The Indian public cloud services market will grow at a CAGR of 23.8% during 2023-28.

NEW DELHI, 1 July 2024 – The Indian public cloud services (PCS) market revenue, including infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS), combined stood at $8.3 billion in 2023, H2 2023 (July-December), according to International Data Corporation (IDC). 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.

“As enterprises continue to modernize IT with IaaS offerings, core business applications are shifting towards SaaS models in the 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 public cloud volume, strong growth is also coming from PaaS offerings such as fully managed databases and serverless technologies to deploy pure cloud-native applications and modern data management infrastructure. Additionally, adoption of GenAI to streamline operations, improve customer experience and drive innovation will also drive growth in public cloud services,” concludes Ranjan.

The top two vendors continued to hold over 40% of the market share in 2023. SaaS continued to be the largest category in the overall public cloud services market, followed by IaaS and PaaS.

While segments such as CRM, ERM, collaboration applications, and IaaS continue to drive growth, demand for AI platforms, data management software, and system infrastructure software also continues to grow.

“Public cloud adoption in India has been steadily growing as enterprises have been favoring public cloud services for digital transformation initiatives, application modernization, and productivity enhancements. Moreover, increased focus on cost optimization in recent times has accelerated the shift towards consumption-as-a-service models, which has fueled public cloud adoption. As enterprises are making significant investments in next-generation technologies such as GenAI, the need for robust compute infrastructure and data management capabilities will continue to drive public cloud adoption in the coming years,” says Harish Krishnakumar, Senior Market Analyst, IDC India.

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