Indian Public Cloud Services Market to Grow at a CAGR of 23.8%
The revenue from Indian
public cloud services (PCS) market, including infrastructure-as-a-service
(IaaS), platform-as-a-service (PaaS) , and software-as-a-service (SaaS)
solutions, totalled $8.3 Billion in 2023, according to the International
Data Corporation (IDC) , 2 H 202 3 (
J uly - December ).The overall Indian public cloud services market
is expected to reach $24.2 billion by 2028, growing at a CAGR of 23.8% for
2023-28.
"While
enterprises continue to modernize IT on IaaS offerings, core business
applications have a shifting trend to SaaS models on public cloud. These
offerings are further enhanced by GenAI technologies to improve user experience
and productivity,” says Rajiv Ranjan,
Associate Research Director, Cloud and Artificial Intelligence, IDC India.
“While
SaaS will drive the volume of public cloud, strong growth also comes from PaaS
offerings, like fully managed databases and serverless technologies, to deploy
pure cloud native applications and modern data management infrastructure. In
addition, GenAI adoption to streamline operations, improve customer experience,
and increase innovation will also drive public cloud services growth,"
Ranjan ends.
The
top two vendors continued to hold more than 40% of the market in 2023. SaaS
continued to be the largest category in the overall public cloud services
market, followed by IaaS and PaaS.
While
segments like CRM, ERM, Collaborative Applications, and IaaS continued to drive
growth, demand for AI platforms, Data Management Software and System
Infrastructure Software also continued to rise.
“Public
Cloud adoption in India continued to rise as enterprises preferred public cloud
services for their digital transformation initiatives, application
modernization, and productivity enhancements. Moreover, the increased focus on
cost optimization in recent times has accelerated the move towards as-a-service
consumption models, thus driving public cloud adoption. With enterprises making
significant investments in next-generation technologies like GenAI, the demand
for robust computing infrastructure and data management capabilities will
continue to drive public cloud adoption in the upcoming years.” says Harish
Krishnakumar, Senior Market Analyst, IDC India.
.
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