india's 5g market poised for explosive growth, reaching $159 billion by 2030
dublin, Thursday, 20 February 2025.
india’s 5g technology market is set to explode, reaching $159.1 billion by 2030. this remarkable growth, with a compound annual growth rate of 35.4%, is fueled by digital transformation, proactive government policies, and increasing demand for high-speed internet. semiconductor giants like nvidia and qualcomm stand to gain significantly. to support this expansion, india’s data center capacity is projected to nearly double by 2026, driven by ai and cloud adoption, with major investments from reliance, microsoft and amazon.
optical fiber demand soars
The 5G boom is significantly boosting demand for optical fiber [2]. Industry estimates project India’s fiber demand will triple to 60 million fiber kilometers annually in the coming years [2]. This surge is essential to support 490 million projected 5G subscribers and connect 100 million homes with fiber by 2030 [2]. Insufficient fiber deployment could lead to network congestion and slower internet speeds, potentially hindering India’s global digital competitiveness, according to Arun Menon, principal analyst at MTN Consulting [2].
data center market growth
India’s mega data center market is also experiencing substantial growth [3]. Valued at $683.40 million in 2023, it is projected to reach $1.26 billion by 2032 [3]. This represents a compound annual growth rate of 7.04% [3]. Key drivers include government initiatives like the Digital India campaign, data localization mandates, and rising data consumption [3]. Mumbai, Chennai, and Hyderabad are leading the market, with Delhi-NCR and Bengaluru emerging as key investment hubs [3].
investment opportunities and key players
The confluence of 5G expansion and data center growth presents significant opportunities for investors. Companies like reliance industries are investing heavily in ai data centers, while microsoft and amazon web services are boosting cloud infrastructure [2]. Major players in the data center market include yotta infrastructure, ntt ltd., and equinix [3]. Investors should monitor these trends and consider companies positioned to benefit from india’s rapidly expanding digital infrastructure [1][2][3].
challenges and sustainability
Despite the optimistic outlook, challenges remain. High deployment costs and regulatory hurdles could impede 5G expansion [1]. However, the indian government is actively promoting infrastructure development and data localization [2][3]. Sustainability is also a growing focus, with data center operators like nxtra by airtel increasing their use of renewable energy [3]. Investors should consider companies committed to sustainable practices, as this will be crucial for long-term success in the indian market [3].
western india’s 5g dominance
Western India is currently a significant force in the national 5G landscape [1]. Reliance Industries’ investment in a 3GW AI data center in Jamnagar underscores the region’s importance [2]. Mumbai already holds a substantial 44% of the indian data center market share [3]. This concentration of activity suggests that companies with a strong presence in Western India are well-positioned to capitalize on the 5G and data center boom [1][2][3].