PC as a Service Market

Renewed focus on the managed service providers to drive market growth

The rapid expansion of managed service providers is driving the growth of the Personal Computer as a Service (PCaaS) market. In the last three years, the average monthly recurring rate (MRR) of half of the MSPs increased by more than 10%, according to the 2021 MSP Benchmark Survey Report. More than a quarter (28%) experienced average MRR growth of 6 to 10%. In terms of revenue growth, security (up 65%), cloud management (up 54%), infrastructure monitoring and management (up 52%), and desktop support (up 51%) were the services with the largest increases in 2020.

Surprisingly, the managed service providers' increased revenue from desktop infrastructure and support creates new market opportunities.

The preference of businesses for the operational expenditure model over the capital expenditure model, which allows the seller to increase revenue streams and foster strong customer engagement while removing the costly capital expenditure from the buyer's balance sheet and converting it to a manageable and predictable operational expense, is the main driver of the personal computer as a service market revenue. PC as a Service is extremely adaptable and scalable. The services can be tailored to the buyer's needs, driving industry growth.

The Global Personal Computer as a Service (PCaaS) Market Industry experiences a notable increase in demand for flexible IT solutions. Organizations are increasingly seeking to optimize their IT expenditures while maintaining operational efficiency. This trend is particularly pronounced among small and medium-sized enterprises (SMEs) that may lack the capital for substantial upfront investments in hardware. By adopting PCaaS, these businesses can access the latest technology without the burden of ownership. This shift is projected to contribute to the market's growth, with the industry expected to reach 0.41 USD Billion in 2024, indicating a strong trajectory towards future expansion.

The Global Personal Computer as a Service (PCaaS) Market Industry is significantly influenced by the growing emphasis on remote work solutions. As organizations adapt to flexible work arrangements, the need for reliable and efficient computing solutions becomes paramount. PCaaS offers a viable alternative by providing employees with the necessary hardware and software to perform their tasks effectively from various locations. This trend not only enhances employee satisfaction but also contributes to overall productivity. The market's growth trajectory is expected to reflect this shift, as more companies recognize the benefits of PCaaS in supporting their remote workforce.

Cost efficiency emerges as a pivotal driver within the Global Personal Computer as a Service (PCaaS) Market Industry. Organizations are increasingly drawn to the predictable monthly subscription model that PCaaS offers, allowing for better budget management and financial planning. This model mitigates the risks associated with unexpected hardware failures and maintenance costs, which can be particularly burdensome for businesses. As companies strive to streamline their operations and reduce overhead, the appeal of PCaaS becomes more pronounced. The market is anticipated to grow significantly, with projections indicating a rise to 14.4 USD Billion by 2035, reflecting the increasing adoption of this cost-effective solution.

Technological advancements play a crucial role in driving the Global Personal Computer as a Service (PCaaS) Market Industry. The rapid evolution of computing technology, including improvements in processing power, storage capacity, and software capabilities, encourages organizations to adopt PCaaS solutions. By leveraging the latest innovations, businesses can enhance productivity and efficiency while minimizing the risks associated with outdated hardware. This continuous cycle of innovation is likely to sustain market growth, as companies seek to remain competitive in an increasingly digital landscape. The anticipated compound annual growth rate (CAGR) of 38.18% from 2025 to 2035 underscores the potential for substantial expansion in this sector.

Sustainability emerges as a compelling driver within the Global Personal Computer as a Service (PCaaS) Market Industry. As organizations increasingly prioritize environmental responsibility, the adoption of PCaaS solutions aligns with their sustainability goals. By utilizing shared resources and reducing electronic waste through leasing models, companies can minimize their environmental footprint. This focus on sustainability resonates with consumers and stakeholders alike, potentially enhancing brand reputation and customer loyalty. As the market evolves, the integration of eco-friendly practices within PCaaS offerings may become a key differentiator, further propelling growth in this sector.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American personal computer as a service (PCaaS) market is expected to grow at a significant CAGR during the study period, accounting for USD 0.051 billion in 2021. This region's service providers, ranging from small businesses to multinational corporations, have extensive experience managing IT infrastructure and operations. The huge demand for PCs in various industries is an aggressive driving force substantiating the region's market growth. Furthermore, the region is also home to key players such as Dell EMC, Microsoft, and others.

These companies are constantly investing in technological advancement through strategic alliances, R&D, and mergers & acquisitions, which has contributed to them establishing a stronger market position. This sector's service providers, which range from microbusinesses to corporations, have extensive experience managing IT infrastructure and keeping businesses running smoothly.

Moreover, the major countries covered in the market report include the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, India, Japan, Australia, China, South Korea, and Brazil.

Figure 3: Personal Computer As A Service (Pcaas) Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The European personal computer as a service (PCaaS) market is the world's second-largest. According to a Twilio poll published in 2020, more than one-third of UK companies and decision-makers admit COVID-19 has prompted them to increase their digital transformation budgets significantly. This contributes to higher costs to meet an organization's expanding digital needs. The same justification motivates businesses to use PCaaS rather than buying computers and other hardware to save money.

According to CyberCrew, even though 99% of UK citizens own a mobile device, smartphones will never replace desktop and laptop computers, as a typical computer can run more robust software than smartphones. Besides, with the region increasing emphasis on small businesses, the demand for personal computers as services is expected to increase. Further, the UK personal computer as a service (PCaaS) market held the largest market share. The German personal computer as a service (PCaaS) market was the fastest-growing market in the European region.

The Asia Pacific personal computer as a service (PCaaS) market is expected to grow at the fastest CAGR during the forecast period. The expansion of IT is one of the region's main drivers. Many customers are attracted to the PCaaS market by the affordability of personal computers as a service. As a result of investments made by numerous tech giants and other multinational corporations in developing countries, the personal computer (PC) as a service industry is expected to grow significantly in the Asia-Pacific region.

Furthermore, the increased use of computers and other technology is expected to fuel the development of the personal computer (PC) as a service market in this region in the coming years. Moreover, China’s personal computer as a service (PCaaS) market held the largest market share. The Indian personal computer as a service (PCaaS) market was the fastest-growing market in Asia-Pacific.

The presence of some key players, including HP, Fujitsu, and AWS, has led to intense competition among the players in the PCaaS market. Their capacity to continuously innovate their products has given them a competitive edge over rivals. Moreover, significant investments in research and development, business alliances, and mergers and acquisitions have facilitated them to expand their market footprint.

Dell Inc is a technology company based in the United States. It creates, sells, repairs, and maintains computers, services, and products. Dell PC as a Service (PCaaS) streamlines PC management. It integrates hardware, software, full life cycle services, and financing into a single comprehensive solution. Dell Technologies and Microsoft expanded their partnership in April 2019 to address a broader range of customer needs and aid in accelerating digital transformations. The companies wanted to provide a fully native, supported & certified VMware cloud infrastructure on Microsoft Azure, so they worked together to make that happen.

Furthermore, through cloud-based integration with Microsoft Intune and Azure Active Directory, joint Microsoft 365 & VMware Workspace ONE customers could manage Office 365 across devices.

CompuCom Systems collaborates with businesses across all industries to provide advanced technological solutions that assist their digital workplaces. In August 2020, CompuCom and Office Depot collaborated to offer small and mid-sized businesses a range of IT hardware and service options to support their remote workplaces. Companies with 50 to 1,500 users can take advantage of various services, such as remote IT support, on-site hardware & software repair, and environmentally friendly IT equipment disposal.