Rugged Notebooks & 2-in-1 Detachable Computers

INSIDE THIS REPORT:

This report covers the overall market opportunity for rugged clamshell notebooks and 2-in-1 devices supporting enterprise and government Line-of-Business (LoB) applications. Analysis includes market sizing and forecasts for rugged notebooks, broken into fully and semi-rugged categories and including additional analysis on rugged 2-in-1 detachable devices. The market opportunity for devices is segmented by region, industry, and application environment. Additional trends around ruggedness, wireless functionality, OS, display size and other capabilities are examined. Vendors are profiled at the end of the report.

WHAT QUESTIONS ARE ADDRESSED?

• What is the market outlook for rugged notebooks used in enterprise and government mobility applications?

• What is the relative opportunity for rugged notebooks by regional market, industry, and application?

• How do rugged notebook use cases and outlooks vary by region?

• How do applications of rugged notebooks vary across vertical markets?

• How do evolving priorities within LoB applications impact the market reach of 2-in-1 devices vis à vis clamshell notebooks?

• What major trends have emerged around rugged notebook design, OS, connectivity, and display?

• How are OEMs navigating uncertainties around recession and faltering demand?

• What new solutions are challenging the norms of the rugged notebook market?

WHO SHOULD READ THIS REPORT?

This report targets marketing, sales, and product development decision-makers within mobile device OEMs, as well as enterprise and government mobility solution providers and IT leaders responsible for the evaluation and purchase of devices for their government or enterprise agencies.

VENDORS COVERED IN THIS REPORT:

EXECUTIVE SUMMARY:

After flat performance in 2021, the rugged notebook had record sales in 2022, with double-digit growth across form factors. Surging 2022 sales were due in part to unfulfilled demand during the supply chain challenges of 2020- 2021, and to the focus shift from equipment for remote workers to rugged devices for frontline applications. With component shortages no longer a challenge for OEMs and buyers moving forward with delayed contracts, the market has seen unprecedented sales. Notebook sales in Q1 2023 have remained strong and promise to continue into Q2. However, it is less likely that sales will persist into the second half of the year, and the market should increase only slightly overall.

This report includes data and forecasts for the rugged notebook market as it stands in 2023. It is inclusive of semirugged clamshells, fully-rugged clamshells, and fully-rugged 2-in-1 detachable devices. VDC is including all 2-in-1 sales and volumes in this report in acknowledgment of their complementarity to the sector: 2-in-1s offer the desired features of fully-rugged clamshell notebooks at a lower cost and lighter weight, thus drawing some rugged clamshell buyers away from the conventional form factor.

Delays in government and public service purchasing led the second half of 2022 to have strong sales, which carried into the first half of 2023. VDC anticipates a market correction in late 2023-2024, with rugged notebook demand dropping and then growing gradually from 2025-2027. Regional and global signs of recession will be a push and pull for buyers, who will be more conservative with spending but will also prioritize any investments that improve operational performance. The latter trend will work to the rugged category's advantage, with its lower overall TCO.

Recent device trends highlight prioritization of usability and the end user experience. The fully-rugged 2-in-1 remains a popular choice for workflows where users want a lighter, more portable device while maintaining the notebook experience. The overall robust quality of rugged has driven advancements in business and consumer grade devices, which have attracted tablet customers in areas like the utilities industry. Focus in enterprise is shifting from full ruggedness to optimal functionality. With rising standards around durability, devices that optimize device weight and performance will be best positioned in the enterprise market.

KEY FINDINGS:

The rugged notebook market experienced record growth in 2022. High growth in 2-in-1s and clamshells stemmed from pent-up demand from pandemic and supply chain related delays of 2020-2021.

The fully-rugged market will grow at a faster rate than the semi-rugged market , due to growing sales of 2-in-1 devices and clamshell category market correction. 2022 spikes in semi-rugged sales will pull the 5-year CAGR lower for that form factor, while a 2022 dip in fully-rugged clamshells (Americas) will inflate the global growth rate.

The Americas are currently the largest market for semi- and fully-rugged notebook computers , and will maintain their position through 2027.

The average selling price (ASP) of rugged notebooks varies across regions, ruggedness levels, and form factors. Globally, ASPs are expected to decline slightly across rugged clamshells and remain level for 2-in-1s. Both trends take shape amid irregularities in 2021-2021, where some regions saw price spikes and drops.

Rugged notebooks are and will continue to be used most by the government sector , growing in global sales volume.

OEMs have recovered from supply chain disruptions of 2020-2021 , but the market will likely correct with a drop in sales in 2023. Delays to contracts were partially responsible for the market spike of 2022, and OEM strategy will be cautious in the coming quarters as they navigate possible sales decline.

Shifting mobile labor pool dynamics have put greater emphasis on device usability. Buyers will seek devices that facilitate employee use, and will make some effort to imitate a user's personal device experience onto a company device.

Windows 11's ability to run Android apps may poach long-time users of that OS. While VDC has observed a gradual shift from Windows to Android over the years, Windows 11's interoperability will slow and in some cases reverse the trend of Windows to Android shift.

ABOUT THE AUTHORS:

Emily Gove

Emily is a market research professional within VDC's Enterprise Mobility practice, supporting syndicated research and custom projects. She brings experience integrating new technologies into logistics, sales, and inventory management spaces, and has a research background in the crosscultural consumption of various products. Emily holds a BA in Anthropology and Gender Studies from the University of Richmond and an MA in Anthropology from SOAS University of London.

David Krebs

David has more than ten years experience covering the markets for enterprise and government mobility solutions, wireless data communication technologies and automatic data-capture research and consulting. David focuses on identifying the key drivers and enablers in the adoption of mobile and wireless solutions among mobile workers in the extended enterprise. David's consulting and strategic advisory experience is far reaching and includes technology and market opportunity assessments, technology penetration and adoption enablers, partner profiling and development, new product development and M&A due diligence support. David has extensive primary market research management and execution experience to support market sizing and forecasting, total cost of ownership (TCO), comparative product performance evaluation, competitive benchmarking and end user requirements analysis. David is a graduate of Boston University (BSBA).