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POTENTIAL
FOR INVESTMENT IN INDIA
- The country's domestic IT-ITES services and tech products markets are expected to swell to US$ 38.5 billion in 2012–about 17.4 per cent higher than 2011.
According to latest projections by research and advisory firm CyberMedia Research, the aggregate market size of domestic IT services and IT products sector is likely to touch US$ 52.5 billion by 2014, growing 17.3 per cent between 2010 and 2014. "A large chunk of IT hardware and software products will witness good traction on account of the healthy growth in IT services, as enterprises try to gain the best leverage out of their deployment,Mr Anirban Banerjee, Associate Vice-President of CyberMedia Research, said in a statement.
Meanwhile, the combined telecom services and products markets will touch US$ 64.8 billion by 2012."This sector will grow at a CAGR of 15.8 per cent between 2010 and 2014 leading up to a total domestic telecom market opportunity of Rs 3,77,685 crore by 2014,” it said.
The study further noted that the domestic services market (IT Services and ITeS services) will be pegged at Rs 98,188 crore in 2014. The IT Services alone will grow at 16.7 per cent CAGR over 2010-2014, while domestic ITeS spending will grow at 30.2 per cent over the same period. "Managed Services will emerge as a strong growth driver with demand for increasingly sophisticated services engagements from the India enterprise segment,” it said.
Amongst others highlights, the survey also forecast an increased penetration of cloud services in the India enterprise segment (from 4 per cent in 2010 to 6.8 per cent in 2012); an above average growth in the IT products segments such as software, PCs, servers and networking equipment between 2010 and 2014; and uptick in enterprise solutions spending post 2011.
- Advertising is set for explosive growth in India in the next five years, with print, TV, internet and radio benefiting significantly, says the latest PricewaterhouseCoopers (PwC) global entertainment and media outlook. Newspaper advertising will lead the charge with a compounded annual growth rate (CAGR) of 12% from 2011 to 2015, second only to Indonesia. India's annual newspaper advertising will grow from today's R10,000 crore to nearly R18,000 crore by 2015. This, at a time advertising is expected to stagnate or shrink in Australia and Japan, the market leaders in Asia-Pacific. However, at a relatively muted CAGR of 4.5%, circulation revenues in India won't match the frenetic pace of advertising growth, in contrast with China, Indonesia, Hong Kong and Malaysia, said PwC. The country's 2010 newspaper circulation revenue stood at R5,825 crore, which will touch R7,272 crore by 2015. Combining advertising and subscription revenue, the Indian newspaper industry is projected to grow at 9.4% to reach R25,000 crore in next five years from R15,894 crore in 2010. PwC adds that in line with the global trend, India's television advertising revenue will overtake newspapers, generating over R9,000 crore in five years to cross R19,200 crore.
While worldwide TV advertising is expected to grow at 6.5% over the next five years reaching R10.6 lakh crore, newspaper advertising would grow only at 1.9% in the same period reaching R8.06 lakh crore, PwC said. Indian TV advertising will grow at a CAGR of 14%, the fourth highest in the world. Overall, the Indian media and entertainment industry will grow at more than twice the global rate of a little under 6% until 2015 so as to reach R1.45 lakh crore from around R79,133 crore in 2010. Worldwide spending on entertainment and media is estimated to grow from US$ 1.4 trillion in 2010 to US$ 1.9 trillion by 2015, a CAGR of 5.7%. Also, digital platforms will drive the future operating models globally, showing the highest growth among all categories, the global entertainment and media outlook report from PwC says. Internet-led advertising in India will clock the fastest growth until 2015 and is expected to more than double to reach R1,800 crore against the around R702 crore in 2010, a CAGR of 20.9%. Even the radio industry, which solely depends on advertising revenue, is expected to touch R1,800 crore by 2015 from R1,000 crore last year. Even the Indian film industry is projected to grow at nearly 11% over the next five years.
- The domestic cloud computing industry is estimated to grow at a CAGR of 53 per cent to be a Rs 2,434 crore market by 2014, a study conducted by CyberMedia Research India said. "The public cloud computing market in India is estimated to touch Rs 2,434 crore in 2014 after growing at a CAGR of 53 per cent between 2010-2014," a company statement here said. "Cloud computing is witnessing widespread interest from the vendor-service provider-channel community on the one hand and business leaders and CIOs on the other," CyberMedia Research India Software and IT Services Research Lead Analyst Kamal Vohra said. This is fuelled by the strong belief that cloud computing will allow a large number of SMB enterprises to adopt the same enterprise class software and technology solutions, it added. As per the study, penetration in cloud computing is expected to grow by 6.8 per cent in 2012 from 4 per cent in 2010.
On the Software-as-a-Service (SaaS) industry, the study said the market was expected to grow by 50 per cent to touch Rs 465 crore by this year-end. The Infrastructure-as-a-service Industry (IaaS) was also expected to pickup pace after 2012. The overall CAGR for the India IaaS market during 2010-2014 was expected to be at 49 per cent, the statement added.
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