Press release
India's Data Center Market Set to Soar: Driven by Smartphone Boom, 5G Rollout, and Digital Transformation
India Data Center Market
Government initiatives, such as the "Make in India" campaign, have spurred domestic smartphone manufacturing, offering affordable, high-performance devices. Alongside this, digitalization efforts like the promotion of online services, digital payments, and smart home automation have dramatically increased data consumption. The introduction of 5G is set to further amplify demand for data centers, driven by the popularity of online entertainment, gaming, and cloud applications.
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Key Market Drivers
Broadband Expansion and Fiber Optics Revolution
The expansion of broadband services, supported by innovations in fiber optic technology, has significantly boosted data connectivity in India. Broadband connections surged from 61 million in March 2014 to 816 million by September 2022. The flagship BharatNet project has connected over 1.9 lakh Gram Panchayats (GPs) with optical fiber cable, enhancing rural internet penetration.
The growing adoption of smart devices like TVs and lighting systems in urban areas has created a demand for faster bandwidth speeds, driving the popularity of fiber optic connections that seamlessly connect data centers to cloud servers.
Technological Advancements in Telecom and IT
The IT and telecom sectors lead the data center market, driven by exponential growth in data traffic, fueled by rising internet penetration and cloud service adoption. By 2025, 56% of newly connected internet users are expected to come from rural India. Telecom providers and IT companies are investing heavily in advanced data center infrastructure to support technologies like 5G, IoT, and AI, which require robust data processing capabilities.
Market Opportunities and Challenges
Banking and Financial Services: A Fastest-Growing Segment
The Banking, Financial Services, and Insurance (BFSI) sector is emerging as the fastest-growing segment in the India data center market. Increasing adoption of digital banking, online transactions, and cloud solutions has created a need for secure, scalable data centers that meet stringent compliance and data localization requirements.
Scalability and Flexibility Concerns
Despite the robust growth, scalability and flexibility remain significant challenges for data center operators. Modern business environments require solutions that can dynamically adapt to changing workloads, user activity surges, and evolving technology demands without compromising performance or incurring high costs. The push for cloud-native architectures and edge computing adds further complexity to these demands.
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India Data Center Top Companies and Competitive Landscape
Businesses are being encouraged to engage in the research and development of energy-efficient data centers by the fierce competition between industry leaders for the introduction of cutting-edge and novel goods. Additionally, a number of end customers are implementing data center solutions, which facilitates data centers' adoption of green practices without sacrificing efficiency.
In November 2022, Under the terms of a Memorandum of Understanding they signed with the Indian government, STT Telemedia intends to grow even more over the next 10 years by establishing new data center facilities in Karnataka.
Some of the key companies in the global India Data Center Market include:
Adani Group
Arshiya Limited
CTRLS Datacenters Ltd.
Equinix Inc.
ESDS Software Solution Ltd.
NetData Vault Limited
Nikom InfraSolutions Pvt. Ltd.
Nippon Telegraph and Telephone Corporation
Nxtra Data Limited
Sify Technologies Limited
Sterling and Wilson Pvt. Ltd.
Web Werks India Pvt. Ltd.
India Data Center Latest Industry Updates
In October 2022, Pi Datcenters and Sequretek, a cybersecurity solutions provider, have formed a joint partnership. Data protection for cloud and other service offerings for Pi data centers is the goal of the alliance.
In September 2022, To assist cut carbon emissions, Nxtra Data has announced the installation of hydrogen fuel cells in their Karnataka data center.
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India Data Center Market Segmentation Analysis
Application Outlook (Revenue, USD Million; 2020-2033)
Banking, Financial Services & Insurance (BFSI)
Government
IT and Telecom
Media
Retail
Manufacturing
Others
Types Outlook (Revenue, USD Million; 2020-2033)
Enterprise Data Centers
Colocation Data Centers
EDGE Data Centers
Hyperscale Data Centers
Components Outlook (Revenue, USD Million; 2020-2033)
Hardware
Software
Services
Sizes Outlook (Revenue, USD Million; 2020-2033)
Small Data Center
Mid-Size Data Center
Large Data Center
Regional Outlook (Revenue, USD Million; 2020-2033)
India
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Look Over transcripts provided by Emergen Research
India Data Center Market Size@ https://www.emergenresearch.com/industry-report/india-data-center-market/market-size
India Data Center Market Share@ https://www.emergenresearch.com/industry-report/india-data-center-market/market-share
India Data Center Market Trends@ https://www.emergenresearch.com/industry-report/india-data-center-market/market-trends
India Data Center Regional Market Demand@ https://www.emergenresearch.com/industry-report/india-data-center-market/regional-market-demand
India Data Center Market Analysis@ https://www.emergenresearch.com/industry-report/india-data-center-market/market-analysis
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