India Data Center Market to Undertake Strapping Growth by 2022

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The India data center market size is projected to reach USD 1.5 billion by 2022 from USD 1.0 billion in 2018, growing at a Compound Annual Growth Rate (CAGR) of 11.4% during the forecast period (2018–2022). Growth factors for the market include deeper internet penetration, increase in digital data traffic, public cloud services, and higher expected growth for IoT.

Major vendors in the market include Fujitsu (Japan), Honeywell (US), NEC (Japan), Siemens (Germany), IBM (US), Johnson Controls (US), Hikvision (China), Dahua Technology (China), and Schneider Electric (France). The major players have widely adopted growth strategies, such as tapping high growth market (hot pockets) and essential markets, partnerships, and mergers and acquisitions, from 2016 to 2018. They also adopted collaborations, product enhancements, and new product developments, to expand their consumer base and address the unmet needs of end users in India.

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The captive model to account for the highest market share and followed by the outsourced (colocation) model during the forecast period.

The captive model of datacenter is being overtaken by colocation model at a significant rate. It is expected that consolidation of datacenters will cannibalize the captive datacenter market, and colocation market will grow exponentially keeping in view that the outsourcing of datacenters will help reduce the operating cost significantly for the clients.

By 2022, the outsourced model of datacenters will make almost equal market share.

The captive model, however, will still hold a majority of share, due to strict government regulations for various industry verticals making them to spend on captive datacenters to localize their data processing.

Mumbai is the prime focus of data center developers in India with more than 20% of market share, followed by Bengaluru

Indian government has launched MeghRaj cloud to accelerate G2C services delivery. Under the scheme, many national datacenters and state datacenters have been built and many are being built in various states, such as Maharashtra and Madhya Pradesh. For example, NIC has already built 4 NDCs in India and the fifth one is coming up in Bhopal.

All government-owned companies in every industry vertical have their datacenters located in Mumbai and Bengaluru.

Netmagic is one of the prominent colocation services providers in India. The company provides colocation space as well as managed hosting services. Netmagic is a key data center developer in India and leverages early mover advantage into the market. It is the first company in India to launch disaster recovery and cloud computing services. Netmagic is one of the top DC vendors for managed hosting, colocation, and captive data centers in the country, the parent company NTT Communications operates >250 DCs globally. Netmagic maintains long-term relationships with OEMs and high value resellers for better support. The company is known in the industry to have its own norms to ensure smooth and continuous functioning of the DCs. The norms (named as Nexcenter) are above the tier III or IV norms, such as extra client facilities, resiliency, concurring maintainability, and no single point of failure. The company is looking to expand in major cities only. 11 DCs usually operate in full capacity with the new DCs 90% booked even before being launched.

There are multiple case studies of Colocation data center setup in India for Ctrl S, Netmagic, ESDS, Airtel, and ST Telemedia, which contribute to the India data center market CAPEX.

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