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Data Center Market in India - Industry Outlook and Forecast 2019-2024

SKU : ARZ190103
  • Published on : January 2019

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This market research report on the data center market in India offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, Rack PDU, and other electrical infrastructure), mechanical infrastructure (cooling systems, racks, and other infrastructure), by IT infrastructure (server, storage, and network), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), by tier standards (Tier I & II, Tier III, and Tier IV), and by geography (Maharashtra, Karnataka, Telangana & Andra Pradesh, and other states).

Data Center Market in India - Overview

The Internet is one of the major factors contributing to the development and growth of the India data center market. With the increasing smartphone penetration and increasing use of 4G LTE technology the demand for IT infrastructure solutions are on the rise in the Indian market. The average broadband speed has increased significantly, and by the end of 2018, there were around 510 million internet users and around 450 million smartphone users in India. The growing adoption of technological advancements such as cloud-based services, big data analytics, and IoT services is fueling the growth of the Indian market. The increasing adoption of the publicand hybrid cloud environment is encouraging the operators to deploy data centers that can process petabytes of data that is generated by business and consumer users in the market. The use of big data analytics by large e-commerce businesses and BFSI sectors will contribute to the growth of the Indian market. The local colocation providers are one of the major contributors of datacenter construction in the Indian market. The incorporation of government initiatives to grow the digital economy, along with the migration of traditional service offerings to cloud-based platforms by government agencies will drive revenues in the Indian market. The growing popularity of smart devices, an increasing number of social media users, and digital payment services will create lucrative opportunities for leading players in the market. NTT Netmagic, CtrlS, Reliance (Global Cloud Xchange), ITI Limited, Sifty Technologies, GPX Global Systems, and STTelemedia GDC (Tata Communications) are some of the leading investors in India during 2018. Colt DCS is planning to invest around $300 million in hyperscale data center facility construction, which is likely to be operational by 2020, thereby boosting revenues in the India data center market.

Major cities such as Mumbai, Bangalore, and Hyderabad are witnessing high investments of local and international operators in the Indian market. The increasing construction of hyperscale facilities with the power capacity of over 50 MW will fuel the need for innovative infrastructure in the market over the next few years. The data center market in India is expected to reach values of approximately $4 billion by 2024, growing at CAGR of around 9% during 2018-2024. The market research report also offers market share analysis in terms of power capacity (MW) and area (square feet).

Data Center Market in India - Market Overview and Analysis 2024

Data Center Market in India – Dynamics

The increase in the government interest to promote a digital economy through facilities deployment will drive the growth of the India data center market. The growing use of smart devices and social media growth has prompted both central and state government to migrate from the existing traditional service offerings to digital platforms in India. In the fiscal budget of 2018, the central government emphasized the increase in investment in cloud and data center deployment in the Indian market. The government initiative named MeghRaj to make sure that service providers hosting government-based cloud application should store the related data inside the country will drive innovations in the market. The digitalization initiatives by the government and state and national banks will lead to million-dollar investments in the Indian market. Telangana and Andra Pradesh is becoming a major hub for data center development, and the state government is supporting facilities deployment by providing resources such as power and land for development in the country. The construction of large facilities spanning over 50,000 square feet area and 10 MW of power capacity will attribute to the growth of the India data center market.

Data Center Market in India – Segmentation

This market research report includes a detailed segmentation of the market by electrical construction, mechanical construction, IT infrastructure, general construction, tier standards, and geography.

Data Center Market in India - Segments and Share 2024

 

Data Center Market in India – By Electrical Infrastructure

Power fluctuations and outages will prompt datacenter operators to procure 2N redundant UPS and generator systems in the India data center market

The India data center market by electric infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, Rack PDU, and other electrical infrastructure. UPS systems dominated the largest India market share in 2018, growing at a CAGR of more than 13% during the forecast period. The installation of large UPS systems that are capable of supplying MW power is kept in a centralized location to provide backup power for the entire facility during an outage in the data center market in India. The leading vendors are focusing on innovating data center UPS solutions to enhance their efficiency and reduce cost in the India market. The implementation of modern UPS systems with battery monitoring controls to predict the possibility of failure and maintenance needs will revolutionize the market. The adoption of rack-level UPS systems and stand-alone UPS systems at capacity in the range of 20-250kVA will drive revenues in the India data center market among small data centers.

In the Indian market, diesel generators dominate over 95% of the market, where the use of gas generators is very low. The increasing construction of large facilities will lead to the adoption of medium- and high-voltage switchgear in the market over the next few years. The construction of large datacenters will lead to the adoption of rack PDUs with the capacity of over 10 kW in the India data center market after 2020.

Data Center Market in India – By IT Infrastructure

Adoption of converged and hyper-converged infrastructure will add more revenues to the India data center market

The IT infrastructure segment in the India data center market is classified into server, storage, and network. The network infrastructure is the fastest growing segment in the Indian market, at a CAGR of more than 10% during the forecast period. The increase in the adoption of a variety of configuration, with one ethernet switch comprising multiple ports (10/40/25/50/100) in a single switch, is fueling the growth of this segment. The on-premise facilities using 1 GbE switches are likely to be replaced by 10 GbE or 25GbE in the Indian market during the forecast period. The growing development of cloud data centers and colocation facilities, the adoption of switches with ports varying from 25GbE to 100 GbE across multiple layers offacility architecture will increase in the market. The growing focus on improving the fiber optic connectivity and adoption of converged and hyper-converged infrastructure will lead to the development of the India data center market.

The rising adoption of all-flash and hybrid storage arrays is driving the growth of the market. The installation of the server infrastructure that offers seamless integration of form factors, energy consumption, and virtualization technologies is fueling the growth of the India data center market.

Data Center Market in India – By Mechanical Infrastructure

Installation of on-site water treatment plant will be a mandatory requirement in the India data center market

The data center market in India by mechanical infrastructure is categorized into cooling systems, racks, and other infrastructure. Data center cooling systems segment occupied the majority of the market share in 2018, growing at a CAGR of over 14% during the forecast period. Most of the facilities in India are powered by air-based cooling systems. However, it is expected the use of water-based cooling will increase in the market during the forecast period. For instance, Netmagic recently established facilities in Mumbai and Bangalore is equipped with air-based cooling systems of N+2 redundancy. Pi Datacenters in Andhra Pradesh is equipped with water-based cooling systems. The rising rack power density and use of water-based cooling systems with on-site water treatment plantswill drive the growth of the Indian market over the next few years. The increasing focus to use effective solutions that help reduce CAPEX and OPEX, conserve data center space, and reduce power supply to cooling units will drive innovation in the India data center market.

The vendors are constantly innovating in the rack segment with designs that provides up to 80% airflow perforation, enhanced cabling channels, and support more weight capacity in the market. The implementation of other infrastructure with the redundancy of N+N configuration will lead to the development of the India data center market.

Data Center Market in India – By General Construction

Large datacenter deployments will lead to the growth of DCIM solutions in the data center market in India

The general construction segment in the India data center market is divided into building development, installation and commissioning services, building design, physical security, and DCIM. DCIM is the fastest growing segment in the India market, at a CAGR of around 21% during the forecast period. The increasing use of DCIM solution to control power consumption, improve efficiency, and increase operational capabilities is fueling the adoption of these systems in the Indian market. The major vendors of DCIM solutions are infrastructure providers that offer integrated packaged solutions which require low deployment time.  The easy integration of DCIM solutions with the existing IT service management solution (ITSM) such as BMC and ServiceNow is leading to the growth of the India data center market. Large facility deployments of over 10 MW power capacity in the market will be the major driver for the growth of DCIM solutions in the market. The increase in adoption of automation solutions and the emergence of artificial intelligence will be witnessed in the market.

The large-scale data center deployment is likely to involve the installation of on-site renewable power sources such as solar energy to partially or entirely power operations in the India market. The implementation of security systems that comprise of sensors which are integrated with the existing DCIM solutions for real-time remote monitoring benefits will transform the India data center market.

Data Center Market in India – By Tier Standard

Around 20 projects that fall under Tier III category in the India data center market

The India data center market by tier standard is classified into Tier I & II, Tier III, and Tier IV. Tier III segment dominated the largest market share in 2018, growing at a CAGR of approximately 14% during the forecast period. Majority of the new facilities in India are designed of Tier III standards with a minimum of N+1 redundancy and can be reconfigured with up to 2N redundancy as the demand arises. The increase in rack power density and critical data center applications will drive the demand for higher tier standards in the Indian market. The India data center market witnessed the development of around 20projects that fall under the Tier III category during 2018.

The increasing investments from global cloud providers and leading colocation providersare fueling the need for facilities of Tier IV standard in the market. Companies such as CtrlS, GPX Global Systems, and Pi Datacenters are investing in the development of facilities of Tier IV category in the India data center market.

Data Center Market in India – By Geography

Telangana and Andra Pradesh to emerge as the most sought-after location for mega-datacenter developmentin the India data center market

The geographical segment in the India data center market is divided into Maharashtra, Karnataka, Telangana, and other states. Telangana is one of the leading cities in the Indian market, growing at the fastest CAGR of around 19% during the forecast period. The increasing initiatives by the state government in Telangana and Andhra Pradesh supporting facility service providers that are investing in datacenters across the state is contributing to the growth of this region. Hyderabad is the major city for datacenter operations in Telangana and has a presence of over 10 facilities in the Indian market. CtrlS, Flipkart, and National Payments Corporation of India are some of the major revenue contributors in the state during 2018. For instance, in 2018, CtrlS added around 80,000 square feet of facility space in Hyderabad, followed by Pi Data centers and Flipkart with estimated total floor space of around 100,000 square feet. Such expansions will lead to higher revenues in the India data center market.

Maharashtra, specifically Mumbai is the hub for facilities deployment by major companies such as AWS, Microsoft, Alibaba, and Google in the Indian market. NTT Netmagic (DC3 Bangalore), ITI Limited, CtrlS, and ST Telemedia GDC are among the major investors across Karnataka in the India data center market.

Key Vendor Analysis

The India data center market has multiplenumbers of players participating in the competition across the country. The steady development regarding IT infrastructure procurement, Greenfield, brownfield, and modular facility is creating lucrative opportunities for the leading players in the market. Various companies are investing in multiple innovations that enable flexible and scalable enterprise operations in the era of cloud, big data, IoT, and AI across industries to gain a larger group of end-users in the market. The introduction of support infrastructure will help reduce power consumption, water consumption, and carbon dioxide emissions will aid players a larger India data center market share during the forecast period.

The major vendors in the data center market in India are:

  • IT Infrastructure Providers
    • Atos
    • Arista
    • Broadcom
    • HPE
    • Cisco
    • Dell Technologies
    • Huawei
    • IBM
    • Lenovo
    • NetApp
  • Data Center Investors
    • Bharti Airtel (NXTRA DATA)
    • Bridge Data Centres
    • BSNL Data Center
    • Colt Data Centre Services (COLT DCS)
    • CtrlS
    • GPX Global Systems
    • ITI Limited
    • NTT Communications (Netmagic)
    • Pi DATACENTERS
    • Reliance Communications (Global Cloud Xchange)
    • Sify Technology
    • ST Telemedia Global Data Centres (STT GDC)
    • Zoho
  • Support Infrastructure Providers
    • ABB
    • Caterpillar
    • Climaveneta (Mitsubishi Electric)
    • Cummins
    • Delta Group
    • Eaton
    • Legrand
    • Larson & Turbo (L&T) Construction
    • NetRack Enclosures
    • Riello UPS
    • Rittal
    • Schneider Electric
    • Sterling and Wilson (Shapoorji Pallonji Group)
    • STULZ
    • Vertiv

Key market insights include

  1. The analysis of India data center market provides market size and growth rate for the forecast period 2019-2024.
  2. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about theIndia data center market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook ofIndia data center market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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