Device-as-a-Service Industry Size, Growth and Trends
MarketsandMarkets Research Pvt. Ltd.
8 min read
MarketsandMarkets Research Pvt. Ltd.
Chicago, July 26, 2023 (GLOBE NEWSWIRE) -- The Device-as-a-Service Marketby Offering, Device Type (Desktops; Laptops, Notebooks, Tablets; Smartphones & Peripherals), Organization Size, End User (IT & Telecommunication, BFSI and others) & Region - Global Growth Driver and Industry Forecast to 2026". The market has been witnessing significant growth over the past years, mainly owing to the rising demand for subscription-based model and the increase in a number of channel partner offering in device-as-a-service. Increasing adoption of cloud computing services in developing countries is also expected to considerably boost the market in the coming years.
North America held the largest market share of the device-as-a-service market
North America accounted for the largest size of the device-as-a-service market. North America has always been at the forefront in adopting new and innovative technologies, such as device-as-a-service solutions. The market in this region provides a suitable environment, in terms of government regulations and compliance, for startups and small and medium-sized enterprises. IT and telecommunication, healthcare, and banking, financial service, and insurance (BFSI) are some of the major end users in the region.
This region is home to some of the major device-as-a-service providers such as HP, Dell, Microsoft, and CompuCom. The service providers, ranging from small businesses to multinational companies, in this region have extensive expertise in managing infrastructure and maintaining operations. The high demand for mobile devices in various industries is a dominant driving force substantiating the market growth in the region. Digital transformation in the region is driving investment in mobile devices, security and hosted services; this trend is further likely to create opportunities for device-as-a-service vendors.
Driver: The rapid adoption of the subscription-based services model
The rapid adoption of the subscription-based services model is one of the major drivers of the device-as-a-service market. Subscription-based device-as-a-service models help customers to transform the high cost of acquiring new technology from a capital expenditure (CapEx) to an operating expense (OpEx). Through this, various businesses—small, mid-sized, and large—can free up cash for investment in strategic initiatives that can drive revenue. Moreover, other benefits such as policy compliance and the ability to use the latest technologies and access customized services, including device configuration, installation, data migration, on-site support, and technology recycling, are also gained. As a subscription service, the device-as-a-service model provides options for an organization to quickly scale up or down based on the current operating environment and business needs. Whether growing or downsizing, organizations can pay for exactly what they need, when they need it.
Restraint: Lack of awareness regarding the benefits offered by the device-as-a-service mode
Lack of awareness regarding the benefits offered by the device-as-a-service model is a major factor hindering the adoption of the device-as-a-service model, thereby restraining its growth. Companies in developing countries such as India, China, Brazil, and Indonesia have a comparatively low adoption of these services as they are unaware of the benefits such as data security, cost efficiency, a large number of devices available to choose from offered by device-as-a-service; thus, they are less willing to adopt this service model. Moreover, some of the security-focused organizations refrain from using such services, as they are afraid of losing their confidential data.
The rapid adoption of the subscription-based services model
Key Market Opportunity
Emergence of wearable-as-a-service (WaaS) model
Largest Growing Region
North America
Largest Market Share Segment
IT and Telecommunication Segment
Highest CAGR Segment
Services Segment
Largest Application Market Share
Smartphone Application
Opportunity: Emergence of wearable-as-a-service (WaaS) model
Wearable devices such as smartwatches, VR headsets, AR glasses, and medical patches are convenient and are becoming increasingly popular among end users, including business enterprises—who are mainly trying to benefit from the mobility and interoperability that comes with wearable devices, along with the vast amount of data generated. Various companies have now started manufacturing wearable devices to promote wearables-as-a-service (WaaS) solutions. For instance, Omate is a Chinese company offering a wearable-as-a-service solution. Similarly, Arkéa, a French banking and insurance company, has launched its WaaS model that allows end users or institutions to rent wearable devices. This eliminates the need for the upfront purchase of wearable devices, which can be an additional hurdle in the sales process. Thus, some device manufacturers have adopted this approach and are developing smartwatches targeted at recreational athletes, children, and the elderly. Wearable technology is now effectively being used in government offices, healthcare organizations, insurance companies, and families for elderly care management.
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Challenge: Security and data protection risk associated with device-as-a-service
The demand for device-as-a-service has increased in many sectors, with organizations increasing their general use of cloud-based services, mainly due to security concerns. Moreover, the security budgets and number of cloud platform providers have significantly increased, and many customers are now adopting cloud wherever possible for deploying secure and resilient systems. Thus, security concerns associated with using a new service model are a major factor challenging the complete adoption of device-as-a-service. Cybersecurity and data protection hold significant importance, especially in the financial sector, as the foundation of banking lies in nurturing trust and credibility.
Services segment for device-as-a-service market to grow at highest CAGR during the forecast period
Device-as-a-service model includes a variety of support and maintenance services. It consists of a collection of device lifecycle services, which include installation, deployment and integration, asset recovery services, and repair and maintenance services as per the end user’s requirements. These services offered are flexible since they can be tailored and optimized. Many OEMs offer direct services as per the contract.
In addition, there are managed service providers and value added resellers (VARs) who have been partnering with different hardware manufacturers and software vendors and provide complete device-as-a-service solutions under their own brand names. Continuous support and service ensure the smooth functioning of organizations. Device-as-a-service also encompasses financial services, which provide flexibility for end users in terms of payment. These factors thereby driving the growth of the device-as-a-service market for services.
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