The India server market size reached USD 3.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.9 Billion by 2033, exhibiting a growth rate (CAGR) of 10.17% during 2025-2033. The market share is expanding, driven by the rising demand for data centers that require high-density servers capable of managing extensive data processing needs, along with the growing implementation of government initiatives that promote digitalization, smart city projects, and e-governance platforms.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 3.9 Billion |
Market Forecast in 2033 | USD 9.9 Billion |
Market Growth Rate 2025-2033 | 10.17% |
Increasing demand for data centers
The rising demand for data centers is impelling the India server market growth. Since big data analytics and cloud computing are becoming popular, businesses need strong servers to manage demanding workloads effectively. Data centers are broadening to offer scalable computing and storage solutions, as more companies are adopting remote work practices. Cloud service providers are being encouraged by this expansion to make significant investments in cutting-edge servers that guarantee secure operations, enhanced performance, and seamless data flow. Furthermore, the need for high-density servers that can handle complex data processing requirements is being driven by India's increasing expenditure on the construction of hyperscale data centers. In March 2025, Larsen & Toubro, an Indian multinational conglomerate, intended to invest INR 3,600 Crore to establish three new data centers in the country, aiming to boost its capacity fivefold to 150 MW by 2027. Data localization requirements and government regulations are encouraging enterprises to build local data centers, further enhancing server installations.
Growing investments in information technology (IT) infrastructure
Increasing investments in IT infrastructure are offering a favorable India server market outlook. As machine learning (ML) and artificial intelligence (AI) applications are expanding, companies are investing in contemporary IT infrastructures that need sophisticated servers for effective data handling, storage, and networking. Businesses in industries like BFSI, finance, healthcare, and retail are broadening their IT infrastructure to enhance user experiences, boost data security, and guarantee operational efficiency, resulting in a rise in server installations. Moreover, the increasing digital transformation efforts by government agencies are encouraging companies to employ scalable server options to handle expanding data quantities. Government initiatives that promote digitalization, smart city developments, and e-governance platforms are also aiding market expansion. As IT service providers enhance their infrastructure to accommodate increasing client demands, the need for servers is rising. To support this growth, multiple technology companies are collaborating with IT solution providers to create unified server solutions and improve performance. For instance, in February 2024, Netcetera, a Swiss company providing digital payment solutions, in collaboration with Giesecke+Devrient (G+D), released a new 3D Secure (3DS) server in Mumbai, India. The server was developed to meet the specific needs of clients, offering improved transaction speeds and reduced service delays.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on product, enterprise size, channel, and vertical.
Product Insights:
The report has provided a detailed breakup and analysis of the market based on the product. This includes rack, blade, tower, micro, and open compute project.
Enterprise Size Insights:
A detailed breakup and analysis of the market based on the enterprise size have also been provided in the report. This includes micro, small, medium, and large.
Channel Insights:
The report has provided a detailed breakup and analysis of the market based on the channel. This includes direct, reseller, systems integrator, and others.
Vertical Insights:
A detailed breakup and analysis of the market based on the vertical have also been provided in the report. This includes IT and telecom, BFSI, government and defense, healthcare, energy, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Products Covered | Rack, Blade, Tower, Micro, Open Compute Project |
Enterprise Sizes Covered | Micro, Small, Medium, Large |
Channels Covered | Direct, Reseller, Systems Integrator, Others |
Verticals Covered | IT and Telecom, BFSI, Government and Defense, Healthcare, Energy, Others |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |