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The thin client market is estimated to grow at a CAGR of 1.91% between 2022 and 2027. The size of the market is forecast to increase by USD 124.13 million. The growth of the market depends on several factors, including cost reduction, a rise in the need for remote support across various organizations, and increasing adoption of cloud services.
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). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global thin client market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. The parent global technology hardware, storage, and peripherals market covers manufacturers of cellular phones, personal computers, servers, electronic computer components, and peripherals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The cost reduction is notably driving the market growth, although factors such as the easy availability of various substitutes for thin client systems may impede the market growth. 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 Thin Client Market Driver
The cost reduction is notably driving market growth. Thin client systems offer significant advantages, such as easy scalability and the requirement of less power, which makes them highly cost-effective. Moreover, thin client systems lack a hard drive and frequently use processors, which are highly reliable compared with those found in PCs. As a result, the cost of each device is reduced.
Furthermore, thin client systems are highly secure, which allows users to control the access to and use of centrally stored files. The low cost of thin client systems is driving the adoption of these systems by small and medium enterprises and will further drive the growth of the market in focus during the forecast period.
Significant Thin Client Market Trend
Growing demand for work flexibility is the primary trend in the market. Organizations are significantly managing the workforce, which drives increased productivity and job satisfaction. Thus, they are adopting various working models, such as the hybrid work model.
Hybrid work is a flexible work model that supports a combination of in-office, remote, and on-the-go workers. The shift to hybrid work brings various benefits to employees, businesses, and the environment. It increases flexibility, productivity, and job satisfaction for employees. For the business, it cuts the cost of office space and maintenance and expands the talent pool. Thus, owing to the increase in demand for work flexibility, the deployment of thin clients has also increased to create VDI. Therefore, owing to the aforementioned factors, it is anticipated that the market in focus will witness growth during the forecast period.
Major Thin Client Market Challenge
The easy availability of various substitutes for thin client systems is the major challenge impeding market growth. Thin client systems are significantly used for maintaining an effective virtual desktop model. However, the availability of substitutes, which are readily available and widely used, is significantly hampering the demand for thin client systems.
One of the substitutes of thin client systems includes Citrix Workspace which features the Citrix Virtual Apps and Desktops and offers a completely secure digital workspace. It is designed to empower people to enhance their workflow. It also integrates the existing systems and focuses on driving digital transformation. Another such alternative is the V2 cloud, a multi-user desktop environment, specifically designed to allow employees and colleagues to work online remotely and share and upload files and applications and collaborate under the same system. Therefore, the presence of such high-performing alternatives will hamper the growth of the market during the forecast period.
Key Thin Client 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 Thin Client Market Customer Landscape
Vendors 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 vendors, 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 market share growth of the BFSI segment will be significant during the forecast period. The BFSI sector seeks better support servers and easy upgrades for applications such as general ledger and payroll systems. BFSI companies are undertaking digital transformation initiatives, offering good potential for software and IT service providers. BFSI companies are investing significantly in numerous technology and innovation trends in the country. 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 and continued to grow until 2021. The BFSI sector is investing in innovative trends which include the commoditization of IT by using cloud computing services, growing acceptance of application programming interface (API) banking solutions, increasing automation of new digital processes using robotics, optical character recognition, and natural language processing platforms, and establishment of new use cases and proof of concepts for disruptive technologies such as AI and blockchain. 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.
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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 rising demand for cloud computing services from various end-user industries such as government, IT, BFSI, retail, and others is fueling the demand for thin client systems. Organizations are increasingly adopting cloud solutions as they are cost-effective, scalable, and require minimal management.
One of the major reasons for the growth of the regional market is the increased demand for SaaS and IaaS. Organizations are investing in upgrading their IT systems to implement advanced enterprise applications and streamline their processes. SaaS solutions enable access to all types of software, such as enterprise resource planning (ERP), customer-relationship management (CRM), and human resource management (HRM), through web browsers. The flexibility of SaaS solutions makes them suitable for temporary workloads, workloads that are experimental in nature, or those that are prone to change unexpectedly.
The use of SaaS is increasing in several industries; therefore, several startups are coming up with new SaaS offerings to serve different industries, such as BFSI and others in North America. Thus, the increased use of cloud services such as SaaS, PaaS, and IaaS in North America will drive regional cloud computing, which will further accelerate the growth of the market during the forecast period.
North America is one of the regions that was severely affected by the COVID-19 pandemic. However, the rise in demand for cloud computing due to the increasing adoption of remote workflow processes across the region, coupled with the increasing Internet penetration and data traffic during the pandemic, enhanced demand growth in the market. Moreover, the resumption of data center construction in the region, owing to the rising demand for Internet services, will drive the growth of the market in focus during the forecast period.
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 has been segmented 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).
Thin Client 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 |
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 Vendors, Market Positioning of Vendors, 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 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 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 End-user
7 Market Segmentation by Form Factor
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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