Desktop Virtualization Market - Growth, Trends, and Forecast (2020 - 2025)

The Desktop Virtualization Market is Segmented by Desktop Delivery Platform (Hosted Virtual Desktop, Hosted Shared Desktop), Deployment Mode (On-premise, Cloud), End-user Vertical (BFSI, Healthcare, Manufacturing, IT and Telecommunications), and Geography.

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

10.79 %

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Market Overview

The desktop virtualization market was valued at USD 6.10 billion in 2019, and it is expected to reach USD 10.84 billion by 2025, registering a CAGR of 10.79% during the forecast period (2020-2025). Desktop virtualization is a technique used to separate the personal computing desktop environment from a physical machine, using the client-server computing model.                 

Desktop virtualization is valuable for small and medium businesses, as it lowers expenditure on hardware and reduces the system administration and maintenance costs. It provides a superior computing experience and solves several complex problems. As a result, desktop virtualization has several benefits, such as reduction of operational costs and increased user satisfaction. Thus, the mentioned factors are expected to fuel the growth of the desktop virtualization market during the forecast period.

  • The growing adoption of cloud computing and increasing demand for Bring Your Own Devices (BYOD) in the workplace are significant factors driving this market.
  • The ability to lower complexity and deliver apps to various mobile users is boosting the adoption of desktop virtualization in all types of businesses. The advancements in management and storage make VDI a more viable option.
  • Desktop Virtualization is completely in sync with cost reduction. Hence, cost-effectiveness is expected to be a key driving factor for the growth of the market.
  • Infrastructural constraints are hindering the growth of the market. Desktop virtualization increases the complexity of delivering Windows desktops and applications. For virtual desktops to perform as intended, several layers of technology have to work in harmony. The need for new infrastructure, along with the costs associated with it, is one of the major constraints for the growth of the desktop virtualization market.

Scope of the Report

Desktop virtualization is a type of virtualization technique that separates personal computing desktop from a physical machine, using the client-server model of computing. This has become a mainstream IT strategy for companies of all sizes. Desktop virtualization involves the separation of the physical client device from the operating system. The data needed for the desktop is stored in a centralized or remote server and not on the client device. This allows users to access their data from anywhere and at any time.

By Desktop Delivery Platform
Hosted Virtual Desktop (HVD)
Hosted Shared Desktop (HSD)
Other Desktop Delivery Forms
By Deployment Mode
On-premise
Cloud
By End-user Vertical
Financial Services
Healthcare
Manufacturing
IT & Telecommunications
Other End-user Verticals
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Rest of the World

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Key Market Trends

Cloud Deployment Expected to Witness Significant Growth

Cloud computing is being used by various organizations to reduce operational costs and ease the access to data and applications that are not installed on the computers or servers. Easy implementation, accessibility, and flexibility of cloud hosting are expected to drive the adoption of cloud computing by organizations. Cloud deployment includes service models, such as Desktop-as-a-Service (DaaS), Workspace-as-a-Service (WaaS), and Application/Software-as-a-Service (SaaS). Desktop virtualization is offered as a service over cloud networks, with all computing and supporting infrastructure hosted on the service provider’s end, in the cloud deployment mode, which makes the migration of data between working environments easy.                                                   

  • Application streaming over the cloud is gaining popularity in the industry, with many businesses choosing standalone application services. Cloud is preferred across industries, as it provides better scalability, data management, and cost savings.
  • Cloud deployment makes the migration of data between working environments easy. Also, companies have the option to scale up their requirements and procure additional computing power and data without the need for physical installation. This flexibility of DaaS enables better resource management.
  • With servers and equipment hosted on the service providers side, the need for technical staff and IT resources to maintain and operate systems is eliminated.

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North America Expected to Hold the Largest Market Share

The North American region is the base of operations for leaders across industry verticals and as a result, it is the largest regional market for desktop virtualization. The United States is the largest consumer of desktop virtualization in North America. The presence of market leaders, several cloud service providers, and an increasing number of hosted servers in the United States have contributed to the growth of the US segment of the market studied. 
The presence of major companies in the United States has led to the setting up of new workspaces in Canada (due to the proximity of its developed counterpart and emphasis on installing eco-friendly and energy-saving practices), thus bolstering the growth of the market across the region.

  • The early adoption of new technologies by organizations in the region is the primary driving force behind global dominance. The presence of large cloud service providers plays a significant role in the growth of cloud-based desktop virtualization deployment in the region.
  • The North American IT and telecommunications industry is the largest among other regional markets. Industries, such as banking, healthcare, and government organizations, handle large databases of sensitive information. They are looking forward to using desktop virtualization deployments, as they preserve the integrity of the intellectual property and simultaneously provide flexibility to users. 
  • Credit card data and social security numbers of individuals are targeted by hackers. Cloud services are in high demand and are experiencing high adoption, with the rise in the demand for IoT systems across the industry verticals. There is a rapid shift toward automation and the investment inflow toward new technologies is driving value creation, whereas, cloud adoption helps with the rationalization of costs. 

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Competitive Landscape

The desktop virtualization market is neither fragmented nor consolidated and there are many innovations and developments expected in the market. 

  • April 2019: Dell Technologies, VMWare, and Microsoft are making their workplace software and cloud computing technologies work better together. Microsoft's Azure cloud computing customers can use VMWare's Virtualization software to manage their IT operations in Azure. 
  • March 2019: Microsoft Corporation has introduced Azure Stack HCI Solutions, which is a new implementation of its on-premise Azure product for Hyper Converged Infrastructure hardware. 
  • July 2017: Parallels International launched Mac Management 6 for Microsoft SCCCM, which extends the Microsoft system center Configuration Manager Functionality.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Demand for Bring Your Own Device

      2. 5.1.2 Growing Adoption of Cloud Computing

    2. 5.2 Market Restraints

      1. 5.2.1 Infrastructural Constraints

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Desktop Delivery Platform

      1. 6.1.1 Hosted Virtual Desktop (HVD)

      2. 6.1.2 Hosted Shared Desktop (HSD)

      3. 6.1.3 Other Desktop Delivery Forms

    2. 6.2 By Deployment Mode

      1. 6.2.1 On-premise

      2. 6.2.2 Cloud

    3. 6.3 By End-user Vertical

      1. 6.3.1 Financial Services

      2. 6.3.2 Healthcare

      3. 6.3.3 Manufacturing

      4. 6.3.4 IT & Telecommunications

      5. 6.3.5 Other End-user Verticals

    4. 6.4 Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 Germany

        2. 6.4.2.2 United Kingdom

        3. 6.4.2.3 France

        4. 6.4.2.4 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 Japan

        3. 6.4.3.3 India

        4. 6.4.3.4 Rest of Asia-Pacific

      4. 6.4.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Citrix Systems Inc.

      2. 7.1.2 DELL Technologies Inc.

      3. 7.1.3 IBM Corporation

      4. 7.1.4 Huawei Technologies Co. Ltd

      5. 7.1.5 Microsoft Corporation

      6. 7.1.6 Toshiba Corporation

      7. 7.1.7 Parallels International GmbH

      8. 7.1.8 Red Hat Inc.

      9. 7.1.9 NComputing Co. Ltd.

      10. 7.1.10 Ericom Software Inc.

  8. *List Not Exhaustive
  9. 8. INVESTMENT ANALYSIS

  10. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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