Market Size of India Data Center Server Industry
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.08 Billion |
| Market Size (2030) | USD 9.48 Billion |
| CAGR (2024 - 2030) | 7.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Data Center Server Market Analysis
The India Data Center Server Market size is estimated at USD 6.08 billion in 2024, and is expected to reach USD 9.48 billion by 2030, growing at a CAGR of 7.70% during the forecast period (2024-2030).
The India data center server market reached a value of USD 5.2 Billion in the previous years, and it is further projected to register a CAGR of 7.7% during the forecast period. The increasing demand for cloud computing among (small and medium-sized enterprises) SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the India data center market is expected to reach 4138.13 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 14.2 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 711K units by 2029. Mumbai is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 22 submarine cable systems connecting India, and many are under construction. One such submarine cable that is estimated to start service in 2023 is India Asia Xpress (IAX), which stretches over 5,791 Kilometers with landing points from Chennai and Mumbai.
India Data Center Server Industry Segmentation
A data center server is basically a high-capacity computer computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.
The India data center server market is segmented by form factor (blade server, rack server, and tower server) and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Form Factor | |
| Blade Server | |
| Rack Server | |
| Tower Server |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-User |
India Data Center Server Market Size Summary
The India data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and the need for enhanced data security regulations. The market is further bolstered by substantial investments from domestic players and the expansion of IT infrastructure, including increased IT load capacity and raised floor space. The telecom sector, being the second-largest in the world, plays a crucial role in this growth, with rising network traffic necessitating advanced data center servers to manage resources effectively. The government's initiatives to enhance digital connectivity, such as the auction of 5G spectrum, are also contributing to the market's expansion, creating opportunities for new businesses and driving the demand for data center servers.
The market is characterized by a competitive landscape with major players like Hewlett Packard Enterprise, Dell Inc., and IBM Corporation focusing on expanding their market share through strategic collaborations and product innovations. The adoption of rack servers is on the rise due to their scalability and efficiency, aligning with the increasing digitalization across various sectors, including banking and finance. Cloud computing has become integral to digital transformation, with a significant portion of enterprises increasing their cloud adoption. This trend is expected to continue, with cloud computing projected to contribute substantially to India's GDP. The market's growth is supported by advancements in server technology and the ongoing development of infrastructure, such as submarine cable systems, which enhance connectivity and data transfer capabilities.
India Data Center Server Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increased Adoption of FTTH (Fibre to the Home) Connectivity and 5G Deployment
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1.2.2 Demand for Cloud Computing Among Enterprises
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1.3 Market Restraints
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1.3.1 High CaPex for Building Data Center Along With Security Challenges
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Form Factor
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2.1.1 Blade Server
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2.1.2 Rack Server
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2.1.3 Tower Server
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-User
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India Data Center Server Market Size FAQs
How big is the India Data Center Server Market?
The India Data Center Server Market size is expected to reach USD 6.08 billion in 2024 and grow at a CAGR of 7.70% to reach USD 9.48 billion by 2030.
What is the current India Data Center Server Market size?
In 2024, the India Data Center Server Market size is expected to reach USD 6.08 billion.
