Global Desktop Virtualization Market - Forecasts from 2024 to 2029

The global desktop virtualization market is estimated to grow at 12.51% (CAGR) from US$10.737 billion in 2024 to US$19.357 billion in 2029.

Desktop virtualization segregates associated applications software from physical devices by creating a virtual version of the operating systems and desktop environment, where the operating system resources operate via hypervisor. Such interfaces enable users to access applications from any device, including computers, laptops, and smartphones. The growing advancements in communication technology, followed by the booming adoption of cloud-computing solutions across various industry verticals such as healthcare, BFSI, IT, and telecom, among others, are driving the desktop virtualization market's growth.

Global Desktop Virtualization Market Drivers

• Advancements in IT and communications are driving the desktop virtualization market growth.

Desktop virtualization solutions have provided companies with a great opportunity to remove the physical barriers in their operating environment. Establishing a virtual workplace enables employees to improve their productivity and reduce their downtime. Owing to such high-performance benefits, companies emphasize improving their IT infrastructure and central management system to bolster overall workforce productivity.

Hence, market players are investing in providing Desktop as a Service (DaaS) and virtual desktop solutions. For instance, Microsoft's "Azure Virtual Desktop" provides a secured remote desktop application experience to employees. It has features such as host pool management, flexible networking options, and other multi-session cloud capabilities.

Global Desktop Virtualization Market Segment Analysis

• Desktop as a Service (DaaS) to hold a significant market share

Desktop as a Service (DaaS) is expected to hold a significant market share in the global desktop virtualization market owing to the emerging popularity of cloud computing in commercial and industrial establishments for minimizing overall operational costs while easing access to data and applications.

Owing to its easy implementation and accessibility, various product launches and innovations associated with DaaS are being implemented. For instance, in February 2023, OTAVA launched its new DaaS solution that would assist enterprises in empowering their remote workforce. The "OATAVA DaaS" is powered by Verizon Horizon DaaS and provides a virtual workplace via the cloud, thereby reducing the upfront cost.

• Small enterprises are anticipated to account for a significant share

Based on enterprise size, the global desktop virtualization market is segmented into small, medium, and large. Small and medium enterprises are expected to account for a considerable market share fueled by the growing strength of SMEs in major economies. For instance, according to the "2023 Small Business Profile" provided by the U.S Small Business Administration, small businesses account for 99% of the country's businesses and employ nearly 61.6 million employees, which accounts for 45.9% of the US workforce.

Desktop virtualization solutions have provided a cost-effective approach to small-scale firms by lowering the cost incurred in servers and equipment hosted on the service providers' side. Key market players, namely IBM, VMWare, and Citrix, are offering desktop virtualization solutions at an affordable price, which has made it easy for small-scale firms to access them.

• The IT and Telecom sector will hold a remarkable market share.

The global desktop virtualization market, by industry vertical, is divided into BFSI, education, retail, healthcare, IT and Telecom, and others. The IT and Telecom sector is anticipated to hold a considerable market share fueled by the advancement in IT infrastructure followed by a growing cloud ecosystem. Additionally, desktop virtualization offers rapid deployment of innovative services and provides a wider scale for employees to access applications. IT physical and training expenditures can be avoided through virtual desktop infrastructure and remote desktop services, thereby offering simplified and easy access to operational services for the IT staff.

Additionally, centralized management system demand is experiencing positive growth, which is further anticipated to bolster desktop virtualization demand for greater flexibility. Moreover, the healthcare and BFSI sectors are expected to show steadily during the forecast period, fueled by the growing emphasis on remote service management.

North America will constitute a considerable market share.

The global desktop virtualization market, by geography, is analyzed into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. North America is poised for significant growth and will constitute a considerable share fueled by favorable investment in bolstering industrial digitalization, followed by booming cloud and remote working culture in major regional economies, namely the USA and Canada.

Major sectors such as BFSI, IT & Telecomm, healthcare, and education, among others, are investing in virtual technologies in such nations. For instance, the American Hospital Association (AHA) states that nearly 76% of hospitals in the United States are connected through the use of telecommunication services, which has bolstered the scale of telehealth services in the economy. Likewise, the well-established market presence of major players, namely IBM, Cisco, VMWare, Microsoft, and Dell, further acts as an additional driving factor for the regional market growth.

Global Desktop Virtualization Market Developments

• In January 2024, Parallel launched its Desktop-as-a-Service cloud computing product, ParallelsDaaS, for small and medium enterprises. The solution would assist enterprises in the quick adoption of a cloud-first approach, enabling them to deliver desktops and applications for internet-connected devices for hybrid and remote workforces.
• In September 2023, Sangfor launched the latest version of "Sangor Virtual-Desktop-Infrastructure", version "5.9.0", which is 2 in-1 VDI & HCI that utilizes "Hyperconverged Infrastructure" to replace VMP as the hypervisor for supporting desktop & server virtualization.
• In July 2022, Leostream, a prominent provider of secure remote access software for businesses, announced a collaboration with Virtuozzo, the pioneer in alternative cloud platforms. Leostream is now a member of the Virtuozzo Technology Alliance Partner Ecosystem, enabling strong virtual desktop environments to run on Virtuozzo's software-defined, hyper-converged self-service platform.
• In April 2022, TD SYNNEX launched a new managed virtual desktop, "Click-To-Run," that deploys Azure Virtual Desktop (AVD) hosted in MS Azure. This allows users to access their applications and desktops through any device from anywhere. The virtual desktop product is ideal for business entities offering remote desktop capabilities.

The Global Desktop Virtualization Market Segmentation:

By Type

• Virtual Desktop Infrastructure (VDI)
• Remote Desktop Services (RDS)
• Desktop as a Service (DaaS)

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• BFSI
• Education
• Retail
• Healthcare
• IT and Telecom
• Others

By Delivery Platform

• Hosted Virtual Desktops
• Hosted Shared Desktops

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• United Kingdom
• Italy
• France
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others