The Indian public cloud services market is expected to reach $13 billion by 2026, with a compound annual growth rate of 23.1% for the period 2021-26, according to the International Data Corporation (IDC).
Driven by the financial services, manufacturing and public sectors, the country's cloud services market, which includes infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), generated $2.8 billion in revenue for H1 2022.
SaaS remained the largest component of the overall public cloud services market, followed by IaaS and PaaS. The top two public cloud service providers accounted for more than 45% of the market, according to the report.
With verticals like BFSI, manufacturing, etc., leading the public cloud adoption, service providers also continued to witness increased demand from other verticals like the public sector, media, gaming, etc.
Collaboration applications, computing, storage, customer relationship management (CRM), enterprise resource management (ERM), security, etc., continue to be the most demanded public cloud service areas.
There was also a surge in the adoption of cloud-based AI platforms and cloud-native application development.