Report Overview

Rapid cloud adoption, rising cyber threats, and regulatory mandates are expected to drive India Cloud Security Market during the forecast period between 2025 and 2031.

India Cloud Security Market – Industry Trends & Forecast Report, 2031

India Cloud Security Market size was estimated at USD 1.79 billion in 2024. During the forecast period between 2025 and 2031, India Cloud Security Market size is projected to grow at a CAGR of 16.1% reaching a value of USD 5.1 billion by 2031. Prominent drivers of the market include the rising need to safeguard sensitive data and infrastructure in an increasingly digital landscape. With enterprises shifting from traditional IT frameworks to cloud environments, cloud security has become essential to counter growing cyber threats, ensure regulatory compliance, and support secure digital transformation. Cloud security solutions offer capabilities like identity and access management, threat detection, and encryption, enabling businesses to mitigate risks associated with data breaches and system vulnerabilities. Furthermore, the proliferation of remote work, AI-based automated security tools, and government-led digital initiatives such as Digital India and Smart Cities are accelerating market growth. As organizations across sectors—particularly IT, e-commerce, and government—prioritize secure cloud adoption, the demand for robust cloud security services continues to expand, making it a critical component of India’s evolving digital infrastructure.

Cloud Security – Overview

Cloud security refers to a set of technologies, protocols, and best practices designed to protect data, applications, and infrastructure hosted in cloud environments. It encompasses measures, such as data encryption, identity and access management (IAM), threat detection, and compliance enforcement to prevent unauthorized access, data breaches, and cyberattacks. As organizations increasingly migrate to cloud platforms for scalability and efficiency, cloud security plays a vital role in ensuring the confidentiality, integrity, and availability of digital assets while supporting regulatory compliance and business continuity.

India Cloud Security Market

Growth Drivers

Rising Cyber Threats

India's rapid digital transformation has unfortunately been met with an alarming surge in cyber threats, directly propelling the growth of the nation's cloud security market. With figures like 18 million cyberattacks and 200,000 daily threats in Q1 2022, and a dramatic increase in cybersecurity incidents from 53,117 in 2017 to over 1.5 million in 2023, the scale of the challenge is undeniable. This escalating threat landscape, characterized by sophisticated ransomware, DDoS attacks, phishing campaigns, and malware, underscores the critical need for advanced defensive measures as businesses and financial institutions increasingly adopt cloud-based environments. Regulatory bodies are also stepping up, with initiatives like the Digital Threat Report 2024 for the BFSI sector, highlighting that robust cybersecurity is not just a regulatory necessity but an economic imperative for stability. The continuous onslaught of these attacks, leading to data breaches, financial losses, and national security concerns, creates an undeniable demand for comprehensive cloud security solutions, making it an essential foundation for India's digital future.

Challenges

Budget Constraints

Budget constraints among small and medium-sized enterprises (SMEs) act as a significant restraint to the growth of India Cloud Security Market. Limited financial resources often hinder SMEs from investing in advanced cloud security solutions, ongoing monitoring, and skilled IT personnel. Additionally, the perceived high costs of implementation and maintenance deter smaller businesses from adopting robust security frameworks. This financial limitation restricts their ability to protect sensitive data effectively, leaving them more vulnerable to cyber threats and slowing overall market expansion, especially in sectors dominated by cost-sensitive enterprises.

Impact of Escalating Geopolitical Tensions on India Cloud Security Market

Escalating geopolitical tensions could significantly impact the growth of India Cloud Security Market by heightening concerns around data sovereignty, cross-border data flows, and the reliability of foreign-based cloud service providers. Such tensions may lead to stricter government regulations, increased demand for local data centers, and a shift towards indigenous cloud solutions to mitigate risks related to foreign surveillance or cyber-espionage. Additionally, global supply chain disruptions and cybersecurity threats from hostile nations can compel organizations to invest more in advanced cloud security frameworks. These geopolitical dynamics may both challenge and reshape the market, driving innovation, policy shifts, and a stronger emphasis on self-reliance in cloud infrastructure.

India Cloud Security Market

Segmental Coverage

India Cloud Security Market – By Security Type

Based on security type, India Cloud Security Market is divided into Network Security, Endpoint Security, Data Security, Identity & Access Management (IAM), Security Information & Event Management, and Application Security segments. The identity & access management (IAM) segment holds the largest share of India Cloud Security Market by security type. The IAM segment’s dominance is driven by the rising need to protect sensitive information against growing cyber threats and ensure regulatory compliance across industries. IAM solutions, including multi-factor authentication, zero-trust security models, and AI-powered identity verification, are increasingly being adopted in sectors, such as banking, government, and healthcare. With the surge in cyberattacks—rising from 394,499 incidents in 2019 to over 1.4 million in 2021—and the fact that 52% of data breaches stem from human error and weak passwords, the demand for IAM tools has significantly accelerated. These frameworks enable IT teams to efficiently manage digital identities and control user access, reducing vulnerabilities in cloud environments. Additionally, the market benefits from growing digitalization, the shift toward cloud-based deployments, and the need for robust security governance.

India Cloud Security Market – By Deployment Mode

By deployment mode, India Cloud Security Market is divided into Public Cloud, Private Cloud, and Hybrid Cloud segments. The hybrid cloud segment holds the highest share in India Cloud Security Market by deployment mode. The segment growth is driven by its ability to manage data efficiently without centralizing it, ensuring both reliability and strong performance. Hybrid cloud solutions offer a cost-effective way for enterprises to optimize their operations, making them an attractive option, especially in light of economic considerations. As organizations recognize these advantages, they are increasingly investing in hybrid cloud setups to enhance their global reach and technological capabilities.

India Cloud Security Market – By End User

On the basis of end user, India Cloud Security Market is segmented into (BFSI, Healthcare, IT & Telecom, Retail & E-commerce, Government & Defense, Manufacturing, and other end users.

India Cloud Security Market – By Region

The in-depth research report on India Cloud Security Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. South India holds the highest share in India Cloud Security Market and is expected to maintain its dominance during the forecast period.

Competitive Landscape

Major players operating in India Cloud Security Market include Tata Consultancy Services (TCS), Wipro, HCL Technologies, Infosys, Tech Mahindra, Persistent Systems, Microland, Aujas Cybersecurity (an NSEIT Company), Quick Heal Technologies (Seqrite), and Subex. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2025 - Redington India partnered with US-based cybersecurity firm Banyan Cloud to enhance cloud security adoption across key Indian industries. Acting as a value-added distributor, Redington will deliver Banyan Cloud’s advanced security solutions, including Zero Trust and Cloud Security Posture Management, to sectors like banking, IT, and healthcare.

• In January 2025 - Orca Security announced that it had achieved rapid growth in India, expanding its customer base by 500% since launching a local data center in 2023. Driven by AI-powered demand for an integrated, agentless cloud security platform, Orca partnered with key players like Noventiq India to support secure cloud adoption.

Scope of the Report

By Security Type

• Network Security

• Endpoint Security

• Data Security

• Identity & Access Management (IAM)

• Security Information & Event Management

• Application Security

By Deployment Mode

• Public Cloud

• Private Cloud

• Hybrid Cloud

By End User

• BFSI

• Healthcare

• IT & Telecom

• Retail & E-commerce

• Government & Defense

• Manufacturing

• Others

By Region

• North India

• South India

• East India

• West India