India Public Cloud Services Market to Grow at a CAGR of 23.4% for 2022-27
The
India public cloud services (PCS) market, including infrastructure-as-a-service
(IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service
(SaaS), revenue totalled $6.2 Billion for 2022, according to the International
Data Corporation (IDC) Worldwide Semi-annual Public Cloud Services
Tracker, 2H 2022 (July-December).The overall India public cloud services market
is expected to reach $17.8 billion by 2027, growing at a CAGR of 23.4% for
2022-27.
"Post the COVID period, the pace of digital transformation
has been steady in India as organizations are driving innovation, introducing
digital products and services, and automating processes. Improving customer
experience has been the top priorities for enterprises in India. Migrating from
legacy infrastructure to cloud has been the most preferred way to modernize IT
infrastructure which is driving public cloud services growth. In the next
coming years, we can also expect growing adoption of AI technologies,
containerized applications, edge computing, serverless computing, and
kubernetes technologies to further enhance efficiency and agility of
infrastructure and applications on cloud," says Rajiv Ranjan,
Associate Research Director, Cloud and Artificial Intelligence, IDC India.
SaaS continued to be the largest component of the overall public
cloud services market, followed by IaaS and PaaS in 2022, with the top two
cloud service providers holding more than 40% of the India public cloud
services market.
Despite global macroeconomic headwinds intensifying in the
second half of 2022, the India Public Cloud Services Market witnessed robust
growth, driven by the accelerating digital transformation among India
enterprises, and cloud service providers continuing to witness increased demand
from SMBs and startups. Enterprises increasingly availed compute and storage
services as part of their IT infrastructure modernization initiatives, and
there was also an increased demand for cloud-based collaborative applications,
ERM, CRM, and security software. Demand for public cloud services was also
driven by accelerated AI adoption, with enterprises increasing investments in
cloud-based AI platforms.
“The accelerated digital adoption among Indian enterprises with
cloud as a key enabler continued to be the prime driver of the public cloud
services market in India, as cloud adoption helps enterprises drive efficiency
in operations along with scalability benefits, thereby enabling them to gain a
competitive advantage. The surge in public cloud adoption is expected to
continue in the upcoming years, with more enterprises focusing on digital-first
business strategies, with the adoption of technologies like AI/ML, analytics,
etc., and cloud-native application development also gaining momentum.
Enterprises would have a strong inclination towards as-a-service consumption
models for their IT infrastructure requirements as a measure to keep IT
spending in check amidst the challenging economic landscape and also mitigate
talent shortages in ITOps,” says Harish
Krishnakumar, Senior Market Analyst, IDC India.
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