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The desktop virtualization market allows virtual desktops that enable organizations to run desktop operating systems and applications as virtual machines in a data center rather than on physical devices. Desktop virtualization provides several advantages such as centralized management and monitoring of desktop systems, better security, flexibility, easy access from anywhere, and reduction in hardware and maintenance costs. Growing need for improving operational efficiency and minimizing capital expenditure (CAPEX) and operational expenditure (OPEX) among organizations is fueling the demand for desktop virtualization globally.
The Global Desktop Virtualization Market is estimated to be valued at US$ 13.81 Bn in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the desktop virtualization market are Cisco Systems, Inc., Citrix Systems, Inc., Ericom Software, Inc., Evolve IP, Hewlett Packard Enterprise, Huawei Technologies Co., Ltd , Microsoft, Ncomputing, Oracle Corporation, Parallels International, Red Hat, and VMware, Inc.
Key opportunities: Increasing adoption of cloud-based services along with rising demand for flexible and affordable solutions from SMBs presents significant growth opportunities for players in the desktop virtualization market. Advancements in virtualization technologies are also expected to create new use cases and drive further adoption.
Global expansion: Major providers are expanding their footprint globally to tap growth opportunities in emerging markets of Asia Pacific and Latin America. Partnerships with local players and strengthening distribution channels are key strategies being adopted. Standardization of virtual desktop infrastructure is also helping drive interoperability and ease of deployment globally.
Market drivers: The growing need to enhance operational efficiency and reduce capital and operational expenditures are a key growth driver. Rapid digitalization and surge in remote and hybrid working models during COVID-19 pandemic accelerated the demand for virtual desktop solutions globally. Increasing preference for pay-per-use subscription models is another factor expected to support market gains over the forecast period.
PEST Analysis
Political: The desktop virtualization market is positively influenced by governments globally adopting virtual desktop infrastructure (VDI) solutions. This reduces IT costs and helps achieve green IT initiatives.
Economic: Growth of the digital economy and need for remote work flexibility is driving enterprises to adopt virtual desktop solutions to improve productivity and cut capital expenses on hardware. The cost benefits of VDI are boosting its adoption.
Social: Younger workforce is technology-savvy and prefers using their own devices for work. This is driving the ‘bring your own device’ trend which increases demand for secure virtual desktops that can be accessed from any device from any location.
Technological: Advancements in cloud computing, connectivity speeds and security solutions are making virtual desktops more viable. Features like optimized user experience on various devices and simple centralized management are spurring their deployment across organizations.
Geographical Regions with High Concentration
North America accounts for the largest share in the desktop virtualization market in terms of value, owing to rapid technological adoption and digital transformation among organizations to support hybrid work models. Presence of leading VDI vendors and advanced IT infrastructure have pushed growth in the region.
Asia Pacific registers the fastest growth and is emerging as a major market. This is due to growing investments by global enterprises in digitalization coupled with increasing internet access across the region particularly in India and China. Demand for VDI is further fueled by rapid urbanization.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
