Market is expected to reach US$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), revenue totalled US$4.6 Billion for 2021, according to the International Data Corporation (IDC) Worldwide Semi-annual Public Cloud Services Tracker, 2H21 (July-December). The overall Indian public cloud services market is expected to reach US$13.5 billion by 2026, growing at a CAGR of 24% for 2021-26.
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, the cloud continues to gain momentum across segments. Additionally, the need to leverage data intelligently is supreme and enterprises can do so with access to technologies built on a cloud foundation, said Rishu Sharma, Associate Research Director, Cloud and Artificial Intelligence, IDC India.
SaaS continued to be the most significant 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 the 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 the public cloud as part of their digital transformation initiatives to improve business resiliency and become a digital-first organisation. 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 the 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,” says Harish Krishnakumar, Senior Market Analyst, IDC India.
Tags: cloud. India
