Enjoy complimentary customisation on priority with our Enterprise License!
The virtual desktop infrastructure (VDI) market is estimated to increase by USD 6.04 billion and grow at a CAGR of 11.39% between 2022 and 2027. The growth of the market depends on several factors, including ease of operating and managing virtual infrastructure, reduced CAPEX and OPEX, and workplace flexibility and business agility. The market is undergoing notable expansion propelled by the simplicity of handling and overseeing virtual infrastructure. Businesses are confronted with extensive volumes of data requiring storage, management, and instantaneous processing, demanding uninterrupted and effective operations. As a result, numerous enterprises are opting for VDI solutions to efficiently monitor the current state of components and environmental factors.
To learn more about this report, Download Report Sample
This report extensively covers market segmentation by application (on-premise VDI and cloud-based VDI), end-user (BFSI, education, healthcare, and others), type (services and new software licenses), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth of the on-premise VDI segment will be significant during the forecast period. On-premises VDI is deployed by large enterprises and enterprises that have IT infrastructure with a dedicated internal IT support team. The on-premises deployment model requires software procurement and installation on the company servers as well as a dedicated IT support team for its maintenance. On-premises VDI provides companies with more control and ownership over the management of their software operations and critical data. It also provides customization of the software as per the company requirements and an extra layer of security, which are the major factors driving the growth of the segment.
Get a glance at the market contribution of various segments Request a PDF Sample
The on-premise VDI segment was valued at USD 4.57 billion in 2017 and continued to grow until 2021. Many large enterprises (with an employee count of more than 1000) have adopted on-premises VDI solutions. With a growing focus on mobile computing, it is likely that organizations will reduce their employee count. The penetration of VDI was maximum in developed regions such as the US and Western Europe. This trend will likely continue with the adoption of VDI solutions by SMEs in the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 36% 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.
With the growing adoption of smartphones and the need for better computing models, North America is experiencing a rise in the implementation of virtualization software and solutions to support businesses. The education and healthcare sectors, which were early adopters of virtualization solutions, are seeing increased use of VDI solutions as well. This trend is likely to spread to other industry verticals, such as the BFSI and government sectors, during the forecast period. The growth of SMEs is one of the main reasons for the rising demand for web hosting services in the region. The US, which is the dominant country in the region, has about 30 million SMEs, which contribute to more than 66% of all private-sector jobs in North America. The VDI market in the US is expected to see growth because of the high adoption by SMEs. Technavio also foresees that the need for mobility solutions among businesses in Latin America and Canada would boost the revenue of the VDI market in this region.
The market is experiencing rapid growth driven by businesses' increasing focus on digitalization and automation. As organizations embrace smart workplaces and deploy smart devices, technologies like Artificial Intelligence (AI) and Internet of Things (IoT) are becoming integral parts of their operations. Cloud computing plays a pivotal role in enabling digital transformation, enhancing operational efficiency, and facilitating Desktop as a Service (DaaS). However, concerns about data breaches persist, prompting businesses to adopt VDI solutions that offer secure virtual desktop environments. With the shift towards cloud-based solutions and the proliferation of digital workspaces, the VDI market is poised for substantial growth, catering to both on-premises data centers and the public cloud.Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
The market is experiencing significant growth driven by the ease of operating and managing virtual infrastructure. Enterprises are grappling with vast amounts of data that need to be stored, managed, and processed in real-time, necessitating continuous and efficient operations. Consequently, many enterprises are turning to VDI solutions to monitor the real-time status of components and environmental parameters effectively.
VDI offers a superior user experience compared to traditional desktop infrastructure, boasting benefits such as application compatibility and remote access to data and applications from any location. Moreover, centralized management software enables swift changes to user access and facilitates the rapid deployment of additional endpoints, leading to cost savings and enhanced scalability compared to conventional computer networks.
The maintenance of VDI is streamlined, allowing administrators to easily modify or remove software as needed. Furthermore, in the event of system interruptions, users can reboot to restore operations swiftly. With centralized infrastructure resulting in reduced maintenance time and costs, the global VDI market is anticipated to witness substantial growth in the coming years.
Significant Market Trend
The adoption of Linux-based VDI is the key trend in the market. Windows is the traditional OS being used for VDI deployments. Leading vendors in the market, such as Citrix and VMware, also offer Linux-based VDI solutions. The use of Linux is limited to specific working groups, whereas Windows users are predominant users of VDI.
Linux-based VDI is open-source and is more suitable for targetable segments such as technical development environments. The use of Linux-based VDI also helps to overcome the complex Windows licensing requirement for deploying VDI. During the forecast period, we expect Linux-based VDI to gain improved adoption across verticals, but the use of Windows-based VDI will continue to dominate the market thus propelling the growth of the global market in focus during the forecast period.
Major Market Challenge
Factors such as infrastructure bottlenecks will have a negative impact on the market during the forecast period. Enterprises face bottlenecks in running multiple virtual images simultaneously on the IT infrastructure, which leads to lower productivity due to increased latency period and reduced input/output per second (IOPS) throughput. Vendors such as Dell Technologies Inc., and Hewlett Packard Enterprise Co., have collaborated with major VDI vendors such as Citrix and VMware to deliver data centre infrastructure that offers better performance for VDI deployments. However, increased business demands and complexities in applications will continue to have a negative effect on VDI performance.
Website server downtime is a major challenge for enterprises, as most of the major business operations of enterprises are managed through the cloud. The unavailability of or being unable to access a website or slow access to a website constitutes website server downtime. slow website access, cyberattacks, website traffic overload, etc. are some of the issues enterprises are facing. These infrastructure issues may pose a challenge to the growth of the market during the forecast period.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global 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.
Ncomputing Co. Ltd. - The company offers virtual desktop infrastructure solutions such as Azure Virtual Desktop. Through this segment, the company offers virtual desktops which enable multiple users to simultaneously share a single operating system instance.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing substantial growth driven by advancements in technology and the need for enhanced operational efficiency. As businesses embrace digital transformation, VDI solutions offer cutting-edge solutions to streamline operations and improve employee efficiency. With features like automation, compatibility, and encryption, VDI addresses security concerns and enables remote work culture. Cloud computing and Bring-Your-Own-Device (BYOD) concepts further propel market expansion, catering to the needs of IT and telecom industries, manufacturing, retail, and Small and Medium-Sized Enterprises (SMEs). As organizations seek cost-saving measures and embrace smart workplaces, the global VDI market continues to flourish, offering scalable and secure digital workspaces.
Also, the market is experiencing rapid growth driven by the adoption of digitalization and the increasing demand for cost-saving solutions. VDI leverages technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) to provide efficient desktop virtualization. With the rise of the mobile workforce, organizations are embracing Desktop as a Service (DaaS) platforms to enhance productivity and security. Compatibility issues and data breaches pose challenges, but VDI offers solutions through its client/server model and data security measures. The market encompasses various deployment types, including public cloud and on-premises data centers, catering to diverse IT & telecom needs and ensuring scalability and flexibility.
Virtual Desktop Infrastructure Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.39% |
Market growth 2023-2027 |
USD 6.04 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.31 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, Australia, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., Atlantis Computing Holding LLC, Centerm Information Co. Ltd., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., dinCloud Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Investment and Holding Co. Ltd., IGEL, International Business Machines Corp., Microsoft Corp., Ncomputing Co. Ltd., Oracle Corp., Parallels International GmbH, Progress Software Corp., Red Hat Inc., Stratodesk Corp., and Intel Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research 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 report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Market Segmentation by Type
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.