Hardware as a Service Market - Snapshot
Hardware as a service (HaaS) is an innovative, contemporary offering that eliminates the stress and expense of buying hardware. This affordable, managed solution is a rental agreement that combines maintenance and support with the latest technology. In the hardware as a service model, hardware is installed at the client’s site along with a service level agreement between the client and managed service provider (MSP). In this service model, either the client pays a monthly fee for using the hardware, or its use is incorporated into the MSP's fee structure for installing, monitoring, and maintaining the hardware. According to the service level agreement, if the hardware breaks down or becomes outdated, the MSP is responsible for decommissioning it and replacing it by wiping proprietary data or physically destroying hard drives.
In more recent times, many technological advancements have taken place in the hardware as a service market. BFSI, IT and telecom, education sector, government sector, and construction and manufacturing industry widely use HaaS systems. Therefore, the hardware as a service market is expected to expand at a rapid pace in the coming years. Growing need to adopt new IT solutions with modern consumer trends across the world is primarily driving demand for hardware as a service. This is anticipated to drive the market over the forecast period. Moreover, increase in demand for HaaS from the IT and telecom industry is expected to fuel the growth of the market in the near future. However, high risk of data security and low interoperability is projected to inhibit the growth of the HaaS market across the world. The HaaS market is likely to reach a value of US$ 304.80Bn by 2026 from US$ 40.88Bn in 2017, expanding at a CAGR of 25.6% during the forecast period.
Based on component, the hardware as a service market can be segmented into hardware and professional services. The desktop/PC hardware sub-segment accounted for a significant market share globally in 2017.The sub-segment is projected to hold its leading position over the forecast period. The computer networking devices hardware sub-segment is estimated to expand at a rapid pace during the forecast period. Based on professional services, the support and maintenance services sub-segment accounted for the major share in the global hardware as a service market in 2017 and is projected to maintain its position in the coming years. With this service, IT companies can manage most of their activity remotely, which further reduces the time and money involved in production activity. Under the professional services segment, consulting & integration services sub-segment is slated to expand significantly over the forecast period, as it delivers quality services and enhances operational efficiency of the hardware.
In terms of hardware model, the desktop/PC as a service segment accounted for major share of the market and is estimated to maintain its leading position over the forecast period. The rapid growth of on demand services in the consumer world has led to the growth of desktop/PC as a service in the business environment.
On the basis of deployment, on-premise based hardware as a service segment occupied major market share in 2017due to its cost effectiveness, while the cloud based HaaS segment is likely to expand significantly over the forecast period. The public cloud sub-segment accounted for a prominent share of the cloud segment in 2017 due to growing availability of HaaS applications on various hardware models which are mostly governed by public clouds, and is expected to expand at a significant pace during the forecast period.
In terms of enterprise size, the global hardware as a service market can be bifurcated into small & medium enterprises (SMEs) and large enterprises. Globally, large enterprises held major market share of hardware as a service in terms of usage. Large enterprises prefer using on-premises solutions as they deal with a high volume of confidential business documents, and procuring third-party solutions may make their networks prone to data leakage. On the other hand, for small and medium enterprises, desktop-as-a-service (DaaS) may be the alternative IT solution. Implementing a remote desktop IT service can be a cost-effective option for small and midsize businesses (SMBs) that want to outsource their IT needs or reallocate their in-house IT resources to other projects.
Based on industry vertical, the hardware as a service market can be categorized into BFSI (banking, financial, services and insurance), telecom and IT, government, healthcare, education, legal, construction, manufacturing, and others. Others segment includes retail, and media and entertainment sector. The telecom and IT sector is the prominent user of hardware as a service systems followed by the BFSI sector, while the government sector is projected to expand at a rapid pace over the forecast period. Government sector is projected to witness higher level of adoption, thereby creating a high potential customer base. Different HaaS benefits including low capital expenditure, low deployment and design costs, and automatic software updates, among others are encouraging enterprises to opt for hosted or cloud-based hardware services, which in turn is driving the adoption of HaaS across these industry verticals.
The market in North America is anticipated to contribute significantly to revenue in the near future due to a large base of existing users in the region. The market in Europe and South America is anticipated to follow a similar trend between 2018 and 2026. Furthermore, the market in APAC and Middle East & Africa is likely to expand at a robust CAGR in the coming years.
Attracted by the progressively expanding hardware as a service market and underlying embryonic demand, many small and large scale enterprises are investing in hardware as a service hardware and services. Product innovation and upgrade of research and development are constantly taking place in the hardware as a service market. For instance, in July 2011, Navitas Credit Corp. introduced hardware-as-a-service (HaaS) offerings for managed service providers (MSPs) and channel partners. Prominent players identified in the hardware as a service market and profiled in the study include Navitas Lease Corp., Ingram Micro, Design Data Systems, Inc., ZNet Technologies Pvt. Ltd., FUSE3 Communications, and Microsoft Corporation among others.
Hardware as a Service Market: Overview
This comprehensive report titled Hardware as a Service Market -Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026, by Transparency Market Research analyzes and provides growth forecast for the hardware as a service market at the global and regional level. In terms of region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America. The report provides analysis for the period 2016–2026, wherein 2018 to 2026 is the forecast period and the base year is 2017. An in-depth and unbiased market assessment has been made to offer readers insightful and accurate analysis. The report emphasizes on all the major trends and services that play a key role in the expansion of the hardware as a service market between 2018 and 2026. It also focuses on market drivers, restraining factors, and opportunities of the hardware as a service market during the forecast period.
The report includes a detailed ecosystem analysis and opportunity analysis, which is focused on providing an extensive view of the global hardware as a service market. Porter’s Five Forces analysis is also provided to understand the competitive scenario in the market. The study incorporates hardware as a service market attractiveness analysis, in which market segments such as hardware and services are benchmarked based on their market size, growth rate, and attractiveness in terms of opportunity. In order to provide a complete analysis of the overall competitive scenario in the hardware as a service market, attractiveness analysis of every geographic region mentioned in the report has been provided.
An overview of the hardware as a service market detailing key trends and dynamics has been included to providea clear understanding of market ecosystem forces. The dynamics include impact analysis of market drivers, restraining factors, and opportunities of the hardware as a service market. Additionally, the report provides analysis of business strategies adopted by market leaders in the hardware as a service market. Trends and services related to hardware as a service systems along with their applications have also been explained in the report.
Global Hardware as a Service Market: Scope of the Report
The study provides a decisive view on the global hardware as a service market, broadly segmented based on component into hardware and professional services; based on hardware model into Platform as a Service, Desktop/PC as a Service, Infrastructure as a Service, and Device as a Service; based on deployment into cloud and on-premise; based on enterprise size into small & medium enterprises (SMEs) and large enterprises; and in terms ofindustry verticalinto BFSI (banking, financial, services and insurance), IT and telecom, government, healthcare, education, legal, construction, manufacturing, and others. Further, the report provides a detailed breakdown of the hardware as a service market across geographic regions, which include North America, Europe, Asia Pacific, Middle East & Africa, and South America, thus providing valuable insights at the micro and macro levels.
The report highlights the competitive scenario within the hardware as a service market, ranking all the major players according to key recent developments and their geographic presence. The insights into the hardware as a service market are a result of our extensive primary interviews, secondary research, and in-house expert panel reviews. These market estimates have been analyzed by considering the impact of different economic, political, social, legal, and technological factors.
The market in North America has been segmented into the U.S., Canada, and Rest of North America. Furthermore, the market in Europe has been analyzed across France, Germany, the U.K., and Rest of Europe. The hardware as a service market in Asia Pacific has also been segmented at country level into China, Japan, India, and Rest of Asia Pacific. The Middle East & Africa region covers GCC countries, South Africa, and Rest of Middle East & Africa. Similarly, South America includes Brazil and Rest of South America. This report provides all the strategic information required to understand the hardware as a service market along with component, hardware model, deployment, enterprise size, and industry verticals.
Global Hardware as a Service Market: Research Methodology
The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary sources such as annual reports, company websites, SEC filings and investor presentations, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, World Bank database, and industry white papers are usually referred to for developing a preliminary understanding of the market.
Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews of the hardware as a service market across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to obtain the latest market insights and validate existing data and analysis. Primary interviews offer new and fresh information on important factors such as market trends, market size, competitive landscape, growth trends, etc. These factors help validate and strengthen secondary research findings. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.
Global Hardware as a Service Market: Competitive Dynamics
The research study includes profiles of major companies operating in the global hardware as a service market. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. Parameters such as investment and spending and developments by major players of the market are tracked. Some of the key players in thehardware as a service market are Navitas Lease Corp., Ingram Micro, Design Data Systems, Inc., ZNet Technologies Pvt. Ltd., FUSE3 Communications, MasterIT, LLC, and Microsoft Corporation among others.
The hardware as a service market has been segmented as follows:
Global Hardware as a Service Market
- Computer Networking Devices (Servers, Switches, Routers, Gateways, Hubs etc.)
- Storage Devices
- Others (Printers, Scanners etc.)
- Professional Services
- Consulting & Integration
- Support and Maintenance
By Hardware Model
- Platform as a Service
- Desktop/PC as a Service
- Infrastructure as a Service
- Device as a Service
By Enterprise Size
- Small & Medium Enterprises (SMEs)
- Large Enterprises
By Industry Vertical
- BFSI (Banking, Financial, Services and Insurance)
- IT and Telecom
- Others (Retail, Media and Entertainment etc.)
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East &Africa
- GCC Countries
- South Africa
- Rest of Middle East &Africa
- South America
- Rest of South America