The overall India public cloud services market is expected to reach $13 billion by 2026, growing at a compound annual growth rate (CAGR) of 23.1 per cent for the 2021-26 period, an IDC report said on Thursday.
The India public cloud services (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), revenue totaled $2.8 billion for the first half of 2022.
"With the growth in digital innovation, organizations are looking to bring new products and services to the market faster through digital streams and increase their investments in technologies like AI/ML, edge computing, blockchain, and IoT to improve customer experience and business efficiency," said Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence, IDC India.
SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS during the first half of 2022.
The top two public cloud service providers continue to hold more than 45 per cent of the market, said the IDC report.
With India being a key growth market, cloud service providers continued to expand their presence in the country by unveiling new data centers/cloud regions, thus enhancing their service delivery capabilities.
There was also a surge in the adoption of cloud-based AI platforms and cloud-native application development.
"With more Indian enterprises working on strengthening their digital and smart capabilities, public cloud adoption will continue to be driven by the demand for upgrading legacy systems, omnichannel customer expenses, real-time data analytics, connected platforms and applications, etc," said Harish Krishnakumar, senior market analyst, IDC India.