by The virtual desktop infrastructure (VDI) market comprises software and services that enable virtualization of desktops and applications. VDI helps in centralizing management, administration, delivery, and security of desktops. It allows the delivery of virtual desktops from data centers or remotely to any device through a centralized platform. VDI offers improved security, simplified desktop management, flexibility for organizations, enhanced mobility for employees, and cost optimization. The rising digital transformation across industries has increased demand for VDI solutions that help organizations improve workforce productivity and mobility. Employee expectations of using personal devices for work needs have also boosted adoption of VDI.
The Global Virtual Desktop Infrastructure (VDI) Market is estimated to be valued at US$ 9.11 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the virtual desktop infrastructure (VDI) are Air Products and Chemicals, Inc., Linde plc, Praxair, Inc. (now part of Linde), Air Liquide S.A., Gazprom, RasGas (now part of Qatar Petroleum), ExxonMobil Corporation, Matheson Tri-Gas, Inc., Iwatani Corporation, Messer Group GmbH. The increasing digital transformation across industries and rising need to improve workforce productivity have surged for Virtual Desktop Infrastructure (VDI) Market Demand solutions in recent years. Virtual desktop infrastructure enables enterprises to offer virtual applications or full desktops to employees from anywhere using any device. This has boosted the global adoption of VDI. The growing popularity of cloud computing and SaaS-based applications have augmented the growth of VDI market as more organizations are compelled to deploy VDI over cloud networks.
Organizations across industries are widely adopting VDI solutions to enhance business agility, reduce operational costs, and improve security. BFSI, government, healthcare, and IT & telecom industries have emerged as the major end-users of VDI in recent years. Wide acceptance of bring-your-own-device programs has further augmented demand from enterprises. Key players are expanding their presence across geographies, especially in emerging economies, to tap the increasing Virtual Desktop Infrastructure (VDI) Market spending. Rising investments from companies towards improving workforce productivity and mobility are projected to offer substantial opportunities over the forecast period.
Market key trends
One of the key trends gaining traction in the virtual desktop infrastructure market is the increasing adoption of hybrid VDI solutions. Hybrid VDI combines local hardware with remote virtual desktop instances hosted on public or private cloud infrastructure. It allows organizations to use physical desktops on-premises while moving non-critical virtual desktops to the cloud. This delivers flexibility and cost optimization benefits. Moreover, the COVID-19 pandemic accelerated the implementation of hybrid VDI models to support stay-at-home works and improve business continuity. As hybrid solutions provide scalability and flexibility, more enterprises are expected to adopt the hybrid deployment approach going forward.
Porter’s Analysis
Threat of new entrants: New entrants find it moderately difficult to enter the market as it requires large initial investments to setup the required infrastructure and gain brand acceptance.
Bargaining power of buyers: Buyers have moderate bargaining power in the market as there exist numerous established players providing similar solutions. Switching cost for buyers is low.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the presence of numerous component providers and outsourced service providers in the market.
Threat of new substitutes: Threat of substitution is moderate as migrating from VDI to physical desktops requires high switching cost for the buyers in terms of hardware and managing various platforms.
Competitive rivalry: The competitive rivalry in the market is high among major players differentiating through product innovation, pricing, service offering and brand positioning.
Geographical Regions
North America dominates the global VDI market currently in terms of value owing to high technology adoption and presence of major players in the region.
The Asia Pacific region is expected to grow at the fastest CAGR during the forecast period with increasing digitization initiatives by governments and enterprises across industries. Countries like China and India offer huge untapped market opportunities for VDI solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
