Data Center
The captive model of data center is being overtaken by co-location model at a significant rate
According to market research by MarketsandMarkets, 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 CAGR of 11.4 percent during the forecast period. The market growth is driven deeper internet penetration, increase in digital data traffic, public cloud services, and higher expected growth for IoT.
The captive model of data center is being overtaken by colocation model at a significant rate. It is expected that consolidation of data centers will cannibalize the captive data center market, and colocation market will grow exponentially keeping in view that the outsourcing of data centers will help reduce the operating cost significantly for the clients.
Mumbai is the prime focus of data center developers in India with more than 20 percent of market share, followed by Bengaluru. All government-owned companies in every industry vertical have their data centers located in Mumbai and Bengaluru.
The Indian government launched MeghRaj cloud to accelerate G2C services delivery. Under the scheme, many national data centers and state data centers have been built and many are being built in various states, such as Maharashtra and Madhya Pradesh.
E-commerce and online marketplace proliferation in India has driven the market for colocation data centers in India and is expected to drive the market in the coming years as well. Higher adoption of technology by SMEs in every sector combined with stringent government regulations will spur the demand for more data centers in India.
Research And Markets.com says the India data center market is expected to reach values of approximately $4 billion by 2024, growing at CAGR of around 9 percent during 2018-2024. The market research report also offers market share analysis in terms of power capacity ( MW) and area (square feet).
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 India data center market is driven by construction of hyperscale facilities in major cities such as Mumbai, Bangalore, and Hyderabad.
The increasing use of highperformance infrastructure is leading to the growth of rack power density to an average of around 8-10 kW in the India data center market.
The adoption of cloud-based services is growing significantly worldwide. There is a growing demand for IaaS, SaaS, and PaaS among enterprise customers in India adopting public and private cloud services during the forecast period. In terms of current scenario, adoption of SaaS dominates the Indian market adding a revenue of around $850 million in 2018.
Increase in Internet population, use of smart devices, and social media growth as prompted both central and state government to migrate from the existing traditional service offerings to digital platforms. In 2018 budge, the central government has emphasized the importance of increasing cloud and data center investment in the Indian market.
Data center equipment:
• The primary drivers of the data center industry in India include:
• The availability of abundant real estate and competitive policies
• Information and communications technology-capable population
• Continuing growth of India’s mobile market and internet penetration.
• Microsoft managed and expanded three Azure cloud service data centers in Mumbai, Pune and Chennai.
• IBM has plans to set up its second data center in India in addition to an existing one in Mumbai.
• Google Cloud Platform recently entered India
• Alibaba Cloud launched in Mumbai in January 2018
• Amazon Web Services has seen a 60% increase in customers across Mumbai since launch
• CtrlS has launched a $73 million project in Bangalore and will be adding new centres in Hyderabad and Mumbai within three years
• GPX Global Systems planning a 16 MW center in Mumbai to be finished Q1 2019
• The state of Tamil Nadu has completed a $9 million center in Tiruchirappalli to back up government data
• Netmagic Solutions has centers in Mumbai and Bangalore by the end of April 2019
• ESDS Software & Nxt Gen Data Centre & Cloud Technologies have announced funding and expansion plans in the near to medium term
• Ascendas-Singbridge is investing $1 billion on new construction in Chennai, Mumbai, and Hyderabad The Indian data centre market by electric infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, Rack PDU, and other electrical infrastructure. UPS systems dominated the largest
Research And Markets.com says the India data center market is expected to reach values of approximately $4 billion by 2024, growing at CAGR of around 9 percent during 2018-2024.
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 India market. 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 highvoltage 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.
The increasing investments from global cloud providers and leading co-location providers are 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.
Hyderabad is the major city for datacenter operations in Telangana and has a presence of over 10 facilities in the Indian 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.
The Indian datacenter market is observing new advancements in power, cooling solutions, and bandwidth pricing. With huge adoption of ‘Green IT’, service providers and enterprises are both looking forward to build energy effectual datacenters through right sizing, enhanced system architecture and better design. The implementation of technologies such as cloud computing and grid computing in datacenters, the India market is expected to have a huge growth potential and with bandwidth costs coming down significantly will lead to affordable datacenters hosting.
Growth will be primarily driven by datacenter hosting players, high speed Internet bandwidth service providers, hardware vendors, power and cooling solution providers, and system integrators. The key players include IBM, HP, Netmagic, Tata Communications, and etc. The report provides unique insights into and indepth analysis of Datacenter Market trends, drivers and restraints as well as growth opportunities in India. It also contains analysis & forecasted revenues, competitive landscape, company profiles and industry trends.
The Indian data center infrastructure market is expected to grow in the future mainly driven by the verticals such as BFSI, manufacturing, public sector and IT and telecom. The changes in the Indian political environment and increasing investments in public sector are expected to drive Indian data center infrastructure market in future.
The total Indian data center infrastructure market is expected to grow at a CAGR of 4.30% during the period from 2015-2020. The storage segment is growing at a CAGR of 5.76% followed by servers and network equipment segments growing at a CAGR of 5.17% and 2.99%, respectively, during the period 2015-2020. Due to improvements in the economy of the country many enterprises are planning to expand their businesses results in enormous opportunities for service providers.
In terms of data center types, thirdparty data centers are expected to grow much faster than captives as enterprises are showing much interest towards these third party data centers that help them to focus on their core business areas. However, the industry is also facing some challenges in terms of data security when they outsource to third-party vendors.
The total Indian data center infrastructure market is expected to grow at a CAGR of 4.30% during the period from 2015-2020. The storage segment is growing at a CAGR of 5.76% followed by servers and network equipment segments growing at a CAGR of 5.17% and 2.99%, respectively, during the period 2015-2020