Report Overview

The surging adoption of digital transformation strategies by businesses seeking enhanced efficiency and competitiveness are the main factors driving the India cloud computing market during the forecast period between 2023 and 2029.

India Cloud Computing Market – Industry Trends & Forecast Report, 2029

India cloud computing market size was estimated at USD 6.47 billion in 2022. During the forecast period between 2023 and 2029, the India cloud computing market size is projected to grow at a CAGR of 18.37% reaching a value of USD 17.8 billion by 2029. The market growth is mainly driven by surging adoption of digital transformation strategies by businesses seeking enhanced efficiency and competitiveness. Businesses and individuals are realizing the benefits of using cloud services, which allow them to store and access data, run software, and collaborate online without needing to invest in and manage complex IT infrastructure. The cloud provides flexibility, cost savings, and the ability to scale resources up or down as needed. With the increasing demand for remote work solutions, digital transformation, and online services, more companies are embracing cloud technology to stay competitive and meet the changing needs of their customers. This shift is reshaping how we use technology and do business, contributing to the continued expansion of the cloud computing market in India. 

India Cloud Computing Market – Overview

Cloud computing refers to the delivery of computing services, such as storage, processing power, software, and more over the internet. It enables users and organizations to access and utilize these resources on-demand from remote data centers, eliminating the need for physical hardware and offering scalability, cost-efficiency, and flexibility. Cloud services are categorized into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), while deployment models include public, private, hybrid, and community clouds. This technology has revolutionized IT by providing convenient, pay-as-you-go access to a wide range of computing capabilities.

India Cloud Computing Market

Growth Drivers

Increasing Demand for Data Storage and Processing

The remarkable surge in the demand for data storage and processing capabilities stands as a pivotal driver propelling the rapid growth trajectory of the cloud computing market in India. This escalating demand is precipitated by a convergence of transformative technological forces, including the exponential proliferation of data-intensive applications, the advent of big data analytics, the pervasive integration of Artificial Intelligence (AI) and Machine Learning (ML) across sectors, the dynamic expansion of the Internet of Things (IoT) ecosystem, and the paradigm shift towards remote work and collaboration. Cloud computing emerges as the indispensable solution to address these multifaceted challenges, offering a scalable and agile infrastructure that accommodates the colossal volumes of data generated while facilitating seamless processing, analysis, and extraction of actionable insights. This trend reflects an overarching recognition by businesses and organizations in India of the imperative to harness the potential of data as a strategic asset, thereby driving a profound transformation in industries ranging from e-commerce and finance to healthcare and telecommunications. As a result, the cloud computing market in India experiences a momentous surge, contributing significantly to the nation's technological advancement and economic growth.

Restraints

High Risk of Cyberattacks

The cloud computing market in India faces a substantial constraint in the form of a heightened risk of cyberattacks, which dampens its growth potential. These attacks make it harder for the cloud market to grow and reach its full potential. According to cybersecurity company CloudSEK, India was the second-largest target for cyberattacks behind the United States in 2021 and 2022, with roughly 500 attacks last year, an increase of about a fourth. This trend is worrying and makes it tough for businesses and organizations to fully trust cloud services. To protect against these attacks, a lot of money and effort need to be spent on strong cybersecurity measures. This takes away resources that could have been used for improving and growing cloud services. Because of this, it's not easy for cloud computing to expand quickly and be adopted widely. This situation not only limits the benefits of cloud technology but also shows how important it is for India to work together and strengthen its defences against cyber threats

Impact of COVID-19 on India Cloud Computing Market

The impact of COVID-19 on the India cloud computing market was significant, reshaping how businesses and individuals utilize technology. As the pandemic forced people to stay at home and follow social distancing measures, there was a rapid shift towards remote work and online activities. Cloud computing emerged as a lifeline, enabling businesses to quickly adapt by providing the tools and infrastructure needed for employees to work from home and ensuring the continuity of operations. This surge in demand for cloud-based solutions extended beyond remote work, encompassing sectors like education, healthcare, and e-commerce, where cloud technology facilitated remote learning, telehealth services, and seamless online shopping experiences. However, this increased reliance on the cloud also highlighted the importance of cybersecurity, as more data and transactions moved online, making data protection and privacy paramount. The pandemic underscored the crucial role of cloud computing in supporting India's digital transformation journey, illuminating its capacity to empower businesses, improve efficiency, and foster innovation, while also emphasizing the necessity of robust security measures to safeguard against emerging cyber threats.

India Cloud Computing Market

Segmental Coverage

India Cloud Computing Market - By Enterprise Size

Based on the enterprise size, India cloud computing market is divided into large enterprises and small & medium-sized enterprises (SMEs) segments. The SMEs segment is expected to grow at a higher CAGR during the forecast period. These businesses, which include smaller companies and startups, are increasingly embracing cloud technology due to its affordability, scalability, and accessibility. Cloud computing allows SMEs to access advanced tools and resources without hefty upfront costs, enabling them to compete effectively and innovate within their respective industries. This heightened interest in cloud services among SMEs stems from their pursuit of cost-effective solutions and operational efficiency, thus driving the growth of the India cloud computing market.

India Cloud Computing Market - By End User

Based on end user, India cloud computing market is divided into BFSI, telecom & IT, media & entertainment, energy & utilities, manufacturing, e-commerce, government & public sector, healthcare, and other segments. The e-commerce segment is expected to grow at the highest CAGR during the forecast period. E-commerce businesses, which operate online marketplaces for buying and selling goods and services, heavily rely on cloud computing to manage their websites, handle customer transactions, and store vast amounts of data. As the popularity of online shopping and digital transactions continues to soar, e-commerce companies are increasingly adopting cloud solutions to ensure seamless and secure operations, efficient order processing, and enhanced customer experiences. This surge in demand for cloud services by e-commerce players has propelled the growth of the India Cloud Computing market, highlighting the pivotal role of cloud technology in enabling the dynamic and rapidly evolving e-commerce landscape.

India Cloud Computing Market – By Service

Based on service, India cloud computing market is divided into infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) segments. The SaaS segment holds the largest market share by service because significant portion of the cloud technology being used in India is focused on providing software applications over the internet. SaaS allows users to access and use software without needing to install it on their own computers, making it convenient for businesses and individuals to use a wide range of applications for tasks like communication, collaboration, and data management. The popularity of SaaS highlights its importance in the Indian cloud computing market as a key driver of digital transformation and efficient software delivery.

India Cloud Computing Market – By Deployment

Based on the deployment, India cloud computing market is segmented into public, private, and hybrid. The private segment accounts for the largest market share in the market by deployment. Private cloud deployment involves creating a dedicated cloud environment for a single organization, which offers greater control and security over data and resources. The popularity of private cloud deployment underscores its prominence in the Indian market, highlighting the preference for personalized and secure cloud solutions tailored to specific organizational needs.

India Cloud Computing Market – By Region

Based on region, India cloud computing market is divided into North India, South India, East India and West India. The South India region is expected to dominate the market. South India, particularly cities like Bengaluru and Hyderabad, has historically been recognized as a hub for technology and innovation in India. These cities have a strong presence in the IT and technology sectors and have contributed significantly to the growth and adoption of cloud computing technologies. They host numerous tech companies, startups, research institutions, and skilled professionals, which has led to a vibrant ecosystem fostering technological advancements and digital transformation. This will help the market to grow in the coming years in this region.

Competitive Landscape

Major players operating in the India cloud computing market include Tata Consultancy Services, Infosys, Wipro Limited, Zenith InfoTech Limited, CipherCloud, Cirrologix Private Limited, Ctrls Datacenters Limited, Clogeny Technologies Private Limited, App Point, and iNube Software Solutions Pvt Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Service

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

By Deployment

• Public

• Private

• Hybrid

By Enterprise Size

• Large Enterprises

• Small & Medium-sized Enterprises (SMEs)

By End User

• BFSI

• Telecom & IT

• Media & Entertainment

• Energy & Utilities

• Manufacturing

• E-Commerce

• Government & Public Sector

• Healthcare

• Others

By Region

• North India

• South India

• East India

• West India