Virtual Client Computing Software Market Size, Share & Trends Analysis Report By Solution (VDI, VUS, Terminal Service), By Service, By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global virtual client computing software market size was valued at USD 9.32 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 23.0% from 2020 to 2027. The market is experiencing phenomenal growth due to factors such as rising demand for an agile workforce, lower costs, increasing need for improved user productivity, enhanced information security, and simplified IT management. Furthermore, the demand for Virtual Client Computing (VCC) is increasing owing to the pervasive risk of data theft and loss. As the trend of gathering data for business insights continues to rise, businesses are adopting digital transformation strategies through virtualization and automation, to optimize the cost. There is a continuing trend of using mobile devices, and a range of collaboration tools to connect with other teams across platforms, geographies, and devices, which is further driving the market.

Virtual client computing is described as a model that offers desktop virtualization solutions to overcome limitations related to the conventional distributed desktop environment. A virtual client-based machine is operated centrally on a server and then performed on a client device. Even if the operating system is modernized as well as supported with the help of a server, a permanent network connection is not required for the operation of a client-based virtual machine. It is used to decrease the client’s overall risk and work effort, by eliminating difficulties and increase flexibility and reduce cost.

The virtual client computing software separates all the system components such as operating systems, hardware, applications and makes the components and their lifespan separate from each other. Owing to the separation of components, the VCC model facilitates the movement of user applications, data, personality, or the entire workplace from the operator’s machine into the data center.This model gives IT departments an effective, cost-efficient and secure way to manage client devices. The IT departments make use of the local processor in the client system to run rich multimedia applications and CPU intensive applications for better user experience. All these factors are propelling market growth.

The major factors that restrain the virtual client computing software market growth include mobility and cost controlling challenges. It also increases system compatibility and complexity, and bottleneck issues associated with antivirus, botting, login, and user workload actions. Presently, avoiding these issues and providing access to a huge population in a virtualized environment at a single instance is difficult. Hence, there are some alternative products for virtual client computing that are used such as zero-client computing and thin client computing. However, with the technological advancements and improving network infrastructure with the introduction of 5G these restraints could be overcome.

The increase in mobile workforce has led to seamless access to data. Thus, through the implementation of client virtualization software, organizations can make sure that employees can get similar to an organization's computing experience remotely across the globe. In this competitive era, enterprises are focusing on improving productivity at workplaces by using a variety of software and tools, particularly virtual client solutions. People who can access such software and tools can securely access their virtual desktops and data from a distant location. Furthermore, such solutions have a host of advantages such as better accessibility for employees, an increase in productivity for organizations, and less labor-intensive work for IT administrators for managing systems.

COVID 19 has pushed most of the enterprises to adopt the work from home policy. Organizations are emphasizing on enabling a mobile workforce, implementing enterprise mobility tools and services. Hence, there is an increased need for collaboration services and cloud communication across the globe. Digital productivity and collaboration tools are observing enormous upticks in usage across the globe. Thus, there will be constant growth in the demand for virtualization solutions and spending on specialized software, telecom services, and communications equipment. This spending will be concentrated on remotely working employees as firms are encouraging employees to work from home. Thus, the increasingly mobile workforce and growing need for disaster recovery and security to prevent high network downtime costs will fuel the demand for virtual client computing software solutions.

Solution Insights

The Virtual User Session (VUS) solution led the market with a revenue share of more than 35% in 2019. VUS, also known as session-based desktop, provides their own applications, profile setting, data storage, to each user having their own account. In older versions of Windows Server, VUS desktops are commonly used by organizations to deliver remote access to application and data in a controlled and centralized environment. The VUS solutions are less expensive and computing needs are simply delivered to a greater number of users via a terminal experience, which is easily provided at a lower cost. However, VUS solutions cannot be customized based on need, these are standardized so that users have a restricted number of products, which they can use. Hence, with the advent of the latest versions of operating system, VUS is losing its popularity.

The Virtual Desktop Infrastructure (VDI) is expected to emerge as the fastest-growing segment over the forecast period due to increased demand for workplace flexibility and productivity advantages for consumers and IT personnel. VDI plays a vital role in resolving several security-related issues, hence, keeping the network secure from cyber-attacks. Additionally, the adoption of VDI in data centers helps in improving safety and extending greater control over IT, thus lowering the year on year desktop hardware upgrade costs. Moreover, improvements in graphics and storage capabilities can make VDI an appropriate choice for new data center applications. Thus, it anticipated to create significant scope of opportunities in the global market.

End-use Insights

The IT and telecom segment led the market and accounted for nearly 20% revenue share in 2019. The IT and telecom industry has always been at the forefront to adopt and capitalize on digitalization and the subsequent opportunities. The industry is upgrading its legacy applications to enable digital customer experience. Furthermore, the growing adoption of various technologies related to digital content such as the Internet of Things (IoT) are driving the demand for virtual client solutions across this vertical. The telecom companies are moving their traditional application to cloud and the latest technology platforms to manage and process critical customer data. Moreover, the major factor affecting the IT and telecom industry is the shifting focus from cost-intensive devices to low-cost BYOD.

Healthcare enterprises are adopting new methods and ways to implement next-generation technologies comprising of application modernization, infrastructure landscape, and patient automation aligned with predictive and prescriptive analytics. This helps them to generate meaningful insights that accelerate decision-making and leverage smart technologies for building digital and connected health platforms. To increase efficiency, the industry is upgrading and migrating its existing applications to new technologies and platforms and technologies. This modernization of existing applications will result in better business productivity, robust security, and secure service levels.

Service Insights

The integration and deployment segment led the market and accounted for over 35% share of the global service revenue in 2019. These services enable the deployment of solutions in the first place in a seamless manner within the organizations. These services make sure that solutions are integrated without problems with their internal and external systems, which suffices the client’s investments done on the IT infrastructure. The integration services help organizations to recognize the operational functionalities of the systems and generate reliable connectivity among solutions. Hence, the surging organizational demand to provide advanced services, increasing automation, and adoption of cloud computing are the key factors driving the segment growth.

The support and maintenance segment is expected to exhibit the fastest growth during the forecast period. The rapid technological updates in the operating systems result in constant system upgrades. Virtual client computing solutions should be updated with every single update of the operating system along with other updates. The support and maintenance services are required in virtual solutions to remain upgraded with the technicalities, continually import or export data, and frequently update the solutions. Furthermore, the growing trend of organizations adopting cloud-based operations has resulted in more frequent updates, which has promoted the growth of this segment.

Deployment Insights

The hosted segment led the market and accounted for over 60% share of the global deployment revenue in 2019 owing to the increasing use of mobile devices and advancements in information sharing technologies. Organizations operating multiple sites typically prefer working on the same database and are likely to take advantage of hosted application servers. The deployment of hosted applications is easier than conventional software as they require no upfront installation and have fewer integration requirements. Hosted applications managed by the service provider are regularly updated, fixed with the most stable version, and supported with continuous technical and customer support.

The on-premise segment is expected to witness significant growth over the forecast period owing to the easy customization of the software as per the clients’ processes. Several companies are still adopting on-premise solution, which has resulted in the growing demand for on-premise deployment of software. Initially, organizations adopted the on-premise deployment as it does not require an internet connection, allows easy customization, and ensures full control over confidential business data. However, nowadays companies are inclined towards cloud deployment as it offers flexibility, software updates, work from anywhere, among others. Owing to these factors, the on-premise segment is expected to witness limited growth over the forecast period as this mode of deployment entails the need for purchasing hardware and the operations are run on servers at the client’s premises. Operating and managing the hardware also involves additional cost thus, contributing to a sizeable upfront Capital Expenditure (CAPEX).

Enterprise Size Insights

The large enterprise segment led the market and accounted for over 55% share of the global enterprise size revenue in 2019 owing to the need to decrease the high Operating Expenditure (OPEX) and Capital Expenditure (CAPEX). Large enterprises have their in-house IT resources and huge budgets and hence consider deploying a range of application management strategies. These enterprises generate huge volumes of data that need to be efficiently managed and secured. Moreover, large corporations require strong monitoring solutions and automation capabilities for resource allocation and strategic decision-making. These factors are expected to boost the growth of the large enterprise segment.

The small and medium enterprise segment is expected to exhibit the fastest growth during the forecast period as it increases in the implementation of the lift-and-shift movement strategy. This requires virtual machines that result in reduced OPEX and enhanced business efficiency. The growing awareness about the advantages of digitalization has led businesses to invest substantially to expand and maintain their existing positions in an extremely competitive market. Furthermore, rapid advancements in cloud technology have made it possible for SMEs to adopt these high-end solutions.

Regional Insights

North America dominated the market and accounted for over 30% revenue share in 2019, owing to the growing penetration of cloud technology. Virtual client computing software requires very active and flexible IT support. The region has an established IT industry along with other well-known industry verticals that are instrumental in boosting the adoption of the software. Furthermore, the presence of major market players in developed economies such as the U.S. and Canada along with skilled IT professionals is likely to contribute substantially towards the regional market growth.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period, owing to the presence of emerging economies and rapid adoption of virtual client computing in BPOs and data centers. Several MNCs have started their manufacturing facilities in countries such as China and India, which has led to increased foreign investments in innovative technologies. Moreover, the arrival of cloud computing, analytics, and data virtualization has positively impacted the BFSI, telecom, and IT sectors in the region. The region has a strong cluster of SMBs and the growing awareness about the benefits of cloud, along with rapid technological advancements, are enabling SMBs to transform their business by adopting these solutions.

Key Companies & Market Share Insights

The technology and software industry is highly fragmented, and several players hold a significant market share. Industry players are observed making heavy investments in R&D activities with the objective of increasing their market share and ensuring the organic growth of their companies. Furthermore, these players are actively engaging in new product development to improve and expand their existing product and service portfolios, thus offering these companies an opportunity to acquire new customers and validate the technology.

Moreover, Companies are stressing on mergers and acquisitions and partnerships to develop technologically advanced products to gain a competitive edge. For instance, in February 2020, Renasant Bank partnered with Citrix Systems, Inc. to build digital environments in which individuals can work where, how, and when they want in a reliable and secure manner. Citrix Virtual Apps and Desktops is a virtualization solution with the choice to execute a scalable VDI solution that supports IT organizations to enhance productivity with widespread access to server-based desktops and virtual apps from any device. Some of the prominent players dominating the virtual client computing software market include:

• VMware Inc.

• Citrix Systems, Inc.

• Microsoft Corporation

• Ericom Software

• Unidesk Corporation

• Dell EMC

• Fujitsu

• Huawei

• Hewlett Packard Enterprise Co.

• Hitachi, Ltd.

• NEC Corporation

Virtual Client Computing Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016to 2027. For the purpose of this study, Grand View Research has segmented the global virtual client computing software market based on solution, service, deployment, enterprise size, end use, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Terminal Service

  • Virtual User Session (VUS)

  • Virtual Desktop Infrastructure (VDI)

  • Others

• Service Outlook (Revenue, USD Million, 2016 - 2027)

  • Integration & Deployment

  • Support & Maintenance

  • Training & Consulting

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • Hosted

  • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprise

  • Small & Medium Enterprise

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • BFSI

  • Government

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Media & Entertainment

  • Retail

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA