India’s overall public cloud services market(PCS) is expected to reach $13 billion by 2026. The PCS market is growing at a compound annual growth rate (CAGR) of 23.1 per cent for 2021-26, according to a report by International Data Corporation (IDC).
IDC’s semi-annual Public Cloud Services Tracker, H1 2022 showed that the India public PCS market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), revenue totaled $2.8 Billion for the first half of 2022.
SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS during the first half of 2022, according to the report.
Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence, IDC India, said, “Public cloud services continue to grow in India as there is a surge in digital services and organizations have realized the power of the cloud to help them transform digitally.”
Increasing investments in AI, ML
With the growth in digital innovation, organizations are looking to bring new products and services to the market faster through digital streams and increase their investments in technologies like AI/ML, edge computing, blockchain, and IoT to improve customer experience and business efficiency, he added.
The report said, with India being a key growth market, cloud service providers continued to expand their presence in the country by unveiling new data centers/cloud regions, thus enhancing their service delivery capabilities. With verticals like BFSI, manufacturing, , leading the public cloud adoption, service providers also continued to witness increased demand from other verticals like the public sector, media and gaming.
Collaboration applications, compute, storage, customer relationship management (CRM), enterprise resource management (ERM), security., continue to be the most demanded public cloud service areas. There was also a surge in the adoption of cloud-based AI platforms and cloud-native application development, it noted.
“With more Indian enterprises working on strengthening their digital and smart capabilities, public cloud adoption will continue to be driven by the demand for upgrading legacy systems, omnichannel customer expenses, real-time data analytics, connected platforms and applications,” said Harish Krishnakumar, Senior Market Analyst, IDC India.
