Device-as-a-service market size is projected to reach USD 303.6 billion by 2026; growing at a compound annual growth rate (CAGR) of 43.2% during the forecast period.
The rapid adoption of the subscription-based services model is one of the major drivers of the device-as-a-service market. Subscription-based device-as-a-service models help customers to transform the high cost of acquiring new technology from a capital expenditure (CapEx) to an operating expense (OpEx). Through this, various businesses—small, mid-sized, and large—can free up cash for investment in strategic initiatives that can drive revenue. Moreover, other benefits such as policy compliance and the ability to use the latest technologies and access customized services, including device configuration, installation, data migration, on-site support, and technology recycling, are also gained. As a subscription service, the device-as-a-service model provides options for an organization to quickly scale up or down based on the current operating environment and business needs. Whether growing or downsizing, organizations can pay for exactly what they need, when they need it.
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Opportunity: Emergence of wearable-as-a-service (WaaS) model
Wearable devices such as smartwatches, VR headsets, AR glasses, and medical patches are convenient and are becoming increasingly popular among end users, including business enterprises—who are mainly trying to benefit from the mobility and interoperability that comes with wearable devices, along with the vast amount of data generated. Various companies have now started manufacturing wearable devices to promote wearables-as-a-service (WaaS) solutions. For instance, Omate is a Chinese company offering a wearable-as-a-service solution. Similarly, Arkéa, a French banking and insurance company, has launched its WaaS model that allows end users or institutions to rent wearable devices. This eliminates the need for the upfront purchase of wearable devices, which can be an additional hurdle in the sales process. Thus, some device manufacturers have adopted this approach and are developing smartwatches targeted at recreational athletes, children, and the elderly. Wearable technology is now effectively being used in government offices, healthcare organizations, insurance companies, and families for elderly care management.
Challenge: Security and data protection risk associated with device-as-a-service
The demand for device-as-a-service has increased in many sectors, with organizations increasing their general use of cloud-based services, mainly due to security concerns. Moreover, the security budgets and number of cloud platform providers have significantly increased, and many customers are now adopting cloud wherever possible for deploying secure and resilient systems. Thus, security concerns associated with using a new service model are a major factor challenging the complete adoption of device-as-a-service. Cybersecurity and data protection hold significant importance, especially in the financial sector, as the foundation of banking lies in nurturing trust and credibility.
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