India Data Center Market Growth, Trends, COVID-19 Impact, and Forecasts Report 2021-2026 - ResearchAndMarkets.com -

India Data Center Market Growth, Trends, COVID-19 Impact, and Forecasts Report 2021-2026 – ResearchAndMarkets.com


DUBLIN–(BUSINESS WIRE)–The “India Data Center Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.

The India data center market is expected to grow at a CAGR of 8% over the forecast period 2021 to 2026.

The rapid adoption of cloud-based business operations has encouraged businesses to acquire data management capacities to handle huge volumes of data that are being generated. Increased proliferation of online shopping due to the availability of user-friendly interfaces, high-speed internet, and smart devices such as smartphones, tablets, laptops, etc. is expected to drive the market in the future.

The growing cloud computing in India, increasing internet penetration, government regulations for data generated in the country, and increasing investment by foreign players are some of the major factors driving the demand for data centers in the country. The digital expansion of end-user industries in the country and initiatives by state governments to attract the construction of data centers in their states for economic growth will offer a massive opportunity to the studied market vendors over the forecast period.

With more than 669 million Internet users presently and forecast to be USD5 trillion economy by 2024, India is estimated to generate massive data at explosive rates in the coming years. The mass adoption of smartphones, and smart devices by end-users, adoption of cloud computing, big data, AI, etc. by Indian enterprises, an increasing number of interconnected devices due to IoT is further supporting this growth. The country has some of the largest e-commerce and telecom industry. And with a population projected to top 1.4 billion over the next five years, with only around +100 third-party data centers across the country, the number of hyperscale, need for the data center is massive in India.

According to the NxtraData, India’s data center sector is probably one of the fastest-growing data center markets in the world, and with the growing adoption digital model across a wide range of businesses can lead to surge the demand for the data center in India.

The country is also witnessing the rising shift of the economy to a consumption-based model by bringing the core technologies into one stack. Shift towards digital transactions to achieve RBI and Government’s less cash objective and cloud penetration across all these technologies is growing. Therefore, the need for high-quality experience is driving all the top global Cloud vendors into having a presence in India.

The companies in the country scrambling to meet that growing demand include hyper scale and colocation providers such as Bridge Data Centres, and STT GDC, as well as giant public cloud players such as Google Cloud, Amazon Web Services, AlibabaCloud, Microsoft Azure, and Oracle.

Also, the major data center-hubs in Asia, like Singapore, are imposing new restrictions and limits on locations for data centers on the island, which is becoming more challenging for providers; hence they are shifting their focus to India.

Key Market Trends

Internet Penetration Will Experience Significant Growth

  • Rapid internet growth in rural areas due to the availability of bandwidth, cost-effective data plans, and increased awareness has led to digital adoption by rural India. According to the ICUBE report, digital adoption is being propelled by rural India that registered 35% growth and reached 200 million internet users in 2018 and is expected to reach 290 million by the end of 2019.
  • India is one of the fast-growing markets of digital consumers and had 560 million internet subscribers in 2018, second to China. Indians have 1.2 billion mobile phone subscriptions and downloaded more than 12 billion apps and consume 8.3 gigabits (GB) of data on an average per month, compared with 5.5 GB for mobile users in China, an advanced digital economy. It indicates opportunities for India’s future digital growth and the increasing dependency on data centers to support the digital advancements.
  • The demonetization drive of 2016 has played a pivotal role in the transformation of financial transactions and led to the foundation of electronic payments. Moreover, tremendous growth in the use of debit cards due to push provided through the RuPay cards under the Pradhan Mantri Jan Dhan Yojana and increased number of POS terminals and various incentives provided by the government and merchants for digital payments had helped India to move towards a cashless economy in the medium and long term. It has increased the dependency of consumers on technology and is expected to propel the development of data centers in India.
  • Proximity to fiber landing stations and uninterrupted and reliable power supply are some of the crucial factors considered for Internet penetration. Therefore, the major portion of the overall investments from local and global companies is mainly in cities like Mumbai, Hyderabad, Bangalore, and Chennai.
  • However, the reliability of power has enhanced in the last few years, especially in some key states. The local government understands the importance of data center market growth and its impact on the economy and potential investments; hence are supporting the development of data centers, including providing attractive land options with ample power availability and usage of renewable energy.

Competitive Landscape

The India data center market is highly concentrated due to higher initial investments and low availability of resources. It is dominated by a few major players like Atos, Amazon Inc., Cisco Systems Inc., Dell Software Inc., and Hewlett-Packard Enterprise.

These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

For more information about this report visit https://www.researchandmarkets.com/r/yyxeyl



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