The enterprise information and Communication Technology (ICT) market in India is set to increase at a sound compound annual growth rate (CAGR) of 17.1 per cent, increasing from $161.3 billion in 2023 to $354.6 billion in 2028, a report showed on Tuesday.

The revenue opportunity is driven by the ongoing digital transformation initiatives taken up by businesses and government, forecasts GlobalData, a leading data and analytics company.

This is in line with the positive ICT investment sentiment seen among the enterprises in the country.

Among the three IT infrastructure segments — 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 per cent over the forecast period, the report noted.

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 per cent share of the total cumulative revenue forecasted for 2023-2028.

Pradeep Suresh Kulkarni from GlobalData said that 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 centres, set up by AWS and Google, are also encouraging enterprises in India to migrate to cloud infrastructure,” Kulkarni added.

A recent GlobalData survey revealed that a majority 87.9 per cent 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.

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, the report noted.