India Data Center Market Business Revenue Forecast and Statistics

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MarketsandMarkets expects the India data center market size to grow from USD 1.0billion in 2018 to USD 1.5billion by 2022, at a Compound Annual Growth Rate (CAGR) of 11.4% during the forecast period. The datacenter market potential in India is currently underutilized, but it is expected to witness healthy growth in the coming years. Indian government policies are conducive for the market growth. It has set up objectives in National Digital Communications Policy in 2018 (NDCP-2018) to boost Digital India initiative, which needs to be achieved by 2022.

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Captive is the highest market share holding segment in India, however, the colocation model is growing fast which will hold equal market share of captive in the coming years. The government initiatives will help colocation service providers to gain market share. Currently, the captive model holds more than 60% of market share in India and colocation (outsourced) model captures about 40% market share. However, the gap is expected to be bridged in the coming years, where the captive model will lose about 5% market share and colocation will gain 5% share in India.

The electrical components segment has the highest market share among all components, which is more than 40%. Further breakup of the electrical components market segment reveals the Power Distribution Unit (PDUs) and UPS commands more than 40% of market share among all electrical components.

The Indian government vows to provide universal broadband connectivity at 50 Mbps to every citizen, 1 Gbps connectivity to all Gram Panchayats by 2020, and 10 Gbps by 2022 and ensure connectivity to all uncovered areas. To achieve this objective, the government is targeting USD 100 billion investments in the digital communications sector. Also, it is targeting expansion of IoT ecosystem to 5 billion connected devices in India and train more than one million manpower resources for building digital skill. Simultaneously, the government needs to to establish a comprehensive data protection regime for digital communications that safeguards the privacy of individuals and secure digital communications infrastructure and services.

The Indian government is also taking initiatives to boost the colocation services market in the country. The government is partnering with CtrlS, Netmagic, and Reliance which are investing aggressively in cities such as Mumbai, Bengaluru, and Hyderabad. Apart from this, strict government policy for companies to store their data locally will boost the market for captive datacenters.

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