Rapid adoption of cloud and digital transformation by Indian companies is expected to propel the India modular data center market during the forecast period.

According to TechSci Research report, India Modular Data Center Market - By Region, Competition, Forecast, and Opportunities, 2029, data protection is a worldwide concern, and it is quickly becoming a priority for the India government. The Indian IT ministry intends to provide incentives for data centers under a national policy framework valued at up to USD 1.832 billion. A draught of the policy states that over the next five years, the government plans to invest up to USD 36 billion on the ecosystem of data centers. On announcing the Budget 2022–23, the finance minister gave the data center sector infrastructure status. This will expedite the growth of the India modular data center market during the forecast period.

The need for secure data centers has grown exponentially. Modular data centers offer several security advantages over traditional data centers, making them a good choice for enterprises that need to protect their data. The data center industry is expanding rapidly in the age of digitization. The nation is ideally positioned to serve as a hub for data centers specializing in cloud computing technologies, including artificial intelligence, machine learning, and advanced analytical techniques. Furthermore, rising usage of big data solutions, IoT, and cloud-based solutions are predicted to drive the growth of the market through 2028. Measures taken by the government, such as the classification of data centers as infrastructure assets and Digital India projects are likely to generate attractive prospects for market growth through 2028.

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The India modular data center market is divided based on component, organization size, and industry vertical. Based on component, the market is segmented into services and solutions. Based on service, the market is bifurcated into all-in-one module and individual module. The individual module is further bifurcated into IT, power, and cooling. Based on solutions, the market is segmented into design & consulting, integration and deployment, and maintenance and support. Based on organization size, the market is further divided into SMEs and large enterprises. Based on industry vertical, the market is further divided into IT & telecom, BFSI, media & entertainment, government & defense, healthcare, retail, and others.

Based on component, the market is segmented into service and solutions. It is anticipated that the service component will have a sizable market share during the projection period. Various end users are focusing on integrating the services as these are essential for ensuring the optimal performance and smooth operation of a modular data center. The rising demand for professional services such as consulting, installation, and maintenance is accountable for this expansion. To ensure that modular data centers are easily and efficiently deployed, operated, and optimized in an efficient manner, businesses adopting them require specialized expertise and support. Therefore, enterprises are increasingly adapting services such as all-in-one module as a pre-engineered and pre-integrated solution that includes all the necessary components for a small data center, such as power, cooling, IT infrastructure, and management software.

Key market players in the India modular data center market include:

  • CtrlS Datacenters Ltd
  • Sify Technologies Limited
  • Tata Communications Service Limited
  • HCL Infosystems
  • Wipro Technologies Limited
  • Digital Reality Trust Inc.
  • NTT Global Data Centers
  • Equinix Inc.
  • Vantage Data Centers LLC

"Mumbai, being the largest residing populated region holds the largest market share of modular data centers at 49%, benefiting from the presence of a landing station and submarine cable connectivity in the India modular data center market. Delhi-NCR ranks the second with around 17% of the total modular data center capacity, followed by Bengaluru. The introduction of 5G networks and cloud services will strengthen the region's digital economy and increase the demand for high-bandwidth networking infrastructure. For instance, in February 2023, Bank of Maharashtra (BOM) in India announced the launch of its own private cloud platform as part of its high-performance cloud capabilities for digital infrastructure and hosting applications of the bank. In addition, the huge volume of internet traffic and the presence of several cloud service providers are further attributing to the growth of the market. Moreover, the implementation of the cybersecurity-related data localization law, which requires operators to build local data centers in India, has been a key element in driving the growth of the India modular data center market,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

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India Modular Data Center Market By Component (Services (All-in-one Module, Individual Module (IT, Power, and Cooling)), Solutions (Design & Consulting, Integration & Deployment, and Maintenance & Support)) By Organization Size (SMEs, Large Enterprises) By Industry Vertical (IT & Telecom, BFSI, Media & Entertainment, Government & Defense, Healthcare, Retail, and Others), and By Region, Competition, Forecast, & Opportunities, 2029F has evaluated the future growth potential of the India modular data center market and provides statistics & information on market size, structure, and future market growth. The report's goal is to give current market knowledge and assist decision makers in making informed investment decisions. Furthermore, the study identifies and analyses emerging trends, as well as key drivers, challenges, and opportunities in the India modular data center market.

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