The Device-as-a-Service market is growing quickly, according to a new report from Allied Market Research. Worth $51.7 billion in 2021, the DaaS market will balloon to $1.8 trillion by 2031, achieving a CAGR of 42.6 percent, according to the report.

The Explosive Growth of the DaaS Market

Device-as-a-Service allows enterprises to lease computing hardware—such as tablets, laptops, and desktops—along with the IT administration required to keep them working, secure and up-to-date. According to Allied Market Research, DaaS is growing in popularity for the same reason as other subscription services: it shifts the cost of hardware from a capital expenditure (CapEx) to an operating expense (OpEx), offering predictability and flexibility.

There are other factors driving the explosive growth of the DaaS market, including an ongoing boost from the COVID-19 pandemic and the rise in remote work it engendered. Another factor is an increasing focus on DaaS by major hardware providers including Lenovo, Hewlett-Packard, and Dell, the three largest engineering workstation manufacturers worldwide (Dell uses the term PC-as-a-Service, or PCaaS).

Leaders of the DaaS Pack

According to Allied Market Research, desktops accounted for more than half of the worldwide DaaS market revenue in 2021 and are expected to retain a dominant position in 2031. However, laptops, notebooks and tablets are expected to have the fastest CAGR over the next ten years at 44.7 percent.

Large enterprises are the biggest adopters of DaaS, contributing to nearly a third of the DaaS market in 2021. Small and medium enterprises are expected to embrace DaaS at the quickest rate until 2031, which Allied Market Research says is due to the reduced expenditure cost of the service model.

Finally, North America dominated the DaaS market in 2021 with around 40 percent of the global revenue. The Asia-Pacific region is on track for the fastest growth by 2031.