Device as a Service (DaaS) Market Size is projected to reach USD 455 Billion by 2030, growing at a CAGR of 39.40 Percent

The Global Device as a Service (DaaS) Market is expected to reach USD 455 billion by 2030 from USD 43.06 billion in 2021, growing at a CAGR of 39.40% during the forecast period 2022–2030. North America commanded the largest share of the device-as-a-service market.

Businesses may decrease their IT load by using DaaS, ensuring that software and hardware are updated and maintained promptly, thereby increasing productivity. Device-as-a-service allows businesses to increase or decrease the number of devices and services they use. The market is anticipated to be driven by these factors during the forecast period. In addition, the rapid adoption of the subscription model, increased policy compliance, increased user productivity, decreased help desk expenses, and the rising demand for cost-effective and secure devices have accelerated the market growth. It is anticipated that the expansion of the startup ecosystem will increase demand for the DaaS model. However, lacking technical expertise and adopting CYOD policies may impede market expansion.

The device-as-a-service model is gaining popularity among large, small, and medium-sized businesses because it enables them to lease hardware such as laptops, desktops, smartphones, tablets, and preconfigured software or services. Increased IoT adoption is also anticipated to drive demand for the model. Other factors expected to drive the growth of the Device-as-a-Service market include technological advances, the increasing penetration of high-speed networks, and web services development.

Market Dynamics

Drivers

The rapid adoption of the subscription-based services model

The rapid adoption of subscription-based services drives the device-as-a-service market. Subscription-based device-as-a-service models help customers turn high technology costs into operating expenses (OpEx). Small, midsize, and large businesses can free up cash for strategic revenue-driving initiatives. Other benefits include policy compliance, access to the latest technologies, device configuration, installation, data migration, on-site support, and technology recycling. As a subscription service, device-as-a-service allows an organization to scale up or down based on the operating environment and business needs. Organizations can pay for what they need and especially when they need it. These added advantages of DaaS can give rise to the market.

Restraint

WFH and Hybrid work model can restraint the market

Post pandemic organizations and businesses worldwide adopt the hybrid or work-from-home model. Adopting these models reduces the companies' dependency on outsourcing the devices for successful operations. Employees prefer to use their own devices for official use as well. The Choose-Your-Own-Device (CYOD) model, on the other hand, allows companies to provide their employees with access to a pre-approved selection of mobile devices from which to choose. These devices are owned by the company or paid for by the employees. Adopting these working models can hinder the growth of the device as a service (DaaS) market.

Opportunity

The introduction of the wearable-as-a-service (WaaS) model.

Smartwatches, VR headsets, AR glasses, and medical patches are popular among end-users, including businesses. These businesses want to benefit from wearable devices' mobility, interoperability, and data. Smartwatches, VR headsets, AR glasses, and medical patches are wearables. Several companies have begun producing wearable technology to market wearables (WaaS). Omate provides a service for wearables in China. Arkéa, a French bank and insurer, recently introduced its WaaS model, letting end-users or institutions rent wearable devices. No initial purchase of wearable devices is required, removing a potential sales barrier. Some manufacturers are developing smartwatches for recreational athletes, children, and the elderly. Government offices, healthcare organizations, insurance companies, and families use wearable technology to manage elderly care. The emergence of WaaS can give the device as a service (DaaS) market an ample opportunity.

Source: Straits Research media announcement