The Indian public cloud services market is projected to reach $24.2 billion by 2028, growing at a CAGR of 23.8 percent from 2023 to 2028.
The Indian public cloud services (PCS) market, encompassing infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions, generated $8.3 billion in revenue in 2023, according to International Data Corporation (IDC).
“Enterprises are modernizing their IT infrastructure with IaaS offerings, while core business applications are transitioning to SaaS models on the public cloud,” said Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence at IDC India. “These offerings are being further enhanced by generative AI technologies to improve user experience and productivity.”
India is achieving strong growth in PaaS offerings, such as managed databases and serverless technologies, which are crucial for deploying cloud-native applications and modern data management infrastructure. Investment in GenAI adoption to streamline operations, enhance customer experience, and drive innovation will further propel the growth of public cloud services.
In 2023, the top two vendors maintained more than 40 percent of the market share, with SaaS being the largest category, followed by IaaS and PaaS.
Segments like CRM, ERM, and collaborative applications, along with IaaS, continued to drive growth. There was also a rising demand for AI platforms, data management software, and system infrastructure software.
“The focus on cost optimization has accelerated the shift towards as-a-service consumption models, driving public cloud adoption. Significant investments in GenAI will fuel the demand for computing infrastructure and data management capabilities,” said Harish Krishnakumar, Senior Market Analyst at IDC India.
