Market Trends of india data center Industry
Growth of telecom operators such as Jio, and others providing smartphones and internet services at resonable rates, it has boosted the data centers market
- Indian smartphone users are expected to grow from 794.4 million in 2022 to 1.2 billion in 2029 at a CAGR of 5.52%. Government initiatives such as the “Make in India” movement have offered incentives to the smartphone industry, which has resulted in India producing smartphones with specifications that run applications seamlessly and at an affordable cost.
- The growth of telecom operators, such as Jio, has revolutionized the internet industry with their packages at a reasonable cost. In addition to that, the data demand increased continuously, with the government encouraging digital payments and services online.
- With the launch of the 5G network in India, data consumption is expected to rapidly increase, as Indian users have a heavy inclination toward online OTT content, gaming, shopping, smart home automation applications, online security cams, etc., which is expected to further propel the demand for data centers.
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Increasing household access to broadband and growing Internet exchanges are driving the market growth.
- A copper-based internet connection provides speeds of up to 300 Mbps whereas a fiber optic internet speeds are upto 10 Gbps. Earlier, the broadband network in India was more inclined toward copper cable connections. New innovations such as cloud technology have led to the adoption of fiber optic cables that offer higher speeds to move data stored in the cloud. Users are switching to fiber optic cables, which connect cloud servers with data centers. Hence, in terms of connectivity, the demand for copper cables is on the decline.
- Broadband connections rose from 6.1 crore in March 2014 to 81.62 crores in September 2022 growing by 1238%. The flagship BharatNet project is being implemented in phases to give broadband access to all 2.6 lakh Gramme Panchayats (GPs) in the country. Phase-I was finished in December 2017 and covered over 1 lakh GPs. As of October 2022, 6,00,898 km of Optical Fibre Cable had been laid under the project, 1,90,364 GPs had been connected by Optical Fibre Cable (OFC), and 1,77,665 GPs were Service Ready on OFC. Furthermore, 4466 GPs have been linked by satellite media. 1,82,131 GPs are ready to serve. This statistic shows an increase in broadband data usage.
- The growing urban population increasingly uses devices such as smart TVs, smartphones, and smart lighting systems, which has led to increased demand for higher bandwidth speeds that can only be achieved through the use of these fiber optic cables.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising OTT subscription and ecommerce sales boost the data center growth
- The increasing expansion rate of fiber optics and the use of internet exchanges in France show the demand for data centers.
- Increased use of voice applications, such as Skype, Microsoft Teams, Zoom, and Google Meet and rising penetration of 5G network would bloster the data centers market.
