Cloud-based VDI Market Expected to Reach $31.5 Billion by 2032—Allied Market Research

Cloud-based VDI Market

Report Code : A03599

quote The BFSI segment is expected to experience fastest growth in the coming years, owing to increase in the adoption of online banking services due to the COVID-19 lockdown situation increases the use of cloud-based VDI solutions in the BFSI sector. quote

Tanmay Sharma
Lead Analyst, ICT at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Cloud-based VDI Market," The cloud-based vdi market was valued at $6.9 billion in 2022, and is estimated to reach $31.5 billion by 2032, growing at 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. By leveraging cloud infrastructure, businesses can eliminate or reduce upfront hardware costs, as well as ongoing maintenance and upgrades. Organizations pay for the resources they consume on a subscription or usage basis, allowing better cost control and budget optimization. 

Furthermore, rise in adoption of mobility & remote work and surge in expansion of cloud computing technology drive the growth of the market. In addition, surge in 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. 

Conversely, an increase in demand for augmented reality & virtual reality in several industries is anticipated to provide numerous opportunities for the expansion of cloud-based VDI market forecast. 

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. 

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.

The global COVID-19 pandemic significantly impacted virtual desktop operations in 2020 as many organizations transitioned from office-based operations to virtual work over cloud during the CCOVID-19 pandemic, which accelerated investments in VDI solutions to reduce hardware costs and allow workforce to work remotely. It further caused a global incline in the demand for virtual desktops solutions due to lockdown measures and transport restrictions imposed by national authorities, while enabling virtual desktops to deliver crucial services. These measures positively impacted the economic transition of the IT industries, with the surge in demand for advanced technologies in different organizations. Cloud VDI emerged as a critical solution to enable remote access to work applications and data securely. It allowed employees to connect to their virtual desktops from personal devices and home environments, facilitating remote collaboration and maintaining productivity. 

These factors have driven the market growth. On the other hand, the economic uncertainties caused by the pandemic prompted organizations to seek cost-efficient solutions. Consequently, organizations could quickly scale up their VDI deployments in the cloud to accommodate a large number of remote users without the need for significant infrastructure investments. According to the Citrix statistics, in 2022, nearly 81% of IT leaders planned to increase their DaaS budget, with around 71% stated that DaaS is a critical component of business strategy to secure hybrid working. This is expected to boost the demand for cloud-based VDI industry among large and small organizations. Consequently, these aforementioned factors are expected to have less negative impact on the growth of the global cloud-based VDI market  In the long-run outlook, the market witnessed a significant upturn, owing to the robust demand for virtual desktops across the globe and escalating use of digital services in VDI solutions post the COVID-19 pandemic, thus accelerating market growth.

Key Findings of the Study

  • By deployment model, the hybrid cloud segment accounted for the largest Cloud-based VDI market share in 2022.
  • Region wise, North America generated highest revenue in 2022.
  • Depending on end user, the BFSI segment generated the highest revenue in 2022.

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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quote Cloud-based VDI Market by Deployement Model (Private Cloud, Public Cloud, Hybrid Cloud), by Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), by End User (BFSI, Government, Healthcare, IT and Telecom, Education, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

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