Market Trends of PCaaS Industry
This section covers the major market trends shaping the PCaaS Market according to our research experts:
Small and Medium-scale Organizations is Expected to Register a Significant Growth
- Survey research shows cloud SMBs are more likely to adopt PCaaS and refresh PCs than SMBs with an ad hoc cloud approach. Similarly, SMEs with an organization-wide mobility strategy are more open to PCaaS than those with siloed mobility initiatives.
- According to a survey by Techaisle, 9% of SMEs have adopted PC-as-a-Service (PCaaS), and 32% are aware of PCaaS plans. Acquisition of the latest technology, the potential to reduce IT support workload, and predictable costs were key reasons for using PCaaS. Awareness of PCaaS increases from a low of 21% (unweighted) among small businesses to a high of 64% within the 500-999 employee size segments.
- The growing digital adoption in SMEs has led to a need for PCs across the globe. According to HP India, PCs have emerged as more users sign in from home. The need for adoption was even more significant for SMBs whose digitization levels were traditionally lower. More importantly, SMBs in India recognized the importance of going digital to revive their businesses. Also, three-quarters (75%) of the surveyed companies believe digital adoption is essential to their success. The need for PCs also drives the growth of the market.
- Vendors' get-what-you-need and pay-as-you-go financing models make it suitable for SMEs. Thus, with the growth of technologies and support from vendors in the market, the adoption of PCaaS is growing in SMEs. Also, the increasing demand from small and medium-scale organizations due to the cost benefits is a critical factor driving the growth of the PCaaS market. Small and medium-sized enterprises (SMEs) are critical for all countries around the world because they contribute significantly to GDP.
- Organizations are growing rapidly in terms of technology adoption, which also contributes to market growth. According to the European Commission, the major technologies adopted by SMEs include cloud computing (43%), high-speed infrastructure (32%), smart devices (21%), big data analytics (10%), and others. The growth in cloud adoption complements the push for cloud PCaaS solutions that offer SMEs strong data security and protection.
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North America is Expected to Hold the largest market share
- The United States is one of the biggest markets for PCs due to the presence of major players such as Dell, HP Inc., Samsung, and others. 2021 proved to be one of the best years for the display monitor market due to increased consumer and commercial demand. Moreover, with the surge in demand for PC units, the market is expected to grow and expand drastically within the region.
- Customers also prefer the PCaaS model in the commercial market offered by large corporations like Dell since it provides no upfront costs, fixed monthly rentals, and the most recent features for antivirus, security, data removal, recycling, and trouble detection. During the planned time frame, all of these factors are expected to support demand from the business sector.
- Some of the key firms in the sector are also based in the area, such as Microsoft, Dell EMC, and others, which are continually investing in developing the technology through R&D, strategic partnerships, and mergers and acquisitions, which have allowed them to gain a stronger footprint in the market. For instance, in November 2021, HP expanded its digital services portfolio to support companies' growing demand to make IT more adaptive to change, deliver more consistent end-user experiences, and leverage new service consumption models that match the various businesses' expectations. The new HP Subscription Management Service is made for small and medium-sized businesses. It lets businesses decide what software to buy based on accurate information about their workforce.
- The region is one of the biggest leaders in cloud adoption, which has helped PCaaS and DaaS companies use the cloud's advantages. For instance, VMware disclosed its intentions to introduce the Managed Desktops Solution, a new DaaS service on the VMware Cloud on AWS. Over the projected period, this is expected to accelerate the adoption of the technology.
- The COVID-19 pandemic caused a rapid shift in the working environment in Canada. Remote working methods helped raise Canada's office vacancy rate during the COVID-19 pandemic. According to a report from CBRE, the national vacancy rate for offices increased by 3.1% from the start of the pandemic until February 2021. This has caused Canadians to invest less in traditional PC setups and shift toward adopting PCaaS to reduce permanent asset investments. Moreover, with hybrid workplace models implemented, businesses are expected to increase their dependence on services like PCaaS.
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