India to be the third largest IT market in Asia/Pacific by 2016
IT spending in India is projected to total $73.3 billion in 2015, a 9.4% increase from the $67.1 billion forecast for 2014, according to Gartner, Inc."India is forecast to be the third largest IT market within the Asia/Pacific region by the end of 2016 and will further progress to become the second largest market for IT by the end of 2018," said Peter Sondergaard, senior vice president at Gartner and global head of Research. "Much of the growth from being the number four market in Asia/Pacific to number three is likely to happen in 2015."
IT services will record the strongest revenue growth at 15.7% in 2015; software will grow at 14%. Devices will continue to account for the second largest part of the market with 33% share of revenue and will grow 12.6% in 2015. The telecommunication services segment will account for 39.3% of the Indian ICT market and it is set to grow at 4.2% revenue growth in 2015.
India IT End-User Spending Forecast Estimates (US$ million) 2014 2015 2016Devices 21517 24228 26674Data Center Systems 2275 2369 2451Software 4078 4650 5250IT Services 11441 13234 15217Telecommunications Services 27747 28905 29502Grand Total 67058 73386 79094Source: Gartner (October 2014)"IT spending in India is on pace to increase 2.9% this year, primarily on the back of strong growth within the IT services and software, which will grow 10.5% and 9.6%," said Partha Iyengar, Gartner India head of research.
In 2014, mobile devices will grow 13.5%, and will dislodge mobile voice services to be the largest segment within the overall IT market in India. Mobile data services will be the fastest growing segment in India, growing 18.2% in 2014. Telecommunication services that will account for 41.4% of overall IT spend, and it will decline 0.7% in 2014.
"The impact that the digital business economy is having on the IT industry is dramatic. Since 2013, 650 million new physical objects have come online. 3D printers became a billion dollar market; 10% of automobiles became connected; and the number of Chief Data Officers and Chief Digital Officer positions have doubled. In 2015, all of these things will double again," said Peter Sondergaard.
Gartner defines digital business as new business designs that blend the virtual world and the physical worlds, changing how processes and industries work through the Internet of Things.
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