Virtual Desktop Infrastructure Market

Market Overview

The virtual desktop infrastructure market size was valued at USD 11.92 billion in 2021. It is expected to reach USD 57.91 billion by 2030, growing at a CAGR of 19.2% during the forecast period (2022–2030).

Businesses worldwide accept digitalization because it offers them a huge opportunity to use automation and digital technologies to transform their business models and existing processes to improve operational efficiency and revenue. Smart workplaces have emerged in recent years due to the proliferation of smart devices, adoption of artificial intelligence (AI), Internet of Things (IoT), and cloud computing. The involvement of digital technologies in business processes and organizational activities/models are referred to as digital transformation. The growing demand for end-to-end business processes, high operational efficiency, and fewer human errors are driving the growth of digital transformation in various businesses.

Shifting to a virtual desktop has several advantages, including a more seamless and collaborative way of working regardless of location. Virtual desktop infrastructure solutions combine IaaS and PaaS to provide employees with a secure desktop to access apps, files, data, and communications. However, the most important benefit of virtual desktop infrastructure is the system, data, and communication security. Virtual desktop infrastructure also provides high levels of protection to employers who allow their employees to bring their devices to work.

Market Dynamics

Bring-Your-Own-Device and Corporate-Owned Personally Enabled Devices to Drive Market

Bring-Your-Own-Device and corporate-owned personally-enabled devices are driving virtual desktop infrastructure adoption in the IT and telecom industries. Furthermore, the demand for virtual desktop infrastructure increases as the mobile workforce grows. Virtual desktop infrastructure (VDI) is increasingly used by businesses to manage IT consumerization and cost control. Businesses are developing advanced virtualized desktop infrastructure. Businesses are under pressure to adopt advanced virtual technology due to the consumerization of IT, Bring-Your-Own-Device, and mobility. Desktop virtualization is becoming more and more well-liked due to improved security, governance, and compliance. A company's security strategy may benefit from switching to a DaaS platform because security is one of its top priorities.

Growing Advantages of Virtual Desktop Infrastructure to Foster Market Growth

Various Desktop-as-a-Service providers offer security software and services to quickly help businesses transition to newer, inherently safer devices. Furthermore, by switching to a DaaS service, user data is stored and accessible from virtually any client device. When combined with encryption in transit and encryption at rest, the DaaS environment ensures data security. Businesses are also moving to virtualized systems, which reduce the perimeter of exposure by storing data in a secure data center rather than on a hard drive on a traditional end-user device, as endpoint vulnerabilities become more pervasive. As a result, certain VDI benefits are contributing to market growth.

Market Restraining Factors

Need Security for Virtual Desktops to Restrict Market Growth

Virtual desktops are the same as their physical desktops in terms of security. Virtual desktop infrastructure is incompatible with EDRs for all intents and purposes, but VR desktops have threadbare defenses without endpoint security. Excessive network traffic between each virtual instance's endpoint detection and response (EDR) agents and their central interrogation server poses significant challenges to market growth. The damage can be severe when hackers move laterally from the virtual session into the server without endpoint protections.

Key Market Opportunities

Rising Small and Medium-Sized Enterprises (SMEs) to Spur Market Opportunities

Due to their complicated, large-scale operations, remote work culture prevalence, and quick adoption of cutting-edge solutions, large enterprises currently make up a significant portion of the virtual desktop infrastructure solution and services market. Large enterprises are at the peak of digital transformation to improve operations globally. However, small and medium-sized businesses are still in the early stages of implementing cutting-edge technology solutions like virtual desktop infrastructure. Lack of resources and awareness about these solutions' potential cost and productivity benefits are two significant reasons for SMEs' slow adoption. As a result, SMEs represent a critical growth opportunity for players in the global virtual desktop infrastructure market. Companies are investing in marketing activities to raise awareness and generate interest in the advantages of adopting virtual desktop infrastructure solutions and services among SMEs to tap into this lucrative market.

Regional Analysis

The global virtual desktop infrastructure market is classified into three regions, namely North America, Europe, and Asia-Pacific.

North America holds the largest share of the global virtual desktop infrastructure market and is expected to keep its lead throughout the evaluation period. The global market is growing due to many key players and the expanding industrial sector. Furthermore, the virtual desktop infrastructure market is expected to grow due to the rise of cloud technology and increased virtual desktop infrastructure applications in the region's consumer electronics, gaming, and entertainment industries. The United States has North America's most significant global virtual desktop infrastructure market share.

Europe has the second-largest share in the global virtual desktop infrastructure market during the forecast period. The virtual desktop infrastructure market share is growing due to the rapid adoption of bring-your-own-desktop policies and the growing penetration of smartphones in the region. The United Kingdom, Germany, and France's largest markets are expected to have significant shares in the regional market. Furthermore, the growing demand for training and education from the virtual desktop infrastructure supports regional market growth.

The virtual desktop infrastructure industry in the region is driven by rising investments in technology developments and the increasing adoption of virtual desktop infrastructure for simulation and training purposes. Furthermore, rising demand from an increasing number of organizations and the growth opportunities offered by end-use sectors place Asia-Pacific among the top contenders globally. The region's largest virtual desktop infrastructure markets are Japan, India, and China.

Segmental Analysis

The global virtual desktop infrastructure market is segmented into Component, Application, and Type.

By Deployment Type

Based on deployment type, the global market is segmented into cloud-based and on-premise.

Compared to on-premise virtual desktop infrastructure, cloud-based virtual desktop infrastructure is in high demand. The cloud segment dominates the market because it is less expensive and has a robust network infrastructure in developed nations. Furthermore, cloud-based virtual desktop infrastructure vendors are concentrating on creating a high-level security patch to eliminate the risk of a cyber-attack. This factor drives the virtual desktop infrastructure market by creating significant end-user demand.

By Company Size

Based on company size, the global market is divided into small and medium enterprises and large enterprises.

The growing adoption of virtual desktop infrastructure solutions by various businesses drives virtual desktop infrastructure demand among SMEs. According to our definition, small businesses have 1–100 employees, while medium-sized businesses have 101–500 employees. Small businesses play a crucial role in all economies, particularly in their development. As per the World Bank, SMEs account for 40% of GDP and 60% of total employment in emerging economies.

Virtualization is an emerging trend that benefits various businesses in various industries. Virtual desktop infrastructure is a new virtualization model that involves hosting a desktop operating system and making it accessible from almost any device. Virtual desktop infrastructure's benefits, such as ease of management and increased security, accelerate its adoption across industries.

By End-Users

Based on end-users, the global market is divided into healthcare, BFSI, manufacturing, IT and telecom, retail, education, and government.

Recent Developments

• Venice, ITALY – April 2022 – Cisco collaborated with Veny to project a "living laboratory" that will examine every aspect of hybrid work. The group will examine how people's work expectations have changed and how individuals, groups, and organizations can collaborate more effectively, attract new talent, and connect with their communities.