Not long ago, accessing the latest technology meant buying it.

You paid a large sum upfront, owned the device, and eventually discarded it, often long before it reached the end of its useful life, when a newer model came out or your needs changed.

That is changing.

Device-as-a-Service (DaaS) is a model in which customers access devices rather than purchasing them outright. The provider owns the device, delivers it, services it, and takes it back, refurbishing and redeploying it rather than discarding it. The customer pays a recurring fee and gets the benefit of using the device without the burden of owning it.

In 2025, the global DaaS market is valued at over $200 billion, growing at roughly 29% per year, making it one of the fastest-growing segments in the technology industry.

Nearly every major device brand, Apple, Samsung, HP, Lenovo, Dell, now operates some version of the as-a-service modelmodel. So do specialist platforms like Grover, Raylo, and Whoop, and manufacturers of everything from fitness equipment to medical devices.

This article explains what DaaS is, what's driving its growth, what it looks like when different types of companies implement it, and how a company can identify which model is right for them.

What is Device-as-a-Service?

Device-as-a-Service is a business model in which hardware, laptops, smartphones, tablets, wearables, home appliances, medical devices, or any other physical device, is provided to customers on a subscription or recurring access basis rather than sold as a one-time purchase.

The defining characteristic is that the provider retains ownership of the device throughout its lifecycle. They are responsible for delivering it, maintaining it, replacing it if it fails, and recovering it at the end of the subscription term. The customer pays a recurring fee for access to the device and, often, a bundle of services around it — insurance, repair coverage, upgrade rights, technical support.

This makes DaaS part of the broader Product-as-a-Service category, a shift from selling physical products as transactions toward delivering them as ongoing services. It is the hardware equivalent of what SaaS did to software: instead of buying a licence, you subscribe.

One important clarification: Device-as-a-Service (hardware DaaS) should not be confused with Desktop-as-a-Service, which also uses the DaaS acronym but refers to virtual desktop environments delivered from the cloud. They are completely different models. This article covers hardware DaaS, physical devices delivered to customers on a subscription or access basis.

DaaS goes by several names depending on the context: Hardware-as-a-Service (HaaS), Tech-as-a-Service (TaaS), Equipment-as-a-Service, or simply a device subscription or rental. The concept is the same, access replaces ownership, and the provider manages the device lifecycle.

Where is the push for Device-as-a-Service coming from?

DaaS is not growing because technology companies decided to try a new pricing model. It is growing because multiple structural forces are converging — from the regulatory environment, from changes in consumer behaviour, and from the commercial economics of hardware businesses themselves.

1. Sustainability regulation is forcing lifecycle accountability

The EU Right to Repair Directive, which entered into force in July 2024, requires manufacturers to provide repair services beyond the warranty period and make spare parts available for up to 10 years. The EU Ecodesign for Sustainable Products Regulation requires electronics to be designed for durability and recyclability. From June 2025, smartphones and tablets in the EU must carry a repairability score on their energy label.

These regulations are not friendly to the traditional sell-and-forget model. They are, however, structurally aligned with DaaS: if you own the device throughout its lifecycle, you already have every incentive to maintain it, repair it, and extend its useful life. Compliance becomes a natural outcome of the commercial model rather than a cost imposed on top of it.

Read: Access-Based Business Models and the EU Right to Repair Law

2. E-waste has become a crisis — and a commercial opportunity

The world generated 62 million metric tonnes of e-waste in 2022, growing at 2.6 million tonnes per year. Only 22.3% is properly collected and recycled. Consumer electronics are one of the fastest-growing contributors. The cost of this — in raw materials, manufacturing emissions, and disposal — is enormous.

DaaS directly addresses e-waste by keeping devices in active use for longer. Grover, Europe's leading consumer electronics subscription platform, reports that its devices are rented an average of four to five times each — meaning each device displaces four or five new purchases that would otherwise have been manufactured and eventually discarded. At scale, this is not just environmentally meaningful; it is commercially significant: more revenue from fewer units of inventory.

3. Market saturation is making one-time sales increasingly difficult

In most established device categories, smartphones, laptops, tablets, the market is saturated. Most consumers who want a device already have one. Replacement cycles are lengthening. Manufacturers are competing on incremental improvements (slightly better camera, marginally faster processor) against a consumer base that knows last year's model still works fine.

DaaS reframes the upgrade question. Instead of asking a customer to justify the psychological and financial cost of replacing a working device, a subscription creates a frictionless upgrade path as part of an ongoing relationship. The customer does not face a €1,200 upfront cost, they face a modest change in their monthly payment. That is a fundamentally different and more accessible commercial moment.

4. Consumer attitudes toward ownership are shifting

The generation that normalised Spotify, Netflix, and Airbnb does not default to ownership the way previous generations did. For a growing segment of consumers , particularly younger demographics and urban populations, access is preferable to ownership for products that depreciate quickly, require maintenance, or have natural lifecycle limits.

This is not ideological. It is practical. A parent does not need to own a stroller for 18 years. A student does not need to own a laptop they will use for three years of study. A small business does not need to own a fleet of devices it will need to manage, update, and eventually dispose of. In all of these cases, access is genuinely more rational than ownership, and DaaS is the commercial structure that makes access available.

Read: Why Do Consumers Rent Tech? | Usership vs Ownership: Access Over Ownership

5. AI and IoT are making device lifecycle management smarter

AI integration into device management platforms is enabling predictive maintenance, automated device health monitoring, and optimised refresh cycles — making DaaS operationally more attractive for providers. Remote monitoring means providers can identify device issues before they become failures, reducing support costs and improving customer experience. The emergence of AI-enabled devices (AI PCs, AI phones) is also creating a new wave of meaningful upgrade demand that subscription models are well placed to capture.

6. Supply chain economics favour the DaaS model

As the 2025/2026 DRAM shortage demonstrates, supply chain disruptions translate directly into revenue volatility for businesses dependent on one-time device sales. A subscription business generates revenue from its existing subscriber base regardless of whether new units are available. A DaaS operator with a refurbishment cycle also creates an inventory buffer that is partially independent of the primary supply chain — returned and refurbished devices can be redeployed when new units are constrained.

Read: Key Challenges in the Consumer Electronics Industry (2026)

What does Device-as-a-Service look like when companies implement it?

DaaS is not a single model. It is a category of models, each with different commercial logic, different customer relationships, and different operational requirements. Here is what each variant looks like in practice — with real companies as examples.

Model 1: Subscription (recurring access to a device)

The customer pays a fixed monthly fee for access to a device. The subscription continues until the customer cancels or returns it. The provider refurbishes returned devices and redeploys them to the next subscriber.

This is the most common consumer DaaS model. The commercial logic is straightforward: lower the barrier to access, generate recurring revenue from the device over multiple subscription cycles rather than a single sale, and capture the refurbished asset value between cycles.

Companies doing this:

• Grover — Berlin-based, Europe's market leader in consumer electronics subscriptions. Offers over 3,000 tech products across smartphones, laptops, gaming, wearables, and smart home devices on 1–18 month minimum terms. Has circulated over 1.2 million devices, each an average of 4–5 times. Partners with MediaMarkt and Saturn for in-store subscription access across 500+ German retail locations.
• Raylo — UK consumer tech subscription for smartphones and laptops. Returns are graded and refurbished; the company operates a refurbishment-first model where every device goes through at least one additional cycle.
• Yuno — Swiss consumer electronics subscription backed by Migros Group. Smartphones, laptops, tablets, gaming hardware. 12,000+ subscriptions processed; 40% of customers return for a second subscription cycle.
• Swapphone — Netherlands, circular phone subscriptions with mid-subscription swap capability.
• Refurbly — Sweden, circular mobile phone subscription, refurbished-device focused.

Read: Case Study: Whoop — Device-as-a-Service in Fitness | Case Study: Peloton — Hardware-as-a-Service

Model 2: Upgrade programme

The customer subscribes to the ability to always have the latest device rather than to a specific device. After a defined minimum period, they can swap to the next model — often at the same monthly price, or a small uplift. The provider manages the return and refurbishment of the old device.

This model is designed for categories where technology generations matter and upgrade desire is high. The commercial incentive is to keep the customer in the programme indefinitely, cycling through new devices rather than ever reaching a natural end point.

Companies doing this:

• Apple iPhone Upgrade Program — US and UK. Fixed monthly fee covers the latest iPhone plus AppleCare+. Customers can upgrade to the next iPhone model every year. One of the most widely adopted manufacturer DaaS programmes globally.
• Samsung Galaxy subscription and partner programmes — Samsung has partnered with Grover and other operators across European markets to offer Galaxy devices on monthly subscriptions with upgrade options. Samsung's own Galaxy Upcycling programme repurposes returned devices for a second-life use case.
• HP Device-as-a-Service — enterprise-focused, but includes a regular device refresh cycle so organisations always have current hardware. HP manages asset disposition (refurbishment or recycling) at end of term.

Model 3: Subscribe-to-own

The customer makes monthly payments that accrue toward ownership. At the end of the payment term, ownership transfers to the customer. This is functionally similar to financing but often wrapped in a service layer the provider manages maintenance and repair during the subscription period.

This model works best for customers who want eventual ownership but cannot or prefer not to pay the full price upfront. It is common in higher-value product categories, vehicles, medical equipment, professional tools, where ownership is commercially or psychologically important to the customer.

Read: Types of Subscription Models: Subscribe-to-Own

Model 4: Try-before-buy

The customer subscribes for a minimum trial period, typically one to three months, to experience the product before committing to purchase. If they like it, they buy it. If not, they return it. The device is refurbished and offered to the next subscriber.

This model is most effective for higher-consideration purchases where hesitation is not primarily about price but about fit and functionality. Sporting equipment, professional devices, and specialist hardware are natural categories.

Companies doing this:

• Paceheads — sports equipment, Germany. Customers subscribe for a minimum of 3 months to experience premium gear before committing to purchase. Addresses the core challenge in sports retail: customers hesitate because they are unsure whether the equipment suits them.
• Antelope by Beurer — EMS training suits, Germany. Customers can access the hardware subscription to try the training system before deciding on full ownership. Read: Antelope by Beurer — EMS Subscription

Model 5: Pay-per-use

The customer pays based on actual device usage rather than a fixed monthly fee. A manufacturer of commercial washing machines charges per wash cycle. A printer manufacturer charges per page printed. A mobility company charges per kilometre driven.

This model requires IoT connectivity to measure usage reliably. It is more common in B2B and commercial contexts than in consumer DaaS, though it is expanding as connected devices become more prevalent. Miele's commercial appliance programme and Michelin's EFFITIRES tyre-as-a-service (charging per kilometre) are well-documented examples. Xerox's managed print services pioneered this model in office equipment decades before the term DaaS existed.

Model 6: Managed device service (enterprise IT)

An organisation subscribes to a managed device programme. The provider supplies the hardware, bundles in device management software, security, support, and maintenance, and refreshes the fleet on a regular cycle. The organisation pays a predictable monthly fee and never needs to manage procurement, provisioning, or disposal internally.

This is the dominant model in enterprise IT DaaS. It converts capital expenditure (buying devices) into operational expenditure (subscribing to a device service). Research from IDC found that organisations adopting managed device services improve operational efficiency and reach sustainability goals by eliminating the burden of device lifecycle management.

Companies doing this:

• HP Device-as-a-Service — bundles HP hardware with Proactive Management analytics, remote monitoring, support, and end-of-life recycling or refurbishment.
• Lenovo TruScale — customisable device configurations across Lenovo's full portfolio, backed by Lenovo Financial Services. End-of-life devices are either reused through Lenovo Certified Refurbished or responsibly recycled.
• Dell Technologies managed device services — combined with ProSupport and deployment services. Strong integration with Dell's broader enterprise IT ecosystem.
• Microsoft Surface-as-a-Service — Surface hardware through managed service agreements, often bundled with Microsoft 365.

Read: Top Tech Companies Piloting Device-as-a-Service

How can a company identify which DaaS model is right for them?

The right model depends on your product, your customer, your commercial goals, and your operational capacity. These four questions will get you to a clear answer.

Question 1: Does your product come back?

This is the most fundamental question. If the product is consumed — used up and not returned (coffee, supplements, consumable parts) — DaaS is not the right frame. If the product is a physical durable that the customer will use for a period and then no longer need — an e-bike, a stroller, a laptop, a medical device, a piece of fitness equipment — it comes back. And if it comes back, you have a choice about whether to treat that as a logistical inconvenience or as a commercial asset.

The answer determines everything: which model you can operate, what operational infrastructure you need, and whether refurbishment is a cost centre or a revenue driver.

Read: What are Consumer Durable Products? | Subscription vs. Rental vs. Lease: What's the difference?

Question 2: What is the customer's relationship with ownership for this product?

Some products carry a strong ownership identity — a car, a home, professional tools that define a craftsperson's work. For these, subscribe-to-own or upgrade programmes work better than pure access models because the customer wants a path to ownership.

Other products have a natural and obvious lifecycle end — baby equipment, seasonal gear, student laptops, short-term project hardware. Customers using these products already know they will not need them indefinitely. For these, a pure subscription with no ownership expectation is commercially easier and operationally cleaner.

For products where the customer is uncertain or where ownership has historically been the default, try-before-buy lowers the barrier: the customer can experience access before deciding whether to commit to a purchase.

Question 3: What is the price point?

Price point is a practical proxy for whether DaaS economics work. If your device costs under €50–100 to produce, the logistics of return and refurbishment are unlikely to be commercially viable relative to the asset value. At that price point, consumable subscription models (subscribe and save, subscription box) are more appropriate.

If your device costs €200, €500, €1,000 or more — a premium smartphone, a professional e-bike, a piece of medical equipment, a high-end gaming laptop — the economics of refurbishment are strong. A device that generates three subscription cycles at €50/month produces €1,800 in revenue from a single €500 unit of inventory. The refurbishment cost of each subsequent cycle is a fraction of that revenue.

Question 4: What are your sustainability and regulatory obligations?

For businesses operating in the EU, or selling devices to EU consumers, the Right to Repair Directive and ESPR are not optional. They create obligations around repairability, spare parts availability, and device lifecycle that are directly addressed by operating a DaaS model. If you are building a product roadmap that needs to be compliant with these regulations in 2026 and beyond, DaaS is not just commercially interesting — it is structurally aligned with your compliance requirements.

For businesses with ESG commitments, DaaS creates auditable, measurable circularity data: number of devices refurbished, number of subscription cycles per device, e-waste avoided, CO2 savings from avoided manufacturing. These are not marketing claims — they are operational outputs of the model.

Practical next step: circuly has built a Circularity Check — a set of key questions to help you determine whether a subscription model is the right fit for your product and business. Access the Circularity Check here

What does a company need to operate a DaaS model?

The commercial case for DaaS is straightforward. The operational challenge is real — and it is where most DaaS pilots fail. The standard infrastructure of an ecommerce business (a shop system, a payment provider, and a CMS) is built for one-time sales. It does not handle what happens when a device comes back.

Running a DaaS operation for physical devices requires:

• Recurring billing and invoicing — automated, accurate billing across subscription cycles, with support for mid-term changes, upgrades, and one-time charges
• Asset tracking — serial number level visibility of every device: which customer has it, in what state, and where it is in the lifecycle at all times
• Return logistics — automated triggers when subscriptions end, shipping label generation or collection scheduling, condition confirmation on receipt
• Grading and refurbishment tracking — recording the condition of returned devices, managing repair workflows, tracking refurbishment costs, and determining redeployment eligibility
• Customer self-service — a portal where subscribers can manage their subscription, initiate returns, request swaps, view invoices, and trigger buyouts without contacting support
• Fraud prevention and credit checks — essential for high-value device subscriptions where the cost of a fraudulent subscription is significant
• Dunning and payment recovery — automated retry sequences when payments fail, debt collection escalation for persistent non-payment
• Buyout flows — a separate billing and ownership transfer workflow for customers who want to purchase their device at end of term

This is what circuly is built for — subscription management infrastructure designed specifically for physical consumer durable products including consumer electronics and devices. It is used by DaaS operators including Yuno, Swapphone, and Refurbly to manage their entire device lifecycle from subscription signup to refurbishment and redeployment.

Read: How to Start a Subscription Business for Consumer Electronics | Best Subscription Management Software for Physical, Consumer Durable Products (2025) | 7 Operational Tasks a CMS Can't Do for a Subscription Business

Frequently Asked Questions

What is Device-as-a-Service (DaaS)?

Device-as-a-Service is a model in which hardware devices — smartphones, laptops, tablets, wearables, appliances, or other equipment — are provided to customers on a subscription basis rather than sold outright. The provider retains ownership of the device, manages its lifecycle (delivery, maintenance, recovery, refurbishment), and the customer pays a recurring fee for access. The model shifts the relationship from a one-time transaction to an ongoing service.

What are examples of Device-as-a-Service?

Consumer examples: Grover (consumer electronics subscriptions, Europe and US), Apple iPhone Upgrade Program, Raylo (UK smartphones and laptops), Yuno (Switzerland consumer electronics), Whoop (fitness wearable subscription), Swapphone (Netherlands phone subscriptions). Enterprise examples: HP Device-as-a-Service, Lenovo TruScale, Dell Technologies managed device services, Microsoft Surface-as-a-Service. Read: Top Tech Companies Piloting Device-as-a-Service

What is the difference between DaaS and leasing?

In a lease, the customer commits to a specific device for a fixed term, with ownership typically transferring at the end. The relationship is asset-oriented. In DaaS, the customer subscribes to access — they can upgrade, swap, or return the device. The provider manages refurbishment and redeployment. DaaS is service-oriented rather than asset-oriented. Read: Subscription vs. Rental vs. Lease: What's the difference?

Which DaaS model is right for my business?

The answer depends on four factors: whether your product comes back at end of use, what ownership means to your customer, what the price point of your device is, and what your sustainability and regulatory obligations are. Higher-value durable products with natural lifecycle ends (baby equipment, e-bikes, laptops) are strong candidates for subscription or upgrade models. Lower-consideration products where the customer wants eventual ownership suit subscribe-to-own. Products where the customer hesitates due to fit uncertainty suit try-before-buy. The Circularity Check on circuly's website walks through the key questions.

Why is Device-as-a-Service growing so fast?

Six converging forces are driving DaaS growth: EU sustainability regulation (Right to Repair, ESPR) that creates lifecycle accountability for manufacturers; the e-waste crisis creating both commercial and regulatory pressure to extend device use; market saturation in established device categories making one-time sales harder to grow; shifting consumer attitudes toward access over ownership; AI and IoT making device lifecycle management more operationally efficient; and supply chain instability making recurring revenue models more commercially resilient.

What infrastructure do I need to launch a DaaS programme?

Beyond a standard ecommerce setup, you need: recurring billing automation, asset tracking by serial number, return and refurbishment workflow management, customer self-service, fraud prevention and credit checks, and dunning for failed payment recovery. Standard payment tools manage billing but not the physical device lifecycle. Purpose-built platforms like circuly handle the full operational scope. Read: How circuly Works for Subscription Businesses