Indian Public Cloud Market To Triple, Reaching $24 Bn By 2028

The Indian public cloud services market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions, saw a big rise in revenue, reaching $8.3 billion in 2023, according to the International Data Corporation (IDC). 

This growth trajectory is projected to continue, with the market expected to triple, hitting USD 24.2 billion by 2028 at a compound annual growth rate (CAGR) of 23.8 per cent.

SaaS is expected to be the primary driver of public cloud volume, but PaaS offerings are also expected to see big growth. Fully managed databases and serverless technologies are becoming increasingly popular, enabling the deployment of cloud-native applications and advanced data management infrastructure. 

Moreover, the adoption of GenAI to streamline operations, improve customer experiences, and foster innovation is anticipated to further propel the public cloud services market.

In 2023, the top two vendors in the market maintained a dominant position, collectively holding over 40 per cent of the market share. SaaS continued to be the largest segment in the public cloud services market, followed by IaaS and PaaS. Segments such as Customer Relationship Management (CRM), Enterprise Resource Management (ERM), and Collaborative Applications, along with IaaS, remained significant growth drivers. Additionally, there was a rising demand for AI platforms, Data Management Software, and System Infrastructure Software, contributing to the overall expansion of the market.

"While enterprises continue to modernize IT on IaaS offerings, core business applications have a shifting trend to SaaS models on public cloud. These offerings are further enhanced by GenAI technologies to improve user experience and productivity,” said Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence, IDC India in a statement.