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The global virtual desktop infrastructure market size was valued at USD 10.43 billion in 2022 and the market is projected to grow from USD 12.72 billion in 2023 to USD 57.67 billion by 2030, exhibiting a CAGR of 24.1% during the forecast period.
Virtual desktop infrastructure offers simplified IT management and a secure workspace to enable a distributed workforce. According to a study by Spiceworks, around 7% of businesses adopt virtual desktop infrastructure for comprehensive support and centralized workspace management. Furthermore, around 50% of large enterprises adopt VDI. According to industry experts, COVID-19 is expected to influence around 70% of desktop virtualization business cases through 2023.
Around 49% of virtual desktop infrastructure providers plan to add Desktop as a Service (DaaS) solutions to their portfolio and 22% of providers are planning to add cloud-based VDI solutions. For instance,
Remote Working Policies during COVID-19 Pandemic Boosted the Market Growth
The pandemic and associated shift to remote work caused a lot of technical disruption, much of it centered on how companies deliver IT services to their employees. According to TechTarget, about 67% of companies have adopted remote work policies in the wake of the pandemic and plan to make remote work opportunities available to their employees even after the pandemic.
Technologies such as video conferencing, desktop virtualization, and others gained traction during the pandemic. According to a study by Anunta Tech, the pandemic surged the demand for virtual desktop infrastructure, as the demand for remote desktop tools grew by over 70% during the period. VDI saves almost 30% of IT administrative costs and providers played a key role in enhancing the desktop virtualization experience by providing tailored customization that is relevant to IT environment. For instance,
Therefore, this market was positively impacted by COVID-19, giving companies the opportunity to build a future-proof digital workplace for their employees.
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Growing Focus on Data Security and Compliance to Boost Market Growth
Advancement in virtualization technology have led to the widespread adoption of virtual desktop infrastructure. Due to rising high profile data breaches and cyber-attacks, businesses are increasingly prioritizing security and compliance regarding desktop virtualization solutions. Cybersecurity Ventures predicted that the cost of cybercrime is expected to reach around USD 10.5 trillion till 2025. Cybersecurity attacks emphasizes the importance of implementing strong security measures such as desktop virtualization to minimize the risk.
As cloud VDI stores user data on a central server and employees access their work environment and data through secure virtual desktops, enterprises are increasingly adopting cloud VDI for security reasons. This prevents sensitive data from being stored on the user's device and reduces the risk of unauthorized access through social engineering attacks.
For instance, in September 2022, cybercriminal attacked on Uber with a text message. The attacker tricked an Uber employee into disclosing password details and initiated a sequence of events that compromised company’s IT systems. In the Uber attack, if the company had deployed VDI, it was not possible for the attacker to access the sensitive data, as the data is stored on a central server. However, it becomes more difficult for the attacker to access confidential information.
Therefore, organizations are adopting desktop virtualization solutions for ensuring security and this is increasing the virtual desktop infrastructure market growth.
Adoption of BYOD and Hosted Desktop among Enterprises to Drive the Market Growth
The impact of digitalization makes it increasingly essential to centralize the comfort and expectations of employee while acknowledging the sensitivity of the information right from intellectual property, employee correspondence, finances, and more. Due to this, the adoption of BYOD (Bring Your Own Device) and hosted desktop is increasing.
According to a survey by Cisco System, around 82% of enterprises IT department enable BYOD program. BYOD and hosted desktops help enterprises to ensure business continuity and growth, allowing employees to maintain focus on the task rather than on adjusting to new technologies or systems. According to the report, BYOD work from home employees work an extra two hours as their travelling time is saved. Hosted desktops, essentially a virtual desktop (DaaS), also have a proven track record of increasing efficiency and driving the market growth.
Thus, the adoption of BYOD and hosted desktops among enterprises is driving the market growth.
Lack of Awareness and High Implementation Cost to Hamper Market Growth
Less awareness regarding the desktop virtualization among end-users is the one of the major reasons restricting the market growth. Also, the lack of training from organization to educate their employees about virtual desktop infrastructure to decrease the data threats is hampering the market growth.
VDIs are perceived as costly investments that slowly respond to the company’s ROI. It often requires investment in thin clients in addition to costly expansion of existing network and storage infrastructure. Vendors including Microsoft have minimized the cost of virtual desktop operating system licenses and simplified the pricing scheme. However, desktop virtualization can still be expensive.
The above factors may hamper the market growth over the forecast period.
Rising Adoption of Non-persistent VDI Owing to Lower Storage Cost to Boost the Market Growth
Based on type, the market is categorized into persistent VDI and non-persistent VDI.
Non-persistent VDI is expected to showcase a high CAGR during the forecast period as the adoption of non-persistent VDI is increasing. The adoption is rising as this type of VDI is easier to support, has lower storage cost, and less expensive disaster recovery and business continuity options. Non-persistent VDI are more secure as even in the case of security breach, it can be rebooted to clean.
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Increasing Product Adoption for Securing the Customer Data to Showcase High CAGR in BFSI Sector
Based on industry, the market is fragmented into IT & telecom, BFSI, retail & e-commerce, government, education, manufacturing, healthcare, and others.
The BFSI segment is expected to showcase rapid growth rate over the study period owing to the increasing cybercrimes in the sector. An Accenture report estimates that cybercrime against financial institutions totaled USD 18.5 million. This comes as financial institutions work with sensitive customer data, which hackers can exploit to compromise businesses or demand ransoms. However, banks are adopting virtual desktop infrastructure for improving the operational efficiency and to secure their client data.
The deployment of VDI in healthcare is expected to witness considerable growth in coming years as implementation of desktop virtualization in healthcare allows organizations to have better control over user endpoint devices. Besides, it helps to reduce the login time for doctors so that they can spend more time with patients. Adoption is increasing in healthcare as the data breaches have risen and desktop virtualization protects sensitive patient information through end to end security. Medical data is very valuable on the dark web and it costs up to USD 1,000 per record as medical records hold permanent, unalterable information including medical history and patient identity.
However, for security purpose, the adoption of virtual desktop infrastructure is increasing among industries.
North America Virtual Desktop Infrastructure Market Size, 2022 (USD Billion)
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Geographically, the market is studied across five major regions including North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.
The virtual desktop infrastructure market share in North America was maximum in 2022 as the adoption of cloud deployment among enterprises is increasing. More than 25% of employees in the U.S. work remotely and this number is expected to grow over the coming years. The rise in remote and flexible work environment is driving the market growth in the region. The presence of prominent providers including VMware, Microsoft Corporation, Citrix, AWS, and others contributes to region’s desktop virtualization based application adoption.
The Asia Pacific is expected to grow with the maximum CAGR over the study period. This is due to the increasing demand for cloud solutions. Many small and medium-sized businesses in the region are implementing virtual desktop solutions to improve productivity and reduce business complexity. Besides this, government regulations to support IT infrastructure are further expected to drive the market growth in the region. Furthermore, rising digitalization initiatives and BYOD trend among enterprises across the Asia Pacific region have propelled the demand for desktop virtualization solutions. Such factors are expected to propel the regional market growth over the analysis period.
Key Providers Adopt Various Growth Strategies to Boost their Market Share
Industry players are focusing on adopting strategies including product launch, partnerships, acquisitions, and other strategies. These companies are offering solutions to support the rising number of remote workers globally. Also, with strategic partnership and collaboration the market players are providing enterprises with efficient and secured access to the work infrastructure. The acquisition strategy is on rise considering the players are aiming to enhance the presence and expertise to support remote workforce across the globe. For instance,
May 2022 – NComputing and Virtual Cable entered a technological alliance to integrate UDS Enterprise and LEAF OS from NComputing. The alliance aimed to help organizations of all sizes and sectors to perform better, sustainably, and securely.
September 2022 – Amazon Web Services introduced Amazon Workspace Core, an addition to the VDI solution portfolio. Amazon Workspace Core comprises a set of APIs that is used by third-party VDI software providers.
An Infographic Representation of Virtual Desktop Infrastructure Market
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The market report provides a detailed analysis and focuses on key aspects such as leading companies, product/service types, and leading applications 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.
Growth rate of 24.1% from 2023 to 2030
Value (USD Billion)
By Type, By Industry, and By Region
According to a study by Fortune Business Insights, the global market is projected to reach USD 57.67 billion by 2030.
In 2022, the market size stood at USD 10.43 billion.
The market is projected to grow at a CAGR of 24.1% over the forecast period.
The non-persistent VDI type is anticipated to lead the market.
The adoption of BYOD among organizations is driving market growth.
Citrix Systems, Inc., Cisco Systems, Inc., IBM Corporation, Google LLC, Amazon Web Services, Inc., and VMware Inc. are the top players in the market.
North America is expected to hold the highest market share.
By industry, the BFSI sector is expected to grow with a remarkable CAGR during the forecast period.
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