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%, driven by the ongoing digital transformation initiatives taken up by businesses and government, forecasts GlobalData, a leading data and analytics company.
GlobalData’s India Enterprise ICT Country Intelligence Report indicates that the ICT market size in India will increase from $161.3 billion in 2023 to $354.6 billion in 2028, in line with the positive ICT investment sentiment seen among the enterprises. This is put to perspective by findings from the GlobalData’s 2024 ICT customer insight survey, which reveals 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.
Among the three IT infrastructure segments i.e., hardware, software and services, the latter will see highest cumulative revenue increase over the forecast period. Revenue growth in the IT services segment will primarily come from the high enterprise adoption of cloud computing services, which is set to see its revenue grow at a CAGR of 25.3% over the forecast period.
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 India’ 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 is the largest end-use vertical
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% share of the total cumulative revenue forecasted for 2023-2028.
Kulkarni adds: “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 rise in contactless transactions is prompting banks to invest more in digital wallets, channels, and platforms to meet evolving customer behaviors. 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.”
India’s ICT market is expected to grow steadily in the coming years, supported by government policies like tax incentives and digital infrastructure improvements, which aim to enhance SME competitiveness.
Kulkarni concludes: “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.
