India IT infrastructure spend to reach $2.3B

The Indian IT infrastructure market, comprising server, storage, and networking equipment, is expected to grow 9.7 percent in 2013 to reach US$2.1 billion, with revenues hitting US$2.3 billion in 2014, according to a Gartner report released on Monday.

"Despite global economic challenges, India provides strong growth opportunities across segments including infrastructure [which] alone is expected to surpass US$2.9 billion in 2017," Naveen Mishra, research director at Gartner said in a statement.

"The nexus of forces--big data, cloud, social and mobility--are finding real-time business-driven use cases, bringing a paradigm shift in the way IT is delivering business impact and, hence, changing the role of an Indian CIO," Mishra added.

The Indian IT infrastructure market is driven by hardware refresh, optimization, and consolidation efforts. New data center buildout, primarily driven by service providers, is providing added impetus.

The server segment accounts for the biggest chunk of the market totaling US$753 million in 2013. It is expected to increase to US$962.3 million in 2017.

"New datacenter implementations to meet server consolidation and virtualization needs, combined with campus upgrades, and growing adoption of multimedia applications and mobility, are driving the networking market," said Naresh Singh, principal research analyst at Gartner. "Future demand and dynamics of the market will also be heavily influenced by these trends as they intensify, and other disruptive technologies like cloud, social and big data take centerstage."

Indian IT infrastructure revenue by technology (in US$ millions)

Source: Gartner, May 2013