Global Desktop Virtualization Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Virtual Desktop Infrastructure (VDI), Remote Desktop Services (RDS), Desktop As A Service (DaaS)), By Enterprise Size (Small, Medium, Large), By Industry Vertical (BFSI, Education, Retail, Healthcare, IT And Telecom, Others), By Delivery Platform (Hosted Virtual Desktops, Hosted Shared Desktops), And By Geography - Forecasts From 2022 To 2027

The global desktop virtualization market is projected to grow at a CAGR of 19.05% to reach a value of US$45.578 billion by 2027, from US$13.449 billion in 2020.

The increasing adoption of information communication and technology and cloud-computing solutions across different end-user industries such as healthcare, BFSI, IT and telecom, among others, is driving the market growth of desktop virtualization. The use of desktop virtualization solutions is increasing across these industries to reduce the operational costs involved, effectively manage resources, and secure the important data generated to gain a competitive edge and maximize profits. Rapid elevation in the Bring Your Own Device (BYOD) has also had a noticeable impact on the growth of the desktop virtualization market.

Rising advancements in the field of IT and communications are driving the demand for desktop virtualization solutions.

Increasing investments to enhance desktop virtualization solutions provides a great opportunity for market players to contribute to the growth of the desktop virtualization market over the forecast period. For instance, recently, Terradici announced the launch of its “Cloud Access Software, a virtual desktop solution, which is the first third-party solution that is available for integration with Microsoft Azure Stack. It facilitates quick and secure integration into the Azure Stack Hub solution, which provides many benefits.

In September 2019, Microsoft announced the global availability of “Windows Virtual Desktop”. This service is able to facilitate the delivery of simplified management of a multi-session Windows 10 experience, with optimized support for Windows Server Remote Desktop (RDS) desktops and apps. This service also allows the deployment and scaling of users’ desktops and apps on Microsoft Azure. However, the high upfront investment and costs associated with the deployment of virtual desktop infrastructure (VDI) are hindering the growth of the desktop virtualization market.

Moreover, growing concerns regarding data safety and security are also hampering the market growth of desktop virtualization.

Market players are expanding their portfolio of desktop virtualization solutions in order to increase their profit margins, further contributing to the market’s growth.  For example, in July 2017, Dell Inc. expanded its product portfolio with the release of a broad set of desktop virtualization (VDI) solutions, including the new Wyse Management Suite Software and Dell EMC XC Xpress for VDI appliances. In March 2019, Microsoft introduced Azure Stack HCI Solutions, a new implementation of its on-premise Azure product for Hyper-Converged Infrastructure hardware.

Desktop as a Service (DaaS) to hold a significant market share

Desktop as a Service (DaaS) is expected to hold a significant market share in the global desktop virtualization market owing to the emerging popularity of cloud computing. Cloud computing is increasingly being used by enterprises of different sizes to reduce operational costs while easing access to data and applications that are not installed on computers or servers. Thus, easy implementation, accessibility, flexibility, and reduced cost of cloud hosting are augmenting the adoption of cloud computing, which, in turn, is positively impacting the demand for DaaS.

Rising adoption among small enterprises

SMEs (small and medium enterprises) account for 60 to 70 percent of jobs in most OECD countries, according to OECD statistics.  The demand for desktop virtualization solutions across the small enterprise segment is increasing at a growing rate. This growth is attributed to the fact that desktop virtualization solutions eliminate the need for technical staff and IT resources that are needed to maintain and operate systems. Since small enterprises have limited budgets, desktop virtualization solutions act as cost-effective solutions with servers and equipment hosted on the service providers’ side. Some providers, including VMWare, Citrix, and IBM, are offering affordable desktop virtualization solutions, especially for small businesses.

IT and Telecom industry to witness decent market growth during the forecast period

IT and Telecom sectors held a significant market share in 2019 as organizations operating in this sector are implementing desktop virtualization solutions so as to reduce the high IT infrastructure costs while offering rapid deployment and innovative services. Implementing cloud virtual desktop infrastructure mitigates IT physical and training expenditures while providing simplified and easy access to operational services for the IT staff. Rising demand for a centralized management system with greater flexibility is also escalating the demand for desktop virtualization solutions across the healthcare sector to support point-of-care medical services through mobile applications. With a vast customer base, the BFSI industry relies heavily on digitalized networking and data security technology to offer customer-centric services, which fuel the demand for desktop virtualization solutions across this sector.

During the projection period, North America is expected to have a notable CAGR.

This expansion can be ascribed to the region's quick adoption of cloud computing and the increasing number of medium and small businesses. Because of the early adoption of modern technology across end-use sectors, as well as the presence of prominent market players in the area, North America has a considerable market share. North America holds a significant market share owing to the early adoption of advanced technology across end-use industries, supported by the presence of major market players in the region. The growing telework trend in the U.S. is spurring the growth of the desktop virtualization market. Moreover, the growing telehealthcare industry and the adoption of advanced technology to comply with point-of-care medication are also propelling the market growth of desktop virtualization.  According to the American Hospital Association (AHA), 76% of U.S. hospitals are connected through the use of telecommunication services with outgoing physicians and patients.

Market Developments

• In July 2022, Leostream, a prominent provider of secure remote access software for businesses, announced a collaboration with Virtuozzo, the pioneer in alternative cloud platforms. Leostream is now a member of the Virtuozzo Technology Alliance Partner Ecosystem, enabling strong virtual desktop environments to run on Virtuozzo's software-defined, hyper-converged self-service platform.
• In January 2020, XenTegra, a leading provider of integrated digital workspaces and managed services, and CloudJumper, a cloud virtualization and computing expert, collaborated to develop innovative cloud solutions. CloudJumper eases and simplifies Microsoft Windows Virtual Desktop allowing partners to establish unique service solutions and services.

Global Desktop Virtualization Market Scope:

Segmentation

• By Type
  • Virtual Desktop Infrastructure (VDI)
  • Remote Desktop Services (RDS)
  • Desktop as a Service (DaaS)
• By Enterprise Size
  • Small
  • Medium
  • Large
• By Industry Vertical
  • BFSI
  • Education
  • Retail
  • Healthcare
  • IT and Telecom
  • Others
• By Delivery Platform
  • Hosted Virtual Desktops
  • Hosted Shared Desktops
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • United Kingdom
    • Italy
    • France
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others