Hardware-as-a-Service (HaaS) Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 120.54 Billion |
| Market Size (2030) | USD 425.78 Billion |
| Growth Rate (2025 - 2030) | 28.71% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Hardware-as-a-Service (HaaS) Market Analysis by Mordor Intelligence
The hardware as a service market size is valued at USD 120.54 billion in 2025 and is forecast to reach USD 425.78 billion by 2030, advancing at a 28.71% CAGR. The leap reflects enterprises converting capital-intensive hardware purchases into predictable subscriptions, a shift accelerated by hybrid-work security mandates and CFO preference for operating-expense flexibility[1]Mitel, “IT Spending Strategy: Why More CFOs are Shifting IT Investment from CapEx to OpEx,” mitel.com. Sovereign AI programs, such as Canada’s CAD 1.7 billion allocation for domestic super-computing, are stimulating home-grown infrastructure demand, while the U.S. CHIPS and Science Act’s USD 50 billion incentives are pushing manufacturers toward subscription robotics to modernize plants without depleting cash reserves. Asset-backed securitization is scaling the hardware as a service market, with DLL issuing USD 2.15 billion in notes during 2024, lowering providers’ cost of funds and enabling competitive pricing[2]DLL Group, “DLL Closes Third U.S. Securitization Transaction of 2024,” dllgroup.com. Circular-economy regulation in the EU is another catalyst because the model aligns with mandated durability and repairability standards.
Key Report Takeaways
- By offering, Device-as-a-Service held 32.12% of the hardware as a service market share in 2024.
- Robot-as-a-Service is projected to expand at a 30.17% CAGR between 2025-2030.
- By deployment mode, on-premises accounted for a 45.39% share of the hardware as a service market size in 2024.
- Hybrid/Network-as-a-Service is advancing at a 26.43% CAGR through 2030.
- By enterprise size, large organizations led with 61.66% hardware as a service market share in 2024, while SMEs record the highest projected CAGR at 25.97% to 2030.
- By industry, retail and wholesale captured 28.37% revenue share in 2024; manufacturing is forecast to expand at a 24.61% CAGR to 2030.
Global Hardware-as-a-Service (HaaS) Market Trends and Insights
Driver Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Enterprises shifting CapEx to OpEx through subscription-based hardware procurement | +6.2% | Global, with strongest adoption in North America and EU | Medium term (2-4 years) |
| Device lifecycle shortening under hybrid-work security mandates | +4.8% | Global, concentrated in developed markets | Short term (≤ 2 years) |
| Rising VC funding and asset-backed securitisation models for industrial HaaS | +3.1% | North America and EU core, expanding to APAC | Medium term (2-4 years) |
| Government on-shoring incentives accelerating automation via HaaS | +2.9% | North America, EU, with selective APAC adoption | Long term (≥ 4 years) |
| Circular-economy regulations favouring product-as-a-service | +2.7% | EU leadership, spreading to North America and APAC | Long term (≥ 4 years) |
| Embedded IoT-analytics enabling predictive-maintenance contracts | +1.8% | Global, with industrial concentration in developed markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Enterprises shift CapEx to OpEx with subscriptions
Leasing overtook purchasing for 54% of U.S. equipment acquisitions in 2024, illustrating the pivot to operational expenses[3].Huntington, “Guide: Equipment leasing vs. buying in today’s interest rate environment,” huntington.com Subscription contracts free capital for strategic projects and shield buyers from rapid depreciation. Dell APEX customers report a 50% cut in help-desk load and 30% lower support costs, showing that outcome-oriented partnerships replace one-off sales. The benefit is amplified in sectors with fast obsolescence, making the hardware-as-a-service market a strategic hedge against technology risk.
Device lifecycle shortens under hybrid-work security rules
Distributed work raises endpoint threat exposure, compressing refresh cycles below four years. HP introduced quantum-resistant firmware to counter future decryption risks, underscoring the security premium now baked into device turnover [HP.COM]. Seventy percent of SMEs plan permanent remote-work policies that intensify the need for managed refresh services.
VC funding and securitization boost industrial HaaS
Venture capital poured USD 10.4 billion into HaaS start-ups in 2024, with median valuations 59% above other frontier tech, validating recurring-revenue appeal. Structured finance follows: Vantage Data Centers raised EUR 720 million via the first euro-denominated asset-backed deal for data-center hardware, proving investor appetite for annuity-backed hardware assets. These mechanisms let providers scale while keeping equity dilution low.
Government on-shoring incentives accelerate automation
U.S. semiconductor subsidies and India’s USD 2 billion PLI scheme for IT hardware spur demand for subscription robotics and edge devices that qualify as operational rather than capital expenditure. China’s equipment renewal plan targets a 25% rise in industrial equipment spend by 2027, further widening the hardware as a service market opportunity[4]English State Council, “China to Promote Equipment Renewals,” english.www.gov.cn .
Restraint Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Limited SME awareness of HaaS total-cost benefits | -2.4% | Global, most pronounced in emerging markets | Short term (≤ 2 years) |
| Vendor lock-in and complex exit terms | -1.9% | Global, particularly affecting enterprise segments | Medium term (2-4 years) |
| Rising cost of capital compressing provider margins | -1.7% | Global, with highest impact in developed markets | Short term (≤ 2 years) |
| Non-uniform accounting rules for subscription hardware assets | -1.3% | Global, with regional variations in IFRS adoption | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Limited SME awareness of HaaS total-cost benefits
OECD notes that digital gaps linger because SMEs lack the financing skills and staff capacity to evaluate subscription proposals. The mismatch slows adoption in cost-sensitive regions, though provider-run assessment tools and government grants are shrinking the knowledge gap.
Vendor lock-in and complex exit terms
Juniper Networks research flags multi-year HaaS contracts with inflexible modification clauses as a source of strategic risk. Enterprises hesitate when exit fees, data migration hurdles, and staff retraining inflate switching costs. Providers are responding with standardized off-ramp playbooks and multi-vendor orchestration options to preserve buyer choice.
Segment Analysis
By Offering: Subscription Models Diversify Value Creation
Device-as-a-Service captured 32.12 of of % hardware as a service market share in 2024. Robot-as-a-Service, however, posts the fastest 30.17% CAGR, powered by small-factory automation and cheaper collaborative robots. The hardware as a service market size for GPU-as-a-Service is scaling alongside AI workloads; GPU subscriptions grew from USD 4.31 billion in 2024 to projections of USD 49.84 billion by 2032. Professional services wrap these hardware offerings with deployment, monitoring, and optimization that enhance uptime.
Subscription innovation extends to platform-level services. Siemens Senseye processes more than 1 million sensor points per minute, showing how predictive analytics converts raw hardware into industrial performance guarantees. The architecture shift elevates value from ownership to usage, anchoring the hardware as a service market in outcome-based economics and tilting competitive advantage toward vendors that bundle analytics and financing expertise.
Note: Segment shares of all individual segments available upon report purchase
By Deployment Mode: Hybrid Architectures Balance Control and Scalability
On-premises deployments held a 45.39% share in 2024, a testament to compliance and latency sensitivities in industries such as finance and healthcare. Yet the hybrid/network-as-a-service model grows at 26.43% CAGR because it fuses local control with cloud elasticity. Lenovo’s ThinkAgile MX455 V3 lets customers place AI inference at the edge while bursting training workloads to Azure, demonstrating how workload portability defines modern procurement.
Cloud-managed hardware services remain crucial for burst capacity and simplified updates, but data sovereignty law keeps certain workloads local. IBM’s Power Virtual Server on-premise pod shows that even public-cloud vendors are packaging localized subscriptions to satisfy sovereignty mandates. The hardware as a service market is therefore shifting from an either-or mindset to a continuum where assets can relocate dynamically.
By End-User Enterprise Size: SME Momentum Redraws Demand Curve
Large enterprises controlled 61.66% of the hardware as a service market share in 2024 due to procurement scale and IT maturity. The hardware as a service market size in the SME segment advances at a 25.97% CAGR as vendors simplify pricing and bundle lifecycle services with financing. Equipment Leasing and Finance Association forecasts deeper penetration in small firms because subscription models level the playing field for cutting-edge hardware access.
SME adoption is rising fastest in sectors where cash flow volatility is high. Flat monthly fees help smaller manufacturers deploy robotics without tying up working capital, while built-in maintenance eliminates skills shortages. The trend diversifies revenue streams for providers that historically catered to large enterprises and presses them to build light-touch support channels optimized for smaller teams.
By End-User Industry: Manufacturing Accelerates Toward Service-Based Automation
Retail and wholesale logged a 28.37% revenue share in 2024 as omnichannel operations required frequent device refresh cycles. Manufacturing, supported by government re-shoring incentives, is forecast to grow at a 24.61% CAGR through 2030. Predictive maintenance platforms such as Siemens Senseye push factories to embed analytics directly within subscription hardware, aligning cost with uptime outcomes [SIEMENS.COM]. BFSI, healthcare, and education each adopt specialized service variants that address compliance and budget cycles.
The AI boom is lifting GPU-as-a-Service uptake in telecom and media, where training and inference hardware must scale quickly. Government and public-sector bodies favor on-prem subscriptions that meet data-privacy statutes. The breadth of adoption across verticals underscores how the hardware as a service market now spans simple endpoint refresh to mission-critical automation.
Geography Analysis
North America retained a 42.18% share of the hardware as a service market in 2024, sustained by sophisticated leasing ecosystems and federal incentives that reward domestic production. Over half of U.S. equipment procurement already flows through leases, reinforcing subscription maturity. Government grants supporting semiconductor and advanced manufacturing multiply demand for flexible robotics and edge devices.
Asia-Pacific is the fastest-growing region, posting a 19.79% CAGR. China’s equipment renewal plan that aims for 25% growth in capital goods spending by 2027, and India’s data-center expansion to support digital payments, will generate robust subscription pipelines. Taiwan’s dominance in server manufacturing supplies the global logistics chain for device-as-a-service fleets, further entwining the region with global hardware as a service market expansion
Europe’s trajectory hinges on circular-economy regulations that push organizations toward service-based ownership. The Ecodesign for Sustainable Products Regulation effective July 2024 requires long life, repairability, and spare-parts availability, aligning directly with service contracts that embed maintenance. Providers adept at managing take-back loops and refurbishment enjoy regulatory tailwinds, marking Europe as a laboratory for sustainability-driven subscription innovation.
Competitive Landscape
Incumbent device giants—Dell, HP, Lenovo—leverage manufacturing scale and channel reach to deepen subscription penetration. Dell’s APEX platform already delivers measurable help-desk and cost savings to clients, proving incumbents can pivot from unit sales to annuity revenue. Specialist players such as Xyte and Formic focus on enabling hardware manufacturers to spin up as-a-service models or on turnkey Robot-as-a-Service for small factories, injecting niche competition.
Financing prowess is emerging as a critical differentiator. DLL’s USD 2.15 billion securitization volume in 2024 illustrates how access to low-cost capital lets providers subsidize subscriptions at attractive rates. M&A accelerates capability convergence: HPE’s USD 14 billion purchase of Juniper Networks gives it control over networking stacks vital for AI workloads, while AMD’s USD 4.9 billion buyout of ZT Systems marries chip design with system integration to attack the data-center AI opportunity.
Competitive focus has shifted from pure hardware performance to platform completeness. Offerings now bundle analytics, automation APIs, and sustainability dashboards. Companies that can wrap predictive maintenance, security telemetry, and easy off-ramp provisions gain the trust required for multi-year commitments. As regulation tightens around right-to-repair and data privacy, compliance management becomes an implicit part of product design, forcing laggards to adapt or cede share.
Hardware-as-a-Service (HaaS) Industry Leaders
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Managed IT Solutions
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Navitas Credit Corp
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Ingram Micro Inc.
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Machado Consulting, Inc.
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FUSE3 Communications, LLC
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2024: HPE completed its USD 14 billion acquisition of Juniper Networks, creating a networking heavyweight that now yields over half of HPE operating income.
- July 2025: Hon Hai Precision Industry and Teco Electric formed a joint venture targeting modular AI data-center infrastructure across multiple regions.
- June 2025: Vantage Data Centers raised EUR 720 million through Europe’s first euro-denominated asset-backed securitization of data-center hardware.
- May 2025: Dell Technologies launched PowerEdge XE9780 and XE9785 servers with up to 192 NVIDIA Blackwell Ultra GPUs for subscription AI stacks.
- March 2025: AMD finalized its USD 4.9 billion ZT Systems acquisition to accelerate data-center AI system offerings.
Global Hardware-as-a-Service (HaaS) Market Report Scope
Hardware belonging to a managed service provider (MSP) is deployed at a customer's location as part of the hardware-as-a-service (HaaS) procurement model, comparable to leasing or licensing. A service level agreement (SLA) outlines the obligations of both parties.
The Hardware-as-a-Service (HaaS) Market is segmented by Offering (Hardware Model and Professional Services), End-user Industry (Retail/Wholesale, Education, BFSI, Manufacturing, Healthcare, and IT and Telecommunication), and Geography. The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| Hardware Model | Device-as-a-Service (DaaS) |
| Desktop/PC-as-a-Service | |
| Infrastructure-Hardware-as-a-Service (I-HaaS) | |
| Platform-Hardware-as-a-Service (P-HaaS) | |
| Robot-as-a-Service (RaaS) | |
| GPU-as-a-Service (GPUaaS) | |
| Professional Services |
| On-premises |
| Cloud-managed |
| Hybrid / Network-as-a-Service |
| Large Enterprises |
| SMEs |
| Retail and Wholesale |
| Education |
| Banking, Financial Services and Insurance (BFSI) |
| Manufacturing |
| Healthcare and Life Sciences |
| IT and Telecommunications |
| Government and Public Sector |
| Other Industries (Energy, Construction, etc.) |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Egypt | ||
| Rest of Africa | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| By Offering | Hardware Model | Device-as-a-Service (DaaS) | |
| Desktop/PC-as-a-Service | |||
| Infrastructure-Hardware-as-a-Service (I-HaaS) | |||
| Platform-Hardware-as-a-Service (P-HaaS) | |||
| Robot-as-a-Service (RaaS) | |||
| GPU-as-a-Service (GPUaaS) | |||
| Professional Services | |||
| By Deployment Mode | On-premises | ||
| Cloud-managed | |||
| Hybrid / Network-as-a-Service | |||
| By End-user Enterprise Size | Large Enterprises | ||
| SMEs | |||
| By End-User Industry | Retail and Wholesale | ||
| Education | |||
| Banking, Financial Services and Insurance (BFSI) | |||
| Manufacturing | |||
| Healthcare and Life Sciences | |||
| IT and Telecommunications | |||
| Government and Public Sector | |||
| Other Industries (Energy, Construction, etc.) | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Egypt | |||
| Rest of Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
Key Questions Answered in the Report
What is the projected value of the hardware as a service market by 2030?
The market is forecast to reach USD 425.78 billion by 2030 on a 28.71% CAGR trajectory.
Which offering is growing fastest within hardware subscriptions?
Robot-as-a-Service leads growth with a 30.17% CAGR through 2030 as automation diffuses into small and mid-sized factories.
Why are hybrid deployment models gaining share?
Hybrid designs balance compliance-driven local control with cloud scalability, letting enterprises place AI inference at the edge and training in the cloud.
How do circular-economy rules affect procurement strategies?
EU durability and repairability mandates favor subscription contracts that embed maintenance and refurbish services, shifting buyers away from outright ownership.
What financing trends support the expansion of hardware as a service?
Asset-backed securitization, evidenced by DLL’s USD 2.15 billion issuance in 2024, lowers capital costs and enables competitive subscription pricing.
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