India Public Cloud Market to Reach $24.2 Billion by 2028: IDC, ET CIO

The overall Indian public cloud computing services (PCS) market is estimated to reach $24.2 billion by 2028, at a compound annual growth rate (CAGR) of 23.8%, according to a report released on Monday.

According to International Data Corporation (IDC), the Indian PCS market revenue will 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) solutions.

“As enterprises continue to modernize IT in IaaS offerings, core business applications are moving 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.

Public cloud adoption in India continues to grow as enterprises choose public cloud services as part of their digital transformation initiatives, application modernization, and productivity enhancements.

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