With the mounting requirements to offer extraordinary workplace experiences and the emergence of entirely new working styles, organizations are adopting transformative workplace solutions that cater to the growing need for diverse workforces. One of the solutions that can define future offices is Device as a Service. It refers to delivering IT equipment like PCs, smartphones, and management services as a paid subscription and, in turn, simplifying IT management by outsourcing this model to DaaS providers.
According to MarkNtel Advisors, the Global Device as a Service (DaaS) Market is anticipated to witness around 56% CAGR during 2022-27. The increasing cost pressure that forces the IT department of organizations to optimize device usage negatively impacts their capability of deploying the latest digital workplace solutions. Hence, the demand for DaaS is growing astronomically for better device management. In addition, the lack of expertise among organizations to assess the latest workplace solutions is also fueling the DaaS adoption across various regions.
Moreover, DaaS helps lower the cost of owning a device for usage & assist in cost predictability while providing value-added services to enhance the user experience. Further, Device as a Service provides operational flexibility by enabling organizations to deploy devices as per their needs. Hence, these factors are leading to the increasing adoption of the Device as a Service model and driving the global market, further states the research report, “Global Device as a Service (DaaS) Market Analysis, 2022.”
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada|
|Europe: Germany, The UK, France|
|Asia-Pacific: China, India, Japan|
|South America: Brazil, and Argentina|
|Middle East & Africa: UAE, South Africa|
|Key Companies Profiled||Lenovo, Hewlett Packard, CompuCom, Citrix, Dell Technologies, Microsoft Corporation, Amazon Web Services, HCL, Cloudalize|
|Unit Denominations||USD Million/Billion|
Key Trends in the Global Device as a Service (DaaS) Market:
Impact of Covid-19 on the Global Device as a Service (DaaS) Market
The Global DaaS Market is driven majorly by Hardware leasing. To ensure greater mobility & flexibility requirements, end-users are increasingly opting for mobile devices like laptops, tablets, & smartphones with the latest configuration matching their business requirements.
However, the income from software & services is rising at an astronomical pace. The greater demand for analytics & security software and deployment & maintenance services is increasingly forming a major share in the vendor’s income.
DaaS has been proving instrumental in reducing the cost of end-users. Moreover, periodic upgrades in hardware infrastructure provided by vendors prevent the technology from getting obsolete and, in turn, push the technological strategic inflection point.
It further proves to be a cost-cutting measure for end-users. Moreover, the growing acceptance of devices has been propelling the installation of a wide range of applications & security software. Therefore, with the emergence of new areas of application & services, the demand for software & services will overpower the requirements for hardware during the forecast period.
The IT/ITES & Telecom sector is emerging as the front-runner in the DaaS adoption. Small enterprises in this sector & other IT-related support services are upsurging as the major end-users of the DaaS market. Moreover, the emergence of various start-ups worldwide and the ongoing trend of shared working spaces are other crucial aspects contributing to the overall market growth in the IT/ITES & Telecom sector.
The demand for such services is emanating mainly from the US, Europe, & emerging economies in Asia-Pacific. The mid-size IT firms in North America and Europe are the major end-user of DaaS, while small size enterprises in the Asia-Pacific are emerging as the key target segments for the vendors in the IT space.
Moreover, with the growing IT expenditure, the market share of the IT/ITES & Telecom sector is set to rise significantly in the years to come.
Of them all, North America holds the largest market share, owing to the greater acceptance of DaaS across the IT & telecom industry across the region. The United States accounted for the majority of revenue emanating from North America. The rapidly improving start-up ecosystem and progressively rising demand for DaaS from mid-size firms are prime drivers for the regional market. Due to increasing demand for DaaS from education institutes, healthcare & government offices, coupled with periodic technology upgrades, the DaaS Market in North America is set to surge during the forecast period.
Key Driver: Mounting Adoption of Cloud Services & Subscription-based Devices
Small & medium-size organizations do not often have a huge capital expenditure for refreshing their devices. DaaS helps companies shift their IT budgets to more manageable cash flows with subscription-based hardware devices. It results in reduced costs of repair & ownership and, in turn, helps customers make more strategic business decisions. Since DaaS is a subscription-based model that offers services at minimum expense, organizations can quickly scale up or down as per the current business needs. Hence, consumers worldwide are increasingly opting for DaaS since it is flexible, promotes cost savings, and provides data security.
Growth Challenge: Emergence of BYOD & CYOD Technologies
The concept of Bring-Your-Own-Device (BYOD) is getting popular globally owing to its advantages like reduces hardware & service costs, higher user satisfaction, and convenience of no wireless carrier requirements to the organizations.
On the other front, in the CYOD (Choose-Your-Own-Device) model, companies provide employees with an approved set of devices from which they can choose. These devices are either paid for or owned by employees or the company. Moreover, the model also covers the costs of the mobile plan. Hence, the rapid adoption of these models is restraining the growth of the DaaS Market.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Device as a Service (DaaS) Market is projected to grow witness around 56% CAGR during 2022-27.
A. IT/ITES & Telecom acquires the largest share of the Global Device-as-a-Service Market and the same trend is likely to be followed in the coming years, which would create lucrative growth opportunities for the leading market players.
A. The rising adoption of cloud services & subscription-based laptops, desktops, mobile devices, etc., is the prime aspect driving the Device as a Service (DaaS) Market through 2027.
A. Post-COVID-19 pandemic, the Global Device as a Service (DaaS) Market is likely to witness steady growth owing to the rising trend of work from home and mounting need for remotely & seamlessly manage devices.