Asia Pacific desktop virtualization market generated revenue of US$ 2,902.85 million in 2022 and it is estimated to reach valuation of US$ 6,567.33 million by 2030 at a CAGR of 10.74% during the forecast period, 2023–2030.

The Asia Pacific region is the leading global market for desktop virtualization, with a market size of USD 2,902.85 million in 2022. This is attributed to the rapidly expanding digitization of business operations and the increasing demand for cloud-based computing solutions that can improve enterprise data security. Additionally, the increasing use of secure remote access and mobile devices is driving the growth of the Asia Pacific desktop virtualization industry.

Furthermore, organizations in the region are increasingly looking towards specialized desktop virtualization solutions to reduce hardware and maintenance costs, as well as simplify IT management operations. This has led to the rapid adoption of desktop virtualization solutions such as Citrix XenDesktop, VMware Horizon View, and Microsoft Remote Desktop Services (RDS). Additionally, the increasing demand for improved user experience and productivity is driving the growth of the desktop virtualization market in the Asia Pacific region. This is primarily due to the rising use of digital platforms, such as Zoom and Google Meet, among businesses.

The Asia Pacific desktop virtualization market is expected to grow at a CAGR of 10.74% during the forecast period. This growth is primarily driven by the increasing investments in cloud computing solutions and digital transformation, as well as the growing demand for efficient data security systems. Additionally, the increasing usage of smart devices and the rise in mobile workforce is also contributing to the growth of the market. As such, the Asia Pacific desktop virtualization market is expected to continue its robust growth over the next few years.

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Key Dynamics of Desktop Virtualization Market

Drivers

Cost Savings to Reduce Economic Pressure on Enterprises

Businesses are being compelled to embrace enterprise solutions, which help to reduce IT spending and concentrate on core business areas, by the increasingly competitive market and economic pressure. Many SMBs are transitioning from traditional desktop systems to virtual desktop workspaces in addition to huge corporations. The adoption of desktop virtualization solutions across large, small, and medium-sized organizations has greatly expanded due to the need to decrease unnecessary expenses, such as hardware costs, and provide employees with a flexible work environment.

By deploying VDIs, the number of hardware devices and computers has decreased at workplaces in the desktop virtualization market, which lowers the expense of hardware maintenance. The need for several applications on a desktop has been reduced due to the updates on the server or cloud thus reducing the overall cost of purchasing apps. If IT uses thin clients, and endpoints that support virtual desktops but have very little local hardware or capability, it can significantly reduce the upfront costs of VDI.

Restraint

System Compatibility and Network Delay Issues are Likely to Hamper Growth of Desktop Virtualization Market

Although desktop virtualization has numerous technological advantages, it can be challenging to put into practise. When attempting to integrate older systems into a virtual environment, compatibility problems occur. As a result, in order to create numerous virtual desktop instances, a highly suitable infrastructure and software setup are required, and fulfilling these requirements may be expensive, challenging, and need extensive planning. Just like compatibility issues, network latencies hinder the optimal performance of desktop visualization. Desktop delivery can fail in a WAN environment when network updates cause a problem. Recent research found that the top five performance-related RDP/VDI user complaints seen are slow applications, stuck sessions, network delay, compatibility issues, and session disconnects. 

Virtual desktops require a significant amount of network bandwidth in order to overcome system compatibility and network delay issues because system complexity and compatibility problems are restricting the adoption of desktop virtualization solutions. Virtual desktops stream all desktops and the operating system across the network digitally.

Trend

Increasing Adoption of Remote Work Culture by Organizations 

The growing adaption of remote work culture, post the outbreak of covid 19 pandemic making companies in the desktop virtualization market to focus on develop solutions and services which will increase adoption of desktop virtualization services among various domains. Organizations are adapting desktop visualizations tools and services which make it simple to access workplace programs and data from anywhere as Remote working also reduces the IT infrastructure spending.

Amid worries about the recession and rising inflation, many businesses are slashing costs. Microsoft and Alphabet are two companies that have implemented employment freezes. Replace purely in-person work with remote or hybrid models that enable businesses to cut back on real estate costs as one underutilised way to lean out the business.

Market Segmentation

Type Analysis:

By type, virtual desktop infrastructure segment accounted for the highest share of the Asia Pacific desktop virtualization market and is expected to grow at the highest CAGR over the forecast period of 2022-2030. There is currently a high demand for virtual desktop infrastructure (VDI) due to the increased need for remote work and the need for secure and scalable desktop solutions. VDI provides remote workers with a virtual desktop experience, allowing them to access their work applications and data from anywhere, on any device. This has become increasingly important in the wake of the COVID-19 pandemic and the shift towards remote work. As a result, many organizations are turning to VDI to meet their needs, leading to a high demand for these solutions. 

Organization Size Analysis:

The large organization segment is projected to grow at the highest CAGR and occupies a major share in the Asia Pacific desktop virtualization market. Large companies that operate banks and telecommunications companies have virtualized their servers among the quickest. Large organizations are the primary consumers of desktop virtualization technology. 

They adopt it to support remote work initiatives and provide their employees with simple access to office programs and data from anywhere. This solution is also attractive to large organizations due to its ability to enhance data security by centralizing resource management, providing policy-based access control, and having built-in data compliance. Additionally, desktop virtualization solutions can improve productivity, eliminate geographical accessibility issues for employees, and help organizations make better business decisions. 

Deployment Analysis

Virtual desktops and remote desktop virtualization have become widely used in digital workspaces and office environments in the desktop virtualization market. The Virtual Machine Interface (VMI) workloads are run on desktop virtualization servers, which can operate locally or in data centers for public clouds.

Cloud-based virtualization offers IT more centralized control over applications and desktops and allows organizations to maximize their hardware investment through remote access to shared computing resources. Employees can access virtual desktops from desktop or laptop computers, as well as mobile devices that support iOS or Android.

On-premises hosting provides the benefit of reduced latency. When virtual desktops are hosted on-premises, users have direct, high-speed connectivity to their virtual desktops, making it the most popular option in the market.

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Pricing Model Analysis

In 2022, the APAC desktop virtualization market was dominated by the subscription-based segment, accounting for 65.52% of the market with a CAGR of 11.06%. The convenience and reliability of the subscription service is a key factor in its popularity among organizations. This recurring payment model allows for better prediction of operational expenses and is expected to drive revenue growth compared to the pay-as-you-go model.

However, the pay-as-you-go pricing model is also expected to see significant growth, as it offers several advantages. The low barrier to entry provides customers with greater flexibility and helps organizations manage costs, as they do not have to make lump sum payments like in the subscription model. This model offers various plans, including monthly and quarterly options.

Application Analysis

The IT & Telecom market segment was the leading contributor to desktop virtualization market revenue in 2022 and is projected to exhibit the highest CAGR during the 2023-2030 forecast period. To remain competitive, the telecom industry must expand its reach through retail presence, both direct and indirect, and often in a rapid manner. Adopting desktop virtualization can greatly aid the IT and telecom sector in this effort. With virtual desktops deployed and transmitted from a central location, it becomes easy for users in remote locations to access data, applications, and desktops using any device and connection type.

Geographical Analysis

China, Japan, and India are projected to hold a substantial portion of the Desktop Virtualization market. The early adopters of Desktop Virtualization products and services in these nations are primarily businesses. The growth of the market in these countries is driven by the presence of large IT organizations and users, as well as the rapid technological advancement and digitalization in the region.

The utilization of Desktop Virtualization technology by organizations is attributed to the increasing trend of remote work and the need to provide employees with seamless access to office programs and data from any location. This has effectively addressed the issue of limited geographic accessibility for employees, boosting their productivity and enabling more effective organizational decision-making. Additionally, the growth of the market is expected to be driven by the increasing popularity of Bring Your Own Devices (BYOD) and Workplace-as-a-Service (WaaS) among businesses in the region.

Top Players 

VmWare, IBM Corporation, Huawei Technologies, Oracle Corporation, and Microsoft Corporation are some of the key players in the APAC desktop virtualization market. 

In 2022, the top these 5 players held around 69% share of the APAC desktop virtualization market. 

List of Key Companies Profiled:

• Anunta Tech
• Cisco Systems
• Citrix systems
• Commvault
• Dell Technologies
• Ericom Software
• Evolve IP
• HP Enterprises
• Huawei Technologies
• IBM Corporation
• Microsoft Corporation
• MicroAge
• Oracle Corporation
• Pure Storage, Inc.
• Parallels International GmbH
• Red Hat, Inc.
• Toshiba Corporation
• VMware Inc.
• Other Prominent Players

Key Developments:

• April 2022: Microsoft and Citrix Systems have partnered to simplify task completion for hybrid workers. Citrix Desktop as a Service is now available on Azure Marketplace, making it easier for enterprises to set up secure and high-performing workspaces for remote workers. The partnership combines the power of Microsoft Azure with Citrix's user-experience, management, and security, advancing the future of work.
• June 2022: Commvault has added MetallicDMaaS to its strategic relationship with Oracle Cloud, a leader in data services. Metallic's services will be available on Oracle Cloud Infrastructure (OCI) globally as part of Commvault's multi-cloud strategy. The partnership provides better price-performance, enhanced security, and faster recovery and management for commercial customers transitioning to OCI. Oracle users now have access to superior air-gapped ransomware protection and flexibility between customer-controlled storage and SaaS-delivered data protection, including managed cloud storage, with OCI Storage.

Segmental Overview

By Type

• Virtual Desktop Infrastructure (VDI)
• Desktop-As-A-Service (DaaS)
• Remote Desktop Services (RDS)
• Application Virtualization
  • Local application virtualization
  • Application streaming
  • Server-based application virtualization

By Organization Size

• Large Enterprises
• SMBs

By Deployment

• On-premises
• Cloud

By Pricing Model

• Subscription
• Pay-as-You-Go

By Application

• IT & Telecom
• Construction & Manufacturing
• BFSI
• Healthcare
• Public Sector
• Retail
• Education
• Others

By Country

• China
• Japan
• India
• Australia & New Zealand
• South Korea
• ASEAN
  • Thailand
  • Singapore
  • Indonesia
  • Malaysia
  • Philippines
  • Vietnam
  • Rest of ASEAN
  • Rest of Asia Pacific