Global On Premise VDI Market – Industry Trends and Forecast to 2031

Global On Premise VDI Market, By Deployment Type (Persistent VDI and Non-Persistent VDI), Enterprise Size (Large Enterprises and Small and Medium Enterprises), Application (IT & Telecommunication, BFSI, Healthcare, Manufacturing, Retail, and Others) - Industry Trends and Forecast to 2031.

On Premise VDI Market Analysis and Size

The trends and applications of on premise Virtual Desktop Infrastructure VDI reflect a dynamic landscape shaped by evolving workplace dynamics and technological advancements. Key trends include the rising adoption of hybrid work models, driven by the need for flexibility and remote accessibility. This leads to increased demand for secure and scalable on-premise VDI solutions. In addition, advancements in cloud integration, AI-driven automation, and edge computing are reshaping VDI architectures, enabling organizations to optimize resource utilization and enhance user experiences. On-premise VDI finds applications across various sectors such as IT & telecommunication, BFSI, healthcare, manufacturing, and retail. It offers centralized desktop management, improved security, and seamless user access to applications and data, thereby driving productivity and operational efficiency.

Data Bridge Market Research analyses that the global on premise VDI market which was USD 17.50 billion in 2023, would rocket up to USD 51.35 billion by 2031, and is expected to undergo a CAGR of 14.4% during the forecast period. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

On-premise VDI, or Virtual Desktop Infrastructure, refers to a technology where desktop operating systems, applications, and data are hosted and managed within an organization's own data center or server infrastructure. With on-premise VDI, users access their virtual desktop environments remotely, typically via thin client devices or personal computers. This allows for centralized management, improved security, and scalability while providing a consistent user experience across various endpoints within the organization's network.

On Premise VDI Market Dynamics

Drivers

• Increasing Adoption of Remote Work Culture

The increasing adoption of remote work culture, accelerated by factors such as the COVID-19 pandemic and evolving workplace preferences, serves as a significant driver for the global on-premise VDI market. Organizations are increasingly turning to on-premise VDI solutions to enable secure access to desktop environments from any location, ensuring productivity, data security, and efficient management of remote workforces while maintaining control over sensitive data and compliance requirements.

• Growing Emphasis on Data Security and Compliance

The growing emphasis on data security and compliance stands as a pivotal driver for the global on-premise VDI market. With stringent regulations and increasing cybersecurity threats, organizations are prioritizing solutions that offer robust data protection measures and ensure compliance with industry standards. On-premise VDI solutions provide enhanced control over data access and management, facilitating adherence to regulatory requirements and mitigating the risks associated with data breaches, thereby fueling the demand for such solutions across various industries.

• Need for Efficient IT Infrastructure Management

The need for efficient IT infrastructure management serves as a significant driver for the global on-premise VDI market. As organizations strive to streamline operations and optimize resource utilization, on-premise VDI solutions offer centralized management capabilities, allowing for simplified administration and maintenance of IT infrastructure. By consolidating resources and facilitating scalability, these solutions enable organizations to enhance efficiency, reduce operational costs, and adapt to evolving business requirements, thereby driving the adoption of on-premise VDI across diverse industries.

Opportunities

• Integration of AI and Machine Learning in VDI Solutions

The integration of AI and machine learning in VDI solutions presents a significant opportunity for the global on-premise VDI market. By leveraging advanced analytics and automation capabilities, AI-driven VDI solutions can enhance user experience, optimize resource allocation, and proactively address performance issues. This integration enables organizations to improve productivity, reduce downtime, and achieve greater agility in managing their on-premise VDI environments, thereby driving innovation and competitiveness in the market.

• Expansion of VDI Solutions in Emerging Markets

The expansion of VDI solutions in emerging markets represents a notable opportunity for the global on-premise VDI market. As emerging economies witness rapid technological advancements and increasing adoption of digitalization, there is a growing demand for efficient and scalable VDI solutions to support remote workforces and enhance productivity. By tapping into these burgeoning markets, VDI providers can capitalize on the growing need for flexible and secure IT infrastructure solutions, thereby driving further growth and market penetration.

Restraints/ Challenges

• Initial Investment and Deployment Costs

The initial investment and deployment costs serve as a significant restraint for the global on-premise VDI market. While on-premise VDI solutions offer enhanced control and security benefits, the upfront expenses associated with hardware, software licenses, infrastructure setup, and ongoing maintenance can be substantial. This financial barrier may deter some organizations, especially small and medium-sized enterprises (SMEs), from adopting on-premise VDI solutions, opting instead for alternative deployment models or delaying adoption altogether.

• Managing Complexity in Hybrid and Multi-cloud Environments

Managing complexity in hybrid and multi-cloud environments poses a significant challenge for the global on-premise VDI market. As organizations increasingly adopt hybrid IT infrastructures combining on-premise data centers with cloud resources, ensuring seamless integration, interoperability, and consistent performance across diverse environments becomes paramount. Addressing the complexities of hybrid and multi-cloud deployments requires robust management tools, standardized protocols, and skilled personnel, which can add complexity and costs to on-premise VDI implementations.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the variable frequency drive market contact the Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.

Recent Development

• In January 2024, VMware announced the release of Horizon 9, the latest version of its on-premise VDI solution, offering enhanced security features and performance optimizations.
• In November 2023, Citrix Systems unveiled Workspace 365, a comprehensive VDI solution tailored for on-premise deployments, aimed at simplifying desktop management and enhancing user productivity

On Premise VDI Market Scope

The market is segmented on the basis of deployment type, enterprise size, and application. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Deployment Type

• Persistent VDI
• Non-persistent VDI

Enterprise Size

• Large Enterprises
• Small and Medium Enterprises

Application

• IT & Telecommunication
• BFSI
• Healthcare
• Manufacturing
• Retail
• Others

On Premise VDI Market Region Analysis/Insights

The market is analyzed and market size insights and trends are provided by region, deployment type, enterprise size, and application, as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Brazil, Argentina, the Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, and Rest of the Middle East and Africa.

North America is expected to dominate the market due to technological advancements, widespread adoption of remote work practices, and robust IT infrastructure. Meanwhile, Asia-Pacific emerges as a lucrative market for on-premise VDI solutions, driven by increasing digitalization efforts and the need for scalable IT infrastructure in emerging economies.

The region section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.   

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Competitive Landscape and On Premise VDI Market Share Analysis

The market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• VMware, Inc. (U.S.)
• Citrix Systems, Inc. (U.S.)
• Microsoft Corporation (U.S.)
• Cisco Systems, Inc. (U.S.)
• Nutanix, Inc. (U.S.)
• IBM Corporation (U.S.)
• Hewlett Packard Enterprise Development LP (U.S.)
• Dell Technologies, Inc. (U.S.)
• Huawei Technologies Co., Ltd. (China)
• Fujitsu Limited (Japan)
• NEC Corporation (Japan)
• NetApp, Inc. (U.S.)
• HCL Technologies Limited (India)
• NComputing Co., Ltd. (South Korea)
• IGEL Technology GmbH (Germany)