The growing economic prowess of India has positive cascading effects on the overall investments being made by enterprises & organizations on ICT products, solutions and services. This has been revealed by GlobalData, a leading data and analytics company, in its report, which says that the ICT market size in India will increase from $161.3 Billion in 2023 to $354.6 Billion in 2028.
The findings ingrained in GlobalData’s 2024 ICT customer insight survey further indicates that the total revenue opportunity for the enterprise ICT market in India is set to increase at a healthy compound annual growth rate (CAGR) of 17.1 percent driven by the ongoing digital transformation initiatives taken up by businesses and government.
The report says that a majority 87.9% of respondents, who are key ICT decision makers in their respective enterprises, have confirmed that there has been an increase in their enterprise ICT budgets in 2024 as compared to previous year.
Pradeep Suresh Kulkarni, Technology Analyst at GlobalData, says, “Continued adoption of hybrid work models, accelerated migration of workloads to cloud by SMEs and startups, and government initiatives like ‘Digital ndia’ are driving cloud computing services in the country. Local data centers, set up by AWS and Google, are also encouraging enterprises in India to migrate to cloud infrastructure.”
BFSI leads the ICT Investment bandwagon
GlobalData forecasts the BFSI sector to be the largest end-use vertical segment for the ICT market in India, in terms of revenue contribution, and will remain so over the forecast period. The segment is set to account for a 11.3 percent share of the total cumulative revenue forecasted for 2023-2028.
“As the BFSI sector increasingly adopts digital transformation as a core strategy, there will be a surge in investments in digital services and technologies like AI, cloud, and IoT. The swift adoption of unified payments interface (UPI) and digital payments in the fintech space will further position the BFSI sector as a significant driver of ICT market growth,” viewed by Kulkarni.
Kulkarni further says that the increasing focus on cybersecurity and regulatory compliance, particularly in sensitive industries like finance and healthcare, will drive investments in secure cloud solutions and data protection technologies thereby driving the ICT market.
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