The global PC as a Service (PCaaS) market was valued at US$ 19.84 Billion in 2020 and is expected to reach US$ 125.02 Billion by 2027 with a growing CAGR of 30.4 % during the forecast period. A method of buying/purchasing physical devices such as PCs, Laptops, and Tablets along with relevant software, financing & insurance, and support services are termed as PC as a Service (PCaaS). The agreement between vendor and user usually pays per month per device basis.
Purchasing PCs in this model is a comparatively newer term in the IT industry and is highly dependent on buyers’ need or decisions to replace or renew their existing technology or devices with the advanced versions. Various advantages of PCaaS along with the growing inclination of organizations towards the OPEX model are driving the market growth. PCaaS offers a smooth and improved resolution of user issues, scaling of businesses, higher risk tolerance, and flexibility of usage.
PCaaS has garnered significant attention in the Americas and Europe region and is yet to profoundly impact emerging economies. This untapped potential is expected to offer lucrative expansion opportunities for the key providers in the industry.
The COVID-19 Pandemic had a noteworthy impact on the PC as a Service market and is expected to continue to witness lucrative growth in coming years. The pandemic has given rise to a new trend of work from home as well as remote training which have been widely accepted globally and are expected to continue post-pandemic. This is expected to bring digital transformation in the IT industry, including that to desktop or PC as a service market as the demand for affordable, scalable, and efficient desktop & maintenance leasing services will rise significantly.
High demand for personal computers across individual as well as commercial applications has propelled in recent years. The global shipment for personal computers reached 297 million units in 2020, which was 11% higher as compared to 2019. This growth in demand was major because of the COVID-19 pandemic, which has made work from home or remote learning a mandatory trend. Such high demand for personal computers further boosts the demand for relevant services, including PC as a Service (PCaaS). Growing demand for the OPEX consumption model compared to CAPEX is one of the prominent factors for the PCaaS industry's growth. Organizations require an all-in-one solution that would incorporate hardware and services such as integration & maintenance, consulting, managed, & others into a single product package at a fixed monthly expense, which is offered by the PCaaS model. This enables companies to better manage their IT resources and maintenance. Additionally, PCaaS reduces the risk of operations, provides complete PC lifecycle support, reduces internal support as well as maintenance costs, improves IT responsiveness to end-users/customers, offers faster upgrades, and provides lower & predictable costs of ownership. These benefits result in better customer satisfaction and retention, which eventually leads to growth in the adoption of the PCaaS model amongst large and small enterprises.
The research report analyses the ecosystem and value chain of the PC as a Service market. The report categorizes the PCaaS market to forecast the revenues and analyze the trends in each of the below-mentioned market segments.
IT & Telecommunication
Banking, Financial Services, and Insurance (BFSI)
Healthcare & Life Sciences
Government
Education
In terms of market by product, the hardware segment is estimated to be the largest segment of the PC as a Service market during the forecast period.
The hardware segment accounted for the largest share of the PC as a Service market in 2020. This segment is expected to lead the market on account of the high costs of installation and maintenance. The hardware segment incorporates all the physical entities such as desktops, laptops, and tablets. PCaaS is a device lifecycle management business model wherein end-users pay on a monthly/annual basis to lease endpoint hardware along with management services from a vendor.
By Organization Size the large organization segment is expected to be the largest segment of the PC as a Service (PCaaS) market
The large organization's segment accounted for the largest market share in 2020 and is anticipated to grow significantly during the forecast period. PCaaS market in start-ups is expected to grow at the highest CAGR during the forecast period, especially considering growing opportunities in the Asia Pacific region.
The PC as a Service market is expected to grow at a healthy CAGR of 30.4%. The PC as a Service is being increasingly adopted by various organizations, owing to its flexible, scalable, and affordable characteristics.
North America PC as a Service (PCaaS) Size is expected to be the largest during the forecast period.
North America region accounted for the PC's largest share as a Service market followed by Europe and the Asia Pacific. The North America region is also projected to witness higher demand in the coming years on account of increasing consumption across various industry verticals. With the high adoption of connected devices among the BFSI and automotive industry along with the consistent rise in the adoption of industry 4.0 in manufacturing and chain production, the demand for PC as a Service (PCaaS) is expected to rise substantially during the forecast period. As per industry experts, the IIOT adoption could add around US$ 7.1 trillion to the global GDP by 2030 which showcases a lucrative development in the industrial sectors across the globe. Key PC as a Service market in North America include the U.S. and Canada. The U.S. held a significant market share in the year 2020 and is expected to witness similar growth trends during the forecast period. The region has a strong presence of some major PCaaS providers including Dell, Microsoft, HP, and others. The IT infrastructure and service industry in the region is advanced compared to other regions. Moreover, high demand for PCs across various industry verticals and growing investments in managed services are further boosting the demand for the PCaaS market.
PC as a Service Market analysis is provided in the report through various market dynamics such as drivers, restraints opportunities, and challenges:
| Sr. No. | Trends | Impact |
| 1 | The work-from-home movement in and post Covid19 period has brought a new trend in the IT industry, which is expected to be consistent in the next few years. According to Accenture, in 2015 there were very few options available that offered DaaS or PCaaS solutions; while by 2019 that changed significantly as around 65% of major PC manufacturers offered PCaaS options to the customers. | Positive |
| 2 | The momentum in the consumption of PC as a Service (PCaaS) took place because business customers were leaning on an easier approach to install & maintain their physical IT infrastructure. Customers today are more focused on practicality and a consumption-based pay model, which is offered by PCaaS. | Positive |
| Sr. No. | Type of Development | Year | News and Developments in the PC as a Service market |
| 1 | Geographic Expansion | 2021 | German-based Kivito GmbH announced a plan to expand its Desktop-as-a-Service service deskMate to Asia. This strategic step was mainly taken due to continuing demand for home office workstations and remote training in the COVID19 period. deskMate cloud desktops and deskmate cloud training desktops were expected to be available to customers in Asia from the Hong Kong data center from April 2021. |
| 2 | New Product Launch | 2021 | Microsoft Corporation has recently announced details about its new CloudPC service which is built on Windows Virtual Desktop to deliver Windows as a Service. It allows customers to bring the personal desktop to Microsoft Azure Cloud Service and further enables them to remotely access the service using any device (Android/iPhone). |
| 3 | New Product Launch | 2021 | Cisco announced ‘Cisco Plus’ as-a-service strategy for hardware, software, and services to meet customers’ needs. It offers networking, storage, compute, security, applications, and observability solutions as-a-service with unified subscriptions that are convenient to consume. |
The key players operating in the market are:
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