Hardware as a Service Market Size, Share, and Industry Analysis, By Offering (Hardware Model and Professional Services), By Enterprise Type (SMEs and Large Enterprises), By End-use Industry (BFSI, Retail, Healthcare, Manufacturing, IT & Telecommunication, and Others), and Regional Forecast, 2026-2034

The global hardware as a service market size was valued at USD 3.65 billion in 2025. The market is projected to grow from USD 4.36 billion in 2026 to USD 18.07 billion by 2034, exhibiting a CAGR of 19.46% during the forecast period.

The global hardware as a service market is witnessing significant growth, as hardware as a service (HaaS) allows businesses to scale up or down based on their needs easily. Companies can add or reduce hardware as their business requirements change, ensuring that they always have the right level of resources without being tied to obsolete equipment. As businesses grow, their hardware needs may change. HaaS allows companies to adjust their hardware inventory in real time without the financial burden of purchasing new equipment or selling outdated devices. These factors play a key role in boosting the market growth. For instance,

• In December 2023, Fujitsu launched “Fsas Technologies Inc.” a dedicated company for hardware business under its control. The company includes designing, manufacturing, and sales of hardware equipment.

Impact of Generative AI on the Hardware as a Service Market

The adoption of generative AI is having a significant impact on the market. Generative AI can be used to analyze vast amounts of data from hardware usage and performance metrics. By predicting potential hardware failures before they occur, service providers can ensure that hardware remains in optimal condition, reducing downtime and maintenance costs. This enhances the reliability and efficiency of hardware as a service solution. Also, Generative AI allows hardware as a service provider to offer highly customizable hardware configurations based on user-specific needs. This ensures that customers only pay for the hardware capabilities they need, improving cost efficiency. For instance,

• In July 2024, Fujitsu engaged in a strategic partnership with Cohere Inc. Through this partnership, the company aims to provide a large language model (LLM) to provide generative AI technology for enterprises to deliver enhanced customer experience.

Hardware as a Service Market Driver

Increasing Adoption of IoT and Edge Computing Devices among Enterprises Drives Market Growth

The rise of the Internet of Things (IoT) is driving demand for more hardware in a variety of industries, including manufacturing, healthcare, and logistics. Hardware as a service allows businesses to implement IoT devices without the burden of purchasing and maintaining vast amounts of hardware. As more companies move toward edge computing, where data processing is done at the location of the device rather than in centralized data centers, there is a need for robust and scalable hardware solutions. HaaS providers offer the necessary infrastructure to support these initiatives without requiring companies to invest heavily in new hardware.

• According to a survey conducted by First-Citizens Bank & Trust Company, 45% of hardware as a service (HaaS) companies are in the industrial space.

Hardware as a Service Market Restraint

Security and Data Privacy Concerns May Hinder Market Growth

As HaaS providers often manage both hardware and the associated data, businesses may be concerned about the security of their sensitive information. Data breaches or unauthorized access to hardware by third-party providers could compromise business-critical data. This factor is expected to hamper the growth of the market.

Hardware as a Service Market Opportunity

Growing Focus on Cloud Integration and Digital Transformation Aids the Market Growth

Hardware as a service is often paired with cloud computing services, allowing businesses to adopt hybrid models that combine on-premises hardware with cloud infrastructure. This offers the best of both worlds: the control and security of on-premise hardware with the flexibility and scalability of cloud services. HaaS supports digital transformation by providing access to modern hardware that is necessary for running advanced applications, such as artificial intelligence (AI), machine learning (ML), and big data analytics. This strategy is anticipated to create lucrative opportunities for market players and propel market growth during the forecast period. For instance,

• In February 2024, Wipro Ltd. engaged in partnership with Nokia Corporation to launch a private 5G wireless solution. Through this collaboration, the company aims to help enterprises in their digital transformation by offering hardware and software.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of Generative AI on the Global Hardware as a Service Market
• Consolidated SWOT Analysis of Key Players

Analysis by Offering

By offering, the market is divided into hardware model and professional services.

The hardware model captured the largest market share. The hardware model in HaaS allows businesses to scale their hardware resources up or down as needed. This is particularly useful for organizations experiencing growth or dealing with seasonal or unpredictable demand. Businesses no longer need to over-purchase hardware in anticipation of future growth, as they can easily scale their hardware infrastructure in real time. The HaaS model allows businesses to access the latest hardware technologies without having to invest in new equipment continuously. Providers regularly upgrade hardware, ensuring that clients have access to modern, efficient, and powerful systems. These factors play an important role in fueling market growth.

Analysis by Enterprise Type

By enterprise type, the market is divided into SMEs and large enterprises.

Large enterprises account for the largest proportion of the hardware as a service market. Large enterprises require highly scalable IT infrastructure to support their operations across different regions and departments. HaaS provides enterprises with the ability to scale hardware resources in real time based on current needs. This dynamic resource allocation helps enterprises remain agile and respond quickly to market changes or evolving business requirements.

Analysis by End-use Industry

By end-use industry, the market is divided into BFSI, retail, healthcare, manufacturing, IT & telecommunication, and others.

The IT & telecommunication sector accounts for the largest market share. IT & telecommunication companies are capital-intensive businesses with constant requirements for hardware upgrades and expansion. The HaaS model allows these companies to reduce acquisition costs by leasing hardware instead of purchasing it. This approach aligns with the sector’s need to optimize spending and invest in service expansion rather than hardware ownership. For instance,

• In December 2023, 1&1, Europe’s first cloud-native mobile network operator, is fully operational in Europe. The company collaborated with Rakuten in 2021 to buy the Open RAN mobile network for the IT & telecom sector across the region.

Regional Analysis

To gain extensive insights into the market, Download for Customization

In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America accounted for the largest share of the global hardware as a service market in 2023. North American companies, particularly in the U.S. and Canada, are rapidly modernizing their IT infrastructures to support cloud computing, AI, and data analytics. The HaaS model allows businesses to access cutting-edge hardware without the need for large upfront investments. This is especially attractive for organizations looking to accelerate their digital transformation initiatives. This factor plays a vital role in making the region a leader in the market.

Importance of customer strategy in hardware as a service:

According to an industry expert survey, the above graph depicts that customers are showing increasing interest in hardware-as-a-service models, which can give them greater flexibility and help reduce capital investments in IT infrastructure.

Europe is the second-largest market based on the demand for hardware as a service. European manufacturers are at the forefront of the Industry 4.0 movement, which integrates IoT, automation, and AI into production processes. HaaS provides manufacturers with access to specialized hardware, such as sensors and industrial PCs required for smart factories, without large upfront investments. This is particularly prevalent in countries, such as the U.K., Germany, and France. For instance,

• In January 2024, Nokia Corporation plans to invest USD 400 million in microelectronics and communications technology in Germany. This investment is required for the purchase of hardware, software, and chip design at its Nuremberg sites.

The hardware as a service market in China is experiencing rapid growth. As China is aggressively rolling out 5G networks, with telecom giants, such as China Mobile, China Telecom, and China Unicom leading the way. The deployment of 5G infrastructure requires significant investment in networking hardware, which can be managed more effectively through HaaS. Telecom operators are adopting HaaS to lease hardware, such as routers, switches, and edge computing devices, to support 5G base stations and network operations. Also, hardware as a service enables telecom companies in China to deploy and manage edge hardware flexibly, helping them scale resources as 5G services expand. For instance,

• In August 2024, China Mobile launched a commercial 5G-Advanced campaign in Beijing, China. The company aims to upgrade its more than 7,000 5G base stations to increase the internet speed five-fold across Beijing.

Key Players Covered

Global hardware as a service market is fragmented, with a large number of group and standalone providers. In the U.S., the top 5 players account for only around 21% of the market.

The report includes the profiles of the following key players:

• Navitas Credit Corp. (U.S.)
• FUSE3 Communications (U.S.)
• Microsoft Corporation (U.S.)
• Ingram Micro (U.S.)
• Managed IT Solutions (U.S.)
• Fujitsu Ltd (Japan)
• Phoenix NAP (U.S.)
• Lenovo (China)
• Amazon.com, Inc. (U.S.)

Key Industry Developments

• In September 2024, Lenovo unveiled a new solution and services designed to accelerate AI transformation by developing private AI accessible to all businesses.
• In November 2023, Amazon Web Services (AWS) launched a new enterprise hardware business under the name “Amazon WorkSpaces Thin Clients”. Through this business, AWS will sell hardware devices starting at USD 195 to provide enterprises with easy-to-use virtual desktops.