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Cloud Native/NFV

India's data center market to grow at +4% CAGR in 2019-2025 period

NEW YORK – The data center market in India is expected to grow at a CAGR of over 4% during the period 2019–2025.

The following factors are expected to contribute to the growth of the data center market in India during the forecast period:

  • Migration to cloud-based business operations
  • Government to grow the digital economy through supporting data center development
  • Big data and IoT to increase Data Center Investment
  • Increased Adoption of Converged and Hyper-converged Infrastructure Platforms

As the number of standalone colocation services in India is low than managed colocation or managed hosting services, several small enterprises in India prefer managed hosting or cloud services rather than colocation. Sectors such as BFSI, logistics, transportation, e-commerce, and government agencies are witnessing high demand for colocation services. Global enterprises involved in establishing a physical presence in the Indian market are colocating facilities in the country. Hence, the increased investment from global colocation service providers is likely to influence the India data center market during the forecast period.

Key Vendor Analysis
The India data center market is witnessing steady growth in terms of IT infrastructure procurement, greenfield, brownfield, and modular facility development. It is likely to adopt efficient, scalable, flexible, and reliable infrastructure solutions. The market has evolved over the years with multiple innovations focused on enabling flexible and scalable enterprise operations in the era of cloud, big data, Internet of Things, and Artificial Intelligence in industries.

In terms of support infrastructure perspective, the market is witnessing the high adoption of solutions, which help to reduce power and water consumption and decrease CO2 emissions. Moreover, the market has a strong presence of vendors in the three categories: IT infrastructure, support infrastructure, and data center investors. Tata Consultancy Services (TCS), Wipro, Cognizant, Infosys are the major contributors to the market offering managed data center services. Managed services majorly dominate the colocation market in the country.

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