Thin Client Market by End-user, Form Factor and Geography - Forecast and Analysis 2023-2027

Thin Client Market Size 2023-2027 

The thin client market size is estimated to grow by USD 124.13 million at a CAGR of 1.91% between 2022 and 2027. Market growth depends on several factors, including cost reduction initiatives, escalating demand for remote support in diverse organizations, and the expanding adoption of cloud services. These factors collectively drive market expansion, fostering innovation and efficiency across industries. Companies are increasingly seeking ways to streamline operations and enhance productivity, leading to a surge in demand for remote support solutions. Additionally, the shift towards cloud services offers scalability and flexibility, driving their adoption across various sectors. As businesses strive for greater operational efficiency and cost-effectiveness, the market for remote support and cloud services is poised for substantial growth, catering to evolving industry needs and technological advancements.

 It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by end-user (BFSI, IT and telecom, healthcare, retail, and others), form factor (standalone, with monitor, and mobile), and geography (North America, Europe, APAC, South America, and Middle East and Africa).

By End-User

The market share growth of the BFSI segment will be significant during the forecast period. Thin clients enable the use of computers, including desktops and laptops, without the need for a local hard drive or significant data storage. Instead, these functions are handled by centralized servers, which also manage the operating system (OS) and application software. Terminal services (TS) and virtual desktops allow for easy upgrades and access to web-based applications. Such factors will drive the market in focus during the forecast period. 

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The BFSI segment was valued at USD 344.68 million in 2017.  Thin clients support local printing and various device types, while connection protocols ensure secure computing solutions. Industry trends include the use of flash memory, client management consoles, and zero clients. Thin clients offer energy efficiency and remote work capabilities, making them a competitive choice in the digital transformation landscape. Companies like LG Business Solutions, IGEL OS, and IGEL Ready Program are key players in this market. The competitive analysis also considers trends such as cloud-based services, data centers, Windows 10 IoT Enterprise, and the integration of disruptive technologies like AI and blockchain into server resources. Thus, the growing digitalization will add to the demand for virtual networks, which in turn will drive the market in focus during the forecast period. 

By Region

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North America is estimated to contribute 43% 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.

The market in North America experienced significant growth in 2022, driven by the increasing adoption of cloud computing services by various industries, including government, IT, BFSI, retail, and others. This trend is attributed to the cost-effectiveness, scalability, and minimal management requirements of cloud solutions. For instance, ADS Alliance Data Systems Inc., a Texas-based loyalty and marketing services company, migrated to Oracle's cloud offerings, saving the company USD1 million in a year. Cloud migration is a key organic strategy for businesses seeking to optimize their IT resources. Leading corporations, such as Dell Technologies and VMware, are providing advanced computing offerings through virtual infrastructure and digital infrastructure solutions. Thin clients, such as those from Wyse, are essential devices for network monitoring and managing IT infrastructure elements in topologically complex environments. E-commerce businesses and cloud services providers, including AWS, Microsoft, and Google, are also investing in thin client systems to enhance network efficiency and security. The education segment is also adopting thin client solutions to improve access to computing facilities and reduce the need for IT knowledge and software management. Despite the benefits, network complexity and security remain challenges for users. Statistical data generation and network monitoring are crucial for optimizing network performance and ensuring network efficiency. The market is expected to continue growing, with 4G and VDI infrastructure playing key roles in the future of thin client systems. Thus, these factors are expected to accelerate the growth of the market during the forecast period.

Market Dynamics and Customer Landscape

The market is experiencing significant growth as organizations embrace network computing and digital transformation. Thin Clients, also known as Zero Clients, are computing devices that rely on centralized servers for processing and data storage. These devices, which include Thin Clients, Desktops, and Laptops, utilize connection protocols such as Terminal Services (TS) and Virtual Desktops to access applications and operating systems (OS) from the servers. Hardware configurations for Thin Clients vary, with some relying on flash memory for local data storage and others using hard drives for more extensive data storage. Thin Clients support local printing and device connectivity, enabling users to work efficiently. Energy efficiency and power consumption are essential considerations for Thin Clients, making them an attractive option for remote work environments. Centralized servers provide server resources, enabling organizations to offer cloud-based services, data centers, and digital transformation initiatives. Thin Clients offer a cost-effective solution for organizations looking to reduce hardware expenses while maintaining a high level of performance and security. Connection protocols and client management consoles ensure seamless integration and management of Thin Clients within the network. 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 rise in the need for remote support across various organizations is notably driving the market growth. Thin clients represent a computing model where a centralized server handles the processing of data and applications, while the client device, such as a computer or laptop, functions primarily as a display and input device. Thin clients reduce the need for local hard drive data storage and large operating systems (OS), relying instead on terminal services (TS) and application software from the server. Flash memory and local printing are still supported. Connection protocols like Virtual Network Computing (VNC) and Remote Desktop Protocol (RDP) enable the use of various device types.

Thin clients support web browsing and network computing, allowing organizations to manage client configurations through a client management console. Competitive solutions include Zero Clients, Cloud-based services, and offerings from companies like LG Business Solutions, IGEL OS, and the IGEL Ready Program. Industry trends include digital transformation, secure computing solutions, cloud computing, virtualization, and the use of web-based applications and shared server resources. Power consumption and energy efficiency are key benefits, making thin clients ideal for remote work and data centers. Competitive analysis includes Windows 10 IoT Enterprise and other industry offerings. These factors will further drive the growth of the market in focus during the forecast period.

Significant Market Trend

Growing demand for work flexibility is the primary trend in the market. Organizations are increasingly focusing on managing their workforce to drive productivity and enhance job satisfaction, leading to the adoption of various working models, including the hybrid work model. Hybrid work combines in-office, remote, and on-the-go work to provide flexibility for employees. This shift offers benefits such as increased flexibility, productivity, and job satisfaction for employees, while also reducing costs for businesses by cutting office space and maintenance expenses and expanding the talent pool. As the demand for work flexibility grows, the deployment of thin clients to create Virtual Desktop Infrastructure (VDI) is also increasing. These factors are expected to drive growth in the market during the forecast period.

Major Market Challenge

The high susceptibility to cyber-security is the major challenge impeding market growth.  A thin client is designed for specific tasks and is typically purchased in large quantities by end-users. This means that in an industrial setting, there may be several PCs with similar capabilities and functionalities. This similarity makes the entire system vulnerable to potential cyberattacks, as any control gained on one device can be replicated on others. Cyber attackers are constantly evolving, using new methodologies such as ransomware and distributed denial of service (DDoS) attacks to gain access to critical information. Ransomware attacks involve hackers hacking into a system they consider important and demanding ransom from the affected party in return for restoring access. Therefore, the presence of such high-performing alternatives will hamper 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

Who are the Major Market Companies?

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.

10ZiG - The company offers thin client products and services such as Simatic ITC Industrial Thin Clients. Through this segment, the company focuses on the development of Thin Client and Zero Client Technology for virtual desktop infrastructure.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Chip PC Technologies
• Cisco Systems Inc.
• Dell Technologies Inc.
• DevonIT
• Fujitsu Ltd.
• IGEL
• INP Computer Technology Pvt. Ltd.
• Lenovo Group Ltd.
• LG Electronics Inc.
• Ncomputing Co. Ltd.
• NEC Corp.
• Samsung Electronics Co. Ltd.
• Siemens AG
• VXL Instruments Ltd.
• HP Inc.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments

• End-user Outlook 
  • BFSI
  • IT and telecom
  • Healthcare
  • Retail
  • Others

• Form Factor Outlook
  • Standalone
  • With monitor
  • Mobile

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In the realm of modern technology, Thin Clients have emerged as a significant solution for businesses seeking to optimize their IT infrastructure. Comprised of Desktops, Computers, and Lap tops, Thin Clients are integral components of the Computing and Desktop Virtualization markets. These devices are essential for Terminal Services and Remote Access, enabling users to access their applications and data from any location, using any device. Operating on a centralized server, Thin Clients require minimal processing power, making them an energy-efficient and cost-effective alternative to traditional desktop computers.

Furthermore, with the advent of Opportunistic Networks and the increasing popularity of Cloud Computing, Thin Clients have become an indispensable tool for organizations, offering flexibility, scalability, and security. Moreover, Thin Clients are an integral part of the Service-Oriented Architecture, enabling seamless integration with various applications and services. They are also crucial for organizations implementing the DevOps methodology, as they allow for continuous integration and delivery of applications. In summary, Thin Clients represent a vital segment of the technology landscape, offering numerous benefits for businesses, including cost savings, energy efficiency, flexibility, and security. As the market for Thin Clients continues to evolve, we can expect to see further advancements in technology and functionality.

Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 1.91%
Market growth 2023-2027	USD 124.13 million
Market structure	USD Fragmented
YoY growth 2022-2023(%)	1.16
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 43%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Acer Inc., Advantech Co. Ltd., ASUSTeK Computer Inc., Centerm Information Co. Ltd., Chip PC Technologies, Cisco Systems Inc., Dell Technologies Inc., DevonIT, Fujitsu Ltd., IGEL, INP Computer Technology Pvt. Ltd., Lenovo Group Ltd., LG Electronics Inc., Ncomputing Co. Ltd., NEC Corp., Samsung Electronics Co. Ltd., Siemens AG, VXL Instruments Ltd., 10ZiG, and HP Inc.
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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