India Software Market to Reach $7.6B by End-2021
Article By : IDC India
The India software market is estimated to reach $7.6 billion by the end of 2021, according to IDC.
The India software market is estimated to reach $7.6 billion by the end of 2021, according to the International Data Corp. (IDC) Worldwide Semiannual Software Tracker 2H20 (July–December). The market was pegged at $7 billion in 2020, registering a growth of 13.4% year-over-year (YoY). India accounted for 17.5% share of the overall Asia/Pacific (excluding Japan and China) (APEJC) region software market in 2020. Microsoft, Oracle, and SAP maintained their leadership positions in the India market during the same year.
Shweta Baidya, Senior Research Manager for Software and IT Services at IDC India, said, “Although the pandemic had a minor impact on the overall growth of the India software market, it acted as a catalyst for strong growth across some of the software segments as enterprises reevaluated their IT strategies and took concrete steps to move toward digital business models. Digitally matured enterprises were able to smoothly navigate through the crisis and maintain business continuity and operational resilience. However, enterprises with traditional business models charted out new strategies to leverage cloud and digital to stay relevant and consistent. Investment in collaborative platforms, network transformation, and security re-architecture witnessed a spike during the last few quarters.”
IDC classifies the software market into three primary categories: applications, application development and deployment (AD&D), and systems infrastructure (SI) software. Applications contributed 60.4% to the overall market revenue, followed by AD&D and SI software with shares of 21.6% and 18.0%, respectively, in 2020.
As per IDC’s current estimates, engineering applications, collaborative applications, customer relationship management (CRM) applications, enterprise resource management (ERM) applications, and content workflow and management applications are the leading software segments in terms of revenue. The collaborative applications market witnessed the highest growth of 36.7% in 2020, followed by artificial intelligence (AI) platforms and system and service management software at 30.9% and 24.8%, respectively.