India's Public Cloud Services Market Set To Soar At 23.4% By 2027: Report
A new report has revealed that India’s Public Cloud Services (PCS) market is poised for exponential growth, with a projected compound annual growth rate (CAGR) of 23.4 per cent from 2022 to 2027.
The IDC report revealed that the market revenue for 2022 reached an impressive USD 6.2 billion, encompassing a wide range of services such as infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). India's digital transformation journey, steady since the COVID-19 pandemic, has been the primary driver behind this robust growth.
Enterprises across the country are actively driving innovation, introducing digital products and services, and automating processes to stay ahead in the competitive landscape. With a keen focus on improving customer experience, organizations are turning to cloud migration as the preferred path to modernize their IT infrastructure.
Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence at IDC India, emphasised the transformative role of cloud technologies. "Migrating from legacy infrastructure to the cloud has been the most preferred way to modernize IT infrastructure, which is driving public cloud services growth," he said.
"In the coming years, 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 the cloud," he added.
Among the three components of the public cloud services market, SaaS has emerged as the largest, followed by IaaS and PaaS. The dominance of these services is evident, with the top two cloud service providers holding more than 40 per cent of the market share.
Despite facing global macroeconomic headwinds in the latter half of 2022, the India Public Cloud Services Market remained resilient, driven by the accelerating digital transformation initiatives among enterprises. Cloud service providers also witnessed increased demand from small and medium-sized businesses (SMBs) and startups, highlighting the market's potential.
The report found that enterprises are now increasingly adopting compute and storage services to modernise their IT infrastructure, alongside a surge in demand for cloud-based collaborative applications, enterprise resource management (ERM), customer relationship management (CRM), and security software.
