ICT Industry in India Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India ICT Market Analysis

The India ICT Market is expected to register a CAGR of 9.04% during the forecast period.

India's ICT landscape has evolved into a robust digital ecosystem, characterized by unprecedented growth in digital technology adoption and digital infrastructure development. The country has emerged as one of Asia's largest digital innovation hubs, boasting over 60,000 technology firms and 94 unicorns with a combined market valuation of USD 319.67 billion. This transformation is largely driven by the government's strategic focus on developing digital infrastructure, implementing favorable policies, and promoting innovation across sectors. The ecosystem's strength is further evidenced by the extensive network of research and development centers, innovation laboratories, and delivery centers operating across the country.

The telecommunications sector has emerged as a crucial pillar of India's digital economy, accounting for approximately 8% of the country's GDP and supporting over 117 million subscribers. The sector's robust growth is characterized by significant investments in next-generation technologies, particularly in 5G infrastructure and services. Major telecom operators are actively expanding their network infrastructure and implementing advanced technologies to enhance service delivery, with several companies launching 5G services in selected metropolitan areas to accelerate digital connectivity and enable innovative use cases across industries.

Enterprise digital transformation has gained significant momentum, with organizations across sectors embracing cloud computing, artificial intelligence, and automation technologies. The Government e-Marketplace (GeM) platform has demonstrated remarkable success in digitizing public procurement, serving over 60,632 customers and facilitating 10.35 million orders worth Rs. 258,359 crores. This digital transformation extends beyond government services to various sectors including banking, retail, manufacturing, and healthcare, where organizations are leveraging advanced technologies to enhance operational efficiency and customer experience.

The market is witnessing a significant shift toward integrated digital services, with particular emphasis on cybersecurity, cloud services, and data analytics. India's position as a global IT services hub continues to strengthen, supported by its vast talent pool and competitive advantages in service delivery. The country's digital infrastructure development is further accelerated by initiatives focusing on smart cities, digital payments, and e-governance platforms. These developments are complemented by the increasing adoption of emerging technologies such as blockchain, Internet of Things (IoT), and artificial intelligence across various industry verticals, creating new opportunities for innovation and growth in the ICT sector.

India ICT Market Trends

Rising Need to Explore and Adopt digital technologies and Initiatives

The Indian ICT landscape is experiencing unprecedented transformation driven by the increasing need to explore and adopt digital technologies across various sectors. The government's Digital India program has created a robust foundation for digital transformation, with initiatives like the Government e-Marketplace (GeM) demonstrating remarkable success. As of 2022, the GeM portal has facilitated over 10.55 million orders worth INR 266,533 crores (USD 33.28 billion) from 4.73 million registered service providers and sellers, serving 61,208 buyer organizations. This digital procurement platform has revolutionized how government departments and public sector units conduct business, creating a transparent and efficient ecosystem for vendors and buyers alike.

The rapid digitalization of MSMEs, which form the backbone of India's economic growth, has become a crucial driver for ICT adoption. As of March 2022, India registered more than 7.9 million MSMEs, compared to about 6.5 million in January 2021, showcasing the sector's exponential growth and digital transformation journey. The government's support through initiatives like the Raising and Accelerating MSME Performance (RAMP) scheme, with an investment of INR 6,000 crore over five years, and the Capacity Building of First-Time MSME Exporters (CBFTE) scheme, has encouraged these enterprises to leverage digital solutions for enhancing their operational efficiency and market reach.

The telecommunications sector has emerged as a vital enabler for digital transformation, with service providers focusing on developing affordable next-generation products and services. The deployment of advanced technologies like cloud computing has gained significant traction, particularly in enterprise operations. Cloud e-commerce systems have become increasingly popular due to their reduced complexity and lower maintenance costs compared to traditional on-premise storage solutions. This shift is further supported by strategic partnerships between technology services providers and traditional sectors, as exemplified by the collaboration between Bharti Airtel and TP Northern Odisha Distribution to facilitate digital bill payments for over two million registered customers. Additionally, the integration of enterprise software and managed services is enhancing the efficiency of digital infrastructure, further driving the adoption of digital solutions across industries.

Segment Analysis: By Type

IT Services Segment in India ICT Market

The IT Services segment continues to dominate the Indian ICT market, holding approximately 52% market share in 2024. This significant market position is driven by the increasing adoption of digital transformation initiatives across industries, with organizations heavily investing in IT consulting, system integration, and managed services. The segment's strength is further reinforced by India's position as a global IT services hub, with major technology companies expanding their presence across tier 1 and tier 2 cities. The robust growth is supported by increasing demand for cloud migration services, cybersecurity solutions, and digital workplace services, as enterprises modernize their IT infrastructure to meet evolving business needs.

Software Segment in India ICT Market

The Software segment is emerging as the fastest-growing segment in the Indian ICT market, with a projected growth rate of approximately 10% during 2024-2029. This accelerated growth is primarily driven by the increasing adoption of cloud-based software solutions, artificial intelligence, and machine learning applications across various industries. The segment is witnessing substantial investments in enterprise software, particularly in areas such as customer relationship management, enterprise resource planning, and business intelligence tools. The growth is further fueled by the government's digital initiatives and the rising demand for indigenous software solutions, particularly in sectors like banking, healthcare, and manufacturing.

Remaining Segments in ICT Market by Type

The Hardware and Telecommunication Services segments continue to play crucial roles in India's ICT ecosystem. The Hardware segment, while smaller in market share, remains essential for supporting the digital infrastructure backbone through servers, networking equipment, and end-user devices. The Telecommunication Services segment maintains its significance through the ongoing expansion of 5G networks, fiber-optic infrastructure, and enterprise connectivity solutions. Both segments are experiencing transformation driven by emerging technologies such as edge computing, Internet of Things (IoT), and advanced networking solutions, contributing to the overall digital evolution of the Indian market.

Segment Analysis: By Size of Enterprise

Large Enterprises Segment in Indian ICT Market

Large enterprises continue to dominate the Indian ICT market, commanding approximately 58% of the total market share in 2024, representing a value of around USD 171.77 billion. This significant market presence is driven by large enterprises' substantial investments in digital transformation initiatives, cloud computing infrastructure, and advanced technological solutions. These organizations are actively implementing new technologies like artificial intelligence, machine learning, and cybersecurity solutions to enhance their operational efficiency and maintain competitive advantages. The segment's robust growth is further supported by strategic partnerships with global technology providers, increased focus on data center modernization, and the adoption of hybrid cloud solutions. Large enterprises across various sectors, including BFSI, manufacturing, and IT/ITeS, are particularly contributing to this segment's dominance through their comprehensive digital transformation strategies and technology infrastructure investments.

MSME Segment in Indian ICT Market

The Micro, Small, and Medium Enterprises (MSME) segment is emerging as the fastest-growing segment in the Indian ICT market, with a projected growth rate of approximately 11% during 2024-2029. This accelerated growth is primarily driven by increasing digital adoption, government initiatives promoting digitalization, and the rising awareness of technology benefits among smaller businesses. MSMEs are rapidly embracing cloud-based solutions, digital payment systems, and e-commerce platforms to enhance their operational efficiency and market reach. The segment's growth is further catalyzed by various government support programs, improved access to digital infrastructure, and the availability of cost-effective technology solutions tailored for smaller businesses. The increasing adoption of mobile-first solutions, Software-as-a-Service (SaaS) platforms, and digital marketing tools is also contributing significantly to the segment's rapid expansion in the Indian ICT landscape.

Segment Analysis: By Industry Vertical

IT and Telecom Segment in India ICT Market

The IT and Telecom segment continues to dominate the Indian ICT market, holding approximately 30% market share in 2024. This segment's prominence is driven by the rapid digital transformation across enterprises, with organizations increasingly adopting cloud platforms, AI-based services, cybersecurity solutions, and application modernization initiatives. The segment's strength is further reinforced by India's position as a global powerhouse in IT services, with the country accounting for a significant portion of the global services sourcing business. The robust growth is supported by favorable government policies, increasing investments in 5G infrastructure, and the rising demand for digital solutions across both urban and rural areas. Major telecom operators are actively expanding their digital service portfolios, implementing advanced technologies like AI, IoT, and cloud computing to enhance service delivery and customer experience.

Retail and E-commerce Segment in India ICT Market

The Retail and E-commerce segment is experiencing the fastest growth in the Indian ICT market, with an expected growth rate of approximately 10% during 2024-2029. This accelerated growth is primarily driven by the increasing adoption of digital payment solutions, hyper-local logistics, analytics-driven customer engagement, and digital advertising strategies. The segment is witnessing substantial technological advancement through the implementation of computerized billing systems, electronic media marketing strategies, and sophisticated inventory management solutions. The growth is further catalyzed by the rising penetration of smartphones and internet connectivity, particularly in Tier 2 and Tier 3 cities. The segment's evolution is marked by significant investments in technology-enabled innovations such as AI-powered customer service, blockchain for supply chain transparency, and advanced data analytics for personalized shopping experiences.

Remaining Segments in Industry Vertical

The other significant segments in the Indian ICT market include BFSI, Government, Manufacturing, and Energy & Utilities, each contributing uniquely to the market's dynamics. The BFSI sector is driving innovation through digital banking solutions, mobile banking applications, and advanced payment systems. The Government sector is focusing on digital transformation initiatives, e-governance projects, and smart city implementations. The Manufacturing sector is embracing Industry 4.0 technologies, automation solutions, and digital twin implementations. The Energy & Utilities sector is implementing smart grid solutions, IoT-based monitoring systems, and renewable energy management platforms. These segments collectively represent the diverse application of ICT solutions across India's economic landscape, each addressing specific industry challenges and opportunities through technological innovation.