The global thin client market size was USD 1.21 billion in 2022 and is likely to reach USD 1.42 billion by 2031, expanding at a CAGR of 1.8% during 2023-2031. The market growth is attributed to the increasing demand for enterprise cost savings solutions.
A thin client is also referred to as a lean or slim client. A thin client is a virtual computer system that is used to run virtual applications. The data is stored on the server rather than the client system. Most of the processing is done on a remote link over a network. A thin client is a compactly designed hard drive-free and fanless desktop computer. It is a virtual and secure system powered by a client operating system.
The local machine is simply used to display the internet-based program results that resemble as close as possible to programs installed on local systems. Thin clients largely rely on servers for computation; they are usually available in the form of low-cost computing devices. There are two types of thin clients: software thin clients and hardware thin clients. Hardware thin client is used to run thin client software. Software thin client is used for running virtual applications.
The thin client works inside shared communication servers, a browser-based approach, and desktop virtualization in cloud computing mode. Although the operating system and applications do not share the resources, they are stored in the central server. A thin client can be used at offices or homes as long as a user has a good internet connection to connect desktop.
Benefits of thin clients include longer lifecycles, inexpensive to purchase, requires low power, less vulnerability to malware attacks, better, centralized manageability, and more scalability. There are various differences between thin clients and thick clients. The thin client is a desktop PC that can handle a server's functionality. The thick client is used to run independently and it is distributed over networks. The thick client uses their software applications, hard devices, and other local resources.
COVID-19 Impact on Thin Client Market
The market report finds that the COVID-19 pandemic has affected the market, due to interruptions in the supply chain, a halt in production, and end-use sector operations. The COVID-19 pandemic resulted in disruptions of import and export activities in several countries across the world, which slowed down market growth.
However, the remote work trend is rapidly growing for the past few years, which is expected to accelerate the thin-client adoption trend in the coming years. As more people are working remotely, the concern about fast data sharing with employees has increased. This factor also has driven the demand for thin client devices during the COVID-19 pandemic.
Thin Client Market Dynamics
The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global thin client market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.
What are the Key Factors Driving Thin Client Market?
High Demand for Energy-efficient Devices Across Sectors
Demand for energy-efficient devices is increasing from various sectors and is expected to drive the growth of the thin client market in the coming years. Personal computers have all the parts locally installed, which require more power for processing. On the other hand, studies suggest that thin client consumes less power as most of the components are located on virtual mediums. Additionally, the thin client does not heat up and requires no room air conditioning for lowering the temperature. All these factors make thin clients more energy efficient than PCs, which supports companies in saving costs.
Growing Thin Client Demand in the IT and Gaming Sector
The demand for a thin client in information technology (IT) and the gaming sector is increasing and is expected to drive the market. The requirement for power computing and high data integrity characteristics is consistently growing in the IT and gaming sectors. These advantages can be achieved with the adoption of thin client solutions, which is expected to increase the growth of the global market.
Growing Thin Client Demand in the Healthcare Sector
The demand for thin client for healthcare sector is increasing and is expected to drive the growth of the global thin client market. The healthcare sector has largely adopted devices as computing to thin client solutions, due to their security benefits. The healthcare sector prefers thin client virtual desktops to secure data, offer flexibility, accessibility and greater efficiency. These are the key factors that boost market growth during the forecast period.
What are the Major Challenges of Thin Client Market?
Easy Availability of Various Replacements and Network Lags
The easy availability of various replacement solutions for thin customer systems is a major factor challenging the market growth. Additionally, low reaction time and high resource loading associated with the thin client system are also anticipated to hamper the growth of the market. In developed countries, some factors such as network lags for cloud computing are also restraining the development of the global market.
What are the Growth Opportunities in Thin Client Market?
Rising Popularity of Hybrid and Multi-cloud Environments
The popularity of hybrid and multi-cloud environments is rising and is expected to create growth opportunities for the global market during the forecast period. Moving to hybrid and multi-cloud environments is comparatively inexpensive. The thin market vendors have an opportunity to take advantage of the secure hardware solution.
Companies such as Dell and HP Inc. are having hardware tightly coiled with advanced platform-agnostic software solutions to meet customers’ requirements. The technological advancements in thin client systems and production of ultra-thin client & zero client technology are increasing, which are expected to create significant business expansion for existing players in the global market.
Scope of Thin Client Market Report
The global thin client market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Thin Client Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Hardware, Software, Desktop-Based, Services, and Others), Form Factor (Mobile, Standalone, and Monitor), and End-user (Industrial, Education, Enterprise, Government, Healthcare, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Lenovo; Dell Inc.; IGEL; OnLogic; Samsung; LG Electronics.; NComputing Co. LTD; Centerm Information Co., LTD; Cisco Systems, Inc.; Fujitsu; NEC Corporation; Advantech Co. Ltd.; Siemens; and American Industrial Systems, Inc.
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Thin Client Market Segment Insights
What is the Expected Growth Rate of the Desktop-based Segment?
Desktop-based Segment to Grow at a Healthy CAGR
Based on type,the global thin client market is divided into hardware, software, desktop-based, services, and others. The desktop-based segment is anticipated to grow at a CAGR of around 1.8% during the forecast period. The growth is attributed to the growing adoption of thin clients with desktops in the healthcare and education industries. Enterprises are looking for tools that would lower the desk space and provide a simple replacement choice for old systems.
Hardware segment is anticipated to hold a key share of the market in the coming years, due to its low-cost and highly secure, IT resources, and saving energy. Virtualization incorporates the idea that everything is stored on a central server and no longer need to be stored on individual endpoints. A thin client can be an effective alternative for heavy-sized PCs in the modern world.
What are the Main Aspects for Boosting the Standalone Segment?
Capability of Directly Connecting Desktops and Laptops to the Network
On the basis of form factor, the global market is segregated into mobile, standalone, and monitor. The standalone segment is expected to expand at a significant growth rate during the projected period, due to its capability of directly connecting systems to the network such as desktops and laptops. Standalone can be used without any locally installed server software. This type of thin client has a display, keyword, and mouse, and also has a RAM and local hard disk.
The mobile segment is projected to register a considerable CAGR during the forecast period. The mobile thin client runs on an advanced RISC machines (ARM) processor, which does not require much power. It is a laptop-like device that staff can use to access a virtual desktop. Information technology uses them to develop virtual desktop infrastructure (VDI) deployments for employees who work outside companies.
What are the Major Reasons for Rising Sales in Government Segment?
Best Solution for Efficient Control and Cost-effectiveness
Based on end-user, the global market is segmented into industrial, education, enterprise, government, healthcare, and others. The government segment is projected to account for a major market share in the coming years.
Thin clients offer the best solution for efficient control and cost-effectiveness, which is making them one of the rapidly growing technology solutions implemented in government offices. A thin client can be advantageous to ease up the government’s IT infrastructure, in which they require less investment in software, hardware, support, and maintenance as compared to other conventional computers or servers.
The enterprise segment holds a considerable share of the thin client market. The thin client is used in enterprises to reduce the cost of ownership, save energy, and improve resource sharing, among other advantages. The thin client provides security-related solutions such as third-party identity theft, unauthorized account access, and data leaks caused by external devices. The enterprise application includes IT & telecom industries, utilities, financial and business services, construction & transportation, and wholesale & retail markets.
The education thin client segment is expected to grow rapidly, due to the increasing adoption of digital technologies. The thin client uses powerful computing capabilities such as high-performance central processing units (CPUs) and graphic processing units (GPUs) allowing organizations to make decisions on hardware resources.
Why is North America Dominating Thin Client Market?
Increasing Adoption of Cloud-based Technology
In terms of region, the thin client market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to hold the largest market share in the global thin client market during the forecast period, due to the increasing adoption of cloud-based technology in the region.
High-technology products require active and flexible IT support, which is available in most companies through cloud adoption. The presence of industry leaders, a significant number of cloud service providers, and an increasing number of servers in the region are the major contributors to the growth of the market in North America.
Europe is the second-largest growing region in the global market due to the increasing technological innovations and adoption of advanced internet technology. In Europe, the developed countries have the active infrastructure for advanced technology such as cloud computing, the Internet of Things (IoT), and 5G, which is boosting the growth of the thin client market.
The market of the Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to the high rate of deployment of thin client devices in the countries such as India, China, Japan, and others. The rapid technology adoption across enterprises in various sectors is likely to contribute to the highest CAGR of the market in the region.
Segments
Type
- Hardware
- Software
- Desktop-Based
- Services
- Others
Form Factor
- Mobile
- Standalone
- Monitor
End-user
- Industrial
- Education
- Enterprise
- Government
- Healthcare
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Lenovo
- Dell Inc.
- IGEL
- OnLogic
- Samsung
- LG Electronics.
- NComputing Co. LTD
- Centerm Information Co., LTD
- Cisco Systems, Inc.
- Fujitsu
- NEC Corporation
- Advantech Co. Ltd.
- Siemens
- American Industrial Systems, Inc.
- Others
Competitive Landscape
- The competitive landscape of the global thin client market report provides key insights into the growth strategies and development initiatives implemented by the key players in the market.
- Key players competing in the thin client market are Lenovo; Dell Inc.; IGEL; OnLogic; Samsung; LG Electronics.; NComputing Co. LTD; Centerm Information Co., LTD; Cisco Systems, Inc.; Fujitsu; NEC Corporation; Advantech Co. Ltd.; Siemens; and American Industrial Systems, Inc. Some of these major companies adopted various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
- In August 2022, OnLogic announced a pair of new devices for thin and zero client computing. OnLogic is a global computer manufacturer and solution provider. The New TM120 and TM710 are solid-state, compact fanless PCs that ship with ThinManager Software preloaded. It allows users to deploy hardware quickly. The new system joins OnLogic’s growing line of ThinManager-ready hardware.
- In November 2021, IGEL announced a definitive global agreement with HP Inc. It is a provider of the next-gen edge OS for cloud workplaces. It is for the certification of IGEL OS on select HP thin clients to deliver secure, east-to-mange, and cost-effective cloud-enabled workspaces for the new work-from-anywhere (WFx) era.
- In November 2021, Fujitsu launched a new-generation thin client FUTRO lineup. The Fujitsu Thin Client FUTRO S-series models come with increased memory capacity, and PCIe-based SSD drives, and are fast as compared to previous generations. The new slimmed-down devices introduce AMD Ryzen R1000 series processors to the range for the first time, delivering up to 20% better performance.
- In March 2020, Dell Wyse terminal ThinOS announced the Version 9.0 Operating System. ThinOS 9.0 is a Citrix-specific release, which integrates the Citrix Workspace app. ThinOS 9.0 does not support the usage of INI parameters.
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