Device-as-a-Service Market Size

Device-as-a-Service Market 2024, Size and Trends:

The global device-as-a-service market size was valued at USD 123.18 Billion in 2024 Looking forward, IMARC Group estimates the market to reach USD 1,141.02 Billion by 2033, exhibiting a CAGR of 28.06% during 2025-2033. North America currently dominates the market, holding a significant device-as-a-service market share of over 35.0% in 2024. The increasing demand for remote work access, growth of cloud computing, and rise of bring-your-own-device (BYOD) policies represent some of the factors driving the market.

The key drivers in the DaaS market are the increasing demand for cost-efficient IT infrastructure, the rising adoption of remote work models and the increasing need for scalable and subscription-based solutions. Organizations are focusing on lifecycle management, seamless device provisioning and enhanced IT support. For instance, in January 2024, Jio Financial Services launched Device as a Service (DaaS) allowing businesses to lease tech devices like laptops and airfiber instead of purchasing them. This model aims to improve cash flow and IT management while targeting financial service gaps in India. The shift toward OPEX over CAPEX further fuels device-as-a-service market growth. Advances in analytics for predictive maintenance and security compliance as well as OEM and service provider partnerships are helping to drive adoption across enterprises and SMBs.

The major growth drivers for the US Device-as-a-Service (DaaS) market are the increased demand for flexible IT solutions which comes from hybrid work environments and digital transformation initiatives. For instance, in June 2024, Vista IT Group expanded its Device-as-a-Service (DaaS) program nationwide to meet the demands of hybrid workers. The program simplifies device management allowing businesses to shift from purchasing to a subscription model. Organizations are adopting OPEX models to reduce up-front costs and simplify device lifecycle management. Advanced analytics for performance monitoring coupled with increasing cybersecurity requirements accelerates adoption. Strong OEM and vendor collaboration as well as rising awareness of sustainability and e-waste management strengthen demand across various industries such as healthcare, education and IT services.

Device-as-a-Service Market Trends:

Increased Adoption of Subscription-Based Models

The adoption of subscription-based models in the DaaS market is rapidly gaining momentum as organizations shift from capital expenditure (CapEx) to operational expenditure (OpEx) strategies. These models provide businesses with predictable costs and eliminate the need for large upfront investments in IT hardware and infrastructure. According to a report, about 50% of consumers subscribed or planned to subscribe to subscription services in 2023. DaaS offers a package consisting of devices, software, and services by combining them together to help organizations scale their IT needs with the rate of business growth. In hybrid and remote work environments, the appeal of this model is increased because it reflects agility. It also simplifies device upgrades and replacements with a subscription-based model as the device will always be up to date for employees. This trend is quite strong among SMEs and large enterprises looking to optimize budgets and improve operational efficiency. As vendors continue to expand customizable options and improve service levels, DaaS adoption will continue to grow across industries, which also represents one of the key device-as-a-service market trends.

Integration of AI and Analytics for Enhanced Management

AI and analytics integration in DaaS has been transforming the market by helping organizations manage devices and support more efficiently. AI-based advanced tools enable performance monitoring of devices, prediction of potential hardware or software problems, and automate maintenance processes. AI capabilities enable proactive device monitoring, with predictive maintenance reducing device downtime by up to 40%, as reported by a 2024 industry study. Analytics offers insights into usage patterns on the devices and allows businesses to make data-driven decisions to optimize resource allocation and cut costs. These capabilities are quite important with increasing management of a diverse range of devices in hybrid work setups. AI-driven solutions also enhance security with features that detect anomalies and potential breaches. They ensure compliance standards toward cybersecurity standards. Also, the proactivity to these issues reduces downtime, increases productivity, and improves user satisfaction. This trend is in line with the increasing demand for smarter, more efficient IT solutions that will force DaaS providers to innovate and integrate AI-based functionalities into their offerings. The evolution of AI and analytics will continue to fuel the adoption of DaaS across sectors.

Rising Demand for Sustainability and Circular Economy Solutions

Business sustainability has become a core interest and is leading to an increased demand for environments in the DaaS market. Device-as-a-Service solutions meet this end through environmental lifecycle management of IT hardware, which includes recycling, refurbishment, and responsible disposal of devices to ensure there is minimal electronic waste and support circular economy initiatives. Companies are beginning to focus more on vendors that provide environmentally responsible solutions as a way to meet the CSR goals of their firm and meet regulatory requirements. Refurbished devices also make DaaS programs cost-effective, thus making devices more accessible for organizations while contributing to the mitigation of environmental impact. DaaS providers are also looking into energy-efficient devices and the use of sustainable materials in their portfolio, further developing their eco-friendly credentials. Additionally, refurbished devices offered through DaaS programs can cut hardware costs by 20-40%, appealing to cost-conscious enterprises. With this trend and the increasing demands on industries for greener approaches, DaaS solutions are strategically positioned to align operational efficiency with sustainability to serve businesses in pursuing both financial and environmental goals.

Device-as-a-Service Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global device-as-a-service market report, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on offering, enterprise size, and end use.

Analysis by Offering:

• Hardware
• Software
• Service

Hardware leads the DaaS market because of its critical role in making seamless IT operations possible. It comprises laptops, desktops, tablets and smartphones which are considered indispensable for businesses to move to subscription-based models. Increasing demand for modernized, scalable, and customized devices is a factor that contributes to hardware adoption. Other advanced features such as improved connectivity, performance and security further contribute to its prominence. OEMs and service providers increasingly offer bundled hardware solutions with maintenance and upgrades which ensure operational efficiency. In addition to this, the growth of remote work and hybrid environments amplifies the demand for reliable high-performance hardware in various industries.

Analysis by Enterprise Size:

• Small and Medium-sized Enterprises
• Large Enterprise

The DaaS market among SMEs is gaining traction because of cost-saving benefits and streamlined IT management. Most SMEs are budget-conscious and hence subscription-based models become more attractive. DaaS gives access to modern devices without a high upfront investment along with support services such as maintenance and security. These solutions increase productivity and take away the pressure from small IT teams. There's further flexibility with scaling resources when businesses' needs evolve especially now that SMEs are embracing the move toward remote work and digital transformation.

Large enterprises lead DaaS adoption due to their extensive IT requirements and complex device management needs. The ability to manage diverse hardware fleets, streamline upgrades and ensure security compliance makes DaaS an attractive solution. These organizations benefit from predictive analytics, lifecycle management and seamless integration across global operations. Enhanced scalability and cost transparency appeal to large-scale deployments. As sustainability becomes a priority DaaS supports e-waste reduction and sustainable practices aligning with corporate environmental, social and governance (ESG) goals.

Analysis by End Use:

• Banking, Financial Services and Insurance (BFSI)
• Educational Institutions
• Healthcare and Life Sciences
• IT and Telecom
• Public Sector and Government Offices
• Others

IT and Telecom leads the market holding around 22.2% of the market share. The IT and telecom sector dominates the DaaS market because it is highly in demand for scalable and cost-effective IT solutions. Such industries rely on huge networks of devices to support global operations and need efficient lifecycle management and periodic upgrades. DaaS models satisfy their needs through bundled hardware, software and support services that improve productivity and reduce operational costs. The shift to remote work and the need for secure and high-performance devices by IT and telecom companies also encourages adoption.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, North America accounted for the largest device-as-a-service market share of over 35.0%. North America is the largest market in DaaS due to an early adoption and a more dominant presence of several significant IT service providers in the region. Enterprises in the region desire scalable cost-effective IT solutions that underpin digital transformation and hybrid work models. The high demand for advanced devices with integrated services such as maintenance and security facilitates market growth. Besides these factors the penetration of subscription-based models alongside increasing concerns for sustainability and e-waste management have added strength to the market in the region.

Key Regional Takeaways:

United States Device-as-a-Service Market Analysis

Increased demand for flexible IT solutions by businesses and governments across the country has been contributing to the expansion of the U.S. DaaS market. In 2023, the U.S. tech sector contributed around USD 2 trillion to the country's GDP, of which a substantial amount is invested in cloud services and hardware-as-a-service models, which includes DaaS, as per reports. The growth of the market is driven by the need for cost-effective, scalable IT infrastructure, especially in the wake of remote work and hybrid workforce models. Major players, including HP, Dell Technologies, and Lenovo, continue to dominate the space, providing businesses with devices coupled with integrated management and support services. According to an industry report, US federal government IT spending in civilian agencies for 2025 is expected to reach a level of approximately USD 75 billion and contribute to the integration of DaaS solutions within federal agencies, thus creating steady device-as-a-service market demand. Cybersecurity issues and the increasing requirement for managed IT also boost growth in the market.

Europe Device-as-a-Service Market Analysis

The DaaS market is growing very strongly in Europe due to the need for flexible and scalable IT for many businesses. According to the 2023 Report on the State of the Digital Decade, the European Union has implemented ambitious digital plans that seek the growth of the ability of at least 80% of persons aged 16 to 74 and have 20 million ICT specialists in 2030. But still, according to the report, unless dramatic transformations occur, there will only be basic digital skills from 59% of the population. The European Commission launched calls that aim to finance over EUR 176 million (USD 194.63 million approximately) for investment in digital capacities and technologies by supporting sectoral data spaces creation and cloud-to-edge infrastructure projects. Furthermore, the Commission has announced an investment of EUR 865 million (USD 956.59 million) to strengthen Europe's digital infrastructure between 2024 and 2027. These investments contribute to the ongoing push for digitalization, particularly in countries like Germany, France, and the UK, further boosting the demand for DaaS. Leading companies such as Vodafone, Orange, and Microsoft are expanding their DaaS offerings to cater to this growing need for flexible IT solutions.

Asia Pacific Device-as-a-Service Market Analysis

Asia Pacific is experiencing a very rapid growth of the DaaS market due to digital transformation and growing demand for cost-effective IT solutions. As reported by Telecom Review Asia, Southeast Asia's digital economy has grown to USD 100 billion in sales in 2023 with a CAGR of 27% since 2021. Such strong growth is underpinned by growing investments in cloud computing, AI, and IoT in the region. China and India are dominating the market due to government support for digitalization and enterprise adoption of advanced IT solutions. Also, the growth in remote work and hybrid business models has fueled demand for DaaS. Key players like Lenovo, HP, and Dell are focusing on partnerships and localized strategies to tap into diverse needs of Asia Pacific markets. The region is in the forefront to drive the DaaS industry, due to its ever-changing landscape.

Latin America Device-as-a-Service Market Analysis

The DaaS market in Latin America is increasing due to its growth in digital economies and enterprises' demand for IT flexibility. According to an industrial report, in 2023, the digital economy in Brazil expanded and saw its e-commerce sector rise by 14.3%. The region continues to shift toward more digital platforms, with governments there investing in their digital infrastructure while encouraging initiatives toward technology adoption for SMEs. It further contributes to an increase in demand for DaaS among countries, such as Mexico and Argentina, within Latin America that are also keen on digital transformation. Key market participants are entering this market with focused solutions to adapt to the rich requirements of this diverse region. Growth in the deployment of remote working solutions is what places this region at the frontier of emerging contribution to the worldwide DaaS marketplace.

Middle East and Africa Device-as-a-Service Market Analysis

The DaaS market in the Middle East and Africa is growing significantly. This growth can be attributed to government-led digitalization initiatives, as well as the increasing adoption of cloud-based technologies. For instance, the UAE launched its Digital Economy Strategy in April 2022. The strategy plans to double the contribution of the digital economy to GDP within the next decade from 9.7% in 2022 to 19.4%, as per reports. These kinds of initiatives reiterate the need for building sound, all-encompassing digital infrastructure. Saudi Arabia-considering its 'Vision 2030' plans-and South Africa are also undertaking digital transformation measures which focus on further technology-driven economical diversification efforts. DaaS solutions are picking up in nearly all enterprises spread across the geographical region, seeking to enhance scalable and low-operative-cost operations across environments meant for hybrid works. Global and regional IT providers are seizing this emerging trend with bespoke services. As companies move forward in modernizing, the Middle East and Africa will emerge as a key participant in the global device-as-a-service market outlook.

Competitive Landscape:

The Device-as-a-Service (DaaS) market is highly competitive characterized by a mix of global technology providers, hardware manufacturers and specialized service vendors. Companies are focusing on expanding their service portfolios by integrating advanced analytics, AI-driven device management and robust security features. Strategic partnerships and collaborations with IT solution providers are common to enhance market presence. Providers are also emphasizing customization offering tailored solutions based on industry and enterprise size. Innovations in predictive maintenance, lifecycle management and sustainability practices further intensify competition. With increasing adoption across industries market players are prioritizing scalability, seamless integration and cost optimization to attract and retain customers. The competitive landscape is shaped by rapid advancements in technology and the rising importance of end-to-end service delivery.

The report provides a comprehensive analysis of the competitive landscape in the Device-as-a-Service market with detailed profiles of all major companies, including:

• Accenture Plc
• Atea Global Services Ltd. (Atea Group)
• Cognizant Microsoft Business Group
• HP Development Company L.P.
• Intel Corporation
• Lenovo Group Limited
• Yorktel

Latest News and Developments:

• October 2024: One Equity Partners (OEP) has acquired Yorktel an IT services company that focuses on managed services and enterprise collaboration solutions. Yorktel provides IT services, AI-driven monitoring, and collaboration system integration for prominent clients. OEP intends to foster Yorktel's growth by pursuing both organic expansion and strategic acquisitions to meet the demands of hybrid work.
• In April 2024: NTT DATA launched a Sustainable Device-as-a-Service solution, developed with HP, to integrate sustainability into the lifecycle of endpoint devices. This offering combines devices, software, and support with sustainable practices, helping organizations reduce carbon footprints and achieve cost savings by extending device lifespans. It also enhances employee experience with seamless device availability, procurement, and proactive health monitoring, supporting organizations in their Net Zero transformation.
• March 2024: HP launched its inaugural AI-driven Workforce Experience Platform along with new Managed Services, printing subscriptions and enhanced device lifecycle programs aimed at promoting productivity and supporting circular economy efforts.
• February 2024: Lenovo UK's Aidan Griffin reports that adoption of Device as a Service (DaaS) and Infrastructure as a Service (IaaS) models is on the rise. The DaaS market, according to Fortune Business Insights will grow from USD 22 billion in 2022 to USD 155 billion by 2030, driven by hybrid work and sustainability goals.

Device-as-a-Service Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the device-as-a-service market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global device-as-a-service market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyse the level of competition within the device-as-a-service industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.