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The virtual desktop infrastructure (VDI) market size is forecast to increase by USD 7.55 billion at a CAGR of 12.6% between 2023 and 2028. 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.
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The Virtual Desktop Infrastructure (VDI) market is experiencing significant growth due to the digitalization and automation of businesses. Smart workplaces are increasingly adopting VDI (Virtual Desktop Infrastructure) solutions to enhance operational efficiency and enable employees to work remotely using smart devices. Artificial intelligence (AI) and cloud computing are key technologies driving the VDI market, enabling secure access to digital workspaces from anywhere. Businesses are transitioning from the client-server model to cloud-based solutions, including VDI, for improved data security and reduced operational costs. Operating systems and virtual machines (VMs) are essential components of VDI, allowing businesses to run applications and store data in the cloud or on-premises data centers. Public cloud and data center services are providing scalable and cost-effective solutions for businesses looking to implement VDI. However, data breaches and security concerns remain a challenge for the VDI market, requiring robust security measures and compliance with data protection regulations. Overall, the VDI market is a crucial aspect of digital transformation, enabling businesses to leverage the benefits of cloud computing and operational efficiency while ensuring data security.
The need to optimize workflows and enhance operational efficiency is driving growth. Traditional desktop infrastructure poses challenges in maintaining uninterrupted operations, leading to potential financial losses. To mitigate these risks, enterprises are adopting Virtual Desktop Infrastructure (VDI), a technology that enables the creation and management of virtual desktops and applications on centralized servers. VDI solutions offer several advantages, including the ability to access applications and data from anywhere, ensuring business continuity. Furthermore, VDI supports application compatibility and authorization, making it an ideal choice for smart workplaces. Virtual machines (VMs) are a crucial component of VDI, allowing for the efficient allocation of resources and the creation of a consistent desktop environment. By implementing VDI, enterprises can streamline their operations, reduce costs, and improve overall productivity. Such factors will increase the market growth analysis during the forecast period.
The shift towards smart workplaces is accelerating, which is a leading trend shaping the growth. Virtual desktops, which are essentially virtual machines (VMs) that deliver a desktop environment over the internet, are becoming increasingly popular as companies move their operations to the cloud. This transition is driven by the desire for increased efficiency and reduced operational costs. Various industries, including BFSI, IT and telecom, education, energy and utility, and retail, are embracing VDI solutions to simplify administration, enable remote access and maintenance, and ensure data security. However, the initial investment required for implementing VDI can pose a challenge for Small and Medium Enterprises (SMEs). Such factors will increase the market growth and forecasting during the forecast period.
Increased capital expenditures (CAPEX) and operational expenditures (OPEX) is a key challenge. In today's smart workplaces, virtual desktop infrastructure (VDI) has become a crucial component for enterprises seeking to optimize their IT resources. Virtual desktops enable the deployment of multiple virtual machines (VMs) on a single server, increasing operational efficiency. However, the reliance on high-performance or hyper-converged infrastructure for VDI operations is significant. Failure to adopt suitable infrastructure can result in increased capital expenditures (CAPEX) and operational expenditures (OPEX). Moreover, running numerous virtual images concurrently on the IT infrastructure can lead to bottlenecks, causing decreased productivity due to extended latency periods and reduced input/output per second (IOPS) throughput. To address these challenges, leading technology vendors, such as Dell Technologies Inc. and Hewlett Packard Enterprise Co., have partnered with major VDI vendors like Citrix and VMware. These collaborations aim to deliver data center infrastructure tailored to VDI deployments, ensuring superior performance and productivity. Such factors will hinder the market growth during the forecast period.
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.
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The on-premise VDI segment was valued at USD 4.93 billion in 2018 and continued to grow until 2022. 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.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period.
Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The Virtual Desktop Infrastructure (VDI) market is experiencing significant growth due to the integration of advanced technologies such as Artificial Intelligence (AI) and Automation. This technology enables Businesses to offer Digital workspaces to their employees, allowing them to work remotely or as part of a Mobile workforce, using Bring-Your-Own-Device (BYOD). The Client/server model and Cloud computing have played a pivotal role in the expansion of this market. Cloud-based solutions, including DaaS platform, have become increasingly popular due to their cost saving benefits and Operational efficiency.
However, Compatibility issues with various Operating systems and Smart devices can pose challenges. Security concerns, including Data breaches and Data security, are critical factors driving the need for advanced Security strategy. Deployment models, such as Public cloud and On-premises data centers, offer different benefits, with On-premise solutions providing greater Control and Encryption. Large enterprises in sectors like Healthcare, IT & telecom, Manufacturing, and others, are adopting VDI to enhance Employee efficiency and Performance. Digital transformation and the Remote work culture have further accelerated the demand for cutting-edge solutions in this market. Desktop virtualization and Desktop as a Service (DaaS) providers offer various Offerings to cater to diverse business needs. The integration of AI and Automation in VDI is expected to revolutionize the industry, providing innovative solutions and addressing the challenges of this rapidly evolving market.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends 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:
Market analysis and report of 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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The global virtual desktop infrastructure 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 workspace as a service.
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 providers 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 type, including public cloud and on-premises data centers, catering to diverse IT & telecom needs and ensuring scalability and flexibility.
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Market Scope |
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Report Coverage |
Details |
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Page number |
190 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.6% |
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Market growth 2024-2028 |
USD 7.55 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
10.95 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 36% |
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Key countries |
US, Germany, UK, Canada, and Australia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amazon.com Inc., Centerm Information Co. Ltd., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., dinCloud Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., HiveIO Inc., Huawei Technologies Co. Ltd., IGEL, Intel Corp., International Business Machines Corp., Microsoft Corp., Ncomputing Co. Ltd., Oracle Corp., Parallels International GmbH, Progress Software Corp., Red Hat Inc., and Stratodesk Corp. |
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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, Market condition analysis for forecast period |
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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. |
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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 Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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