Device-as-a-Service Industry Overview
The global device-as-a-service market size is anticipated to reach USD 475.98 billion by 2028, expanding at a CAGR of 37.8% from 2021 to 2028, according to a new study conducted by Grand View Research, Inc. The growth can be attributed to the increasing adoption of the subscription-based services model, which allows organizations to invest in strategic planning instead of purchasing hardware devices that require upgrades every few years. Furthermore, an increase in the number of start-ups and the rising awareness about the device-as-a-service (DaaS) model among small and medium-size enterprises are expected to drive market growth. The market is expected to witness growth opportunities across industry verticals such as life science and healthcare, banking and financial institution, and education.
Device-as-a-Service Market Segmentation
Grand View Research has segmented the global device-as-a-service market based on offering, device type, organization, industry vertical, and region:
Based on the Offering Insights, the market is segmented into Hardware, Software and Service.
- The hardware segment dominated the market in 2020 and accounted for over 40% of the overall revenue share. The hardware segment includes desktops, laptops, tablets, notebooks, smartphones, and peripherals. The increasing interest of enterprises in different types of hardware solutions such as desktops, laptops, and notebooks combined in a single offering is expected to foster the growth of the market.
- The service segment is anticipated to expand at the highest CAGR during the forecast period. The device-as-a-service model includes services such as support and maintenance. It consists of a set of device lifecycle services, including deployment & integration, installation, asset recovery services, and maintenance and repair as per the requirement of the end-user. The services are often flexible and can be optimized and tailored. The rising demand for DaaS services has encouraged several managed service providers and value-added resellers to partner with hardware manufacturers and software vendors to provide device-as-a-service solutions under their own brand.
Based on the Device Type Insights, the market is segmented into Desktop, Laptop, Notebook, and Tablet, Smartphone and Peripheral.
- The desktop segment dominated the market in 2020 with a revenue share of more than 40%. Government initiatives to improve infrastructure and increase demand for cloud-based virtual services are expected to boost the demand for the device-as-a-service model in the desktop segment. Furthermore, an increase in the number of smart devices and the growing trend for IT centralization are expected to further drive the growth of the segment.
- The smartphone and peripheral segment is expected to register the highest CAGR over the forecast period. Device-as-a-service solutions for smartphones offer organizations the benefits of using the latest technologies, lower cost of usage, and enterprise security. The smartphones industry has been steadily growing over the past few years and smartphones with advanced features are being launched continually. Peripherals in the device-as-a-service model include graphic cards, tape drives, expansion cards, microphones, image scanners,digital cameras, webcams, and loudspeakers.
Based on the Organization Insights, the market is segmented into Small and Medium Enterprise and Large Enterprise.
- The small and medium enterprise segment accounted for the highest revenue share of over 60% in 2020. Device-as-a-service aids enterprises to prioritize their investments by leasing hardware and associated services instead of buying high-cost products. The model minimizes cost and increases profit by tracking expenses daily. These factors, along with the growing awareness about the model, are expected to drive the growth of the segment.
Based on the Industry Vertical Insights, the market is segmented into Banking, Financial Services and Insurance (BFSI), Educational Institution, Healthcare and Life Science, IT & Telecommunication, Public Sector and Government Office, Others.
- The IT and telecommunication segment dominated the market with a revenue share of over 24% in 2020. The IT and telecommunications vertical consists of internet service providers, telecommunication companies, cable companies, and satellite companies. Security, reliability, and high performance of IT devices are critical for the fundamental operations in the sector; thus, this segment generates the most significant demand for devices such as desktops, laptops, notebooks, tablets, and smartphones. Moreover, constant updates of software and related services are comparatively high in the industry, driving the adoption of the device-as-a-service model.
- Furthermore, telecommunication companies are aggressively investing in resources and focusing on providing them with the highest quality of services, which are expected to boost the demand for the DaaS model over the forecast period.
Device-as-a-Service Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Companies Profile & Market Share Insights
These players are pursuing various strategies such as product launch and development, pertaining to hardware, software, and services to cement their foothold in the market and expand further.
Some of the prominent players operating in the global device-as-a-service market include,
- Accenture
- Acer Inc.
- Apple Inc.
- Cisco
- Cognizant
- Computacenter
- Dell technologies
- Intel Corporation
- Hewlett Packard
- Lenovo
Order a free sample PDF of the Device-as-a-Service Market Intelligence Study, published by Grand View Research.
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