Vendors’ Need to Reduce Unplanned Downtime is Driving the Power and Cooling Equipment Expenditure in the Indian Datacenter Market
" The market is expected to witness a CAGR of 9.4% during the forecast period 2019–2025 "
Bangalore, India, September 27, 2019: With its recently published study, “Indian Datacenter Power and Cooling Market – Drivers, Restraints, Opportunities, Trends, and Forecast up to 2025”, Infoholic Research forecasts that the Indian datacenter market will approximately double by 2025 and the power and cooling expenditure will simultaneously increase with a rate greater than Indian datacenter. Also, the increase in the number of Tier-IV datacenters has been a major factor as the expenditure on power and cooling equipment has doubled for these datacenters. Many datacenter vendors are now thriving for zero downtime and have increased facilities to ensure any downtime possible.
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A rapid shift can be observed in the type of datacenters as captive datacenters that held 80% of the market share in India 5 years ago, now hold only ~60% of the share, showing a decrease at a rapid pace. The growth in datacenters mainly attributes to the increase in data, which is estimated to generate more than 150 zettabytes of data by 2025. Modernization of datacenters is a necessity today as a datacenter becomes obsolete in 7–8 years’ time. Indian datacenters are expected to grow at a CAGR of 9.1%, up from $1,062.7 million in 2018 to $1,950.0 million by 2025.
It is expected that Internet users in India will surpass 635 million by 2021. To cater to the growing need for data storage and management, top IT companies such as Microsoft, Facebook, Google, AWS, and Alibaba are not only scaling their existing DCs but are also investing in launching new DCs in India.
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DC vendors face pain points owing to the geographic location of the country; India has extreme environmental and climatic conditions, and the erratic power supply to most regions of the country is another aspect to add up to the capital expenditure of DC vendors. Mumbai is a preferred location for DC vendors due to the presence of multiple Power Genco companies offering services and also for being the financial capital of India. Hyderabad is an upcoming city as the best suitable location for disaster recovery services.
The public sector is estimated to be the fastest-growing vertical due to favorable government initiatives such as smart cities and the MeghRaj initiative.
“Favorable government initiatives, such as smart cities and the MeghRaj initiative, are impacting the corporates to establish a datacenter in India.” – Sishir Naren, Team Lead, Infoholic Research
Key Segments of the Report Include:
- Indian DC Market By Vertical
- IT and Telecom
- Media and Entertainment
- Public Sector
- Healthcare/Life sciences
- Travel, Retail, Manufacturing, and Others
- Indian DC Market By City
- Other Cities
- Existing Datacenter Scenario
- Indian Datacenter Floor Space Forecast
- Product Type by Power
- Product Type by Cooling
• Industry outlook: Market trends, drivers, restraints, and opportunities