Device as a Service (DaaS) Market Size, Share & Industry Analysis, By Offering (Hardware and Services), By Enterprise Type (Large Enterprises and Small & Medium Enterprises (SMEs)), By End-User (BFSI, IT and Telecommunications, Education, Healthcare and Life Sciences, Government and Public, and Others), and Regional Forecast, 2024 – 2032

The global device as a service market size was valued at USD 27.62 billion in 2023 and is projected to grow from USD 34.65 billion in 2024 to USD 226.73 billion by 2032, exhibiting a CAGR of 26.5% during the forecast (2024-2032). North America accounted for a market value of USD 9.73 billion in 2023. Device as a service is the offering of management services and IT equipment, such as computers, smartphones, and mobile devices, in a paid subscription. It provides a cost-effective subscription-based service that enables organizations to deploy their remote teams with the devices they need. Businesses can reduce capital costs while simultaneously providing the correct infrastructure to meet their needs as they evolve by selecting this model.

The device as a service market growth can be witnessed due to an increasing demand for a subscription-based model, which enables users to move from the capital expenditure model to an operating expense model. Market growth is also expected to be stimulated by an increase in the number of channel partners offering this service. It allows organizations to reduce the overall IT burden and helps prevent technological constraints, which, in turn, leads to productivity growth. It also facilitates timely software updates and maintenance of hardware. Additionally, reduction in IT support spending, increased user productivity, and the growing need for cost-effective and secured devices have accelerated market growth.

The COVID-19 pandemic has caused the market to grow significantly owing to the rise in digital penetration, increasing remote work, and work from home policies. Device as a service has been widely regarded as an IT cost savings measure for organizations. The pandemic has posed an easy and compelling need for organizations to continue working but with staff in their homes by relying on several devices.

A sudden increase in demand for laptops and other IT hardware devices has occurred, with a growing number of companies choosing to work from home, following the COVID-19 outbreak. Providers have started to offer such services at scale, enabling hybrid working models to meet the growing demand for IT hardware. Due to such factors during the COVID-19 pandemic, there has been an enormous need for device as a service offering.

Device as a Service (DaaS) Market Trends

Increasing Demand for Work Flexibility is a Key Trend

Organizations need to manage their workforce efficiently to increase productivity and job satisfaction. Therefore, it uses a variety of working models, including a hybrid working model. There are several benefits for workers, businesses, and the environment in switching to a hybrid working model. This increases the flexibility of employees, productivity, and job satisfaction. For organizations, it decreases the renting cost and maintenance charges of office space and grows the talent pool. According to a study by Microsoft, around 52% of employees are expected to consider a fully remote or hybrid company next year. Thus, the rising demand for work flexibility is increasing the use of device as a service offering.

This flexibility could be beneficial for companies that need to rapidly increase or decrease the number of staff in response to changes in market conditions. According to a survey by Lenovo in 2022, 82% of IT leaders want to work with technology that upholds the workplace's new values. These trends are contributing to the growth of the market in combination with growing consumer spending on smartphones and digitalization.

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Device as a Service (DaaS) Market Growth Factors

Rapid Adoption of Subscription-based Models in Device as a Service to Aid Market Growth

The market is driven by the rapid uptake of subscription-based services. Subscription-based Device as a Service (DaaS) model provides customers to transform high technology costs into operating expenses (OpEx). For revenue driving strategies, cash can be freed up for SMEs, midsized, and large enterprises. Furthermore, additional benefits can be gained, such as compliance with regulatory requirements, access to installation, latest technologies, device configuration, data migration, onsite support, and technology recycling.

As a subscription model, it provides an organization to scale up or down according to its operational and environmental business needs. Companies can pay according to their requirements. Additionally, market growth is expected to increase as a result of connectivity needs in IT hardware devices, creating a demand in the market.

RESTRAINING FACTORS

System Integration and Compliance Issues to Hamper Market Growth

The integration of new software systems into the IT infrastructure can be a difficult task for companies. A high volume of data transfer takes a lot of time for system integration, creating a major challenge for the providers. The DaaS offering could restrict the number of tools that can be used so that users can choose to use tools hosted on the platform.

Mostly where sensitive data is moved to the cloud environment, some organizations also encounter issues of compliance. As a result, issues related to system integration and compliances could hamper growth during the forecast period.

Device as a Service (DaaS) Market Segmentation Analysis

By Offering Analysis

Operational Flexibility of DaaS Offerings to Increase the Demand for Services

By offering, the market is bifurcated into services and hardware. The services segment is expected to grow at a higher CAGR over the forecast period. These services constitute a set of device life cycle services, which include deployment & integration, installation, asset recovery, maintenance, and repair. These services are often flexible and can be optimized and tailored. Several service providers and value-added resellers have benefited from the increasing demand for services in this market, which has also encouraged them to partner with hardware manufacturers. Moreover, the seamless operation of an enterprise is ensured through continued support and services for electronic equipment that offers end users flexibility.

In terms of market share, hardware dominated the market in 2023. This is attributed to a growing interest among enterprises in various types of hardware solutions, such as desktops, laptops, notebooks, and others combined into one offering. In DaaS, physical hardware is provided to customers under a subscription model. This, in turn, decreases the IT investment of a company. DaaS also allows businesses to scale up and down physical devices as per their requirements. In addition, enterprises can easily update to the latest hardware specifications frequently and quickly. In DaaS, various hardware management services are also offered, such as device backups, security, asset backing, and end-of-life disposal of physical devices.

By Enterprise Type Analysis

Cost Effective Subscription Based Models for SMEs to Aid Market Expansion

Based on enterprise type, the market is segmented into large enterprises and Small & Medium Enterprises (SMEs). Small & Medium Enterprises (SMEs) segment is expected to significantly grow at a higher CAGR during the forecast period owing to the cost-effective device as a service subscription based models. SMEs have a wide range of tasks such as maintaining inventory and avoiding cyber-attacks. Moreover, the cost and flexibility benefits made available to SMEs justify their preference for operating expense business models over capital expenditure. Also, startups are getting funding for technological advancements in this market. For instance, in April 2022, Fleet received a series A funding of USD 20.0 million to enable the management of devices.

In terms of market share, the large enterprises segment dominated the market in 2023. The adoption of advanced technologies is often concentrated in large enterprises due to the availability of greater resources and sales. By outsourcing devices from IT solution providers, these enterprises can cut their expenses and focus on their core business activities.

By End-User Analysis

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Rising Demand for IT Hardware Devices in IT and Telecommunications to Grow Market Share

By end-user, the market is classified into BFSI, education, healthcare and life sciences, IT and telecommunications, government and public, and others that are adopting device as a service models for enhancing their business activities. Among these, the IT and telecommunication segment dominated the market in 2023. This sector generates the greatest demand for devices, such as laptops, smartphones, desktops, tablets, and other peripherals, as security, reliability, and excellent performance of IT equipment are vital to essential operations. To reduce investment in IT infrastructure, there is an increasing awareness of the DaaS model and its advantages as well as a preference shift toward OpEx models.

Furthermore, the continuous updating of software and related services is relatively high, which has also led to the adoption of the model in this market.

REGIONAL INSIGHTS

Regionally, this market is fragmented into South America, North America, Europe, Asia Pacific, and the Middle East & Africa.

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As per the analysis, North America held a major device as a service market share in 2023 due to the presence of large players in countries such as the U.S., Canada, and Mexico, where new technologies have been adopted rapidly. The regional market is also feasible in terms of government rules and regulations for SMEs and large enterprises. The growth of the market is also expected to be supported by increasing demand from IT and telecommunications, as well as growing demand in several industry sectors for IT hardware. Furthermore, business expansions in the region are expected to help gain traction for this market. For instance,

• In April 2021, Lenovo announced that it has developed a new DaaS offering in North America, which is designed for SMEs to meet their requirements.

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Due to the growing demand for startups and increasing internet penetration, Europe is also expected to be experiencing reasonable demand in the market. In September 2022, Everphone announced a USD 35.0 million expansion of its Series C funding. 

List of Key Companies in Device as a Service (DaaS) Market

Market Players Engage in Merger & Acquisition, Collaboration, and Product Development Strategies to Expand Reach

Prominent players in the global market aim to support more users and enable more devices to run on the platform by switching to a subscription-based model. They focus on acquiring small and local firms to increase their business presence. Further, merger & acquisitions, strategic partnerships, and leading investments in device technologies help boost the market growth.

List of Key Companies Profiled:

• Dell Technologies (U.S.)


• Lenovo (China)


• HP Development Company, L.P. (U.S.)


• Microsoft Corporation (U.S.)


• CompuCom Systems, Inc. (U.S.)


• Atea Global Services Ltd. (Latvia)


• Computacenter plc (U.K.)


• RingCentral, Inc (U.S.)


• Intel Corporation (U.S.)


• Accenture (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Jio Financial Services Ltd., an Indian financial services firm, introduced a Device as a Service (DaaS) financial model for corporates to offer various assets including laptops, phones, and airfiber on finance and operating leases.


• August 2023: RingCentral, Inc., a provider of cloud-based products and services, announced the launch of a subscription model for hardware phones. Earlier, the full purchase amount was required in advance to buy hardware phones.


• April 2023: Insight Enterprises extended its portfolio of equipment as a service, offering new packages aimed at eliminating the need for complex device management, providing immediate discounts, and simplifying operations. Insight's partnerships with Dell, Apple, HP, Lenovo, and Microsoft provide competitive purchasing of new devices and deep expertise in all hardware and mobile device management platforms.


• March 2023: Foxway introduced the new device as a service solution for technology devices, which is delivered through an arrangement of monthly subscriptions. The service offer includes everything from procurement to device recovery.


• February 2023: Lenovo introduced new ChromeOS and Windows 11 laptops, updated its educational technology portfolio, a new DaaS option for K-12 schools, and updated features for its LanSchool and VRClassroom solutions. This solution for education streamlines device management and is more economical over the long term.

REPORT COVERAGE

An Infographic Representation of Device as a Service Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading end-users of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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