Hardware-as-a-Service (HaaS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Hardware-as-a-Service (HaaS) Market is segmented by Offering (Hardware Model, Professional Services), by End-User Industry (Retail/Wholesale, Education, BFSI, Manufacturing, Healthcare, IT and Telecommunication), and by Geography.

HaaS Industry Overview

hardware as a service market
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 26.2 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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HaaS Market Analysis

Hardware-as-a-Service (HaaS) market is anticipated to witness a CAGR of 26.2% over the forecast period 2022 - 2027. The increasing need to adopt new IT solutions, increased digitization, increasing investment of small and large-scale enterprises in the HaaS hardware and services, technical advancements and product innovation, and increasing load on cloud infrastructure are some of the major factors influencing the growth of the HaaS market.

  • Haas model is emerging as a method of technology acquisition for businesses looking for new ways to serve customers in a competitive market with minimal pressure on a company’s financial operations. The Haas model is more cost-effective among businesses that frequently replace or upgrade their hardware. This offering provides affordable, managed solutions with a rental agreement that also bundles maintenance and support. The client and managed service provider (MSP) agree on mutual terms to install the hardware at the client’s site, for which the client either pays a monthly fee for the service.
  • The hardware as a service (PaaS) market is forecast to gain traction due to the growing deployment of cloud platforms. In addition, the solutions are cost-friendly, which makes them suitable for small enterprises also. Thus, it will contribute to the growth of the global hardware as a service (PaaS) market.
  • The industries are shifting from ownership to on-demand service (XaaS). Cloud computing services are also increasingly attracting investment in the studied market, as data storage servers and active computing hardware are the components of a remotely provisioned service for users. According to the US-based IT company Spiceworks, 48% of the organizations in North America and Europe are currently leasing one or more types of hardware. Among these, printers are the most preferred hardware to lease. After printers, the other preferred devices are servers (8%), networking equipment (8%), desk phones (7%), desktops (6%), laptops (6%), smartphones (5%), or tablets (3%).
  • Lack of awareness regarding the benefits offered by the hardware-as-a-service model is a major factor hindering the adoption of the Haas model, thereby restraining its growth. Companies in developing countries such as India, China, Brazil, and Indonesia have a comparatively low adoption of these services as they are unaware of the benefits such as reducing the company’s cost of upgradation, maintenance, and replacement of hardware; thus, they are less willing to adopt this service model.
  • With the outbreak of Covid-19, service firms, particularly, have embraced the work-from-home culture. This has led to a spike in demand for laptops, especially leased ones of every kind. But, with complete disruption of the supply chain and production activities, there is a huge mismatch between demand and supply of hardware components, and there is a shortage in the market. With the situation getting normal in the coming few quarters, HaaS is expected to grow as it mitigates the risk of a complete shutdown of the business during unforeseen circumstances like the Covid-19 pandemic.

HaaS Industry Segments

The market for Hardware-as-a-Service (HaaS) is primarily segmented into type of offering, end-user industry, and geography. The market by offering type is further segmented into hardware model and professional services. Hardware models include platform as a service, desktop/pc as a service, infrastructure as a service, and device as a service, while the end user market includes retail/wholesale, education, BFSI, manufacturing, healthcare, and IT and telecommunication sectors.

By Offering
Hardware Model
Platform-as-a-Service
Desktop/PC-as-a-Service
Infrastructure-as-a-Service
Device-as-a-Service
Professional Services
By End-User Industry
Retail/Wholesale
Education
BFSI
Manufacturing
Healthcare
IT and Telecommunication
Other End-User Industries
BY Geography
North America
Europe
Asia-Pacific
Latin America
Middle-East and Africa

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HaaS Market Trends

This section covers the major market trends shaping the HaaS Market according to our research experts:

Retail/Wholesale Sector Holds Largest Share in the Market

  • The adoption of HaaS varies from industry to industry. Among all organizations, Retail/wholesale organizations are found to have adopted the HaaS model to a more significant extent, followed by Education and Financial services sector. Retail/wholesale organizations have hundreds or thousands of stores spread worldwide, making it difficult for internal IT teams to service more remote areas.
  • Spiceworks surveyed more than 1,100 IT decision makers in organizations across North America and Europe to understand the penetration of the hardware-as-service model in the workplace. The survey showed that around 31% of retail/wholesale organizations already use the HaaS model (one or more types of devices). An additional 7% of the remaining retail businesses plan to adopt HaaS within the next two years. Part replacement, hardware support, and troubleshooting are some of this model's most commonly used services.
  • During the Pandemic, the retail sector was one of the deemed essential businesses in many countries that were allowed to stay open when other industries had to shut their doors. Due to the growing need for numerous hardware systems among retailers, wholesalers, supermarkets, and department stores, this industry is predicted to hold a significant position.
  • The Retail sector has seen a lot of investments and developments recently. Retail tech companies supporting the retail industry with services such as digital ledgers, inventory management, payments solutions, and logistics and fulfillment tools enhance the need for HaaS Services.
Hardware-as-a-Service Market

Demand from Asia-Pacific is expected to Drive the Growth

  • The Asia Pacific is home to some of the fastest-growing economies, such as India and China. A large IT and Telecommunication industry workforce and many enterprises are expected to boost the demand for the hardware-as-a-service model.
  • Furthermore, several life sciences and retail organizations, the rising number of small and medium-sized enterprises, and the increasing awareness of HaaS are expected to drive the market over the forecast period.
  • With many small or mid-sized businesses in China, Taiwan, South Korea, India, and Japan, the Asia-Pacific region is expected to experience the highest growth rate during the forecast period since the HaaS model is a cost-effective method for optimal utilization of information technology hardware. Moreover, the region enjoys the presence of several significant vendors in the hardware market, thus driving the demand for HaaS.
  • Hardware-as-a-service enables timely upgrade and maintenance of hardware and software, allowing companies to reduce IT burdens; moreover, it helps avoid technological obsolescence, ultimately enhancing productivity.
  • Implementing hardware-as-a-service in the IT and telecommunication industries helps companies reduce IT budgets by providing reasonable rates for renting hardware, decreasing downtime, and adequately managing devices by giving security and software services. In October 2021, Realme launched 100 new exclusive stores across India to expand and strengthen its footprint in the country. Such expansions boost HaaS Market in this region.
Hardware as a Service Market

HaaS Market Competitor Analysis

Few players with their product offerings currently dominate the HaaS market, and the global market is expected to be consolidated. Navitas Lease Corporation, FUSE3 Communications, Ingram Micro Inc., Design Data Systems, Inc., Phoenix NAP, LLC, Machado Consulting, Managed IT Solutions, Fujitsu Ltd., Lenovo Group Ltd., Amazon.com, Inc., and Dell Inc. are some of the major players present in the market studied. Industry tech giants such as Google, IBM, and Microsoft also offer these services in collaboration with startups to compete in this as-a-service market.

  • In September 2021, Cloud-based embedded development tools such as Keil Studio can improve the development flow for embedded, from product evaluation to model- or simulation-based validation with continuous integration flows, model optimization for machine learning, to device provisioning for deployment.
  • In June 2021, Salesforce.com, Inc. and Amazon Web Services, Inc. (AWS) completed a strategic partnership. This partnership assists in deploying an advanced business application that accelerates digital transformation and growth in the SaaS cloud services.

HaaS Market Top Players

  1. FUSE3 Communications

  2. Managed IT Solutions

  3. Ingram Micro

  4. Machado Consulting

  5. Navitas Credit Corp

*Disclaimer: Major Players sorted in no particular order

Navitas Lease Corporation, FUSE3 Communications, Ingram Micro Inc., Design Data Systems, Inc., Phoenix NAP, LLC, Machado Consulting, Managed IT Solutions

HaaS Market Recent Developments

  • September 2022 - Vertiv, a global provider of critical digital and continuity solutions, announced that it had expanded its go-to-market relationship with Ingram Micro Inc., a global technology business leader, to cover Singapore, Malaysia, and Thailand to sell Vertiv’s enhanced suite of edge-ready products and comprehensive portfolio of IT technologies and services. This includes Vertiv’s Geist rack power distribution units (rPDU), Liebert uninterruptible power supplies (UPS), Liebert rack cooling systems, and dedicated software and services for partners and customers in the region.
  • November 2021 - Xyte, an Israel-based company, secured a $6.4M funding round led by SCapital to launch the first Hardware-as-a-Service cloud platform and move hardware industries beyond traditional models to new profitable, subscription-based sales.

HaaS Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Growing Deployment of Cloud Platform

      2. 4.2.2 Increase attraction of Investments

    3. 4.3 Market Restraints

      1. 4.3.1 Lack of Awareness of benefits from HaaS Model

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Intensity of Competitive Rivalry

      5. 4.4.5 Threat of Substitutes

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Assessment of Impact of Covid-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Offering

      1. 5.1.1 Hardware Model

        1. 5.1.1.1 Platform-as-a-Service

        2. 5.1.1.2 Desktop/PC-as-a-Service

        3. 5.1.1.3 Infrastructure-as-a-Service

        4. 5.1.1.4 Device-as-a-Service

      2. 5.1.2 Professional Services

    2. 5.2 By End-User Industry

      1. 5.2.1 Retail/Wholesale

      2. 5.2.2 Education

      3. 5.2.3 BFSI

      4. 5.2.4 Manufacturing

      5. 5.2.5 Healthcare

      6. 5.2.6 IT and Telecommunication

      7. 5.2.7 Other End-User Industries

    3. 5.3 BY Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Navitas Lease Corporation

      2. 6.1.2 FUSE3 Communications

      3. 6.1.3 Ingram Micro Inc.

      4. 6.1.4 Design Data Systems, Inc.

      5. 6.1.5 Phoenix NAP, LLC

      6. 6.1.6 Machado Consulting

      7. 6.1.7 Managed IT Solutions

      8. 6.1.8 Fujitsu Ltd.

      9. 6.1.9 Lenovo Group Ltd.

      10. 6.1.10 Dell Inc.

      11. 6.1.11 Microsoft Corporation

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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HaaS Market Research FAQs

The HaaS Market is studied from 2018 - 2028.

The HaaS Market is growing at a CAGR of 26.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

FUSE3 Communications, Managed IT Solutions, Ingram Micro, Machado Consulting, Navitas Credit Corp are the major companies operating in HaaS Market.

HaaS Industry Reports

In-depth industry statistics and market share insights of the HaaS sector for 2020, 2021, and 2022. The HaaS research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the HaaS report PDF.

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