Reduction in Cost and Easier Endpoint Management Will Spur Thin Client Growth for Companies Seeking Simpler Management Tools to Replace Aging PCs, According to IDC

FRAMINGHAM, Mass., September 24, 2013 – According to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Client Device Tracker, worldwide thin client and terminal client device shipments totaled 1.3 million units in the second quarter of 2013 (2Q13), an increase of 7.4% from the previous quarter and 8.2% lower than IDC forecast for the quarter. IDC expects shipments for the full year to be 5.3 million units, representing 2.1% year-over-year growth. However, the forecast for 2014 is for shipments to reach 5.9 million units, representing 10.4% year-over-year growth. By 2017, these devices are expected to reach 8.3 million units shipped worldwide.

"NComputing grew 70.9% over the first quarter in 2Q13 by strengthening its focus on the education sector in Asia/Pacific, establishing itself as the top vendor in the region, and by increasing its presence in Latin America," said Jennifer Song, Research Analyst, Worldwide Trackers. "The United States is still the largest market and is expected to grow with HP and Dell leading the way, but the strongest opportunity will be in China. The reduction in cost as well as easier endpoint management that desktop virtualization provides will drive thin client growth, as these are attractive options for companies wanting simpler management. While VDI (virtual desktop infrastructure) can replace old PCs to reduce hardware issues, we also expect to see more offerings of mobile virtualization applications that allow IT departments to skip the necessity of having to deliver a desktop altogether."

Technology Highlights

Thin Clients make up the vast majority (96%) of enterprise client devices.

The standalone form factor constitutes the largest segment of the overall market at 89% share. The mobile form factor is growing the fastest in Japan. Thin clients with LCD are dominant in Asia/Pacific (excluding Japan)(APeJ), the U.S., and Western Europe.

Thin Clients without operating systems (zero clients) hold 24% share among the thin client segment. Linux-based thin clients are slightly larger at 25%.

Vendor Highlights

HP – HP continued to rank number 1 in 2Q13 with 26.2% worldwide market share. They also ranked first in 5 out of 8 regions.

DellWyse – While Dell held the number 2 position with 23.8% worldwide market share in 2Q13, it was the number one vendor in the largest region, the U.S., with 39.0% market share.

NComputing –NComputing had the biggest gains in worldwide market share with 18.1% share in 2Q13. Despite having no shipments in PRC, NComputing managed to become the top vendor in Asia/Pacific (excluding Japan) and Latin America.

Centerm – Centerm now holds the number 2 position in the APeJ market for 2Q13, with 5.3% share worldwide. However, it is the leading vendor in China with 47.1% local share.  

Igel – Igel is the only vendor among the Top 5 that has been seeing steady gains for the last five quarters with a 26.2% year-over-year increase at the worldwide level.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting