Cloud-based VDI Market 2023: Key Players, Growth Drivers, Industry Landscape and Future Projections Up to 2032

Allied Market Research published a report, the global Cloud-based VDI Market was valued at $6.9 billion in 2022 and is estimated to reach $31.5 billion by 2032, exhibiting a CAGR of 16.7% from 2023 to 2032.

Cloud-based VDI is an approach that centralizes desktop management and delivers virtual desktop instances from the cloud. Instead of having individual desktops installed and maintained on physical machines, the virtual desktops are hosted in the cloud, providing benefits such as centralized administration, enhanced security, and simplified software deployment & updates. Moreover, cloud-based VDI may provide cost savings for organizations.

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Rise in the adoption of mobility & remote work and the surge in the expansion of cloud computing technology drive the growth of the market. In addition, surge in the adoption of internet and mobile devices fuels the growth of the cloud-based VDI market. However, data security & privacy concerns and high bandwidth & network dependency limit the growth of this market.

Depending on the enterprise size, the large enterprise segment dominated the cloud-based VDI market size in 2022 and is expected to continue this trend during the forecast period, owing to scale, complex IT infrastructure, and the need for efficient remote workforce management, which help in expanding the growth outlook of the large enterprise segment. However, the SMEs segment is expected to witness the highest growth in the upcoming years owing to surge in focus on improving the cost-effective and scalable virtual desktop solutions, which drives the segment growth worldwide.

Based on organization size, the large enterprise segment held the highest market share in 2022, accounting for nearly two-thirds of the global cloud-based VDI market revenue, and is expected to maintain its lead position throughout the forecast period. owing to the rise in the adoption of cloud computing in large enterprises to leverage the benefits of its scalability. However, the small and medium-sized enterprises (SMEs) segment is projected to manifest the highest CAGR of 18.5% from 2023 to 2032. This is because it provides various benefits, such as increased processing capabilities, storage, cost-effective pricing structures, and a reduction in operational overhead.

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Based on application, the BFSI segment accounted for the largest share in 2022, contributing to nearly one-fourth of the global cloud-based VDI market revenue, and is projected to rule the roost by 2032. The same segment is expected to portray the largest CAGR of 19.9% from 2023 to 2032. Owing to increasing security concerns, cybersecurity is crucial in the BFSI business to protect valuable consumer assets and data. Cloud-based VDI provides centralized control and data management, reducing the risk of data breaches and ensuring compliance with regulatory requirements.

Region-wise, the cloud-based VDI market was dominated by North America in 2022 and is expected to retain its position during the forecast period due to upsurge in technological advancements in IT sector and increase in R&D activities regarding cloud-based VDI solutions in countries such as the U.S. and Canada. However, Asia-Pacific is expected to witness significant growth during the forecast period due to the widespread adoption of cloud-based VDI solutions by IT operators to address the capacity and coverage challenges.

Based on the deployment model, the hybrid cloud segment held the highest market share in 2022, contributing to nearly half of the global cloud-based VDI market revenue, and is expected to maintain its leadership status throughout the forecast period. Due to its several advantages such as centralized management and improved security, with the scalability and flexibility of the hybrid cloud model. This enables organizations to optimize the virtual desktop infrastructure and adapt to changing business requirements. However, the public cloud segment is projected to manifest the highest CAGR of 19.0% from 2023 to 2032. Owing to it enabling businesses to leverage increased scalability, flexibility, and cost-effectiveness.

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COVID-19 Scenario:

Amid the COVID-19 pandemic, the Cloud-based VDI market experienced steady expansion due to heightened demand for virtualization and increased adoption of cloud services. The pandemic prompted businesses to swiftly shift from traditional office-based operations to cloud-based virtual work, leading to a boost in investments in VDI solutions. Furthermore, the period saw the emergence of Workplace as a Service (WaaS) gaining traction. Additionally, the utilization of VDI by financial institutions, aiming to lower hardware expenses and facilitate remote workforces in response to the pandemic, is expected to drive market growth.

The key players profiled in the Cloud-based VDI market analysis are Amazon Web Services, Inc., Cisco Systems, Citrix Systems, Inc., Dell Inc., HP Development Company, L.P., IBM Corporation, Microsoft Corporation, NComputing Co. LTD, Rackspace, Inc., and VMware. These players have adopted various strategies to increase their market penetration and strengthen their position in the cloud-based VDI industry.

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