According to the International Data Corporation (IDC) Worldwide Semi-annual Public Cloud Services Tracker, 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 totaled $5.2 Billion for 1H2024 (January-June). The overall Indian public cloud services market is expected to reach $25.5 billion by 2028, growing at a CAGR of 24.3% for 2023-28.
“Digital transformation initiatives and the rising shift towards as-a-service consumption models due to cost optimization priorities continued to drive public cloud adoption among Indian enterprises,” says Harish Krishnakumar, Senior Market Analyst, IDC India. “As IT strategies evolve, enterprises are expected to gradually migrate their core mission-critical workloads to a public cloud environment. Rising GenAI adoption will continue to be a key driver of public cloud adoption in the upcoming years as public cloud remains one of the leading deployment choices for GenAI workloads, and cloud service providers are one of the top preferred strategic partners for GenAI implementations among Indian enterprises.”
Key highlights from 1H2024 include:
– The top five vendors accounted for more than half of the market share.
– SaaS remained the largest deployment category, followed by IaaS and PaaS.
– Strong growth was observed in segments such as Artificial Intelligence Platforms and Application Development Software, complementing demand for established enterprise applications like Customer Relationship Management (CRM), Enterprise Resource Management (ERM), and Collaborative Applications.
“As more applications get modernized on public cloud, a large majority of these applications will be multi-cloud enabled as organizations would also modernize their cloud architecture to drive infrastructure and cost efficiency, says Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence, IDC India. “Use of AI tools will increase to streamline cloud operations, improve cloud security, create innovative products and solutions and improve customer experience. Public cloud will not be restricted to cloud regions but will see adoption in edge locations as well.”
