Desktop Virtualization Market Size, Share & Trends Analysis Report By Type (Virtual Desktop Infrastructure (VDI), Desktop-as-a-Service (DaaS),), By Organization Size, By Verticals, By Region, And Segment Forecasts, 2023 - 2030

Desktop Virtualization Market Size & Trends

The global desktop virtualization market size was valued at USD 13.82 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from 2023 to 2030. Desktop virtualization typically operates on a client/server framework, where the organization's selected operating system and applications run on a server situated in either the cloud or a data center. In this setup, user interactions take place on a local device chosen by the user, resembling the 'dumb' terminals prevalent in mainframes and early Unix systems.

The rising demand for enhanced employee efficiency and improved data security provided by desktop virtualization contributes to the expansion of the global desktop virtualization market. Furthermore, the cost-saving benefits associated with desktop virtualization solutions play a positive role in propelling the growth of the desktop virtualization industry.

The market is witnessing substantial growth propelled by the widespread adoption of cloud computing and the rising demand for Bring Your Own Device (BYOD) in workplaces. Desktop virtualization serves as a strategic solution in this context, allowing employers to harness BYOD for enhancing flexibility and security, whether for a remote workforce or those working in the office. Through desktop virtualization, employees gain access to a secure and monitored desktop environment from virtually any location and on any device, contributing to a seamless and flexible work experience.

Desktop virtualization holds significant value for small and medium businesses by reducing expenditures on hardware and lowering the costs associated with system administration and maintenance. It not only delivers an enhanced computing experience but also addresses various complex challenges. Consequently, the numerous advantages of desktop virtualization, including lowered operational costs and heightened user satisfaction, are expected to propel the growth of the desktop virtualization market throughout the forecast period.

Type Insights

Based on the type, the desktop virtualization market is segmented into remote desktop services (RDS), desktop-as-a-service (DaaS), and virtual desktop infrastructure (VDI). The virtual desktop infrastructure (VDI) segment held the largest market share in 2022. VDI allows organizations to have total control over individual desktop instances.

IT administrators can customize and manage desktops centrally, ensuring security, compliance, and standardization. Furthermore, it optimizes resource utilization as multiple virtual desktops can run on a single physical server, resulting in cost savings and improved overall system performance.

Organization Size Insights

On the basis of organization size, the market is segmented into small & medium enterprises and large enterprises. The large enterprises segment held the largest market share in 2022. Desktop virtualization technologies have witnessed greater adoption in large enterprises compared to SMEs, primarily owing to the associated benefits.

These benefits encompass reduced energy consumption, enhanced security, and lower replacement rates, contributing to a reduced total cost of ownership and boosted returns on investments. Furthermore, these technologies facilitate centralized control over hardware, software, and applications, fostering increased efficiency and minimizing management costs.

Verticals Insights

Based on verticals, the desktop virtualization market is segmented into IT & telecom, BFSI, construction & manufacturing, public sector, healthcare, education, retail, and others. The IT & telecom segment held the largest market share in 2022. Desktop virtualization provides a flexible and efficient IT infrastructure, enabling streamlined management of resources and improved accessibility for IT professionals. Additionally, the sector deals with sensitive information and requires robust security measures. Desktop virtualization helps enhance data security by centralizing control, minimizing the risks associated with endpoint devices, and ensuring compliance with industry regulations.

Regional Insights

North America held the largest market share in 2022. This high share is attributed to organizations in the region being early adopters of desktop virtualization solutions and services. The market's robust growth is mainly propelled by the significant presence of large IT companies and the swift progression of technological advancements, particularly in the context of digitization in both the U.S. and Canada. The increasing adoption of desktop virtualization in the region is spurred by the substantial benefits it offers, including heightened flexibility, mobility, security, and manageability.

Key Companies & Market Share Insights

Key players operating in the market are Citrix Systems, Inc., Dell Inc., IBM, Huawei Technologies Co. Ltd., Microsoft, Toshiba Corporation,Parallels International GmbH., Red Hat, Inc.,NComputing Co. LTD, and Ericom Software Ltd. Vendors active in the market are focusing aggressively on expanding their customer base and gaining a competitive edge over their rivals. Hence, they pursue numerous strategic initiatives, including collaborations, partnerships, mergers & acquisitions, and new product/ technology development.

The following are some instances of such initiatives:

• In February 2023, OTAVA, LLC, a leading IT service management company, introduced desktop-as-a-service (DaaS) powered by VMware Horizon DaaS. This service, specifically designed for enterprises, focuses on providing hosted desktop applications to enhance employee efficiency while ensuring a secure virtualized infrastructure.

• In September 2022, Microsoft introduced support for password-free authentication through Azure AD and implemented single sign-on functionality for Azure Virtual Desktop. This feature was extended to cover Windows Server 2022, Windows 10, Windows 11, and Windows Server 2016 session hosts. With single sign-on, users gained the ability to access multiple enterprise applications using a unified set of credentials. This advancement is expected to boost the adoption of desktop virtualization by simplifying the login process and reducing complexity for users.