Desktop Virtualization Market Outlook by Type (Virtual Desktop Infrastructure, Remote Desktop Services, Desktop as a Service), Pricing Model (Subscription, Pay-as-You-Go), Server Type (Cloud, On-Premises), Organization Size (Small, Medium, Large), Verticals (BFSI, Retail, Healthcare, IT and Telecom, Automotive, Transportation and Logistics, Manufacturing, Government and Defense) – Forecast to 2030

Market Overview

The global desktop virtualization market revenue stood at $11,980.7 million in the year 2021, and it is projected to reach $36,258.9 million by the year 2030, advancing at a CAGR of 13.1% during 2021–2030. Virtual desktops offer significant advantages over physical desktop machines, such as simpler administration, cost savings, improved productivity, support for a broad variety of device types, stronger security, agility and scalability, and better user experiences.

Furthermore, the rapid shift to hybrid work models that enable employees to work from any location on any device and in any time zone is driving the wide adoption of digital technologies that make desktop virtualization possible.

Desktop as a Service Adoption Growing at Highest Rate

Desktop as a service generated about 25.0% of the desktop virtualization software market revenue in 2021, and it is expected to witness a compound annual growth rate of 13.5% during the forecast period. This is because of the increasing demand for secured virtual desktops while working from a remote location, especially since the pandemic has enforced hybrid work models. Desktop as a service user base has more than doubled in the past two years.

DaaS offers simplified management, improved flexibility, and a lower total cost of ownership. DaaS can be used to rapidly and simply construct a digital workspace for businesses that want to offer remote work possibilities and personal device freedom.

Subscription-Based Pricing Model Is Generating Higher Revenue in Market

The subscription-based pricing model accounts for the larger desktop virtualization market size. Some vendors provide the software for free, some charge per hour, and some provide on license or charge on a monthly or yearly basis. Subscription-based pricing strategies are more popular and generate the highest revenue in the market. A subscription service is convenient and reliable, which creates a bond between the customer and the company.

Cloud-Based Desktop Virtualization Software Holds Larger Market Share

Cloud-based virtualization software held a larger market share in terms of revenue generation, in the year 2021. Cloud-based computing offers access to software running on shared resources, such as memory, processing power, and disk storage, through the internet. Remote data centers maintain these computing resources, as they are specially created to host applications on different platforms.

Moreover, SMEs can particularly benefit from the cloud, as it allows users to work on applications at a low price, by reducing the hardware and software expenditure on hardware and software. The right cloud provider can help a company efficiently raise its productivity and software capabilities as it grows.

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Virtualization Software Revenue Generated Mostly from Large Organizations

Large organizations with more than 1,000 employees are installing virtualization software on their operational systems for easy access to data from centralized sources and for security reasons. Machines have already begun to be virtualized, and now this trend is seeping into desktops too. Desktop and server virtualization can help a business gain a competitive advantage, such as reduced hardware costs, faster desktop and server provisioning and deployment, energy savings, improved data security and disaster recovery, and increased IT operational efficiency. Hence, large organizations are rapidly adopting this technology and holding the largest share in the market.

Desktop Virtualization Software Adoption Rate Is Highest in North America

Geographically, North America held the largest share in the global desktop virtualization market in 2021. This is mainly attributed to the developed IT infrastructure, due to the high investment in IT, penetration of the 5G technology, and early adaption of cloud-based technologies in the region. Many universities, colleges, and K12 district schools are using this technology, which is why the demand for virtual desktop software is higher here than in other regions.

The APAC region is expected to witness the fastest growth during the forecast period due to the booming economy, increasing investments in IT infrastructure, surging number of government and private initiatives for the deployment of the IoT and AI technologies across several verticals.

Moreover, major players, as a part of their business strategies, are investing in untapped markets, such as the MEA region, which, in turn, is contributing to the market growth. For instance, Oracle opened a new cloud region in Johannesburg, South Africa, in January 2022, its first on the African continent. Apart from this, Microsoft Corporation and Amazon Web Services have already invested in cloud infrastructure in the African region over the last three years.

The COVID-19 pandemic negatively impacted the market in the first two quarters of 2020. However, post the lockdowns, more than 40% of the organization have adopted cloud-based applications and infrastructure to reach maximum potential customers and better their operational efficiency. The key area of focus for businesses is on minimizing their operational time and cost and modifying their workflow to comply with the COVID norms. The pandemic is predicted to impel organizations to rapidly migrate to the cloud, as they expect a decline in the workload on on-premises systems in the coming years.

Key Strategic Developments of Market Players

In recent years, major players in the desktop virtualization software market have been actively involved in product innovations and geographical expansions to enhance their position and customer base. For instance, Vodafone is expanding its partnership with VMware to deploy the full VMware Telco Cloud Platform in Europe. Moreover, in the African region, in April 2022, Equinix acquired MainOne, a West African connectivity and data center solution provider operating in Nigeria, the Ivory Coast Ghana, for $320 million.

Key Players in Global Desktop Virtualization Market

• Citrix systems Inc.
• VMware Inc.
• Microsoft Corporation
• Cisco Systems Inc.
• Oracle Corporation
• International Business Machines Corporation 
• Huawei Technologies Co. Ltd.
• Nutanix Inc.
• Amazon Web Services
• Parallels International GmbH

Market Size Breakdown by Segment

The study offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Type

• Virtual Desktop Infrastructure
• Remote Desktop Services
• Desktop as a Service

Based on Pricing Model

• Subscription
• Pay-as-You-Go

Based on Server Type

• Cloud
• On-Premises

Based on Organization Size

• Small
• Medium
• Large

Based on Verticals

• BFSI
• Retail
• Healthcare
• IT and Telecom
• Automotive, Transportation and Logistics
• Manufacturing
• Government and Defense

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• APAC
  • China
  • India
  • Japan
  • South Korea
  • Australia
• LATAM
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • South Africa