20 Revealing Stats About the Desktop Virtualization Market that You Should Know

What is desktop virtualization? How can it help an enterprise grow? Is it secure? Can we adopt it for our remote workforce? 

Today, desktop virtualization has taken diverse business industries by storm. It is one of the significant trends in today’s world. 

Depending on business requirements, many IT leaders choose between VDI (Virtual Desktop Infrastructure) and DaaS (Desktop as a Service) – the two major desktop virtualization solutions. VDI is an on-premises solution that offers high-end virtual desktops hosted on high-performance servers maintained by local IT executives. Here, the in-house IT administrators handle data servers, hardware, software, and other deployment units.  

In contrast, DaaS is a fully-managed VDI solution maintained and hosted by third-party providers.  

This list of the most relevant VDI and DaaS market adoption, trends, and statistics reveal how significant virtual desktop market growth is and how it will likely evolve. 

Key Takeaways: 

  • Desktop virtualization is a critical technology that has impacted the way workforces operate worldwide. 
  • Since the COVID-19 crisis, the VDI and DaaS market has been on a quick upward revolution due to its centralized infrastructure, spending, and security. 
  • We’ve compiled a list of 20 relevant and revealing virtual desktop market growth statistics demonstrating how big the VDI market is and how it’s expected to evolve. 

Know More: What is Desktop Virtualization Technology & What Are The Types of Virtualization? 

Desktop Virtualization Market Growth 

  • The desktop virtualization market is expected to reach from USD 12.3 billion in 2022 to USD 20.1 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 10.3%. (Source: MarketsandMarkets) 
  • By the end of 2022, desktop virtualization adoption will see double-digit growth. (Source: Spiceworks) 
  • The Desktop as a service (DaaS) market is slated to top at an 18.1% compound annual growth rate (CAGR) from US$ 5.5 Bn in 2022 to US$ 17.8 Bn by 2029. (Source: FMI) 

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VDI market growth in Business Adoption 

The primary reasons behind VDI and DaaS market growth are the need for simplified IT management and a secure workspace to enable a distributed workforce. The following stats illustrate this scenario: 

  • 32% of the organizations have adopted VDI in their practices, and an additional 12% have planned to adopt it in the next two years. (Source: Spiceworks) 
  • By 2024, 80% of on-premise virtual desktops will shift to DaaS, 30% fewer than today. (Source: Gartner) 
  • 7% of businesses adopt VDI for centralized workspace management and comprehensive support. Desktop Virtualization is adopted by enterprise-level firms more than SMBs. VDI is utilized by 50% of enterprise-level and 24% of small businesses (SMBs), i.e., double. (Source: Spiceworks) 

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Cloud-Based Desktop Virtualization Market 

The future is hybrid work. And hybrid work demands cloud-hosted desktops, not on-premise infrastructure. VDI requires a lot of IT resources to maintain, which can be expensive for SMBs. In contrast, cloud-hosted VDI solutions provide more mobility and flexibility to users by offering anytime, anywhere access plus advanced security measures. 

Moreover, competent service providers offer fully-managed services and handle all the IT requirements. Below are some of the statistics on cloud-based desktop virtualization market growth. 

  • 50% of all corporate workloads are predicted to run in the cloud by 2023, from 40% in 2021. (Source: Spiceworks) 
  • The Government cloud-based VDI market is expected to reach US$ 71.2 Billion in 2027 with a CAGR of 16.30% during 2022-2027. (Source: MENAFN) 
  • Increased demand for unlimited storage, advanced security measures, and reduced capital cost is expected to drive SMEs (small and medium enterprises) to dominate the market. (Source: Allied Market Research) 
  • The global DaaS market is expected to record a massive growth of nearly 253% from 2021 to 2024. In 2021, Desktop as a service market growth has slated to 68%. (Source: DinCloud) 
  • 49% of VDI providers plan to add DaaS (Desktop as a Service) to their services, and 22% are adding cloud-based VDI solutions. (Source: Citrix) 
  • 31% of the DaaS service providers anticipate a 15%-50% growth. 29% of the providers expect their growth to be between 5% and 15%. (Source: Citrix) 
  • 60% of businesses deploy cloud technology to store confidential data. (Source: Web Tribunal) 

Read more: Cloud Hosted Desktop (VDI) Solutions : Trends & Predictions 2021.

COVID-19 Impact on VDI and DaaS market growth 

Amidst the pandemic, the majority of businesses have moved to remote work. To achieve a secure remote working model, they need an affordable and scalable solution that is available on-demand. DaaS and VDI solutions have made it possible by virtualizing the workstations without additional costs. For the sake of digital transformation, cloud VDI has become a necessity rather than a luxury. 

Check out the following stats that show how COVID-29 has impacted the desktop virtualization market growth 

  • 36% of respondents have deployed VDI or DaaS solutions for their work-from-home scenario. (Source: Globe News Wire) 
  • VMWare, Citrix Systems, Microsoft, Cisco, and IBM are some of the leading players in the VDI market during the ongoing COVID-19 pandemic. (Source) 
  • 21% of enterprise IT budgets plan to move their resources to managed services in 2022, compared to 14% in SMBs. (Source: The 2022 State of IT) 
  • Cloud VDI adoption in the financial service sector is expected to rise to 64% above the curve. (Source: The 2022 State of IT) 

Is Cloud VDI the future of VDI? 

Virtual desktop infrastructure or VDI is a technology delivering virtual desktops to the users, hosted on-premises or on the cloud. VDI has been supporting firms to centralize desktop management for over a decade, but its adoption has increased significantly in the last few years. The primary reason behind this growth is the need for secure remote access. VDI eases the firm’s transition from having in-office employees to remote ones. 

Know More: What is VDI (Virtual Desktop Infrastructure)? How does VDI work? 

Virtual Desktops create a centralized environment for hosting desktop operating systems (OS), enabling businesses to have an adaptable work environment. 

Globally, firms need a substantial competitive advantage to support remote work scenarios without sacrificing security. VDI has come a long way in delivering firms a secure and flexible solution. Nevertheless, VDI deployment demands huge front-end costs associated with installing servers and hardware.  

So, ‘can firms leverage the benefits of VDI without huge capital expenditure?’  

Thanks to Cloud VDI, they can. Cloud VDI or Desktop as a service (DaaS) is the future of VDI. It is a managed virtual desktop solution delivering a secure workspace to enterprises. 

VDI market growth 

VDI and DaaS are here to stay and emerge as game-changer for many industries. The above stats will help get better insights into technology and make effective decisions. 

Want to know more about VDI and DaaS services? Chat with our Solutions Consultants today.