India’s public cloud services market will reach USD 24.2 billion by 2028: IDC

New Delhi, July 1 (IANS): India’s overall public cloud services (PCS) market is expected to reach $24.2 billion by 2028, representing a compound annual growth rate (CAGR) of 23.8 percent, according to a report on Monday.

According to International Data Corporation (IDC), the Indian PCS market revenue is expected to reach $8.3 billion in 2023.

The PCS market includes infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS).

“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,” said Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence, IDC India.

The top two vendors still held over 40% of the Indian PC market in 2023.

The adoption of public cloud in India has been steadily growing as enterprises have preferred public cloud services for digital transformation initiatives, application modernization, and productivity enhancement.

“Moreover, the increasing focus on cost optimization in recent times has accelerated the shift to as-a-service consumption models, driving public cloud adoption,” said Harish Krishnakumar, senior market analyst at IDC India.