GVR Report cover Device-as-a-Service Market Size, Share & Trends Report

Device-as-a-Service Market Size, Share & Trends Analysis Report By Offering, By Device Type (Desktop, Laptop, Notebook & Tablets, Smartphone & Peripheral), By Organization, By Industry Vertical, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-627-3
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 150

Report Overview

The global device-as-a-service market size was valued at USD 30.75 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 37.8% from 2021 to 2028. The promising growth prospects of the market can be attributed to the growing demand for a subscription model that can allow end-users to switch from a capital expenditure-based model to an operating expenses-based model and acquire the latest technology. The increasing adoption of cloud services in developing countries is expected to drive market growth. Furthermore, the adoption of contact-based services and solutions by small and medium enterprises is expected to favor the growth of the market. The COVID-19 pandemic had a positive impact on the market. The pandemic significantly changed the work dynamics globally, compelling businesses to prioritize the adoption of the cloud and remote working practices to curb the spread of COVID-19 infections. Furthermore, the pandemic has encouraged digital transformation activities and the adoption of several technologies, boosting the adoption of the device-as-a-service (DaaS) model.

U.S. Device-as-a-Service market size, by offering, 2018 - 2028 (USD Billion)

DaaS enables timely upgrade and maintenance of software and hardware, allowing companies to reduce the IT burden; moreover, the model helps avoid technological obsolescence, ultimately enhancing productivity. Flexible structuring of device-as-a-service offers businesses to scale up/scale down device count and attached services. These factors are expected to drive the market over the forecast period.

Furthermore, the rapid adoption of the subscription model, higher policy compliance, increased user productivity, reduction in help desk spending, and the growing need for cost-efficient and secured devices have accelerated the market growth. The boost in the startup ecosystem is expected to drive the demand for the DaaS model. However, the lack of technical expertise and adoption of CYOD policies could hamper the growth of the market.

The device-as-a-service model is gaining popularity among large as well as small and medium enterprises as it allows them to lease hardware such as laptops, desktops, smartphones, and tablets with preconfigured software or services. The increased adoption of IoT is also expected to drive the demand for the model. Technological advancements, increasing penetration of high-speed networks, and growing advancements of web services are other factors expected to drive the growth of the Device-as-a-Service market.

Offering Insights

Based on offering, the market is segmented into hardware, software, and service. The hardware segment dominated the market in 2020 and accounted for over 40% of the overall revenue share. The hardware segment includes desktops, laptops, tablets, notebooks, smartphones, and peripherals. The increasing interest of enterprises in different types of hardware solutions such as desktops, laptops, and notebooks combined in a single offering is expected to foster the growth of the market. Furthermore, IT infrastructure quickly becomes outdated and an upgrade is required every few years. Hardware leasing offers small and medium enterprises the chance to timely upgrade equipment and adopt the latest technologies without having to purchase them outright.

The service segment is anticipated to expand at the highest CAGR during the forecast period. The device-as-a-service model includes services such as support and maintenance. It consists of a set of device lifecycle services, including deployment & integration, installation, asset recovery services, and maintenance and repair as per the requirement of the end-user. The services are often flexible and can be optimized and tailored. The rising demand for DaaS services has encouraged several managed service providers and value-added resellers to partner with hardware manufacturers and software vendors to provide device-as-a-service solutions under their own brand. Furthermore, continuous support and services of electronic devices ensure the smooth functioning of the enterprise, offering the end-user flexibility in terms of payment.

Organization Insights

Based on organization, the market has been segmented into small and medium enterprise and large enterprise. The small and medium enterprise segment accounted for the highest revenue share of over 60% in 2020. Device-as-a-service aids enterprises to prioritize their investments by leasing hardware and associated services instead of buying high-cost products. The model minimizes cost and increases profit by tracking expenses daily. These factors, along with the growing awareness about the model, are expected to drive the growth of the segment.

The small and medium enterprise segment is also estimated to expand at the highest CAGR of over 38.0% from 2021 to 2028. Small and medium enterprise owners and IT leaders have an array of tasks, including managing inventories and avoiding cyberattacks. Moreover, small and medium enterprises prefer the operating expenses business model over capital expenditure owing to the cost and flexibility benefits offered. These factors lead to the high adoption of the device-as-a-service model in small and medium enterprises. The COVID-19 pandemic has accelerated ongoing digital transformation efforts, further boosting the demand for the device-as-a-service model among small and medium enterprises.

Industry Vertical Insights

Based on Industry Vertical, the market has been further segmented into Banking, Financial Services and Insurance (BFSI), educational institution, healthcare and life science, IT and telecommunication, public sector, and government offices, and others. The IT and telecommunication segment dominated the market with a revenue share of over 24% in 2020. The IT and telecommunications vertical consists of internet service providers, telecommunication companies, cable companies, and satellite companies. Security, reliability, and high performance of IT devices are critical for the fundamental operations in the sector; thus, this segment generates the most significant demand for devices such as desktops, laptops, notebooks, tablets, and smartphones. Moreover, constant updates of software and related services are comparatively high in the industry, driving the adoption of the device-as-a-service model.

The IT and telecommunication segment is also expected to expand at the highest CAGR over the forecast period. The growing awareness about the DaaS model and its benefits, along with the shift in preference to the OpEx model in a bid to reduce investment in IT infrastructure, are expected to drive the growth of the segment over the forecast period. The shift to remote working and homeschooling due to the pandemic has furthered the adoption of IT assets in this industry. Furthermore, telecommunication companies are aggressively investing in resources and focusing on providing them with the highest quality of services, which are expected to boost the demand for the DaaS model over the forecast period.

Device Type Insights

Based on device type, the market has been segmented into desktop; laptop, notebook and tablet and smartphone and peripheral. The desktop segment dominated the market in 2020 with a revenue share of more than 40%. Government initiatives to improve infrastructure and increase demand for cloud-based virtual services are expected to boost the demand for the device-as-a-service model in the desktop segment. Furthermore, an increase in the number of smart devices and the growing trend for IT centralization are expected to further drive the growth of the segment.

Global device-as-a-service market share, by device type, 2020 (%)

The smartphone and peripheral segment is expected to register the highest CAGR over the forecast period. Device-as-a-service solutions for smartphones offer organizations the benefits of using the latest technologies, lower cost of usage, and enterprise security. The smartphones industry has been steadily growing over the past few years and smartphones with advanced features are being launched continually. The DaaS model allows users to have the latest devices by only paying a subscription fee. Apple, Samsung, and OnePlus are among the largest manufacturers of smartphones globally and also some of the leading players in the market. Peripherals in the device-as-a-service model include graphic cards, tape drives, expansion cards, microphones, image scanners, digital cameras, webcams, and loudspeakers.

Regional Insights

North America accounted for the highest revenue share of 29% in 2020. North America is one of the first adopters of the latest technologies such as cloud computing, the IoT, and new service models such as device-as-a-service. The regional market is also viable in terms of government rules and regulations for startups and large enterprises. These factors are anticipated to drive market growth. Rising demand from IT and telecommunications for the device-as-a-service model and the rising demand for mobile devices in several industries are also expected to favor the growth of the market.

Asia Pacific is expected to expand at the highest CAGR over the forecast period. Asia Pacific is home to some of the fastest-growing economies, such as India and China. The presence of a large workforce involved in the IT and Telecommunication industry and a large number of enterprises are expected to boost the demand for the device-as-a-service model. Furthermore, the presence of several life sciences and retail organizations, the rising number of small and medium-sized enterprises, and the increasing awareness about DaaS are expected to drive the market over the forecast period. The increasing internet penetration rate and the unabated growth of several industries in countries such as China, India, and Japan could also bode well for the growth of the regional market.

Key Companies & Market Share Insights

The market is competitive, characterized by the presence of several small and large market players, including Accenture; Acer Inc.; Apple Inc.; Cisco; Cognizant; Computacenter; Dell Technologies; Intel Corporation; Hewlett Packard, and Lenovo. These players are pursuing various strategies such as product launch and development, pertaining to hardware, software, and services to cement their foothold in the market and expand further. For instance, in 2021, Lenovo launched its device-as-a-service in the U.K. Through this expansion, Lenovo offers an entire device portfolio spanning desktops, laptops, tablets, and workstations through a monthly service model. Some of the prominent players operating in the global device-as-a-service market are:

  • Accenture

  • Acer Inc.

  • Apple Inc.

  • Cisco

  • Cognizant

  • Computacenter

  • Dell Technologies

  • Intel Corporation

  • Hewlett Packard

  • Lenovo

Device-as-a-Service Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 50.36 billion

Revenue forecast in 2028

USD 475.98 billion

Growth rate

CAGR of 37.8 % from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative Units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Offering, device type, organization, industry vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; Japan; India; Mexico; Brazil

Key Companies Profiled

Accenture; Acer Inc.; Apple Inc.; Cisco; Cognizant; Computacenter; Dell technologies; Intel Corporation; Hewlett Packard; Lenovo

Customization scope

Free report customization (equivalent to up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options.

 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global device-as-a-service market report based on offering, device type, organization, industry vertical, and region:

  • Offering Outlook (Revenue, USD Billion, 2018 - 2028)

    • Hardware

    • Software

    • Service

  • Device Type Outlook (Revenue, USD Billion, 2018 - 2028)

    • Desktop

    • Laptop, Notebook, and Tablet

    • Smartphone and Peripheral

  • Organization Outlook (Revenue, USD Billion, 2018 - 2028)

    • Small and Medium Enterprise

    • Large Enterprise

  • Industry Vertical Outlook (Revenue, USD Billion, 2018 - 2028)

    • Banking, Financial Services and Insurance (BFSI)

    • Educational Institution

    • Healthcare and Life Science

    • IT & Telecommunication

    • Public Sector and Government Office

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

Frequently Asked Questions About This Report

gvr icn

GET A FREE SAMPLE

gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...

gvr icn

NEED A CUSTOM REPORT?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

BBB icon D&B icon

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.