Market Segmentation of Data Center Industry
India Data Center and Cloud Services Market Outlook to 2025
The report titled “India Data Center and Cloud Services Market Outlook to 2025- Favorable Government Support and Data Localization Leading to Surge in Data Center Adoption” provides a comprehensive analysis of the data center market in India. The report focuses on overall market size in terms of revenue generated by data centers; India data center market segmentation by Type of data center (Co-location and Managed), By Co-location (Retail and Wholesale co-location), By Region (Mumbai, Bangalore, NCR, Chennai, Hyderabad & others), By Tier Level (Tier I&II, Tier III, and Tier IV), By End Users (IT/ITes, BFSI, Government and Others), By Clients (Global and Domestic). The report also covers the cloud industry in India in terms of revenue; India cloud market segmentation by Type of cloud services (SaaS, IaaS, PaaS, BPaaS, Cloud Managed & Security Service), By End-users (IT/ITes, Manufacturing, Government, Communication & Media, Telecom, E-commerce, Retail, BFSI, Transport & Logistics and others), By Clients (Domestic and Global), By IaaS (Large enterprise and SME), By SaaS (Large enterprise and SME), By PaaS (Large enterprise and SME). The report also covers the overall comparative landscape, trends and growth drivers, issues and challenge and government regulations. The report concludes with future projections and analyst recommendations highlighting the major opportunities and cautions.
Market Overview and Size
The India data center market was observed to grow with a stable growth pattern in the review period 2014-2020P. Factors such as data localization law, government’s digitization drive, rapid movement from cloud computing to the edge computing surge in outsourcing of data center services and others have helped the data center industry to grow in India in terms of revenue.
Market Segmentation of Data Center Industry
By Type of Data Center (Co-Location and Managed): The co-location segment was observed to dominate the data center industry in terms of revenue. Co-location DCs are highly preferred by industries in India owing to the elimination of CAPEX & high control on the data and physical servers.
By Co-location (Retail and Wholesale): The retail co-location market was observed to dominate the co-location data center market as a retail DC is cheaper, the majority of companies require few racks to store their data and the average duration of a contract in a retail DC is lower.
By Region (Mumbai, Bangalore, NCR, Chennai, Hyderabad & others): Mumbai dominated the data center industry both in terms of the number of data centers and revenue Mumbai is a leading city for DC development as it is connected to the Middle East, Europe, Africa, and Hong Kong through multiple submarine cables.
By Tier Level (Tier I&II, Tier III, and Tier IV): Tier III data centers dominated the data center industry in India as the majority of data centers present in the country are Tier III and they are highly preferred by the end-users owing to their features and services.
By End Users (IT/ITes, BFSI, Government and others): The data center industry in India was observed to be dominated by the IT/ITes the industry as it is fueling the growth of tech start-ups in India. BFSI industry to also witness a high demand for storing their highly confidential data and the rising concerns of security of banking data.
By Clients (Domestic and Global Clients): The domestic clients in India dominated the data center industry owing to the government’s data localization law which has made the domestic clients store their data in local data centers.
Market Segmentation of Cloud Industry
By Type of Cloud Services (SaaS, IaaS, PaaS, BPaaS, and Cloud Managed & Security Service): Software as Services (SaaS) was observed to dominate the India cloud industry followed by IaaS, PaaS, cloud-managed & security services and BPaaS. SaaS has a higher share in terms of revenue owing to the rise in SMEs who are the major end-users of SaaS.
By End Users (IT/ITes, Manufacturing, Government, Communication & Media, Telecom, E-commerce, Retail, BFSI, Transport & Logistics and others): IT sectors have largely been deploying cloud services for cloud storage and Web hosting and is the largest vertical driving India’s cloud demand?
By Clients (Domestic and Global Clients): The domestic clients in India dominated the cloud industry owing to the government’s data localization law which has made the domestic clients store their data locally.
Competition within India, the data center market was observed to be moderately fragmented along with the presence of both local and global data centers. The major companies in the data center industry in India includes NxtGen, Reliance, STT, GPX, Sify, Net4, Netmagic, Nxtra, Web Werks, CtrlS and others. The major companies in the cloud market include Amazon Web Services, Microsoft Azure, IBM, Alibaba Cloud, Oracle and others. Major competing parameters include a number of data centers, services provided, white space, number of racks, Tier level, power capacity, uptime, occupancy rate, clientele, end-users served and geographical presence.
Future Outlook and Projections
India data center market is anticipated to grow at a positive growth rate with new entrants’ business growth. Growth drivers such as Govt. initiatives, growth in e-commerce transactions, cloud adoption, increasing investments, adoption of technologies such as IoT, Big Data and others to contribute to the surge in data centers in the Industry.