March 27, 2020
— The India data center market size is projected to reach USD 1.5 billion by 2022 from USD 1.0 billion in 2018, growing at a Compound Annual Growth Rate (CAGR) of 11.4% during the forecast period (2018–2022). Growth factors for the market include deeper internet penetration, increase in digital data traffic, public cloud services, and higher expected growth for IoT.
Major vendors in the market include Fujitsu (Japan), Honeywell (US), NEC (Japan), Siemens (Germany), IBM (US), Johnson Controls (US), Hikvision (China), Dahua Technology (China), and Schneider Electric (France). The major players have widely adopted growth strategies, such as tapping high growth market (hot pockets) and essential markets, partnerships, and mergers and acquisitions, from 2016 to 2018. They also adopted collaborations, product enhancements, and new product developments, to expand their consumer base and address the unmet needs of end users in India.
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Schneider Electric is one of the prominent players in the data center infrastructure market in India. The company provides hardware, along with technical support, repair, and configuration and design services to its Indian customers. It caters to customers belonging to IT & telecom, BFSI, government, retail, and manufacturing vertical across India. The company has core offerings in data center infrastructure, such as Power Distribution Units (PDU), power generators, cooling units, chillers, and data center racks. It also has a strong sales and marketing network to sell its products and services to tier 1 as well as tier 2 cities in India; customers can also buy these products directly from the company directly or its distributors. Mumbai and Bengaluru have Schneider’s largest customer segments in India. The company has a strong presence in the power and cooling infrastructure segment in the country, while it has a limited coverage in the rack segment. The company also provides design and consulting services for data center, and main customers include Netmagic, ESDS, Ctrl S, and many more colocation services vendors in India.
Netmagic is one of the prominent colocation services providers in India. The company provides colocation space as well as managed hosting services. Netmagic is a key data center developer in India and leverages early mover advantage into the market. It is the first company in India to launch disaster recovery and cloud computing services. Netmagic is one of the top DC vendors for managed hosting, colocation, and captive data centers in the country, the parent company NTT Communications operates >250 DCs globally. Netmagic maintains long-term relationships with OEMs and high value resellers for better support. The company is known in the industry to have its own norms to ensure smooth and continuous functioning of the DCs. The norms (named as Nexcenter) are above the tier III or IV norms, such as extra client facilities, resiliency, concurring maintainability, and no single point of failure. The company is looking to expand in major cities only. 11 DCs usually operate in full capacity with the new DCs 90% booked even before being launched.
There are multiple case studies of Colocation data center setup in India for Ctrl S, Netmagic, ESDS, Airtel, and ST Telemedia, which contribute to the India data center market CAPEX.
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