India Data Center Rack - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2030

Key Highlights

• The upcoming IT load capacity in the region is expected to reach 4,700 MW by 2029, projected to positively impact the demand for data center racks during the forecast period.
• The construction of raised floor area for data centers in the region is expected to reach 14.2 million sq. ft by 2029 for under construction raised floor space.
• The region's total number of racks to be installed is expected to reach 710,000 units by 2029.
• Currently, 15 submarine cable projects are under construction in the region. One such submarine cable, estimated to start service in 2024, is India Europe Xpress (IEX), stretching over 9775 kilometers with landing points in Mumbai.

India Data Center Rack Market Trends

BFSI to have significant market share

• Government, BFSI, and e-commerce are expected to drive the demand in the region. The government has widely promoted cashless payments in the country. With the demonetization of currency notes in 2016, Indian users increasingly transitioned to cashless payment services such as Gpay, Phonepay, and Amazon Pay, which work on the UPI interface.
• After the COVID-19 pandemic, the usage of cashless services increased proportionally and is expected to reach 750 million users shortly. The availability of scan codes and ease of transaction led consumers to use the service increasingly. This is expected to increase the IT load capacity of the BFSI segment from 106.5 MW in 2022 to 594.7 MW by 2029, registering a CAGR of 23.54%.
• Government services offered online have become user-friendly, which has led more than 77% of the users to access these services. Hence, the IT load capacity of the government segment is expected to increase from 39.4 MW in 2022 to 237.9 MW by 2029, registering a CAGR of 24.87%.
• Huge discounts that are convenient and comfortable offered to customers through online shopping websites have led to the wide acceptance of e-commerce in India. E-commerce services are expected to have 500 million shoppers by 2030. Thus, the IT load capacity of the e-commerce segment is anticipated to increase from 57.9 MW in 2022 to 317.2 MW by 2029 at a CAGR of 23.22%.

Full Rack has Majority Market Share

• In India, due to growing space scarcity between various companies, the full rack has a majority of the market share. In order to cope with increasing rack capacity due to the rapid growth of mobile broadband and the increase in Big Data Analytics combined with cloud computing, it is necessary to build a fully rack-equipped data center.
• Companies increasingly rely on data centers for efficient management of their databases and storage, as they generate significant amounts of data every day. The main driving factor for data center rack usage is, therefore, the increased deployment of fully configured data centers. Also, the growth of the market is being influenced by the growing demand for IT services and investments made by large companies.
• At first, there was a limited focus on rack space in data centers; only size and cost were taken into account during deployment. Nevertheless, there is an opportunity for increased use of rack space in the data center as more and more users from different sectors, such as online banking, telecommunications, media and entertainment, and others, are adopting applications with higher density.
• Further, the growing adoption of smart home automation technologies, such as smart lighting, security, and others, has increased data consumption in the region. The incentives offered by state governments on land value, taxes, and others have led data center companies to invest in the country.
• For instance, the Uttar Pradesh government offers up to 50% exemption on land value, 100% exemption on stamp duty, reimbursement of 60% value on interest, and 100% exemption on electricity and transmission charges.
• Due to the huge incentives provided by state governments and the growing demand for data processing, data center operators have invested in infrastructure in the country.

India Data Center Rack Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support