Market Trends of India Big Data Technology & Service Industry
The BFSI Segment is Expected to Drive the Market's Growth
- Banks have extensive information about the earnings and expenses of their customers. This information relates to their payments and the money that entered their accounts over a specific time frame. A financial institution can analyze this data to determine whether a client's salary has increased or decreased, which sources of revenue have been more consistent, how much money was spent, and which channels the client utilized to conduct certain transactions. By analyzing the data, banks can assess risks, decide whether to extend loans, and determine whether a client is more interested in receiving benefits or making investments.
- According to the Indian Brand Equity Foundation (IBEF), 44 foreign banks, 12 public banks, and 22 private banks have banking licenses in India. Moreover, there are over 96,000 rural cooperative banks. Furthermore, developing an extensive risk management system is crucial for financial firms. They will experience a significant loss of revenue if they don't practice thorough risk management. To survive in the competitive world and maximize earnings, businesses must continuously innovate new ideas. Big data analysis aids businesses in detecting dangers instantly and, of course, safeguards customers from potential fraud.
- According to the Ministry of Electronics and IT (MeitY), In India, digital payments rose 45% yearly (YoY) during the fiscal year (FY) 2022-2023. This period saw INR 13,462 crore(USD 1621.7million) digital payment transactions in (FY) 2022-23, and INR 11,660 crore (USD 1404.51 million) in till december 2023 for FY 2023-2024. Such huge digital transactions will drive the demand for big data services.
- In June 2022, Delhi State-run banks were expected to have specialized analytics teams to combat frauds, identify stressed customers who might stop making payments, and assist the lenders in staying ahead of the competition through data analysis. The finance ministry requested that all banks select important internal and external resources to join the new vertical. This would give them insights to enhance efficiency while closely monitoring scams and accumulating bad loans.
Understand The Key Trends Shaping This Market
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The Telecommunication and IT Sector is Expected to Hold a Major Market Share
- The growth of Big Data technologies could also be attributed to emerging technologies, like Blockchain, IoT, AI, and cloud computing. These technologies have provided the push for the necessary big data services in India.
- There has been an increase in the number of big data service providers in the country recently. Lymbyc, G Square, TechVantage, BluePiConsulting, and SIBIA Analytics are a few firms that have come up in recent years. Furthermore, the increase in the number of players was also attributed to the government's data localization policy.
- India is currently among the world's major big data analytics markets, and NASSCOM has set the target of making the country one of the top three. NASSCOM has predicted that the Indian analytics industry is expected to reach USD 16 billion by 2025. This means that it may account for 32% of the analytics market worldwide. This scenario reflects tremendous opportunities for the scope of big data analytics in India. India is witnessing high growth in the big data analytics industry due to its large resource pool of technically skilled, English-speaking population.
- In 2022, according to Nokia's India Mobile Broadband Index 2023 report, the average monthly data consumption per user was 19.5 gigabytes, which was 17 gigabytes in 2021 and 13.5 gigabytes in 2020. The unprecedented growth of data consumption created the need for data centers to store and maintain this vast resource. The data usage increased further due to work from home, online education, and recreation in the backdrop of the COVID-19-led nationwide lockdown.
- Further, the telecom industry in the country is witnessing robust growth due to the entry of several players. For instance, in July 2022, Billionaire Gautam Adani's group confirmed its entry into the race to acquire telecom spectrum, which it said would be used to create a private network to support its businesses from airports to power and data centers.
