Global Device-as-a-Service (DaaS) Market Research Report: Forecast (2022-2027)

Market Overview

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.”

Key Trends in the Global Device as a Service (DaaS) Market:

• Adoption of Mobile Applications: Corporate firms are now witnessing a steady growth in work from home culture and engaging in developing mobile applications for cross-platforms. Users can store the app data either on the cloud or on-premises, authenticate customers, and send push notifications anytime from anywhere. It, in turn, has helped the DaaS market to grow across many countries.
• Desktop Replacement & Remote Offices: Due to reduced management costs and improved Total Cost of Ownership (TCO) with validated & highly optimized desktop virtualization platform & cloud-scale architecture, there is a subtle increase in the demand for DaaS. Old desktops are now being replaced by rental subscriptions based on DaaS, which enhances user efficiency. Furthermore, IT organizations run remotely with less hassle through Centralized Desktop Management offered by DaaS.

Impact of Covid-19 on the Global Device as a Service (DaaS) Market

• Last year, the Covid-19 pandemic positively influenced the demand for the Device as a Service model, owing to the work-from-home culture among most organizations worldwide.
• Due to the lockdown imposition, organizations started looking for services that can provide pre-configured devices like desktops & laptops and help them seamlessly continue their business operations.
• Moreover, the demand for DaaS also increased among small & medium-size enterprises amidst the pandemic to reduce their expenses associated with hardware and invest in their sales & marketing strategies.
• Nevertheless, with the emergence of the remote working, the procurement of laptops has witnessed a significant surge in recent years.

Market Segmentation:

By Type

• Hardware
• Software
• Services

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.

By End-User:

• IT/ITES & Telecom
• Government
• BFSI
• Healthcare
• Education

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.

Regional Landscape:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

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.

Market Dynamics:

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:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Device as a Service (DaaS) Market?
2. What is the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Device as a Service (DaaS) Market?
4. Who are the key competitors, their key strengths & weaknesses, and how they perform in the Global Device as a Service (DaaS) Market based on a competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Global Device as a Service (DaaS) Market study?