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

By Component:

Based on the component, the market is bifurcated into software and services.

Trends in the Components:

• Software component enables seamless management of virtual desktops across multiple cloud environments, and provides flexibility and resilience, to optimize cost and performance through utilizing diverse cloud services.

The software segment accounted for the largest revenue share in the year 2023.

• Software provides and manages virtual desktops hosted on-premises or in the cloud. These desktops run on virtual machines located on servers in a data center instead of the actual desktop hardware.
• This software includes hypervisors, virtual desktop infrastructure (VDI) solutions, operating systems, management tools, and security software.
• Businesses use the software to leverage existing computer resources without increasing costs, update enterprise software tools, and allow employees to access desktop images using their own or company devices while maintaining data security.
• In August 2022, Dell Technologies and VMware introduced virtual desktop infrastructure solutions co-engineered to enhance automation and performance for organizations adopting multi-cloud and edge strategies. As data and applications continue to grow in multi-cloud environments, these solutions aim to simplify management and deliver value from data.
• Therefore, the market analysis concludes that the software segment is collectively driving the virtual desktop market share.

The service segment is anticipated to register the fastest CAGR growth during the forecast period.

• Services refers to support and management activities provided to implement, automate, maintain, and optimize virtual environments.
• These services include Platform as a Service (PaaS), Software as a Service (SaaS), Infrastructure as a Service (IaaS), Desktop as a Service (DaaS), managed services, and others.
• Businesses use these services to handle IT infrastructure with desktop virtualization, as they support remote and hybrid work environments including remote monitoring, management, and support services, essential to ensure productivity and connectivity.
• In October 2022, Deloitte launched Oracle MyCloud ERP offering to help fast-growing and private clients accelerate business transformation using Oracle's integrated SaaS Cloud platform. This offering includes access to Oracle Cloud products and Deloitte's implementation and support services for a consistent monthly fee, addressing talent constraints and high upfront costs.

By Type:

Based on type the market is bifurcated into Persistent and Non-Persistent.

Trends in the type:

• Persistent virtual desktop supports Bring Your Own Device (BYOD) Policies offering flexibility across various industries.

The non-persistent segment accounted for the largest revenue share in the year 2023.

• Non-persistent virtual desktops enable multiple users to utilize the desktops.
• These desktops are easy to manage and maintain as they revert to a default state after each use, reducing the need for extensive IT support and maintenance.
• Additionally, desktops are created from a master image, allowing system administrators to quickly update, back up, and deploy organization-wide applications.
• Determinants including lower cost, reduced storage, simplified management, and enhanced security, drive the market.
• In June 2024, AWS introduced Amazon WorkSpaces Pool, a cost-effective non-persistent virtual desktops. This WorkSpace Pool guarantees that all users receive identical applications and experiences. Moreover, users have the capability to handle a collection of non-persistent desktops through a single GUI, command line, or a series of AI-driven tools.
• Thus, as per the analysis simplified management of non-persistent virtual desktops is driving the virtual desktop market demand.

The persistent segment is anticipated to register the fastest CAGR growth during the forecast period.

• Persistent virtual desktops are replicas of traditional PCs assigned to individual users enabling personal desktops to store files and add their preferences.
• These desktops are quick and easy to set up, customizable, flexible to remote access, and help organizations comply with industry regulations.
• In November of 2023, VMware and Amazon Workspace joined forces to declare that AppVolumes will now offer support for Persistent Desktops, including Horizon. App Volumes change the way applications are distributed and controlled on Horizon VDI and Apps, Citrix Virtual Apps and Desktops, Azure Virtual Desktop, and Amazon Web Services. The same functionality will also be integrated into Amazon WorkSpaces Core.
• Hence, rising innovations in persistent virtual desktops are anticipated to boost the virtual desktop market trends.

By Deployment:

Based on deployment the market is bifurcated into on-premises and cloud-based.

Trends in the deployment:

• Cloud-based deployment includes disaster recovery and business continuity features, ensuring minimal downtime and data loss for resilience and reliability in cloud platforms.

The cloud-based segment accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR growth during the forecast period.

• Cloud-based deployment enables organizations to easily scale their desktop virtualization environments up or down based on demand, without significant upfront investment in infrastructure.
• Additionally, these desktops offer a pay-as-you-go pricing structure where users are charged based on their consumption of resources and cloud services.
• In September 2022, AWS announced Amazon WorkSpace core, which is a cloud-based desktop virtualization solution that is fully managed by Desktop as a Service (DaaS). WorkSpaces Core comprises specialized VDI infrastructure that enables efficient spending with predictable, fixed rate, pay-as-you-go pricing, and with no upfront costs.
• Therefore, the market analysis concludes that the cloud-based deployment segment is driving the virtual desktop industry.

By Operating System:

Based on operating system the market is segmented into Linux, Windows, Solaris, and Others.

Trends in Operating Systems:

• Virtual desktops are focusing on improving cross-platform compatibility to allow seamless integration and operation across various operating system environments, enhancing user experience and enabling organizations to run diverse applications without compatibility issues.

The Windows segment accounted for the largest revenue share of 71.02% in the year 2023 and is anticipated to register the fastest CAGR growth during the forecast period.

• Windows OS has a large user base, most users are familiar with Windows OS making it a preferred choice for many organizations.
• Virtual desktops integrated with Windows OS allow users to stream all the applications, tools, data, and settings from the cloud across any device.
• Additionally, it secures the virtual environments by leveraging the power of the cloud and principles of Zero Trust, a security framework for authentication.
• In July 2021, Microsoft Corp. revealed Windows 365 a cloud-based service that offers a new way for businesses to use Windows 10 or Windows 11. Windows 365 brings the operating system to the Microsoft cloud by streaming the complete Windows experience, including apps, data, and settings, to personal or corporate devices.
• Thus, the Windows OS segment is propelling and is expected to expand the virtual desktop market demand.

By End-User:

Based on end-users the market is segmented into IT and Telecommunications, BFSI, Healthcare, Education, Retail, and others.

Trends in the End-Users:

• Desktop virtualization allows for a personalized learning experience, enabling educators to customize lesson plans and assignments catered to individual needs.
• The BFSI sector is increasingly adopting virtual desktops to comply with regulatory requirements by ensuring secure and controlled access to sensitive financial data, enhancing data protection and audit capabilities.

IT and Telecommunications segment accounted for the largest revenue share in the year 2023.

• IT and Telecommunications widely adopt desktop virtualization for remote work policies, enabling IT professionals to access work environments securely from any location.
• They offer scalability, allowing IT organizations to rapidly allocate and remove desktops based on project needs. This flexibility supports dynamic team and project-based work.
• Additionally, the incorporation of technological advancement including artificial intelligence (AI) and machine learning (ML) in the cloud-based workspace is a significant factor driving the market.
• In May 2023, Google launched Duet AI integrated with Google Workspace products, leveraging advanced NLP and machine learning to assist users in coding, generating content, drafting emails, and creating documents.
• Thus, IT and Telecommunications widely adopt cloud-based workspaces due to scalability and flexibility, driving the global virtual desktop market trend.

The healthcare segment is anticipated to register the fastest CAGR growth during the forecast period.

• Virtual desktops offer enhanced data security measures to protect patient privacy as Healthcare organizations work with sensitive and confidential patient information regularly.
• These desktops streamline the software and system update procedure. IT personnel can save time and decrease patient care disruptions by centrally implementing updates, instead of updating software on each physical desktop separately.
• Moreover, a collaboration of key players of cloud providers with healthcare organizations further boosts the market.
• In July 2024, GE HealthCare collaborated with Amazon Web Services, Inc. (AWS), to develop purpose-built foundation models and generative artificial intelligence (AI) applications designed to help clinicians improve medical diagnostic and patient care.
• Therefore, the analysis concludes that the healthcare segment is anticipated to boost the market during the forecast period.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America is estimated to reach over USD 16,094.98 Million by 2031 from a value of USD 5,498.93 Million in 2023. Determinants including high adoption of advanced technologies, widespread implementation of remote work policies, and strong presence of key players are fueling the virtual desktop market.

• In July 2023, Citrix (Florida, US) joined forces with Twilio, a global leader in customer engagement software, to provide integrated high-performance solutions for Citrix Desktop as a Service (DaaS) and Twilio Flex environments.

Asia-Pacific region was valued at USD 4,398.86 Million in 2023. Moreover, it is projected to grow by USD 4,984.47 Million in 2024 and reach over USD 13,708.63 Million by 2031. Out of this, China accounted for the maximum revenue share of 31.5%.

• For instance, according to the analysis of the International Journal of Interdisciplinary Research and Innovations the rapid growth of India's IT industry, driven by advancements in digital processing and communication, the demand for desktop virtualization is rising. This technology offers cost savings, enhanced security, and improved productivity, aligning with the IT sector's focus on innovation. The adoption of desktop virtualization is set to create new chances, reduce brain drain, and position India as a global leader in technology.

The Asia-Pacific region's growing surge in cloud infrastructure development and adoption, rising trend of remote workforces, and government-led initiatives to promote digital transformation are anticipated to show substantial growth in the virtual desktop market.

As per virtual desktop market analysis, Europe is anticipated to witness substantial growth that is backed by the cloud computing sector. Companies invest in innovative virtualization technologies to cater to the surging demand for cloud-based workspaces across the region.

The Middle East, Africa, and Latin America are expected to experience significant development in desktop virtualization adoption. The expansion of data centers and cloud services is facilitating the deployment of desktop virtualization across IT, education, healthcare, and others.