Publication date: 01 Jun 2023
India Public Cloud Services Market to Grow at a CAGR of 23.4% for 2022-27, According to IDC
INDIA, June 01, 2023 – 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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