Virtual Desktop Infrastructure Market - Size, Industry Share, Growth Trends and Forecasts (2024 - 2031)

By Type:

Based on the type, the market is trifurcated into virtual desktop infrastructure, desktop-as-a-service, and remote desktop services.

The virtual desktop infrastructure segment accounted for the largest revenue of 57.29% in 2023 and the segment is anticipated to register a significant CAGR during the forecast period.

• Factors affecting the segment include the increasing demand for cloud solutions, the need for virtualization, the adoption of remote working solutions, and others.
• Moreover, it offers a range of benefits including flexibility, accessibility, and cost-effectiveness.
• For instance, in September 2023, Sangfor unveiled the latest 5.9.0 version of its VDI, themed The Road to Convergence, marking significant advancements. Sangfor has become the pioneer in the industry due to the tight integration of VDI and security parts in this version, thereby enhancing the safety of virtual desktops alongside their data.
• Thus, as per the segmental trends analysis, the aforementioned factors drive the virtual desktop infrastructure market share.

By Offering:

Based on the offering, the market is bifurcated into solutions and services.

The solution segment accounted for the largest revenue share in 2023.

• Factors affecting the solution segment include the growing need for specialized professional services and the increasing complexity of VDI deployments.
• Moreover, these solutions offer a range of benefits including improved system efficiency, reduced downtime, and enhanced security.
• For instance, in May 2024, Dizzion is aware of the challenges and possibilities in highly regulated fields. The Dizzion customizable platform can improve the quality of service for customers shared with IBM, help roll out new features such as Managed DaaS as well as Compliance Services (PCI, HIPAA, SOC, and GDPR), and allow them more flexibility in their Dizzion virtual desktops delivery on IBM Cloud so that they are as per performance and regulatory standards.
• Hence, the solutions provided enhance the efficiency and security driving the market.

The service segment is anticipated to register a significant CAGR during the forecast period.

• Factors affecting the segment include the complexity of VDI deployments and the need for regular maintenance and updates.
• Moreover, the primary benefits of service include enhanced system efficiency, reduced downtime, improved security, and continuous support.
• For instance, in November 2023, Anunta launched its DaaS Partner Program to enable resellers and service providers to tap into the burgeoning DaaS market. The program aids in scaling their DaaS business, meeting customer needs, and enhancing their revenue potential. It offers three partnership types - alliance, reseller, and referral - aligning with their business objectives.
• Thus, as more enterprises prefer services offered by the providers, this is expected to drive the virtual desktop infrastructure market trends.

By Deployment:

Based on the deployment, the market is bifurcated into on-premise and cloud.

The cloud segment accounted for the largest revenue share in the year 2023 and the segment is anticipated to register a significant CAGR during the forecast period.

• Factors affecting the cloud segment include lower cost compared to on-premise solutions, strong network connectivity, and the focus of cloud-based VDI vendors on developing high-level security patches.
• Moreover, the cloud offers a range of benefits including reduced endpoint footprint, feature-rich apps, better user experiences, and increased business agility, responsiveness, and flexibility.
• For instance, in April 2024, Cloud Software Group, Inc., and Microsoft Corp. announced an eight-year strategic partnership to enhance their collaboration. The arrangement has been made to boost the market entry strategy of the Citrix virtual application and desktop platform as well as enable the development of new cloud and AI solutions that will follow a unified product roadmap. Another thing is that Cloud Software Group will invest $1.65 billion in Microsoft's generative AI capabilities running on its cloud platform.
• Thus, cloud deployment is widely used in comparison with on-premise deployment, driving the virtual desktop infrastructure market growth.

By Enterprise:

Based on the enterprise, the market is bifurcated into small and medium business enterprises and large business enterprises.

The small and medium business enterprise segment accounted for the largest revenue in the year 2023.

• Factors affecting the small and medium business enterprise segment include growing demand for cloud solutions, the need for virtualization, the adoption of remote working solutions, and the shift to a remote-first culture.
• Moreover, VDI offers a range of benefits including enhanced security through centralized management and control of desktop environments, reducing the risk of data loss, malware infections, and unauthorized access to these enterprises.
• It also provides flexibility and mobility, allowing employees to access their desktops and applications from any internet-connected device.
• For instance, in February 2023, Nerdio and ControlUp combined the ControlUp Real-Time DX DaaS monitoring with Nerdio Manager for the Enterprise platform. This platform improves Azure Virtual Desktop, Windows 365, and Microsoft Intune by making management easier, operations more effective, and cutting down Azure compute and storage costs by 80%. ControlUp Real-Time DX is designed to give real-time metrics that allow IT experts to preventatively fix issues that may lower employees' digital experience as well as productivity.
• Thus, small and medium enterprises are dependent on this technology for remote work solutions along with other benefits, hence driving the virtual desktop infrastructure market share.

The large business enterprise segment is anticipated to register a significant CAGR during the forecast period.

• Factors affecting the large business enterprise segment include the need for efficient resource management, the need for secure remote access to desktops, and the requirement for high-performance virtual environments.
• Moreover, the primary benefits for large business enterprises include scalability, enhanced security, cost-effectiveness, and improved productivity.
• For instance, in October 2021, according to Wipro, Virtual Desktop Infrastructure (VDI) provides a virtual environment where business applications and data are accessible to end-user devices from centralized data centers, either on-premise or cloud-based. VDI offers numerous advantages, including centralized management of image deployment, policy and patch management, and application portability. Furthermore, it enables HR and recruitment teams to hire globally, saves on real estate costs, reduces commuting time, and improves productivity.
• Thus, the analysis of segmental trends depicts that large enterprises use the technology for scalability and efficiency, hence driving the virtual desktop infrastructure market opportunities.

By End Use:

Based on the end use, the market is segregated into BFSI, retail, IT and telecom, healthcare, education, government and public sector, and others.

The BFSI segment accounted for the largest revenue share in 2023.

• Factors including the need for secure and efficient data management, the increasing adoption of digital banking solutions, and the need for improved customer service are key aspects driving the BFSI segment.
• For instance, the Swiss bank selected Wipro to facilitate their large-scale transition to remote work environments. Specifically, Wipro's virtues, a VDI services solution, allowed employees to operate from virtually any location, ensuring uninterrupted banking services for customers. Wipro's Rapid Employee Access Solution connected employees to bank systems, scaled to meet increasing connection needs, provided top-notch security, and optimized performance.
• Thus, as per the segmental trends analysis, the wide applications of virtual desktop technology in the BFSI sector are driving the virtual desktop infrastructure market demand.

The healthcare segment is expected to witness a significant CAGR during the forecast period.

• The growth of the healthcare segment is attributed to several factors including the increasing need for efficient patient data management, the adoption of telemedicine and remote patient monitoring systems.
• Moreover, the demand for secure and compliant data handling and digital transformation initiatives in the healthcare industry also drive the market.
• For instance, in November 2023, as per the analysis of V2Cloud Solutions, Inc., VDI plays a crucial role in healthcare compliance by safeguarding sensitive patient information. It centralizes data on secure servers, eliminating the risk of data vulnerability on individual devices. VDI offers enhanced security by employing robust encryption, multi-factor authentication, and secure data transmission protocols, ensuring HIPAA compliance and patient confidentiality.
• Thus, the rising applications of VDI technology in the healthcare sector drive the virtual desktop infrastructure market trends.

Regional Analysis:

The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 3,268.34 Million in 2023. Moreover, it is projected to grow by USD 3,973.70 Million in 2024 and reach over USD 17,918.70 Million by 2031. Out of this, China accounted for the maximum revenue share of 33.9%. As per the virtual desktop infrastructure market analysis, the growth in the Asia Pacific is primarily driven by the prevalence of the increasing digitization of business operations in the region including rising demand for cloud-based computing solutions. Moreover, the investments in cloud computing and digital transformation initiatives, as well as the rising usage of smart devices and the increase in mobile workforce have been a prevalent factor for virtual desktop infrastructure market expansion in the region.

• For instance, in March 2021, Citrix acquired Wrike, a work management platform to escalate its delivered SaaS solutions over the cloud and quicken its roadmap for the next era of work.

North America is estimated to reach over USD 23,471.74 Million by 2031 from a value of USD 4,546.02 Million in 2023 and is projected to grow by USD 5,498.59 Million in 2024. The increasing adoption of cloud-based solutions is providing lucrative growth prospects for the market in the region. In addition, factors including a surge in remote working trends and the escalating demand for data security are driving the virtual desktop infrastructure market expansion in the North American region.

• For instance, in January 2022, according to TIBCO, Citrix is set to merge with TIBCO Software to form a global leader in digital workspace and data analytics. Citrix Systems, Inc. has announced a definitive agreement for its acquisition by Vista Equity Partners and Evergreen Coast Capital Corporation, an affiliate of Elliott Investment Management L.P., in an all-cash transaction valued at $16.5 billion, including Citrix's debt.