Virtual Desktop Infrastructure Market Worth $12,971.3 Million, Globally, by 2027 at 14.4% CAGR - Exclusive Report by The Insight Partners

The virtual desktop infrastructure (VDI) market to reach US$ 12,971.3 million by 2027 from US$ 4,490.0 million in 2019 to grow at a CAGR of 14.4% during 2019 to 2027 driven by the rising trend of digitalization among enterprises to improve operational workflow and reduce costs.

NEW YORK, Dec. 10, 2021 /PRNewswire/ -- According to the new market research report "Virtual Desktop Infrastructure (VDI) Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Offering (Solution and Services), Deployment (Cloud and On-Premise), Enterprise Size (SMEs and Large Enterprises), End User (IT & Telecom, Government, Healthcare, BFSI, Education, Retail, Manufacturing, and Other End Users); and Geography", published by The Insight Partners, Get the Latest COVID-19 Analysis on global VDI market at https://www.theinsightpartners.com/covid-analysis-sample/TIPRE00011555

Virtual Desktop Infrastructure (VDI) Market: Competitive Landscape and Key Developments

VMware, Inc.; Citrix Systems, Inc.; Microsoft Corporation; Amazon.com, Inc.; Cisco Systems, Inc.; IBM Corporation; Fujitsu Limited; Dell Technologies Inc.; Hewlett Packard Enterprise Development LP (HPE); and Huawei Technologies Co., Ltd are among the key players in the global virtual desktop infrastructure market. The leading companies are focusing on expanding and diversifying their market presence by acquiring new customer base, thereby tapping prevailing business opportunities.

In 2020, HPE introduced a beefier VDI solution along with separate pre-configured solutions for organizations of all sizes built on its servers. The company is also offering new, pre-configured VDI solutions to support small, medium and enterprise customers.

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Virtual desktop infrastructure (VDI) is a form of desktop virtualization that allows hosting desktop environments on a central server. In virtual desktop infrastructure, desktop operations run on virtual machines located at a central server and delivered to end users over a network. End users can access these remote machines with the help of endpoints such as PCs, laptops, smartphones, thin client terminals, and tablets. VDI solutions and services are becoming quite popular among various industries such as IT & telecom, government, healthcare, BFSI, education, and retail. Mobile employees, field technicians, contractors, part-time workers, healthcare professionals, and teachers are among the users who commonly use virtual desktop infrastructure while working remotely. Virtual desktop infrastructure enhances user mobility and remote access by allowing users to access a wide range of virtual apps and data on the move. With the growing trend of digitalization, automation, and smart workplaces, the demand for virtual desktop infrastructure solutions is anticipated to rise at an impressive pace in the coming years. The ongoing COVID-19 outbreak is further accelerating the market growth with work-from-home guidelines being implemented across the world. Major IT and other companies are expected to invest heavily in desktop virtualization solutions such as virtual desktop infrastructure to reduce physical infrastructure and other related operational costs.

The virtual desktop infrastructure market is segmented into offering, deployment, enterprise size, end-user, and geography. Based on offering, the market is segmented into solution and services. In 2019, the solution segment held a larger share of the global virtual desktop infrastructure market. Based on deployment type, the virtual desktop infrastructure market is categorized into cloud and on-premise. Cloud is expected to be the fastest-growing segment during the forecast period. On the basis of enterprise size, the market is segmented into SMEs and large enterprises. The large enterprises segment contributed a substantial share in 2019; however, the SMEs segment is projected to grow faster due to the availability of low-cost cloud-based solutions. Further, in 2019, IT and telecom industry led the virtual desktop infrastructure market globally.

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Globally, there is a demand for various technology solutions and services due to developed countries such as the US and Canada and a huge presence of companies from various industry sectors. Presently, the US is the world's worst-affected country due to the COVID-19 outbreak with more than 3.16 million confirmed cases and more than 133,000 deaths, as per the recent WHO Situation Report-174. Hence, the region's economy has seen a significant decline in the past few months, negatively impacting the growth of various industries. The restriction imposed in various countries on travel and business activities is impacting the growth of key industries such as IT & telecom, BFSI, and healthcare in the region. In addition, the overall manufacturing processes, research, and development activities are getting impacted negatively. To continue daily operations and business activities, remote working and availability of advanced communication/working infrastructure are the key factors driving the demand for desktop virtualization solutions during the pandemic in North America. Thus, the COVID-19 crisis is expected to positively impact market growth in the coming years.

Growing Trend of Digital Transformation to Provide Growth Opportunities for the Market:

Digitalization presents a massive opportunity for businesses to utilize digital technologies and automation to transform their business models and existing processes in order to enhance operational efficiency and increase revenue. In the last few years, proliferation of smart devices, adoption of Internet of Things (IoT), cloud computing, and artificial intelligence (AI) have led to the advent of smart workplaces. In general, digital transformation refers to integrating digital technologies in business processes and organizational activities/models. Rising demand for end-to-end business process optimization, high operational efficiency, and reduced human errors are the key drivers for the growth of digital transformation in various industries. For the past few years, desktop virtualization has been gaining popularity among enterprises allowing them to virtualize entire workgroups for higher efficiency and lower costs. With solutions such as virtual desktop infrastructure and Desktop-as-a-Service (DaaS), industry verticals such as IT & telecom, government & defense, education, BFSI, healthcare, research, and manufacturing are able to reduce their endpoint footprint, offer feature-rich apps, and provide better user experiences. This solution helps enterprises increase business agility, responsiveness, and flexibility and thus cater to the ever-changing IT demands. Hence, all the benefits offered by virtual desktop infrastructure and other desktop virtualization tools enable the digital transformation in various industries and thus drive the demand for these solutions among enterprises.

Virtual Desktop Infrastructure (VDI) Market: Offering

The offering segment of VDI is classified into solution and services. The software required for providing virtual desktops is based on the virtualization method selected by the user. With VDI, the desktop OS runs and is managed in the data center. Further, Hypervisor software runs on the host server, providing access to a virtual machine to each end-user across the network. Also, connection broker software is needed to validate users, connect them to a virtual machine, observe activity levels, as well as reallocate the virtual machine when the connection is terminated. These connection brokers may be purchased separately or bundled with the hypervisor. Moreover, remote desktop services can be installed leveraging utilities that are bundled with the Microsoft Windows Server OS. Additionally, in case a user chooses Desktop-as-a-Service (DaaS) solution, then all software installation, configuration, as well as maintenance will be managed by the DaaS cloud-hosted service provider. This comprises OS, applications, files, as well as user preferences. 

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