The global Device-as-a-Service (DaaS) market is poised for significant growth during the forecast period from 2023 to 2027, according to a comprehensive market analysis by Technavio. The market is expected to witness a robust CAGR of 31.07%, driven by the crescente adoption of DaaS as a cost-effective IT solution among enterprises. DaaS offers several advantages, including enhanced work flexibility, improved efficiency, and reduced capital costs. The increasing use of IT equipment, such as computers, laptops, smartphones, and mobile devices, in both remote and hybrid working models has contributed to the market growth.
This subscription-based service allows businesses to access the latest IT hardware devices without the burden of upfront capital investments. DaaS offers greater flexibility in work arrangements, enabling enterprises to attract talent from diverse locations and foster a more agile workforce. However, it is important to note that data migration and transfer, as well as system integration, can pose challenges that require careful consideration and planning.
The report highlights the pivotal role of on-site support, technology recycling, and cloud environment integration in the DaaS model. Cybersecurity concerns are also paramount, as cyberattacks pose a constant threat to businesses. Cloud computing services, including WaaS and DaaS models, offer cost-efficient and secure devices, contributing to a reduction in help desk spending. Developing countries and startups are increasingly embracing DaaS due to its cost efficiency and ease of implementation. Considerations such as CYOD (Choose Your Own Device) policies and help desk spending, as well as technological obsolescence and policy compliance, are crucial for large enterprises to navigate.
The DaaS market is undergoing constant evolution, driven by digital transformation initiatives, cloud services, and advancements in the IT and telecommunications industry. The Device segment is expected to emerge as the fastest-growing segment in the market due to the surging demand for IT equipment. The market is witnessing substantial growth in regions with high IT investment, such as the US. On-site support is crucial for managing on-premises data centers and cloud computing services in this cloud-dominated environment. The presence of major cloud service providers (CSPs) like Microsoft, Salesforce, Oracle, and Adobe is also propelling market expansion.
The Services segment, encompassing WaaS models and help desk spending, continues to dominate the market. Developing countries and startup ecosystems are contributing to the growth, with contact-based services adapting to evolving work dynamics. The DaaS model provides relief from IT burden, addressing technological obsolescence and policy compliance. Leasing hardware, including desktops, tablets, and IoT devices, is a common practice. Managed service providers play a vital role by collaborating with hardware manufacturers and software vendors to offer comprehensive services, including device lifecycle management, asset recovery services, and managed services. Technological advancements, high-speed networks, and web services further fuel market growth.
A Senior Analyst at Technavio emphasizes, “The Device as a Service (DaaS) market encompasses leased hardware, including desktops, tablets, and IoT devices, with pre-installed software and technological advancements. It offers high-speed networks, web services, and support through managed service providers. DaaS benefits include cost savings on capital expenses, increased user productivity, and expanded talent pools for hybrid working models. Key players include hardware manufacturers, software vendors, and IT infrastructure providers.”
In the current IT landscape, the Device as a Service (DaaS) market is gaining significant traction among businesses, particularly those with remote teams and operations in developing countries. This model, which includes IT equipment such as computers, laptops, smartphones, and mobile devices, shifts capital costs to operating expenses through subscription-based services. DaaS encompasses not only the hardware but also cloud computing services, cybersecurity protection, and support for smartphones and peripherals. Accenture and Sprint Connect are leading players in this services segment, offering WaaS (Workspace as a Service) models that cater to the latest technology needs and work dynamics.
The appeal of the DaaS market lies in its ability to enhance user productivity while mitigating the risks associated with traditional capital expenditure-based models and the unpredictability of operating expense-based models. The growing trend towards remote work and the increasing importance of digital transformation are further fueling the growth of the DaaS market.
Technavio’s comprehensive research and analysis provide valuable insights for businesses looking to leverage DaaS to optimize their operations. With over 17,000 reports covering various markets and technologies, Technavio empowers enterprises to make informed decisions and capitalize on market opportunities.
