Device as a Service (DaaS): Definition, Models, Examples & Providers (2026)

Device as a Service (DaaS) is a business model in which customers pay a recurring fee to use a device, such as a laptop, smartphone, tablet, wearable or medical device, instead of buying it.

The provider owns the device, delivers it, services it, and takes it back at the end of the term to refurbish and redeploy it.

The customer gets the device and the services around it without the cost and hassle of owning it.

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 the end of its useful life, when a newer model came out or your needs changed.

That is changing.

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

This guide explains what DaaS is, how big the market is, the different DaaS models with real examples, how it works for businesses, how it compares to leasing, what it costs, who the main providers are, and what you need to run a DaaS model yourself.

What is Device as a Service (DaaS)?

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 on a subscription or recurring access basis rather than sold as a one-time purchase.

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

This makes DaaS part of the broader Product as a Service (PaaS) category, the shift from selling physical products as one-off transactions to 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 should not be confused with Desktop as a Service, which uses the same DaaS acronym but refers to virtual desktops delivered from the cloud. This guide 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, PC as a service, or simply a device subscription or tech rental. When the device is industrial equipment, the same model is usually called equipment as a service. The concept is the same: access replaces ownership, and the provider manages the device lifecycle.

How big is the device as a service market?

Market estimates vary widely because research firms define DaaS differently (some count only enterprise PC programmes, others include consumer subscriptions and mobile devices). MarketsandMarkets values the market at around USD 70–75 billion in 2024, growing 11–13% a year. IMARC Group puts it at USD 157.7 billion in 2025 and forecasts annual growth of around 27% to 2034.

Whichever estimate you use, the direction is the same: device as a service is one of the fastest-growing models in the technology industry, in both business and consumer markets.

Why device as a service is growing

DaaS is not growing because technology companies decided to try a new pricing model. It is growing because several structural forces are converging: regulation, changes in consumer behaviour, and the economics of hardware businesses themselves.

1. Sustainability regulation is forcing lifecycle accountability

The EU Right to Repair Directive (EU) 2024/1799, which member states had to transpose into national law by 31 July 2026, requires manufacturers to offer repairs beyond the legal guarantee for many product groups. The Ecodesign for Sustainable Products Regulation requires products to be designed for durability, repairability and recyclability. Since June 2025, smartphones and tablets sold in the EU must carry a repairability score on their energy label.

These rules 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 business model rather than a cost on top of it. Read more: access-based business models and the EU right to repair law.

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

According to the Global E-waste Monitor 2024, the world generated 62 million tonnes of e-waste in 2022, growing by 2.6 million tonnes a year, and only 22.3% was properly collected and recycled. Consumer electronics are one of the fastest-growing contributors.

DaaS addresses e-waste directly by keeping devices in use for longer. Grover, Europe's largest consumer electronics subscription platform, reports that its devices are rented an average of four to five times each. Each device replaces several new purchases, which is environmentally meaningful and commercially significant: more revenue from fewer units of inventory. See how sustainability demands are reshaping the consumer electronics industry.

3. Market saturation is making one-time sales harder

In most established device categories (smartphones, laptops, tablets), the market is saturated. Most consumers who want a device already have one, and replacement cycles are getting longer. Manufacturers compete on incremental improvements against customers who know last year's model still works fine.

DaaS reframes the upgrade question. Instead of asking a customer to justify a €1,200 purchase to replace a working device, a subscription creates a frictionless upgrade path as part of an ongoing relationship. The customer faces a modest change in a monthly payment, which is a very different buying moment.

4. Attitudes toward ownership are shifting

The generation that grew up with Spotify, Netflix and Airbnb does not default to ownership the way previous generations did. For products that lose value quickly, need maintenance or have a natural end of use, access is often the more rational choice. A student doesn't need to own a laptop they will use for three years of study. A small business doesn't need to own, manage and eventually dispose of a fleet of devices. Read more: why consumers rent tech and access over ownership.

5. AI and IoT are making device lifecycle management smarter

AI-powered device management enables predictive maintenance, automated health monitoring and optimised refresh cycles, which makes DaaS cheaper to operate. Remote monitoring lets providers spot issues before they become failures. AI-enabled devices (AI PCs, AI phones) are also creating a new wave of upgrade demand that subscriptions are well placed to capture.

6. Supply chain economics favour the DaaS model

As the 2025/2026 memory chip shortage shows, supply chain disruptions translate directly into revenue volatility for businesses that depend on one-time device sales. A subscription business keeps earning from its existing subscribers whether or not new units are available. A DaaS operator with a refurbishment cycle also has an inventory buffer: returned and refurbished devices can be redeployed when new units are scarce. Read more: key challenges in the consumer electronics industry.

Device as a service models, with examples

DaaS is not a single model. It is a group of models, each with different commercial logic, customer relationships and operational requirements. Here is what each 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, and the provider refurbishes returned devices and sends them to the next subscriber. This is the most common consumer DaaS model for smartphones, laptops, tablets and wearables. The logic is simple: lower the barrier to access, earn recurring revenue from the device over several subscription cycles instead of a single sale, and capture the value of the refurbished asset between cycles.

Companies doing this:

• Grover: Berlin-based, Europe's market leader in consumer electronics subscriptions, with thousands of products across smartphones, laptops, gaming, wearables and smart home devices on flexible minimum terms. Also offers subscriptions in-store through retail partners such as MediaMarkt and Saturn.
• Raylo: UK subscription for smartphones and laptops, with returned devices graded and refurbished for further use.
• Yuno: Swiss consumer electronics subscription backed by the Migros Group, covering smartphones, laptops, tablets and gaming hardware. More than 12,000 subscriptions processed, with 40% of customers coming back for a second subscription.
• Swapphone: circular phone subscriptions in the Netherlands, with the option to swap devices mid-subscription.
• Refurbly: circular mobile phone subscriptions in Sweden, focused on refurbished devices.

Device subscriptions also work beyond consumer tech. Read our case studies on WHOOP's device as a service model in fitness and how Peloton built a hardware-as-a-service business.

Model 2: Upgrade programme

The customer subscribes to always having the latest device, not to a specific device. After a minimum period, they can swap to the next model, often at the same monthly price or a small increase. The provider handles the return and refurbishment of the old device. This model suits categories where technology generations matter and the desire to upgrade is high.

Companies doing this:

• Apple iPhone Upgrade Program (US and UK): a fixed monthly fee covers the latest iPhone plus AppleCare+, with the option to upgrade every year. One of the most widely used manufacturer DaaS programmes.
• Samsung: Galaxy devices on monthly subscriptions with upgrade options through partners such as Grover in several European markets.
• HP: enterprise device programmes with a regular refresh cycle, so organisations always have current hardware. HP handles refurbishment or recycling at the end of the term.

Model 3: Subscribe to own

The customer makes monthly payments that lead to ownership at the end of the term. This is similar to financing, but usually wrapped in a service layer, with the provider handling maintenance and repairs during the subscription. It works best for customers who want to own the device eventually but prefer not to pay the full price upfront. Note that from 20 November 2026, many subscribe-to-own contracts in the EU fall under the new Consumer Credit Directive (CCD2). Read more: the subscribe-to-own model.

Model 4: Try before you buy

The customer subscribes for a minimum trial period, typically one to three months, before deciding whether to buy. If they keep it, they buy it; if not, it comes back and is refurbished for the next customer. This model works best for considered purchases where hesitation is about fit and functionality more than price.

Companies doing this:

• Paceheads: premium sports equipment in Germany, with a minimum three-month subscription so customers can try gear before committing. Read the Paceheads case study.
• Antelope by Beurer: EMS training suits in Germany, available on subscription so customers can try the system before deciding to buy.

Model 5: Pay per use

The customer pays based on actual usage instead of a fixed monthly fee: per wash cycle for a commercial washing machine, per page for a printer, per kilometre for a vehicle. This model needs connected devices to measure usage reliably, so it is more common in B2B than in consumer DaaS. Miele's commercial appliance programmes and Michelin's tyre-as-a-service offers (charged per kilometre) are well-known examples, and managed print services pioneered the idea in office equipment long 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. This is the dominant model in enterprise IT, and the one most people mean by "device as a service for businesses" (see the next section).

Companies doing this:

• HP: hardware bundled with proactive management analytics, remote monitoring, support and end-of-life refurbishment or recycling.
• Lenovo TruScale: configurable device programmes across Lenovo's portfolio, backed by Lenovo Financial Services, with end-of-life devices refurbished or recycled.
• Dell: managed device services combined with support and deployment services, integrated with Dell's enterprise IT ecosystem.
• Microsoft Surface: Surface hardware through managed service agreements, often bundled with Microsoft 365.

For more examples, see the top tech companies piloting device as a service.

Device as a service for businesses

For companies, device as a service usually means getting laptops, phones, tablets or specialist devices for employees as a managed service with one monthly price per device, instead of buying, configuring, supporting and disposing of them in-house. A typical business DaaS contract includes:

• The devices themselves, configured and ready to use
• Delivery and setup, often pre-configured for the company's systems
• Support, repairs and replacement devices
• Device management and security software
• A refresh cycle, typically every two to four years
• Collection, data wiping and refurbishment or recycling at the end of the term

Why businesses choose it:

• From CAPEX to OPEX. Instead of large upfront hardware purchases, costs become a predictable monthly operating expense that scales with headcount.
• Less IT workload. Procurement, setup, repairs and disposal move to the provider, which frees small IT teams for other work.
• Always up-to-date hardware. Regular refresh cycles keep devices current and secure.
• Flexibility. Devices can be added or returned as teams grow, shrink or change.
• Sustainability reporting. Refurbishment and certified recycling at the end of the term produce measurable circularity data for ESG reporting.

B2B device subscriptions are also common outside IT. Hospitals and clinics subscribe to medical devices, companies lease e-bikes for employees through providers like Tenways, and manufacturers offer machinery and tools on a pay-per-use basis. Read more on medical equipment subscriptions and equipment and machinery as a service.

Benefits of device as a service

For customers (consumers and businesses):

• No large upfront cost: the device price is spread into monthly payments.
• Repairs, insurance and support are usually included.
• Easy upgrades to newer models.
• Flexibility to return or swap devices as needs change.
• No hassle reselling or disposing of old devices.

For providers (manufacturers, retailers and specialist platforms):

• Recurring, predictable revenue instead of one-off sales.
• Several revenue cycles from the same device through refurbishment and redeployment.
• An ongoing customer relationship, with data on how devices are actually used.
• A natural upgrade path that keeps customers in the brand's ecosystem.
• Easier compliance with repair and sustainability regulation.

For the wider business case, see the top benefits of a subscription model.

Device as a service vs leasing

DaaS and leasing are often confused, because in both cases the customer pays monthly for a device they don't own. The difference is in what the customer is paying for:

• Leasing is a financing arrangement. The customer commits to a specific device for a fixed term. Services such as repairs or support are usually not included, and at the end of the term the device is returned, extended or bought. The relationship is about the asset.
• DaaS is a service arrangement. The customer pays for access to a working device, with services like repairs, replacements, support and upgrades included. Terms are often more flexible, devices can be swapped, and the provider manages refurbishment and redeployment. The relationship is about the outcome.

In practice, many DaaS providers use leasing or other financing behind the scenes to fund their device fleet, while offering the customer a service. For a full comparison of the models, see subscription vs rental vs leasing and financing vs subscription.

How much does device as a service cost?

DaaS pricing depends on the device, the term, the services included and the provider's financing costs. Most providers calculate the monthly fee from the same building blocks:

• The purchase cost of the device, minus its expected value at the end of the term (residual value)
• The services included, such as insurance, repairs, support and logistics
• Refurbishment costs between subscription cycles
• Financing costs and expected payment defaults
• The provider's margin

Longer minimum terms usually mean lower monthly prices, because the provider has more time to recover the device cost. Flexible, short terms cost more per month.

For providers, the economics improve with every cycle. As an illustration: a device that costs €500 and goes through three subscription cycles at €50 a month for a year each generates €1,800 in revenue from a single unit of inventory, while refurbishment between cycles costs a fraction of that. Read more on pricing models for physical product subscriptions and how to price your product subscription.

Device as a service providers

DaaS providers fall into four broad groups:

• Enterprise IT providers: HP, Lenovo (TruScale), Dell and Microsoft offer managed device programmes for businesses, directly or through IT resellers and managed service providers. Apple devices are mostly offered as a service to businesses through resellers and financing partners, while Apple's own iPhone Upgrade Program serves consumers.
• Consumer tech subscription platforms: Grover (Europe), Raylo (UK), Yuno (Switzerland), Swapphone (Netherlands) and Refurbly (Sweden).
• Manufacturers with their own programmes: brands that run device subscriptions directly, from Apple and Samsung in smartphones to WHOOP in wearables, Peloton in fitness and manufacturers of medical devices and e-bikes.
• Retailers: electronics retailers offering subscriptions in-store and online, often in partnership with a DaaS platform.

When choosing a DaaS provider as a business, compare the total monthly cost over the full term, what services are included (repairs, replacements, support, data wiping), how flexible the contract is, the refresh cycle, and what happens to devices at the end of the term. For a longer list of companies, see the tech companies piloting device as a service.

If you are a manufacturer or retailer looking to become a DaaS provider yourself, read on.

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 (coffee, supplements, consumable parts), DaaS is not the right frame. If it is a durable product that the customer uses for a period and then no longer needs (an e-bike, a stroller, a laptop, a medical device, fitness equipment), it comes back. And if it comes back, you can treat that either as a logistical inconvenience or as a commercial asset. The answer determines which model you can run, what operational infrastructure you need, and whether refurbishment is a cost centre or a revenue driver. Read more: what are consumer durable products.

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

Some products carry a strong ownership identity: a car, or professional tools that define someone's work. For these, subscribe to own or upgrade programmes work better than pure access, because the customer wants a path to ownership. Other products have an obvious end of use: baby equipment, seasonal gear, student laptops, short-term project hardware. For these, a pure subscription is commercially easier and operationally cleaner. Where customers are unsure, or ownership has always been the default, try before you buy lowers the barrier.

Question 3: What is the price point?

Price is a practical test of whether DaaS economics work. If your device costs under €50–100 to produce, the cost of returns and refurbishment is unlikely to be viable relative to the asset value, and a consumable subscription is more appropriate. If your device costs €200, €500, €1,000 or more (a premium smartphone, a professional e-bike, medical equipment, a high-end gaming laptop), the economics of refurbishment are strong.

Question 4: What are your sustainability and regulatory obligations?

For businesses selling devices in the EU, the Right to Repair Directive and the Ecodesign Regulation create obligations around repairability, spare parts and device lifecycle that a DaaS model addresses directly. For businesses with ESG commitments, DaaS creates measurable circularity data: devices refurbished, subscription cycles per device, e-waste avoided and CO2 saved from avoided manufacturing. These are not marketing claims; they are operational outputs of the model.

Practical next step: use circuly's Circularity Check, a set of key questions to help you decide whether a subscription model fits your product and business. If you sell consumer electronics, also read how to start a subscription business for consumer electronics.

What does a company need to run 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 requires:

• A subscription checkout that connects to your existing shop and handles terms, deposits and identity checks.
• Recurring billing and invoicing: automated billing across subscription cycles through your payment service provider, with support for mid-term changes, upgrades and one-time charges.
• Asset tracking: serial-number-level visibility of every device, including which customer has it, its condition, and where it is in its lifecycle.
• Return logistics: automated triggers to your logistics partner when subscriptions end, and confirmation of condition on receipt. See reverse logistics for product as a service.
• Grading and refurbishment tracking: recording the condition of returned devices, tracking repair work done by you or your refurbishment partner, and deciding whether each device can be redeployed.
• Customer self-service: a portal where subscribers manage their subscription, start returns, request swaps, view invoices and buy out devices without contacting support.
• Fraud prevention and credit checks: essential for high-value devices, where a fraudulent subscription is costly.
• Dunning and payment recovery: automated retries when payments fail and escalation to debt collection when they keep failing. See payment retrial vs dunning vs debt collection.
• Buyout flows: a separate billing and ownership transfer workflow for customers who want to buy their device at the end of the term.

This is what circuly is built for: subscription management software designed specifically for physical, durable products, including consumer electronics and devices. It connects to your existing shop and payment service provider and triggers your logistics and ERP systems, so you can manage the full device lifecycle from sign-up to return and redeployment. DaaS operators including Yuno, Swapphone and Refurbly use circuly to run their subscriptions. If you sell on Shopify, see circuly's Shopify app for electronics and IT.

Read more: the best subscription management software for physical products and 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 on a subscription basis instead of being sold. The provider keeps ownership, manages the device lifecycle (delivery, maintenance, recovery and refurbishment), and the customer pays a recurring fee for access.

What are examples of device as a service?

Consumer examples include Grover, the Apple iPhone Upgrade Program, Raylo, Yuno, WHOOP and Swapphone. Business examples include HP's device programmes, Lenovo TruScale, Dell's managed device services and Microsoft Surface managed services.

What is device as a service for businesses?

For businesses, DaaS means getting employee devices as a managed service for a monthly fee per device. The provider supplies, configures, supports, refreshes and eventually collects the devices, which turns hardware purchases into a predictable operating cost and reduces IT workload.

What is the difference between DaaS and leasing?

Leasing is a financing arrangement for a specific device over a fixed term, usually without services. DaaS is a service: the customer pays for access to a working device, with repairs, support and upgrades included, and the provider manages refurbishment and redeployment.

How much does device as a service cost?

It depends on the device, term and services included. The monthly fee typically covers the device cost minus its residual value, plus services, refurbishment, financing and the provider's margin. Longer terms mean lower monthly prices.

How big is the device as a service market?

Estimates range from around USD 70–75 billion (MarketsandMarkets, 2024) to USD 157.7 billion (IMARC Group, 2025), with forecast growth between roughly 11% and 27% a year, depending on how the market is defined.

Is device as a service the same as desktop as a service?

No. Both use the acronym DaaS, but desktop as a service is a cloud computing model that delivers virtual desktops over the internet. Device as a service is about physical hardware provided on subscription.

Which DaaS model is right for my business?

It depends on four factors: whether your product comes back at the end of use, what ownership means to your customer, your device's price point, and your sustainability and regulatory obligations. Higher-value durable products with a natural end of use are strong candidates for subscription or upgrade models; customers who want eventual ownership suit subscribe to own; and customers unsure about fit suit try before you buy.

What infrastructure do I need to launch a DaaS programme?

Beyond a standard ecommerce setup, you need recurring billing, asset tracking by serial number, return and refurbishment workflows, customer self-service, credit checks and fraud prevention, and dunning for failed payments. Read: how circuly works for subscription businesses.

Related reading:

• Product as a Service (PaaS): Everything You Need to Know
• Top Tech Companies Piloting Device as a Service
• Case Study: WHOOP's Business Strategy and Device-as-a-Service Success
• Medical Device as a Service
• Anything as a Service (XaaS): Which Products Can Move to a Product-as-a-Service Model?