Device-as-a-Service Market Growth Opportunities, Trends and Market Dynamics

Global device-as-a-service market in terms of revenue was estimated to be worth USD 50.3 billion in 2021 and is poised to reach USD 303.6 billion by 2026, growing at a CAGR of 43.2% from 2021 to 2026. The new research study consists of an industry trend analysis of the market.

The market has been witnessing significant growth over the past years, mainly owing to the rising demand for subscription-based model and the increase in a number of channel partner offering in device-as-a-service. Increasing adoption of cloud computing services in developing countries is also expected to considerably boost the market in the coming years.

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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.