The global Virtual Desktop Infrastructure (VDI) Market is estimated to be valued at US$ 6.42 Billion in 2023 and is expected to exhibit a CAGR of 14.6% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.
Virtual Desktop Infrastructure (VDI) refers to a cloud-based desktop virtualization technology which allows users to access virtual desktops and applications from various device locations. It helps organizations to centrally manage and deliver desktops and applications to users. VDI provides secure access to virtual applications and desktops from various devices including smartphones, tablets, laptops and thin/zero clients. It offers advantages such as centralized management and deployment of applications, enhanced security through isolation of systems, cost reduction by avoiding physical hardware maintenance, higher mobility, business continuity and disaster recovery. With increasing remote and hybrid work trends, VDI solutions are witnessing significant demand as it allows enterprises to meet their employees’ needs to work from anywhere using any device.
Market key trends:
One of the major trends in the VDI market is the shift towards cloud-based VDI solutions. Earlier VDI solutions required on-premise hardware but with cloud, infrastructure can flex as per changing business needs. Cloud VDI makes it easier for organizations to adopt the technology without substantial upfront investment. Leading vendors are offering VDI solutions with hybrid and multi-cloud management capabilities which is fueling the adoption of cloud-based VDI. Moreover, with remote/hybrid work gaining prominence, vendors are focusing on developing solutions that support Bring Your Own Device (BYOD) policy and provide optimized user experience on personal devices for improved employee productivity and engagement.
Threat of new entrants: The threat of new entrants is low due to the high costs associated with infrastructure development and the economies of scale enjoyed by existing players in this market.
Bargaining power of buyers: The bargaining power of buyers is moderate. While buyers have options to switch between vendors, VDI services require significant investments that limit switching.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute components from different vendors in the market.
Threat of new substitutes: The threat of substitutes is moderate as remote work solutions like remote desktop services provide alternatives to VDI.
Competitive rivalry: The competitive rivalry is high among existing players given the large market share occupied by few major vendors.
Global Virtual Desktop Infrastructure (VDI) Market Demand is expected to witness high growth, exhibiting a CAGR of 14.6% over the forecast period of 2023 – 2030, due to increasing demand for secure access to enterprise applications and data from any device. The market was valued at US$ 6.42 billion in 2023.
Regionally, North America dominated the VDI market in 2023 with a share of over 35%, owing to early adoption of technologies and strong presence of vendors in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period, driven by rapid digitization of workplaces in developing countries of China and India.
Key players operating in the Virtual Desktop Infrastructure (VDI) market are VMware, Citrix Systems, Microsoft, Cisco Systems, Oracle, Red Hat, Huawei, Hewlett Packard Enterprise, Parallels International, Dynabook Americas, Dell Technologies, IGEL Technology, Amazon Web Services, Nutanix, 10ZiG Technology, Splashtop, Nerdio, HiveIO, SherWeb, Login VSI. VMware leads the market with its VMware Horizon platform for VDI solutions while Citrix desktop virtualization solutions have a significant market share. Microsoft has also widened its offerings portfolio in this space over the past few years.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it