Workspace as A Service Market Expected to Reach $28.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Workspace as A Service Market," The workspace as a service market size was valued at $6.5 billion in 2021, and is estimated to reach $28.6 billion by 2031, growing at a CAGR of 16.4% from 2022 to 2031.

The term "workspace as a service" (WaaS) in IT refers to services that provide end users with a virtual workspace, which is a model of the kinds of resources end users would have at their desk within a physical office environment. With workspace-as-a-service solutions, employees can log in to the WaaS provider’s service and be provided with a virtual workspace desktop environment that appears and operates like their actual physical office desktop. In this manner, WaaS solutions enable employees to be more productive and capable of accessing critical applications and data regardless of their geographic location.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in June 2022, VMware advances its anywhere workspace platform to enable intelligent, proactive security for all employee devices. With these innovations to its anywhere workspace platform, VMware Workspace ONE, will make it easier for IT teams to manage and better secure all employee devices. Therefore, such strategy helps to grow the workspace as a service market. 

By enterprise size, the large enterprise segment attained the highest growth in 2021. This is attributed to the fact that, large enterprise is a key targeted market for workspace as a service provider, as they require high-performance, scalable, and secure solutions that can support their large and distributed workforces. And by using workspace as a service solution, large enterprises can enable their employees to access their virtual desktops and applications from any location, on any device, while maintaining control over their IT environment. However, the small and medium enterprise segment is considered to be the fastest growing segment in workspace as a service market forecast. This is because, workspace as a service also allows companies to access professional workspace solutions that can be tailored to their specific requirements, without the need for significant upfront investment or long-term commitments. Thus, driving the growth of the market.

By region, North America attained the highest growth in workspace as a service market Share in 2021. This is because there is a growing demand for customized workspace as a service solution that can be tailored to specific business needs, and an increasing focus on security features to protect against cyber threats. Additionally, due to the region's high manufacturing, retail, and automotive activity, there is a high demand for software and robotics solutions. This ultimately drives the development of the regional market. However, the Asia-Pacific region is considered the fastest-growing region during the forecast period. This is attributed to the fact that, the market is witnessing a shift towards a hybrid cloud approach, where companies are adopting a mix of on-premise and cloud-based solutions, for the ease of the businesses. Additionally, the growing adoption of artificial intelligence (AI) and machine learning (ML) in workspace management, lead to improved automation and efficiency. Thus, these are the major trends for the growth of the workspace as a service market in the Asia-Pacific region.

The COVID-19 pandemic has had a significant impact on the workspace as a service market, as more companies have had to adjust to remote work and flexible working arrangements. With the need for physical distancing and remote collaboration, businesses have increasingly turned to workspace as a service solution to meet their needs.  Moreover, one of the biggest trends in the WaaS market during COVID-19 has been the rise of remote work. As more and more companies shifted to remote work in response to the pandemic, the demand for WaaS solutions such as virtual desktops, cloud-based collaboration tools, and video conferencing platforms has skyrocketed. This has created significant opportunities for WaaS providers to expand their offerings and attract new customers. Furthermore, the pandemic has also accelerated the adoption of digital technologies, such as cloud-based software and collaboration tools, which has further driven the growth of the workspace as a service market. These tools have allowed businesses to maintain productivity and collaboration despite the challenges of remote work, and they have become essential components of modern workspaces. However, the pandemic has also created economic challenges for the WaaS industry. Many companies have been forced to reduce their budgets, which has led to some reluctance to invest in new technology solutions. In addition, the pandemic has disrupted supply chains and caused delays in hardware shipments, which has impacted the ability of WaaS providers to deliver their services. Thus, overall, the impact of the pandemic on the workspace as a service market has been mixed. Therefore, COVID-19 has moderately impacted the workspace as a service market. 

Key findings of the study

• By component, the solution segment led the workspace as a service market in terms of revenue in 2021.
• By deployment mode, the public segment led the workspace as a service market in terms of revenue in 2021.  
• By industry vertical, the IT and telecom segment led the workspace as a service market in terms of revenue in 2021. 
• By region, North America generated the highest revenue in workspace as a service industry in 2021.

The key players profiled in the workspace as a service market analysis are Amazon Web Services Inc., Citrix Systems Inc., Dell Inc., Dizzion Inc., Evolve IP, LLC, Google LLC, Microsoft, Unisys, Tech Mahindra Limited, and VMware Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the workspace as a service industry.