of the most rapidly expanding economies, including India and China. Demand for the device-as-a-service model is anticipated to increase due to an extensive IT and telecommunications workforce and a large number of enterprises. In addition, numerous life sciences and retail organizations, the increase in the number of small and medium-sized businesses, and the growing awareness of DaaS are anticipated to drive the market over the forecast period. Increasing internet penetration and the unabated growth of multiple industries in countries like China, India, and Japan could also bode well for expanding the regional market.
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