Device as a Service Market

Report Overview

Device as a Service Market is projected to grow at a CAGR of 28% in the forecast period (2022-2032), with the market size valued at USD 57.96 billion in 2022 and expected to reach USD 686.2 billion by 2032.

Product Overview

Device as a Service (DaaS) refers to a subscription-based model that provides access to hardware devices, such as computers, laptops, smartphones, and other equipment. It offers associated services that meet the demand of individuals and organizations, such as software, maintenance, and support. DaaS is a modern approach that transforms how organizations manage their technological resources. It enables businesses to rent multiple hardware and software services via a subscription model. This approach provides several benefits, including predictable costs, scalability, and access to modern technology without the need for upfront capital investments.

Market Highlights

Device as a Service Market is anticipated to exhibit a CAGR of 28% during the forecast period, 2022-2032

Device as a Service Market is anticipated to reach USD 686.2 billion, growing at a CAGR of 28% during the forecast period, owing to the rising demand for economical and flexible IT solutions across organisations. The growth can be attributed to several factors such as the increasing adoption of subscription-based services and the need for efficient asset management within industries. Small and medium-sized enterprises (SMEs) are notably adopting DaaS as it offers latest technologies while minimizing initial capital expenditure. The demand for flexibility in business procedures combined with the evolving digital ecosystem is expected to promote growth and innovation in the DaaS industry.

Source: Fatpos Global

Device as a Service Market Segmentation

Service Segment to dominate due to its flexibility and wide usage

By Component, the Device as a Service Market is typically segmented into Hardware, Software, and Services. The service segment is expected to maintain a substantial market share during the projected period. The Device-as-a-Service (DaaS) model includes a wide range of support and maintenance services such as device lifecycle services, installation, deployment, integration, and asset recovery which are all customized to meet the specific demand of customers. DaaS is highly flexible and can be tailored to optimize performance. Additionally, managed service providers and value-added resellers (VARs) have partnered with hardware manufacturers and software vendors, offering complete DaaS solutions under their own brand names. The continuous support and service provisions are crucial for ensuring seamless operations. Furthermore, DaaS provides financial services allowing users to pay in multiple ways. These elements contribute to the expansion of the DaaS market, transforming it into a robust sector of the technology industry.

Smartphone & peripheral segment to dominate due to its affordability and access to new technology

Based on the Device Type, the market is divided into Desktop, Laptop, Notebook & Tablet, Smartphone & Peripheral, and Others. The smartphone and peripheral segment is expected to grow significantly, owing to the several advantages it offers such as cost savings, access to cutting-edge technologies, price predictability, and strong enterprise security. The smartphone market has witnessed a significant rise in demand which led to the adoption of new approaches such as DaaS, where consumers subscribe to ensure access to the latest devices.  Additionally, major players in the smartphone industry, such as Samsung and Apple, are a prominent provider of device-as-a-service solutions. They offer subscription plans called equipment installation plans (EIPs) that enable users to have access to latest devices and services. This innovative approach has transformed the smartphone market by offering flexibility and efficiency to users and organizations.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Cost Efficiency of DaaS Model Drives the Growth of Device as a Service Market

The cost-efficiency that Device as a Service (DaaS) provides is a key driver of the growth of the market. Historically, procuring and maintaining a number of devices, such as laptops, smartphones, or other hardware, imposed an enormous financial burden. DaaS changes this traditional model by introducing a subscription-based approach which successfully minimizes the initial capital expenditure. Small and medium-sized enterprises (SMEs) stand to benefit the most from DaaS as it allows them to utilize modern technology without being restricted by financial limitations. DaaS enables organizations to shift their financial resources more efficiently which makes it an appealing alternative for firms looking to optimize their budget allocation.

Evolving Technology Will Fuel the Growth of the Device as a Service Market

DaaS market is expected to grow owing to the importance of frequent technological updates and its built-in ability to simplify this process. Access to the latest software and hardware innovations is essential to maintain excellent security and competitiveness. DaaS provides a seamless solution by ensuring that organizations consistently update their devices with modern technology. This continuous access to advanced devices and services allows businesses to maintain flexibility and adaptability. It ensures that businesses are up to date on the latest innovations, security protocols, and software updates which allows them to quickly adapt to the constantly shifting digital landscape.

Restraints

Data Security and Privacy Concerns are Major Obstacles in the Device as a Service (DaaS) Market

Data security and privacy concerns are a major constraint in the Device as a Service (DaaS) market. Organizations that depend on DaaS solutions must delegate device management and maintenance, which could involve third-party service providers handling sensitive data and confidential information. These arrangements raise concerns about data security and privacy, particularly in industries with strict legal regulations. The potential for security breaches, unauthorized access, or mishandling of sensitive information represents a significant challenge. Businesses have a responsibility to ensure that DaaS providers maintain strong safety measures and follow data protection standards to safeguard their DaaS implementation.

Recent Developments

• Insight Enterprises expanded their equipment as a service portfolio in April 2023, introducing new packages targeted at reducing the need for sophisticated device administration, giving instant discounts, and streamlining operations.
• Foxway released the new device as a service option for technological gadgets in March 2023, which is offered through a monthly subscription agreement. Everything from purchase through device recovery is included in the service package.
• Lenovo launched new ChromeOS and Windows 11 laptops in February 2023, as well as an updated educational technology portfolio, a new DaaS option for K-12 schools, and new capabilities for its LanSchool and VRClassroom solutions. This educational solution simplifies device administration and saves money in the long run.

Device as a Service Market

Key Players:

• HP Inc.
• Dell Technologies
• Lenovo Group
• Microsoft Corporation
• Apple Inc.
• Samsung Electronics
• IBM
• Acer Inc.
• Fujitsu
• Toshiba
• Panasonic Corporation
• CompuCom
• Xerox Corporation
• Compucentro
• Computacenter
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Device as a Service Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America dominated the marketplace, owing to its early adoption of advanced technologies such as cloud computing, the Internet of Things (IoT), and innovative service models like device-as-a-service (DaaS). The region also benefits from favorable regulatory conditions for both startups and large enterprises, contributing to the market expansion.

Asia Pacific region is set for significant growth due to the presence of developing economies, including India and China, that has a substantial workforce in the IT & telecom industry and a vast number of enterprises. Additionally, the region hosts a significant presence of retail organizations, a rising number of SMEs, and increasing awareness of DaaS approach. The Asia Pacific region also benefits from the rising internet adoption rate and the continuous growth of industries in countries such as China, India, and Japan, further contributing to its expected market expansion.

 Source: Fatpos Global

Impact of Covid-19 on Device as a Service Market

Covid-19 pandemic had a profound impact on the Device as a Service market. The market experienced a substantial growth, owing to the increased digital penetration and the heightened demand for IT hardware devices during the pandemic. The pandemic forced organizations to implement remote work policies, establishing DaaS into a cost-effective solution for businesses. It became essential for companies to equip their employees with various devices to facilitate remote work, resulting in a sudden rise in the demand for laptops and IT hardware devices. Service providers responded by rapidly expanding their range of services to support the adoption of hybrid working models. These factors generated a significant need for DaaS solutions, making them a vital asset for organizations during the Covid-19 pandemic.

Device as a Service Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Device as a Service Market Scope and Segments:

Frequently Asked Questions (FAQ):