India Server Market Revenue Grows YoY by 6.4% to Reach $289.5 Million in 2Q21 Backed by Increased Demand from Professional Services Vertical

The overall server market in India witnessed a year-over-year (YoY) growth of 6.4% in terms of revenue to reach $289.5 million in Q2 2021 (April-June) versus $272.0 million in Q2 2020, according to the latest IDC Worldwide Quarterly Server Tracker, 2021Q2 (September 2021 release). The x86 server market contributed to 90.4% of the revenue, which is 4.8 percentage points higher than the same quarter last year. The highest contribution in the x86 market mainly came from professional services, telecommunications, discrete manufacturing, and banking verticals. The professional services vertical spending was led by investments from fintech, cloud service providers (CSPs), telecom players, and IT/ITeS companies. In addition, increasing focus on digitalization and modernization has led to higher investments from banking and discrete manufacturing as well.

The x86 server market increased YoY by 12.3% in terms of revenue to reach $261.6 million in Q2 2021 from $232.9 million in Q2 2020. During 2021Q2, verticals such as insurance, media and resource industries witnessed the highest YoY growth in terms of revenue.

The non x86 server market decreased YoY by 28.8% to reach $27.9 million in terms of revenue in Q2 2021 from $39.1 million in Q2 2020. IBM continues to dominate the market with 41.1% of revenue share, during 2021Q2 with an absolute revenue of $11.5 million. Oracle came at second position followed by Hewlett Packard Enterprise (HPE), with a revenue share of 18.4% and 4.5%, respectively.

Vendor Highlights:


Source: IDC Worldwide Quarterly Server Tracker, 2021Q2 (September 2021 release)

In Q2 2021, Dell Technologies emerged as the top vendor in the India x86 server market with a revenue share of 25.2% and revenue of $65.8 million. The top three verticals for Dell Technologies were professional services, banking, and telecommunications. Hewlett Packard Enterprise (HPE) came at second spot with a revenue share of 23.8% and revenue of $62.2 million. The key verticals for Hewlett Packard Enterprise were telecommunications, professional services, and discrete manufacturing. Lenovo and Cisco came in third and fourth position respectively with a revenue share of 8.5% and 7.5% and absolute revenues of $22.2 million and $19.6 million, respectively.

Angad Pandey, Market Analyst, Server, IDC India, said, “We anticipate the growth momentum to continue for the second-half of 2021, amid multiple issues in the supply chain which is expected to normalize in the next couple of quarters. We also expect the lead times for server shipments to increase by couple of weeks which might lead to marginal increase in the average selling price. The overall market sentiment looks positive; we expect YoY 25.0 % growth in value for the India server market, CY 2021.”

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