Device as a Service (DaaS) Market - Regional Analysis
North America Market Insights
North America is anticipated to maintain a commanding 41% device as a service market share during the forecast period, fueled by a mature IT market, a high rate of adoption of cloud and subscription offerings, and the strong establishment of prominent DaaS vendors. The region's vibrant business environment and the dominance of hybrid and remote work models fuel a high demand for scalable and adaptable device management solutions.
The U.S. boasts a developed market in North America, boasting a very competitive device as a service market that promotes constant innovation in DaaS products. Government agencies at the federal and state levels are increasingly adopting the DaaS model to refresh their IT infrastructure and improve efficiency. For instance, Louisiana's Office of Technology Services (OTS) highlighted its in-house Device-as-a-Service (DaaS) approach in 2024. This model positions OTS as a managed service provider for the state's executive branch, overseeing the entire device lifecycle from procurement to asset recovery.
Canada DaaS market is experiencing robust growth with the backing of government programs for facilitating the adoption of digital technology among small and medium-sized businesses (SMEs). These initiatives are facilitating improved availability of current IT solutions, including DaaS, to a larger number of businesses. In April 2024, following the early closure of the Boost Your Business Technology stream of the Canada Digital Adoption Program (CDAP), Canadian policy experts analyzed the program's mixed success, noting that a large portion of the budgeted $4 billion remained unspent. This analysis highlights ongoing government efforts to improve digital technology adoption among SMEs, a trend that continues to support the broader IT hardware market.
APAC Market Insights
Asia Pacific device as a service market is predicted to witness a CAGR of 20.0% between 2026 and 2035, led by increasing digital transformation, expanding mobile workforce, and increasing government expenditure in IT infrastructure. Increasing and diverse economies of the region provide immense opportunities for DaaS players. This growth is expected to be extremely strong in emerging economies, where businesses are progressively adopting innovative technologies to enhance efficiency and productivity.
China market is also characterized by the high government assistance given to its domestic technology industry, making domestic hardware producers like Lenovo highly competitive in the global DaaS industry. In October 2024, China's Ministry of Industry and Information Technology (MIIT) announced measures to support the growth of domestic technology companies, including enhanced financial backing through mergers, acquisitions, and listings, as well as efforts to help firms expand their device as a service market reach. This policy is aimed at boosting the country's technology sector and increasing its global competitiveness.
India is a rapidly rising DaaS market, driven by the government's vision for an ambitious Digital India and a fast-emerging startup environment. The government is promoting the adoption of digital solutions aggressively to improve governance and public services, resulting in high demand for low-cost IT procurement models. In August 2024, the Government e-Marketplace (GeM) celebrated its 8th Foundation Day, highlighting significant milestones in streamlining government procurement and fostering digital transformation in India. This initiative has made it simple for DaaS providers to offer their subscription device packs to the public sector, and acceptance is gaining, at a rapid pace.
Europe Market Insights
Europe DaaS market is likely to experience consistent growth sustained by a strong regulatory appetite for sustainability and cybersecurity, and a well-developed business culture in which operational efficiency is valued. Regulatory mandates for compliance with pan-European regulations are one of the key drivers compelling business organizations to look toward managed device services. This continued emphasis on security controls that are aggressive in nature and environmentally friendly practices will make DaaS an increasingly central part of European business strategies for the current age and create competitiveness and innovation.
Germany is a key device as a service market in Europe, wherein there is considerable emphasis placed on green IT and data protection. The administration heavily promotes green procurement practices, which align with the lifecycle management benefits of DaaS. In late 2024, the German Federal Cabinet adopted the National Circular Economy Strategy (NCES), consolidating various goals and measures. While not exclusively focused on IT, the strategy emphasizes resource efficiency and includes ICT & electronic devices as a key field of action, with public procurement identified as a tool to promote these goals.
The UK market is characterized by an extensive use rate of flexible work patterns and sound public sector preference for low-cost IT acquisition. The government actively encourages the use of service-based approaches to IT infrastructure modernization across various industries. In October 2023, the UK Crown Commercial Service (CCS) launched its new Technology Products and Associated Services framework, including enhanced scope to cover new and future technologies, alongside sector-specific lots for health and education. The framework allows public sector organizations to procure a wide range of IT products and services, including subscription-based models like DaaS, and supports sustainable IT practices through options for refurbished hardware.
