In the first half of 2023, the Indian public cloud services (PCS) market, spanning infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS), notched an impressive $3.8 billion in revenue per a recent report by the International Data Corporation (IDC).
This number is projected to soar to $17.8 billion by 2027, as the market showcases a robust growth trajectory with a projected CAGR of 22.9% from 2022 to 2027.
According to the report public cloud services in India have outgrown mere cost savings and flexibility, growing into a sector where enterprises invest in application modernization, cloud-native solutions, and into artificial intelligence realms like GenAI, chatbots, and conversational AI tools.
SaaS takes the lead in the market, closely trailed by IaaS and PaaS in the first half of 2023. The two top cloud service providers command over 40% of the market share, indicating a concentrated but competitive landscape.
Despite economic challenges, major cloud players are doubling down on India, underscoring their confidence in the market's potential. Traditional segments like IaaS, collaborative applications, CRM, and ERM are pivotal in driving growth, alongside a surge in demand for AI and data management offerings, reflecting the evolving needs in the cloud services landscape.
The report emphasized the increasing reliance on public cloud services as enterprises spearhead digital transformation for enhanced agility and operational efficiency. As GenAI gains momentum, and enterprises pivot towards next-gen technologies, the cloud services arena in India is set for an exciting journey ahead.