DUBLIN–(BUSINESS WIRING) – The report “India Data Center Market – Growth, Trends, Impact of COVID-19 and Forecasts (2021-2026)” was added to ResearchAndMarkets.com’s sentence.
The data center market in India is expected to grow by an average of 8% in the forecast period 2021 to 2026.
The rapid adoption of cloud-based business operations has prompted companies to acquire data management capabilities to handle the massive amounts of data generated. The growth in online shopping, thanks to the presence 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.
Growing volumes of cloud computing in India, increasing Internet penetration, government regulation of the data generated in the country, and increased investment by foreign players are some of the main 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 provide tremendous opportunities for the market vendors investigated during the forecast period.
With over 669 million Internet users and a projected economy of $ 5 trillion by 2024, India is estimated to be generating massive amounts of data at a tremendous rate in the coming years. The massive adoption of smartphones and smart devices by end users, the adoption of cloud computing, big data, artificial intelligence, etc. by Indian enterprises, the increase in the number of interconnected devices through the Internet of Things further support this growth. The country has some of the largest e-commerce and telecommunications enterprises. And with the country’s population projected to surpass 1.4 billion over the next five years, with only about +100 third-party data centers around the country, the number of hyperscale data centers in India is huge.
According to NxtraData, India’s data center sector is likely one of the fastest growing data center markets in the world, and with increased adoption of the digital model across a wide range of enterprises, could spike demand for data centers in India.
The country is also witnessing a growing economy shift towards a consumption-driven model by combining core technologies into a single stack. The move to digital transactions to meet RBI and the government’s goal of cutting cash and the penetration of cloud technology into all of these technologies is growing. Thus, the need for high quality experience drives all of the world’s leading cloud service providers to be present in India.
Companies in the country looking to meet this growing demand include hyperscale and colocation providers like Bridge Data Center and STT GDC, as well as giant public cloud players like Google Cloud, Amazon Web Services, AlibabaCloud, Microsoft Azure, and Oracle. …
In addition, major data centers in Asia, such as Singapore, are introducing new restrictions and restrictions on the location of data centers on the island, which is an increasingly challenging task for providers; therefore they shift their attention to India.
Key market trends
Internet penetration will grow significantly
The rapid growth of the Internet in rural areas, thanks to the availability of bandwidth, economical data rates and increased awareness, has led to the adoption of digital technologies in rural India. Rural areas of India are driving digital adoption, which recorded 35% growth to reach 200 million internet users in 2018 and is expected to reach 290 million by the end of 2019, according to ICUBE’s report.
India is one of the fastest growing digital consumer markets with 560 million internet subscribers in 2018, behind China. Indians have 1.2 billion mobile phone subscriptions, have downloaded over 12 billion apps, and consume an average of 8.3 gigabits (GB) of data per month, compared to 5.5 GB for mobile users in China, which is a digital economy. This indicates opportunities for India’s future digital growth and a growing reliance on data centers to support digital advancements.
The rise of demonetization in 2016 played a critical role in transforming financial transactions and led to the creation of electronic payments. What’s more, the tremendous increase in debit card use due to the push provided through RuPay cards under Pradhan Mantri Jan Dhan Yojana and the increase in the number of POS terminals, as well as various incentives provided by the government and merchants for digital payments, have helped India move towards cashless economy in the medium and long term. This has increased consumer dependence on technology and is expected to drive the development of data centers in India.
Proximity to fiber optic stations and an uninterrupted and reliable power supply are some of the decisive factors to consider when penetrating the Internet. Thus, the bulk of total investment by local and global companies is in cities such as Mumbai, Hyderabad, Bangalore and Chennai.
However, the reliability of power supply has improved over the past few years, especially in some key states. Local authorities understand the importance of the growth of the data center market and its impact on the economy and potential investment; therefore, they support the development of data centers, including the provision of attractive land plots with sufficient electricity availability and renewable energy sources.
The data center market in India is highly concentrated due to higher initial investment and low resource availability. It is dominated by several big players such as Atos, Amazon Inc., Cisco Systems Inc., Dell Software Inc. and Hewlett-Packard Enterprise.
These large players with a significant market share are focused on expanding their client base in foreign countries. These companies are using strategic joint initiatives to increase their market share and improve their profitability. However, with technological advances and product innovations, midsize and smaller companies are increasing their market presence by entering into new contracts and entering new markets.
For more information on this report, visit https://www.researchandmarkets.com/r/yyxeyl.