- The International Data Corporation (IDC) Global Semi-annual Public Cloud Services Tracker forecasts the Indian Public cloud Services (PCS) market to reach $17.8 billion by 2027, growing at a CAGR of 22.9% during 2022-27.
- SaaS remains the largest segment of the overall public cloud services market, followed by IaaS and PaaS.
- SaaS and IaaS providers continue to account for more than 40% of the market.
Considerable expectation
The Indian public cloud services (PCS) market, which includes Infrastructure as a Service (IaaS), Platform as a Service (PaaS) solutions, and Software as a Service (SaaS), had a total revenue of $3.8 billion in the first half of 2023 (January-June), according to the International Data Corporation (IDC) Global semi-annual Public Cloud Services Tracker. The overall Indian public cloud services market is expected to reach USD 17.8 billion by 2027, growing at a CAGR of 22.9% during 2022-27.” Public cloud services in India have gone beyond cost savings and flexibility,” said Rajiv Ranjan, associate research director for cloud and artificial Intelligence at IDC India.
“Enterprises are increasingly investing in modernizing applications, developing cloud-native solutions, and exploring artificial intelligence. While enterprises are investing more in GenAI, chatbot, and conversational AI tools, GenAI tools are specifically designed for cost optimization, application development, and workload test cases. In the future, GenAI is expected to provide even more assistance in cloud security and cloud infrastructure management. All these investments will drive the growth of public cloud services in India.”
Saas is the most important player
SaaS remains the largest segment of the overall public cloud services market, followed by IaaS and PaaS. The top two public cloud service providers continue to account for more than 40% of the market.
Despite the challenging economic situation, leading cloud service providers are still investing heavily in India. The move shows their confidence in the strong potential of the Indian market.
Traditional segments such as IaaS, collaboration applications, CRM, and ERM continue to drive growth. At the same time, service providers are also witnessing a surge in demand for AI and data management products, highlighting the changing needs of cloud service offerings.
Also read: Why adopt Infrastructure as a Service (IAAS)?
“Enterprises are increasingly relying on public cloud services as they drive digital transformation and seek agility and operational efficiency.”
Harish Krishnakumar, senior market Analyst, Enterprise IT Services and Cloud, IDC India
“The increasing emphasis on cost optimization continues to accelerate the shift to ‘as-a-service’ consumption models, driving demand for cloud infrastructure services. With GenAI’s growth, public cloud services are expected to see strong demand in the coming years as enterprises focus on implementing workloads that leverage next-generation technologies while migrating existing workloads to cloud environments.”
About IDC tracker
IDC Tracker products provide accurate and timely market size, company share and forecasts for hundreds of technology markets in more than 100 countries around the world. Using proprietary tools and research processes, IDC’s tracking reports are updated semi-annually, quarterly, and monthly. Tracking results are delivered to customers with user-friendly excel delivery and online query tools. The IDC Tracking Chart application allows users to view data charts for the latest IDC tracking products on iPhone and iPad.
