IT services with 99 billion U.S. dollars had the largest market size among the various sectors of the Indian IT market in fiscal year 2021. The total market size of the Indian IT market, including eCommerce, is 235 billion U.S. dollars. This did not include the hardware sector. On a year-over-year basis, the market grew by over two percent in fiscal year 2021.

India software market size reached USD 21.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 61.5 Billion by 2033, exhibiting a growth rate (CAGR) of 11.7% during 2025-2033. The increasing demand for cloud computing, which offers scalability, flexibility, and cost-effectiveness, thereby allowing businesses to access and deploy software applications without the need for extensive infrastructure, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, deployment mode, enterprise size, and industry vertical.

India Digital Transformation Market Report is Segmented by Type (Analytics, Artificial Intelligence and Machine Learning Extended Reality (XR), Iot, Industrial Robotics, Blockchain, Additive Manufacturing/3D Printing, Cybersecurity, Cloud and Edge, Computing, and Others (digital Twin, Mobility, and Connectivity), by End-Users (Manufacturing, Oil, Gas and Utilities, Retail & E-Commerce, Transportation and Logistics, Healthcare, BFSI, Telecom and IT, Government and Public Sector, Others Others (Education, Media & Entertainment, Environment Etc). The Market Sizes and Forecasts are Provided in Terms of Value in USD for all the Above Segments.

The market size of the domestic IT industry across India was approximately 28 billion U.S. dollars during the financial year 2021. This market was estimated to grow further to 28.9 billion U.S. dollars in fiscal year 2021. The domestic market is significantly smaller than the export market.

According to Cognitive Market Research, the global IT Services market size was USD 984.8 billion in 2022 and will grow at a compound annual growth rate (CAGR) of 8.70% from 2023 to 2030. What are the Key Opportunities Influencing the IT Services Market?

Increasing Number Of Smart Cities Supports Industry Growth

Governments throughout the world are investing in the creation of smart cities. With research money and environmental aims for member countries, the European Union supports smart city activities. Smart cities are also becoming more popular in developing countries. Around 300 smart city pilot projects are being developed in China and India alone. These objectives necessitate the implementation of cutting-edge IT infrastructure.

The emergence of AI is significantly driving the IT Services Market

This will be a big future growth driver for the IT services industry. Tencent also pledged a $70 billion investment in artificial intelligence, cloud computing, and cybersecurity between 2022 and 2030. Chinese firms have shown a significant desire to establish themselves in India through investments.

(Source:www.cnbc.com/2020/05/27/china-tech-giant-tencent-pledges-70-billion-investment-in-ai-cloud.html)

Still, their condition has deteriorated as New Delhi's attitude toward Chinese technology and investment in its domestic market has shifted. This will be a major future growth driver for the IT services sector.

The Factors Are Limiting The Growth Of The IT Services Market

Skills Shortages Are Limiting Market Growth

As automation adoption in the IT services business expands, the demand for highly qualified personnel is expected to skyrocket. Historically, the IT services industry relied heavily on entry-level jobs that did not require prior expertise. Because entry-level employment is expected to be automated in the near future, the number of employees requiring skilled labour is expected to grow during the forecast period, generating concern among 52% of IT services industry organizations. Accounting, human resources, web design, and coding are the most common industries that require highly competent labour. The scarcity of highly trained labour, i.e., labour with a specific background or a managerial position with at least five years of experience, is expected to limit the expansion of the BPO services market.

Impact of the COVID-19 Pandemic on the IT Services Market:

The epidemic has expedited digital transformation across industries, as firms have had to adjust to distant work and online operations. This raised demand for IT services such as cloud computing, cybersecurity, and digital transformation consultancy. Companies needed to quickly integrate remote collaboration solutions, improve their cybersecurity procedures, and optimize their digital infrastructure. On the other hand, some firms experienced financial limits and had to curtail their IT spending, resulting in a temporary downturn in the market. Introduction of IT Services:

The IT services market refers to the industry that delivers a wide range of information technology-related services. It covers a wide variety of services, including software development, system integration, IT consulting, cybersecurity, cloud computing, and others. IT service providers provide businesses and organizations with expertise and solutions to help them effectively manage and utilize technology to achieve their goals and objectives. The growing reliance on technology in many industries, as well as the requirement for organizations to efficiently manage and utilize IT resources, are driving the market.

Furthermore, data-driven analysis, aided by technology, is guiding strategic decisions around the world. Furthermore, the volume of data generated globally is skyrocketing.

For instance, According to Seagate Technology PLC, the volume of data generated globally is predicted to expand from 12 zettabytes in 2015 to 47 zettabytes and 163 zettabytes in 2020 and 2025, respectively. To make the most use of these data reserves, IT service providers must create smart IT services and platforms for data extraction and analysis.

(Source:http://www.networkworld.com/article/3325397/idc-expect-175-zettabytes-of-data-worldwide-by-2025.html)

India's Location-Based Services Market is Segmented by Component (Hardware, Software, Services), Location (Indoor, Outdoor), by Application (Mapping and Navigation, Business Intelligence and Analytics, Location-Based Advertising, Social Networking and Entertainment), by End-User (Transportation and Logistics, IT and Telecom, Healthcare, Government, BFSI, Hospitality, Manufacturing). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

It was estimated that in financial year 2024, the domestic revenue of India's information technology industry would reach 54.4 billion U.S. dollars, which would be a slight increase from 51 billion dollars in 2023. In 2024, the exports from the IT industry would be close to 200 billion dollars.

The AI market size in India was around 6.3 billion U.S. dollars in 2024. Among all the segments, machine learning had the largest share at 2.8 billion dollars. Artificial intelligence has been responsible for drastic changes in the technology sector where it can greatly improve productivity through process simplification and automation. It is also an integral part and one of the fundamental bases of Industry 4.0. IT industry in India The IT industry in India is a huge industry which consists of information technology services, consulting, and outsourcing. India’s IT services industry was born in Mumbai in 1967 when Tata Consultancy Services was established. India made up to more than 19 percent of the global IT spending in financial year 2021. Within the global IT industry, India is renowned for its IT outsourcing services, and with governmental support and foreign investments, the industry is also developing technologies relative to AI and IoT. AI technologies The main branches of an AI ecosystem are machine learning, robotics, artificial neural networks, and Natural Language Processing (NLP). In machine learning, software programs run through existing data, and apply the learned knowledge to new data or to predict data. In the field of robotics, it develops and trains robots for various applications. A prominent example is autonomous vehicles, though the level of autonomy varies, it was estimated that between 2024 and 2025, fully autonomous cars could be seen in the market.

India modular data center market size reached USD 1,073.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,441.4 Million by 2033, exhibiting a growth rate (CAGR) of 13.8% during 2025-2033. The growing need for remote storage and access of organizational data, along with the expanding IT industry, is primarily driving the market growth across the country.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, data center size, application, and industry vertical.

India simulation software market size reached USD 547.8 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,530.0 Million by 2033, exhibiting a growth rate (CAGR) of 12.05% during 2025-2033. The expanding industries such as aviation, defense, healthcare, and manufacturing that increasingly use simulation software for training purposes, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, deployment, and end use.

India cloud managed services market size is projected to exhibit a growth rate (CAGR) of 13.78% during ​2025-2033​. The increasing demand for cloud managed solutions, which facilitate remote access, collaboration, and data sharing, supporting the evolving nature of work, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on service type, deployment model, organization size, and vertical.

India Data Center Processor Market Report is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-X86 (ARM, Power and Other Processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).

By the financial year 2023, India's already rapidly expanding gaming market had grown to 3.1 billion U.S. dollars. The gaming industry is one of the fastest-growing segments of the Indian media and entertainment sector. At a CAGR of 20 percent, industry reports suggested that this market was likely to be worth over 7.5 billion U.S. dollars by financial year 2028.

India was the leading outsourcing destination in the world, accounting for more than half of the market of the global information technology services in financial year 2021. The IT & BPM sector accounted for around eight percent of India’s GDP the same year. Rapid digitalization and transition to remote working helped the industry to stabilize its growth while facing the impact of the coronavirus pandemic.

IT sector at a glance

The Indian government has been very supportive of the IT sector, providing various tax exemptions and financial benefits, which enabled India to become the home of many major IT companies, like Tata Consultancy Services, Infosys, Wipro, L&T Infotech, Mindtree, and Tech Mahindra. India’s IT-BPM industry employed around 4.8 million personnel in financial year 2022. The IT spending of the country in 2023 was estimated to be around 110 billion U.S. dollars.

Road Ahead

New technologies like artificial intelligence and robotic process automation offer new opportunities for IT companies in India to grow. The global AI market revenue is forecast to reach more than half a trillion U.S. dollars by the end of 2024. India’s IT industry has been stably growing over the years in both the domestic and export markets and is expected to continue the growth trend in the upcoming years.

The India flat glass market size reached USD 3.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.3 Billion by 2033, exhibiting a growth rate (CAGR) of 5.78% during 2025-2033.

IMARC Group provides an analysis of the key trends in each sub-segment of the India flat glass market report, along with forecasts at the country and regional levels from 2025-2033. Our report has categorized the market based on technology, product type, raw material, end use, type and end use industry.

The India spreads market size reached USD 361.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,698.3 Million by 2033, exhibiting a growth rate (CAGR) of 17.83% during 2025-2033. The burgeoning FMCG industry, increasing demand of ready-to-eat (RTE) products with several flavors, and the wide availability of spread represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the India spreads market report, along with forecasts at the country and regional levels from 2025-2033. Our report has categorized the market based on product type, distribution channel and income group.

The Indian information technology and business process management industry was estimated to have over 5.4 million employees during financial year 2023. The South Asian country is the largest offshoring destination for IT companies across the globe. The IT-BPM sector has gradually grown in recent years, accounting for more than 30 percent of the global outsourced BPM market. In financial year 2023, the IT sector's contribution to India's GDP was 7.5 percent.

Market performance

In financial year 2022, the market size of the IT-BPM industry was estimated to reach around 177 billion U.S. dollars. The export market of the Indian IT-BPM industry was more than five times the size of the domestic market. The biggest importer of India’s IT-BPM services was the United States. Furthermore, the growth trend of the export market was evidently higher than the domestic market during the presented period. E-commerce revenue in the IT-BPM sector across the nation also witnessed steady growth in the last few years.

The road ahead

The Indian IT-BPM industry is likely to witness consistent growth in the future. Tapping into new advancements in robotics and artificial intelligence, the industry seeks to continue helping clients build successful businesses, propelled by a large export market.

The India Media & Entertainment Market, valued at USD 30 Billion in 2024, is projected to reach USD 48 Billion by 2030, growing at a CAGR of 9.8% from 2025-2030.

India enterprise data management market size reached USD 3.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 11.4 Billion by 2033, exhibiting a growth rate (CAGR) of 14.16% during 2025-2033. The increasing prevalence of digital transformation initiatives, which often involve integrating data from various sources to gain insights, improve decision-making, and enhance overall operational efficiency, is driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, deployment, enterprise size, and industries.

India Gensets Market size was valued at 1423.9 USD Million in 2023 and is projected to reach 2709.89 USD Million by 2030, growing at a CAGR of 9.24% during the forecast period 2024-2030.

Global India Gensets Market Drivers

The market drivers for the India Gensets Market can be influenced by various factors. These may include:

Power Demand-Supply Gap: India has been facing a serious shortage of power, particularly in rural and isolated areas. To bridge this gap, generators are a dependable backup power source that come into play especially during times of high demand and power outages.
Fast Urbanization and Industrialization: As India gets more urbanized and industrialized, there’s a greater need for a steady supply of electricity. Generator sets are frequently used by businesses, residence complexes, data centers, and industries to maintain continuous operations.
Infrastructure Development: The demand for generatorsets for construction operations, temporary power demands, and backup power for vital infrastructure is driven by the government’s focus on infrastructure development, which includes roads, trains, airports, and smart cities.
Growing Investments in IT and Telecom: As the IT industry gains traction and the telecom sector grows, there is an increasing need for dependable power backup solutions to support data centers, communication facilities, and network operations.
Expanding Agribusiness Sector: India’s economy still heavily depends on agriculture. In locations where the grid power supply is unstable, gensets are particularly important for irrigation pumps, agricultural machinery, and rural electrification programs.
Government Policies and efforts: The adoption of gensets is influenced by government policies and efforts including “Make in India,” rural electrification programs, and subsidies for renewable energy projects. These initiatives are especially significant in off-grid and isolated areas.
Technological Advancements: By providing better performance, dependability, and affordability, advances in genset technology—such as fuel economy, emissions management, remote monitoring capabilities, and hybrid power solutions—drive market expansion.
Environmental Concerns and restrictions: The need for cleaner and more fuel-efficient genset solutions, like gas-based and hybrid gensets, is driven by strict emission restrictions and growing awareness of environmental contamination.
Natural Disasters and Grid Instability: India is vulnerable to cyclones, floods, and earthquakes, all of which can cause disruptions to the infrastructure that supplies electricity. Essential backup power during emergencies and natural disasters is provided by gensets.
Energy Access in Remote Areas: When extending the grid infrastructure is not practical or financially feasible, generators are essential for supplying electricity to off-grid and remote locations.