According to IDC, the India public cloud services industry will generate $17.8 billion by 2027.
In 2022, the market for public cloud services generated $6.2 billion in revenue.
According to the most recent research from market intelligence company International Data Corp. that tracked public cloud services, the market for public cloud services in India is anticipated to reach $17.8 billion by 2027, expanding at a compound yearly growth rate of 23.4% for 2022–2027.
The market for public cloud services in India, which comprises infrastructure-as-a-service, platform-as-a-service, and software-as-a-service, is expected to generate $6.2 billion in revenue by 2022, according to the report.
In 2022, SaaS, IaaS, and PaaS all maintained their top positions in the market for public cloud services. According to the survey, the top two cloud service providers in India had more than 40% of the market for public cloud services.
According to Rajiv Ranjan, associate research director for cloud and artificial intelligence at IDC India, “Post the Covid period, the pace of digital transformation in India has been steady as organisations are driving innovation, introducing digital products and services, and automating processes.”
Enterprises want to migrate from legacy infrastructure to the cloud in order to update their IT infrastructure, which, according to Ranjan, is fueling the expansion of public cloud services. In the upcoming years, he predicted, “we can also expect growing adoption of AI technologies, containerized applications, edge computing, serverless computing, and Kubernetes technologies to further enhance efficiency and agility of infrastructure and applications on cloud.”
Despite growing global macroeconomic headwinds in the second half of 2022, such as the Ukraine crisis, supply chain interruptions, and interest rate increases, India’s public cloud services industry had strong growth due to businesses speeding up digital transformation. Cloud service providers noticed a surge in demand from startups and small- and medium-sized organisations.
As part of initiatives to update technology infrastructure, businesses reportedly used compute and storage services more frequently. Demand also increased for cloud-based collaborative applications, enterprise relationship management, customer relationship management, and security software. increased enterprise investment in cloud-based AI technologies and accelerated use of AI.
“The accelerated digital adoption among Indian enterprises with the cloud as a key enabler continued to be the prime driver of the public cloud services market in India, as cloud adoption helps enterprises drive efficiency in operations along with scalability benefits, thereby enabling them to gain a competitive advantage,” said Harish Krishnakumar, senior market analyst, IDC India.
According to Krishnakumar, “the surge in public cloud adoption is expected to continue in the upcoming years” as more companies adopt technologies like AI/machine learning and analytics and accelerate the creation of cloud-native applications.
According to Krishnakumar, “Enterprises would have a strong preference for as-a-service consumption models for their IT infrastructure requirements as a measure to keep IT spending in check amid the difficult economic environment and also mitigate talent shortages in ITOps.”
