An International Data Corporation (IDC) Worldwide Semi-annual Public Cloud Services Tracker estimates that India’s Public cloud service (PCS) market will reach $13 billion by 2026, growing at a CAGR of 23.1 percent for 2021-26.
Public cloud service makes computing and storage applications available on demand to organisations and individuals over the public internet. A private cloud model’s resources are available only to a single organisation.
International Data Corporation (IDC) said that the reported revenue of the Indian Public cloud service (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), totaled $2.8 billion for the first half of 2022.
SaaS was the largest component of the Indian PCS market, followed by IaaS and PaaS during the first half of 2022, said the report called IDC Worldwide Semi-annual Public Cloud Services Tracker, H12022 (January-June).
According to Rajiv Ranjan, Associate Research Director at Cloud and Artificial Intelligence, IDC India
“Public cloud services continue to grow in India as there is a surge in digital services and organizations have realized the power of cloud to help them transform digitally. 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. The market also witnessed increased consumption of platform-as-a-service tools as organizations invested in modernizing their legacy applications to make them cloud native, highly scalable, and flexible as part of their digital transformation journey.”
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% of the market.
Harish Krishnakumar, Senior Market Analyst at IDC India said:
“Demand for public cloud services continues to rise with enterprises leveraging the cloud for streamlining operations, cost optimization, accelerated innovation, increased flexibility, reliability, etc. 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. Further, the recent launch of 5G services is expected to open up a gamut of opportunities for enterprises undergoing digital transformation, thus accelerating cloud proliferation.”
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. 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.
