Desktop Virtualization Market Size, Share & Industry Analysis, By Type (Virtual Desktop Infrastructure, Remote Desktop Services, and Desktop-as-a-Service), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By Industry (IT & Telecom, BFSI, Retail & E-commerce, Government, Education, Manufacturing, Healthcare, and Others), and Regional Forecast, 2024-2032

The global desktop virtualization market size was valued at USD 22.63 billion in 2023 and is projected to grow from USD 27.61 billion in 2024 to USD 142.66 billion by 2032, exhibiting a CAGR of 22.8% during the forecast period. North America dominated the global market with a share of 35.09% in 2023.

Desktop virtualization offers a simulation of infrastructure that can be accessed from remote locations through connected devices at any time. The rapid increase in remote users and virtually work-from-anywhere policies across enterprises is expected to boost market growth. According to the “State of the Global Workplace: 2023 Report” by Gallup, Inc., around 82% of global companies provide some form of remote work, up from 57% in the year 2021. 

Similarly, the growing adoption of cloud solutions and services is likely to fuel the demand rate. According to the Cloud Brand Pulse Survey, 2022 by Google, around 41% of global tech as well as business leaders noted that they are increasing their use of cloud-based services and product adoption. The availability of cost-effective remote workplace solutions is propelling organizations’ investments. Also, with the rapidly increasing cloud transformation, enterprises are investing in and enhancing virtualization capabilities significantly by collaborating with solution providers. For instance,

• In June 2022, the U.S. government-serving technology transforming company, Red River, announced that it achieved the Microsoft Azure Virtual Desktop specialization, thus boosting its technical capabilities.

For the market study, we have considered various tools globally, such as Azure Virtual Desktop, Citrix DaaS, VMware Horizon, Amazon WorkSpaces Family, and Kyndryl Workplace Virtualization Services.

The sudden restrictions amid the COVID-19 outbreak severely impacted the economies on a global scale. Adjusting to the new normal reality, companies quickly implemented virtual tools to continue business; thus, the demand for desktop virtualization increased exponentially in 2020. The technology has supported various small, medium, and large enterprises that were facing challenges earlier in offering remote access to their employees. For instance,

• In September 2020, Kuwait-based Ooredoo Telecom collaborated with Nutanix, Inc. to provide virtual desktop infrastructure as a service for businesses across Kuwait.

Thus, the necessity of remote work access amid the pandemic fueled the desktop virtualization market growth.

Desktop Virtualization Market Trends

Growing Demand for Desktop-as-a-Service for Higher Education to Boost Market Growth

Higher education institutes are witnessing huge demand for flexible access to libraries and other information from students. Also, these institutions’ dependency on physical storage space on campus is challenging the operations and ease of computation. The growing trend of desktop virtualization has shown various applications and use cases in higher educational institutions. Higher education providers are implementing desktop-as-a-service to ensure data security, transforming storage space, and to overcome limitations.

Moreover, universities are keen on expanding their distance learning, and research offices are implementing DaaS applications. The adoption of these advanced solutions is helping with remote access and secured data. For instance,

• In September 2022, cloud-based remote workplace provider SimpleCloud launched an educational platform based on virtual desktops to provide higher education equitable access to technology. The platform offers scheduled and preloaded courses, virtual classrooms, controlled access over students' desktops, and more.

Thus, the growing demand for virtual access to data in higher education fuels the market.

Desktop Virtualization Market Growth Factors

Workspace Transformation for the Future to Drive Market Growth

Over the years, IT infrastructure across industries has changed significantly. Workspaces are also witnessing drastic changes with the rise in the work-from-anywhere culture. Furthermore, the COVID-19 triggered a shift, fueling the hybrid work environment across various industries. Such transformation in the work environment has apparently pushed management and enterprises to implement desktop virtualization capabilities. According to the Accenture Future of Work Study 2021, 26% of global CEOs are focusing on strategies of “how, why, and where we work” for a future-ready workspace. Thus, enterprises need to consider virtualization solutions for business continuity.

Along with higher security, organizations are witnessing an increase in employee productivity after offering remote access to work infrastructure. As per the McKinsey report on the Future of Hybrid Work 2021, 58% of employees witnessed a boost in productivity with the hybrid work environment. Thus, to support the growing demand for hybrid work, potential future transformation in workspaces is expected to drive market growth.

RESTRAINING FACTORS

Reliance on Network Connection and Possible Performance Issues to Hamper Market Growth

Desktop virtualization is fully dependent on an internet connection to work; thus, any issue with a network connection can completely hamper the work. Similarly, end users and employees need a strong internet connection to utilize virtualization efficiently. Also, latency issues are impacting employee productivity and real-time project management. Thus, it is essential for enterprises to arrange high-end internet connectivity.

Desktop Virtualization Market Segmentation Analysis

By Type Analysis

Virtual Desktop Infrastructure to Lead Due to Growing Demand for BYOD Policy

Based on type, the market is categorized into Virtual Desktop Infrastructure (VDI), Remote Desktop Services (RDS), and Desktop-as-a-Service (DaaS).

The virtual desktop infrastructure segment to gain dominant segment share during the forecast period. The rising adoption of bring your own device is expected to fuel VDI demand. VDI uses virtual machines to manage and provide virtual desktops. It offers numerous benefits, such as remote access, centralized management, cost savings, and robust security.  In VDI, data is stored on the server rather than the endpoint device. This, in turn, protects data if an end client device is ever compromised.

The Desktop-as-a-Service (DaaS) segment to showcase a rapid growth rate, owing to the growing demand and rising investments in cloud computing. The increasing availability of high-speed internet and secured solutions is driving DaaS solutions. Post-pandemic, the adoption of DaaS has shown significant growth traction. For instance,

• In July 2020, a datacenter provider, Flexential, launched desktop-as-a-service to support hybrid and remote location access. As per the company's estimation, remote labors will grow by 70% in the coming years.

By Enterprise Type Analysis

Rapid Digitalization to Boost Large Enterprises Segmental Revenue Share

Based on enterprise type, the market is bifurcated into large enterprises and small & medium enterprises.

The large enterprises segment is anticipated to gain maximum revenue share during the forecast period owing to the rapid digitalization across industries with maximum IT funds. The enterprises are offering a hybrid work environment to support employees with easy access to the workspace. The top global companies, such as Google LLC, Twitter, Airbnb, and Spotify AB, offer permanent work-from-home. In addition, large enterprises are increasingly migrating to cloud-based tools. According to the Cloud Brand Pulse Survey, 2022 by Google, about 33% of tech and business leaders noted that they are planning to migrate from legacy enterprise software to cloud-based tools.

By Industry Analysis

Increase Demand for Digital Workplace to Boost the IT & Telecom Segment Share

By industry, the market is segmented into IT & telecom, BFSI, retail & e-commerce, government, education, manufacturing, healthcare, and others.

The IT and telecom segment to gain maximum revenue share during the forecast period. The industry is keen on ensuring employee productivity along with providing a flexible work environment. For instance,

• In June 2020, India-based IT key player Wipro Ltd. announced a collaboration with Citrix Systems, Inc. and Microsoft Corporation to create a next-generation digital workspace and virtual compute environment for efficient employee performance.

The BFSI segment to showcase a rapid growth rate owing to the rapid adoption of digital platforms and tools to cater to customers. Over the years, the revenue generation of the banking and financial industry grew with the adoption of digital channels. To provide services and solutions to customers, financial institutes use desktop virtualization solutions for employees to access data from remote locations.

Similarly, the healthcare segment will showcase a significant growth rate as the solution provides quick and secure patient information to healthcare professionals. Due to the rapid rise in online shopping and digital communication platforms, the retail and e-commerce industry is investing in desktop virtualization.

REGIONAL INSIGHTS

Geographically, the market is fragmented into five major regions such as North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.

North America holds a prominent share of the market revenue globally. As the adoption of cloud solutions and digital transformation is growing significantly, it is expected to boost the market growth in the region. The U.S. is expected to dominate the regional revenue share during the forecast period. According to the McKinsey American Opportunity Survey Spring 2022, 87% of American workers are at least offered some remote working opportunities and three days per week of flexible remote working.

Asia Pacific is anticipated to witness a rapid growth rate during the forecast period. The exponential growth in demand for cloud computing and the digitalization of industrial operations is expected to boost the adoption of remote workplace tools. Bring Your Own Device (BYOD) policies are likely to drive the desktop virtualization market share. India is expected to witness the fastest CAGR during the forecast period owing to the increasing adoption of remote workplace policies.

The Middle East & Africa is expected to showcase a prominent growth rate owing to increasing digital transformation across industries. The region is significantly investing in advanced technologies and thus is keen on providing easy and secure access to the work infrastructure from remote locations. South America is expected to showcase a steady growth rate as various small & medium companies are offering virtual work environments as cost savings to reduce economic pressure on enterprises.

List of Key Companies in Desktop Virtualization Market

Increase in Number of Product Offerings under Workplace Virtualization to Boost Market Share

Key players are keen on offering solutions to support the rising number of remote workers globally. Also, with strategic partnership and collaboration, the market players are providing enterprises with efficient and secured access to the work infrastructure. Mergers and acquisitions are on the rise, considering the players are aiming to expand their business and expertise to support remote workforce globally. For instance,

• February 2023 – Multi-cloud solution provider OTAVA, LLC launched desktop-as-a-services powered with VMware Horizon DaaS for enterprises offering hosted and desktop applications. The company aims to boost employee efficiency by offering secured virtualized infrastructure.


• April 2022 – California-based TD SYNNEX launched Click-to-Run managed desktop solutions for businesses with remote end-users. The solution is deployed on an Azure virtual desktop and helps employees access work infrastructure and applications from remote locations.

List of Key Companies Profiled:

• Microsoft Corporation (U.S.)


• Oracle Corporation (U.S.)


• Citrix Systems, Inc. (Vista Equity Partners Management, LLC) (U.S.)


• Cisco Systems, Inc. (U.S.)


• IBM Corporation (U.S.)


• Google LLC (U.S.)


• Amazon Web Services, Inc. (U.S.)


• VMware Inc. (U.S.)


• DXC Technology Company (U.S.)


• Kyndryl Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 – Oracle Corporation announced a partnership with Kasm Technologies to provide its workplace solution, which includes remote browser isolation, desktop-as-a-services, and containerized application streaming. It offers on-premises type security on a public cloud platform that ensures an on-demand remote work solution.


• November 2022 – Penguin Solutions acquired Colorado Code Craft’s remote software access to support its product offering, including artificial intelligence, Internet of Things, and cloud computing solutions. The acquisition assists in operating its applications on virtual desktop infrastructure.


• April 2022 – TD SYNNEX Corporation unveiled a new solution, “click-to-run”, a managed virtual desktop for organizations that offer remote desktops. Click-to-run virtual desktop is hosted on the Microsoft Azure cloud computing platform that enables users to access their desktops and applications from anywhere using any device.


• September 2022 – U.K.-based Orange Business Services introduced virtual desktop infrastructure capabilities with the acquisition of Login Consultants. Through these solutions, the company offers secured primary services and cloud capabilities to customers. 


• November 2021 – Nexthink SA announced a strategic partnership with Citrix Systems, Inc. to provide secured remote access using Desktop-as-a-service and Virtual Desktop Infrastructure from Citrix. The company aims to provide a unique experience to customers and employees by offering real-time insights on any application at any time.

REPORT COVERAGE

The research report examines key regions globally to help users better understand the market. Additionally, it provides insights into the latest industry and market trends and an analysis of technologies deployed at a quick rate on a global scale. Using various research methodologies, it also highlights some of the market's growth-stimulating elements and restrictions, allowing the reader to understand the market thoroughly.

REPORT SCOPE & SEGMENTATION