NEW YORK, June 14, 2024 /PRNewswire/ — The global virtual desktop infrastructure market size is estimated to grow by USD 7.55 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 12.6%  during the forecast period. Ease of operating and managing virtual infrastructure is driving market growth, with a trend towards cloud-based VDI for SMEs. However, infrastructure bottlenecks poses a challenge.Key market players include Amazon.com Inc., Centerm Information Co. Ltd., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., dinCloud Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., HiveIO Inc., Huawei Technologies Co. Ltd., IGEL, Intel Corp., International Business Machines Corp., Microsoft Corp., Ncomputing Co. Ltd., Oracle Corp., Parallels International GmbH, Progress Software Corp., Red Hat Inc., and Stratodesk Corp.

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Key Market Trends Fueling Growth

The global Virtual Desktop Infrastructure (VDI) market is experiencing significant growth due to the increasing adoption of cloud computing services. Enterprises across various industries, including BFSI, IT and telecom, education, energy and utility, and retail, are migrating their business operations to the cloud and adopting VDI solutions for simplified administration, remote access, and enhanced data security.

Small and Medium-sized Enterprises (SMEs) are now able to afford VDI solutions through cheaper cloud-based deployment options, with monthly subscription fees from providers like VMware and AWS starting at USD21 per user and USD35 per month per desktop, respectively. This cost reduction and the availability of cloud-based VDI solutions are driving the increased adoption of VDI solutions worldwide. 

The Virtual Desktop Infrastructure (VDI) market is experiencing significant growth due to the increasing trend towards remote work and the need for secure and efficient access to applications and data. Departments and organizations are moving towards desktop virtualization to enable work from home policies and improve productivity.

Models like DaaS and SaaS are gaining popularity for their flexibility and cost-effectiveness. Cloud-based solutions are also on the rise, allowing companies to easily scale their desktop infrastructure and provide access to applications from any location. Additionally, advancements in technology like machine learning and AI are enhancing the user experience and security features of VDI solutions. Overall, the VDI market is expected to continue growing as businesses seek to adapt to the new normal of remote work. 

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Market Challenges

• The Virtual Desktop Infrastructure (VDI) market faces challenges due to the dependency on high-performance infrastructure for supporting multiple virtual machines. Enterprises often adopt inadequate IT infrastructure for VDI operations, leading to increased capital and operational expenses. Simultaneously running multiple virtual images results in lower productivity due to longer latency periods and reduced Input/Output per second (IOPS) throughput.
• Vendors like Dell Technologies and Hewlett Packard Enterprise collaborate with Citrix and VMware to deliver better VDI performance. However, escalating business demands and complex applications negatively impact VDI performance. Website server downtime is a significant concern for enterprises, with major issues being slow access, cyberattacks, traffic overload, hardware or software failure, and server crashes. These infrastructure challenges may hinder market growth during the forecast period.
• The Virtual Desktop Infrastructure (VDI) market faces several challenges in deployment and management. One challenge is ensuring sufficient network bandwidth for seamless user experience. Another issue is the complexity of managing and securing a large number of virtual desktops.
• Cost efficiency is also a concern, as organizations must balance the capital expenditures for hardware and software with the operational expenses for maintenance and support. Additionally, compatibility with various applications and devices can pose challenges in implementing VDI solutions. Overall, addressing these challenges requires a robust and flexible VDI solution that can deliver high performance, easy management, and strong security.

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Segment Overview 

1. Application 
• 1.1 On-premise VDI
• 1.2 Cloud-based VDI
2. End-user 
• 2.1 BFSI
• 2.2 Education
• 2.3 Healthcare
• 2.4 Others
3. Type 
• 3.1 Services
• 3.2 New software licenses
4. Geography 
• 4.1 North America
• 4.2 Europe
• 4.3 APAC
• 4.4 South America
• 4.5 Middle East and Africa

1.1 On-premise VDI-  The on-premises Virtual Desktop Infrastructure (VDI) market is expected to grow at a slower pace compared to cloud-based VDI during the forecast period. Large enterprises with over 1000 employees and dedicated IT support teams prefer on-premises VDI for control, customization, and enhanced security.

However, the trend towards mobile computing and the need for workplace flexibility may lead to a decrease in employee count, impacting the growth of this segment. Developed regions like the US and Western Europe have the highest penetration of VDI, with APAC countries like China and India showing increasing adoption due to the need for flexibility and mobile technologies.

The success of on-premises VDI depends on an organization’s ability to make capital investments, IT staff expertise, in-house bandwidth, and the CAPEX required for additional hardware. Security concerns are also a driving factor for organizations opting for on-premises VDI solutions.

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Research Analysis

The Virtual Desktop Infrastructure (VDI) market is experiencing significant growth as businesses continue their digitalization journey. With the increasing adoption of automation and smart workplaces, the need for flexible and efficient digital workspaces has become crucial. VDI enables businesses to access their desktops and applications from anywhere, using smart devices, and through various deployment models, including cloud and on-premises data centers. Artificial intelligence (AI) and cloud computing are key technologies driving the VDI market. AI enhances user experience by providing personalized desktops and applications, while cloud ensures operational efficiency and scalability.

However, data security remains a concern, with data breaches a potential risk in both public and private environments. Operational efficiency is a significant benefit of VDI, with virtual machines (VMs) and the client/server model enabling businesses to optimize their use of resources. Operating systems and data centers also play essential roles in VDI deployments, with cloud-based solutions offering cost savings and flexibility. In conclusion, the VDI market is a dynamic and evolving landscape, driven by the digital transformation of businesses and the need for flexible, efficient, and secure digital workspaces.

Market Research Overview

The Virtual Desktop Infrastructure (VDI) market refers to a technological solution that enables the delivery of desktop computing environments as a managed service from a central data center. This infrastructure allows users to access their desktops and applications from any location and device, enhancing productivity and flexibility. VDI solutions are built on various technologies such as application virtualization, remote display protocols, and multi-session Windows servers.

They offer benefits like improved security, cost savings, and easier management of IT resources. VDI is gaining popularity in industries like healthcare, finance, and education due to the need for remote work and data security. The market is expected to grow significantly in the coming years due to the increasing adoption of cloud computing and the need for businesses to support a remote workforce.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• On-premise VDI
• Cloud-based VDI
• End-user
• BFSI
• Education
• Healthcare
• Others
• Type
• Services
• New Software Licenses
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio