Desktop virtualization refers to the separation of a desktop environment and related application software from a physical machine. It involves running desktops and applications on a central server and streaming the whole desktop experience to end users. This helps in reducing complexity and downtime as well as allowing flexible access to virtual apps and desktops from various devices. It also enables IT staff to centrally manage, secure and deploy desktops from a centralized infrastructure.

The Desktop Virtualization Market is estimated to be valued at US$ 12.3 Bn in 2023 and is expected to exhibit a CAGR of 10. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Global Desktop Virtualization Market Size is witnessing significant growth owing to increased adoption of virtual desktop infrastructure (VDI) across various industries. VDI technology allows organizations to centrally manage desktops running on virtual machines from data centers while securely streaming the virtual desktops, applications and data to any device. This provides numerous advantages such as enhanced security, remote access capabilities, simplified management, cost savings on desktop maintenance and flexible hardware options. According to Coherent Market Insights analysis, VDI adoption grew by over 20% in 2021 with growing preference for cloud-based virtual desktop services. Major factors fueling increased VDI adoption include need for business continuity during pandemic, remote/hybrid workmodels and cost optimization of desktop infrastructure management. Rising demand for desktop-as-a-service is further expected to drive market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low as it requires high initial investments and dominant players have strong brand presence and customer loyalty.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are several vendors providing desktop virtualization solutions and buyers can negotiate on price and look for alternatives.

Bargaining power of suppliers: The bargaining power of suppliers is low as the desktop virtualization market has many component suppliers and switching costs are low.

Threat of new substitutes: The threat of new substitutes is moderate as cloud computing provides similar solutions at lower costs.

Competitive rivalry: is high due to the presence of major players competing on product features and pricing.

 

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