The Indian public cloud services market registered a revenue of $4.6 billion for 2021 and is forecast to reach $13.5 billion by 2026.
The Indian public cloud services (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), registered a revenue of $4.6 billion for 2021, according to the International Data Corp. (IDC) Worldwide Semi-annual Public Cloud Services Tracker, 2H21 (July-December). The overall industry is expected to reach $13.5 billion by 2026, growing at a compound annual growth rate (CAGR) of 24% for 2021–2026.
“With digital innovation leading the top business objectives for Indian organizations, cloud adoption is set to accelerate in 2022. Driven by the need for agility, flexibility, and faster access to digital technologies, cloud continues to gain momentum across segments. Additionally, the need to leverage data intelligently, is supreme and enterprises are able to do so with access to technologies that are built on a cloud foundation,” said Rishu Sharma, 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 2021. Public cloud spending continued to increase among enterprises, with the top two service providers holding more than 45% of the Indian public cloud services market.
India continues to be among the fastest-growing market for public cloud service providers due to the robust demand from large enterprises, digital natives, and also from small and medium businesses in the country. In 2021, enterprises continued to invest in public cloud to ensure business continuity, improve resilience and productivity, and drive digital innovation. There has been an increased demand for cloud-based security applications as organizations expect part of their hybrid workforce to return to offices in 2022. Apart from migrating existing workloads to the public cloud, there is also an increased demand for cloud-native application development after the pandemic, driven by the need to bring ideas faster to the market and address customer demands.
“Public cloud adoption continued to surge in 2021 as enterprises invested in public cloud as part of their digital transformation initiatives to improve business resiliency and become a digital-first organization. The increased spend is expected to continue in the upcoming years as enterprises invest in emerging technologies like AI/ML, IoT, blockchain, etc., to automate processes and drive innovation with public cloud as the foundation. The increasing investments in areas like edge computing and IoT will drive the demand for public cloud infrastructure services, especially storage and data management,” said Harish Krishnakumar, Senior Market Analyst, IDC India.