ID: MRFR/SEM/6204-CR | February 2020 | Region: Global | 87 pages
Global Virtual Desktop Infrastructure Market is expected to reach USD 25,496.3 Million by 2025, registering a 16.1% CAGR during the review period (2019–2025).
In a scenario, wherein digital transformation has become a key to future-proof businesses, enterprises worldwide are increasingly adopting modern-workplace solutions now to stay ahead and to work smarter not harder. Modern workplace solutions, such as virtual desktop, cloud services, web services, and secure remote access, etc. are allowing businesses to scale their remote working facilities instantly and securely, enabling them to adapt to this rapid increase of remote workers.
There are several benefits of migrating to virtual desktop, such as a more seamless and collaborative way of working, irrespective of locations. Virtual desktop infrastructure (VDI) solutions brings together IaaS and PaaS to deliver a secure, desktop for employees to access apps, files, data, and communications. However, the most significant advantage of VDI is system, data, and communication security. VDI also helps employers who allow their staff to bring their own devices by providing high levels of protection.
The coronavirus pandemic has positively impacted the virtual desktop infrastructure market share. The lockdown-driven shift to remote work has renewed interest in VDI and its cloud offshoot, Desktop-as-a-Service, presenting numerous technological disruptions and changing the way how organizations deliver IT services to their workforce.
With entire workforces connecting to corporate networks from home, sometimes even with their own laptop with a VPN and all the necessary settings for secure access, virtual desktop infrastructure, also known as desktop virtualization or thin-client computing is getting a second look.
The COVID 19 has hastened innovation in many VDI providing companies that had already been providing in-house applications, Parallels RAS supports multi-cloud deployments including public clouds, encouraging them to increase agility further while continuing to minimize costs.
Wide Adoption of VDI Technology Drives the Market Growth
Growing demand for VDI technology led by the rising developments in industrialization drives the market growth. A VDI can help organizations to keep a workforce productive while employees work from home on various devices. There are several benefits of migrating to virtual desktop infrastructure, including a more seamless and collaborative way of working irrespective of location.
All these factors cumulatively impact the virtual desktop infrastructure market growth positively. Also, there is a rise in organizations allowing staff to bring their own device and VDI allows for this with high levels of protection provided. Rising IoT adoption is expected to drive the market growth, posing security vulnerabilities in IoT networks and threat of data breaches.
VDI plays a crucial role in resolving various security-related issues, keeping the network secure and free from cyberattacks. Thus, the growing virtual desktop infrastructure market trends, such as rising IoT applications and BYOD policies in organizations are expected to create multiple opportunities in the virtual desktop infrastructure industry soon.
COVID-19 and Subsequent Shift to WFH to Bolster the VDI Market
The COVID-19 pandemic has made many businesses to move to the cloud. Increasing uses of public, private, and hybrid data cloud paved the way for VDI adoption. The epidemic and subsequent shift to working from home have brought about numerous technological disruptions. Technologies that were dabbled in before, like videoconferencing, have suddenly become standard practice. On-premises infrastructure would move a large volume of their services to a cloud platform that is co-location or managed infra.
Restraints & Challenges
Virtual Desktop Security Requirements pose Significant Challenges
Virtual desktops are vulnerable to all the same types of attacks threatening physical desktops. From a security standpoint, virtual desktops are no different than their physical counterparts. For all intents and purposes, VDIs are incompatible with EDRs, however without endpoint security, VR desktops have threadbare defenses.
Besides, excess network traffic traveling between endpoint detection and response (EDR) agents on each virtual instance and their central interrogation server poses significant challenges to the market growth. And without endpoint protections defending the VDI, the damage can be severe once hackers move laterally from the virtual session into the server.
Cumulative Growth Analysis
The Virtual Desktop Infrastructure Market Share to Expand at a Strong Rate
Over recent years, VDI technology has garnered extensive popularity and market prominence. The advancements in VDI technology have been playing a causal role in maintaining enterprise IT operations competitive and efficient. VDI would help organization prepare for the future of work by supporting hybrid environments, simplifying management, improving end-to-end security serves as a trusted digital foundation for a modern architecture, and enhancing user experience. Resultantly, the global virtual desktop infrastructure market is expected to witness exponential growth over the next few years.
The virtual desktop infrastructure (VR) market is segmented on the basis of components, application, type, and region. The component segment is bifurcated into software, hardware, and services. The application segment is further sub-segmented into IT & telecommunication, media & entertainment, education, healthcare, BFSI, government, retail & manufacturing, and others. The type segment is sub-segmented into on-premise, cloud-based, and others.
Among these, the BFSI segment by application accounts for the largest market share, the segment is expected to register the highest CAGR during the forecast period. Based on type, the cloud-based VDI segment accounts for the largest market share, the segment is expected to register the highest CAGR during the forecast period.
By regions, the market is segmented into Americas (US, Canada, Mexico, Rest-of-North America), Europe (Germany, UK, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World.
The North American Market to Maintain its Winning Streak
North America accounts for the leading share in the global VDI market and could continue to maintain its winning streak throughout the assessment period. The presence of many key players and the growing industrial sector drives virtual desktop infrastructure market growth.
Besides, the growth of cloud technology and increasing VDI applications in consumer electronics and gaming & entertainment industries across the region is expected to fuel the virtual desktop infrastructure market growth. The US holds the largest share in the North American VDI market.
Europe Accounts for Second Highest Share in Global Market
Europe holds the second-leading share in the global VDI market. Factors such as the rapid adoption of BYOD policies and the increasing penetration of smartphones in the region increase the virtual desktop infrastructure market share. The UK, Germany, and France are the largest market expected to have considerable shares in the regional market. Moreover, the rising demand from the VDI for training and education purposes fosters the regional market growth.
APAC Accounts for a Considerable Share
Increasing investments in technology developments and the rising adoption of VDI for simulation and training purposes drive the virtual desktop infrastructure industry in the region. Additionally, heightened demand from the increasing numbers of organizations and the growth opportunities presented by end-use sectors position APAC among the key contenders globally. Japan, India, and China are the largest market for VDI market in the region.
Players Focus on M&A Activities and R&D Investments to Gain a Larger Competitive Share
The virtual desktop infrastructure market appears extremely competitive, considering the strong presence of established industry players. Global vendors are increasingly facing fierce rivalry from each other and from local firms, who are growing aware of the industry's regulations and suppliers. Therefore, eminent players seek opportunities to deeply integrate across the extended value chain while focusing on expanding production facilities, R&D investments, and M&A activities to gain impetus.
Dell Technologies (the US), one of the leading global virtual desktop infrastructure market key players is uniquely positioned to provide complete edge to core to cloud solutions. Dell is committed to transforming businesses, shaping the future of innovation, and developing technologies to drive human progress. Dell delivers workforce transformation, by enabling users without compromising security or high-quality end user experience and streamlining IT resources and management.
December 11, 2020 – The Defense Information Systems Agency (DISA) in the US announced that it is seeking a private sector partner to provide engineering, sustainment, technical and operational support for the VDI and Cloud Storage programs.
The support is required for DISA’s cloud storage services portfolio, comprised of a suite of storage solutions that connect data producers, users, applications, and devices into a centralized and secure cloud storage platform on the Department of Defense Information Network (DoDIN), Non-classified Internet Protocol Router Network (NIPRNet), and Secret Internet Protocol Router Network (SIPRNet).
July 28, 2020 – A leading provider of virtual desktop infrastructure and server-based computing environments, 10ZiG Technology announced a partnership with Zoom, a leader in modern enterprise video communications. 10ZiG’s cutting-edge endpoint hardware & software with Zoom’s unique architecture would provide optimized video and audio meeting solutions in virtual desktop infrastructure (VDI).
April 02, 2020 – Hewlett Packard Enterprise (HPE), introduced new virtual desktop infrastructure (VDI) technology to address the huge upsurge in remote work amid the COVID-19 pandemic. The beefier VDI solution introduced by HPE comes with separate pre-configured solutions for organizations of all sizes built on its servers.
April 29, 2020 – NetApp, the leader in cloud data services, announced the acquisition of CloudJumper, a leading cloud software company in the VDI and RDS markets. The acquisition would enable NetApp to successfully manage the most challenging problems of virtual desktop services and application, allowing customers to deploy, manage, monitor and optimize those environments as a total solution from a single company on the public cloud of their choice.
Scope of the Report
The report features unique and relevant factors expected to significantly impact the virtual desktop infrastructure market during the forecast period. The detailed and considerable amount of information in the report would help industry players understanding the market better. The MRFR report elaborates on the historical and current trends boosting the growth of the VDI market. Besides, the analysis of COVID-19 impact on the virtual desktop infrastructure market is also included in the report.
This report examines the demand-supply scenario, pricing structure, profit margins, production, and value chain analysis influencing the virtual desktop infrastructure market growth. Regional assessment explained in this report unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling in the region enables users to evaluate company shares analysis, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities, and much more.
Frequently Asked Questions (FAQ) :
The slow pace of development in developing regions is expected to slow down the market growth in the coming period.
The cost-effectiveness of virtual desktop infrastructure is projected to add to the growth impetus of the market.
By 2025, the earning worth USD 25,496.3 million is estimated for the global market.
NComputing, Inc. (US), Cisco Systems Inc. (US), VMware, Inc. (US), Citrix Systems Inc. (US), Red Hat, Inc. (US), Hewlett Packard Enterprise Development LP (US), Huawei Technologies Co. Ltd (China) and Amazon web services, Inc. (US) are promoting the progress of the market.
A CAGR of 20.2% in the forecast period is estimated to cement eh North American region’s position in the market.
A 16.1% CAGR is expected to unlock opportunities for growth in the forecast period.
The segment of cloud-based VDI and on-premise VDI is estimated to spur the understanding of the market.