Report Overview

India Software as a Service (SaaS) Market – Industry Trends & Forecast Report, 2031

India Software as a Service (SaaS) Market size was estimated at USD 10.47 billion in 2024. During the forecast period between 2025 and 2031, India Software as a Service (SaaS) Market size is projected to grow at a CAGR of 24.5% reaching a value of USD 48.54 billion by 2031. Prominent drivers of the market include increasing digital transformation, a flourishing start-up ecosystem, cost advantages, and a vast pool of skilled professionals. India has emerged as a global SaaS hub, benefiting from government initiatives like “Digital India” and “Make in India.” Key trends fueling market expansion include the rising integration of AI and machine learning for predictive analytics and automation, increased adoption of remote collaboration tools, and growing emphasis on data security and compliance. The country’s large base of STEM graduates continues to support innovation and global service delivery. Indian SaaS firms are also expanding into emerging regions, such as Southeast Asia, Africa, and Latin America, offering affordable and scalable solutions. The market outlook remains strong, with growing demand among SMEs, a rise in new SaaS unicorns, increasing M&A activity, and continuous innovation in product offerings. As competition intensifies, customer success is becoming a critical differentiator. With favorable conditions, abundant talent, and global ambition, India is well-positioned to dominate the international SaaS landscape, provided companies continue to innovate, scale effectively, and navigate evolving business challenges.

Software as a Service (SaaS) – Overview

Software as a Service (SaaS) is a cloud-based software distribution model where applications are hosted by a service provider and accessed by users over the internet. Instead of purchasing and installing software on individual devices, users subscribe to SaaS applications, usually on a monthly or annual basis. This model offers scalability, remote accessibility, and automatic updates, making it cost-effective and efficient for businesses of all sizes. SaaS is commonly used for a variety of applications, including customer relationship management (CRM), enterprise resource planning (ERP), and human resource management. It reduces infrastructure costs and simplifies software maintenance and deployment.

India Software as a Service (SaaS) Market

Growth Drivers

Rising Integration of Artificial Intelligence

India Software as a Service (SaaS) ecosystem is experiencing rapid growth, driven significantly by the integration of Artificial Intelligence (AI) and Generative AI (GenAI). With India’s digital landscape expanding and internet users increasing, SaaS has become a central hub for innovation. The market is set for significant growth, with AI optimizing SaaS applications by automating processes such as code testing, cybersecurity, and large language model operations like chatbots. Additionally, AI is helping vertical SaaS platforms, which offer industry-specific solutions, to thrive by providing smarter, more efficient tools tailored to specialized sectors like finance, healthcare, and subscription-based services. This shift from horizontal to vertical SaaS is becoming more pronounced, with vertical SaaS showing stronger growth in both funding and deal volume. Investor interest in AI-driven SaaS is increasing, with many venture capital firms focusing on startups targeting niche industries. AI is also transforming the sales model, shifting from direct selling to assisted buying, enabling companies to reach a broader audience. As AI continues to shape the sector, India is positioning itself as a key player in the global SaaS market, with cities like Bengaluru emerging as major SaaS hubs. The combination of AI integration and India’s growing tech ecosystem ensures the continued expansion and global prominence of its SaaS sector.

Challenges

Increasing Talent Shortages

Increasing talent shortages are a significant challenge restraining the growth of India’s Software as a Service (SaaS) Market. The rapid expansion of the SaaS sector demands a highly skilled workforce proficient in AI, cloud computing, and software development. However, there is a growing gap between the demand for specialized talent and its availability, causing delays in product development and limiting innovation. This talent crunch also leads to higher recruitment costs, hindering the scalability of SaaS businesses. As a result, companies struggle to maintain a competitive edge in an increasingly crowded and dynamic market.

Impact of Escalating Geopolitical Tensions on India Software as a Service (SaaS) Market

Escalating geopolitical tensions can significantly impact India's Software as a Service (SaaS) Market by creating uncertainties in global trade and investment flows. Increased political instability may lead to stricter regulations, affecting cross-border data exchanges and cloud infrastructure. Additionally, tensions can disrupt supply chains for SaaS providers, especially in areas like hardware procurement and software integration. This could result in delayed product rollouts and reduced growth potential. Furthermore, investor confidence might wane, leading to slower funding and innovation. These factors combined could hinder the growth trajectory of India's SaaS sector, particularly in global expansion efforts.

India Software as a Service (SaaS) Market

Segmental Coverage

India Software as a Service (SaaS) Market – By Deployment Mode

Based on deployment mode, India Software as a Service (SaaS) Market is divided into Public Cloud, Private Cloud, and Hybrid Cloud segments. The private cloud segment holds the highest share in India Software as a Service (SaaS) Market by deployment mode. Integrating SaaS applications with edge computing and private cloud infrastructure offers organizations enhanced control, security, and performance. This combination reduces latency and ensures data privacy by enabling compliance with regulatory standards while minimizing the risk of data breaches. By leveraging a private cloud, businesses can maintain full oversight of their data, making it easier to manage security and meet legal requirements. Ultimately, this integration creates a robust platform for delivering SaaS solutions tailored to the demands of modern enterprises.

India Software as a Service (SaaS) Market – By Application

By application, India Software as a Service (SaaS) Market is divided into Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Human Resource Management (HRM), Supply Chain Management (SRM), and Business Intelligence & Analytics segments. The customer relationship management segment holds the highest share in India Software as a Service (SaaS) Market by application. CRM solutions, featuring AI-driven analytics, personalized marketing automation, and integrated omnichannel communication, help organizations boost customer experience and loyalty. The growing shift to e-commerce and digital-first approaches has accelerated CRM adoption as businesses aim to manage extensive customer data effectively. Moreover, CRM’s integration with other business systems like ERP and HRM has enhanced workflow efficiency and provided more comprehensive insights, driving its widespread use.

India Software as a Service (SaaS) Market – By Industry Vertical

On the basis of industry vertical, India Software as a Service (SaaS) Market is segmented into BFSI, Healthcare, Retail & E-commerce, IT & Telecom, and Education. The BFSI segment holds the highest share in India Software as a Service (SaaS) Market by industry vertical. SaaS solutions provide scalable platforms for essential functions like customer relationship management, risk assessment, fraud detection, and regulatory compliance. With advanced analytics and AI tools, they enable real-time decision-making and personalized financial services. The growth of digital banking and fintech has increased the demand for SaaS platforms to optimize processes and handle large volumes of transactional data. Furthermore, enhanced security features in SaaS offerings address data protection concerns, making them a preferred choice for modernizing BFSI operations.

India Software as a Service (SaaS) Market – By Region

The in-depth research report on India Software as a Service (SaaS) 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 Software as a Service (SaaS) Market and is expected to maintain its dominance during the forecast period. South India, particularly cities like Bengaluru, Chennai, and Hyderabad, has established itself as the dominant region in the Indian Software as a Service (SaaS) market. Bengaluru, known as the "Silicon Valley of India," is home to numerous SaaS startups and tech giants, attracting substantial investments and fostering innovation. The region benefits from a well-developed tech infrastructure, a large talent pool, and robust support for startups, all contributing to the growth of the SaaS industry. Additionally, South India's rapidly evolving digital landscape, coupled with increasing adoption of cloud-based solutions by businesses, solidifies its position as the leader in the Indian SaaS market. The region’s strong emphasis on IT services, artificial intelligence (AI), and digital transformation further ensures its continued dominance in the SaaS sector throughout the forecast period.

Competitive Landscape

Major players operating in India Software as a Service (SaaS) Market include Zoho Corporation, Freshworks, Tally Solutions, InMobi, BrowserStack, Chargebee, Capillary Technologies, Icertis, CureMetrix, and LogicShore. 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 February 2025 - Uber transitioned its auto-rickshaw operations in India from a commission-based model to a Software as a Service (SaaS) subscription system. Effective February 18, all auto rides booked through the Uber app will be cash-only, with fares negotiated directly between drivers and passengers. This shift aligns Uber with other platforms like Rapido that have adopted similar models. Drivers will now pay a fixed fee to access the platform, while Uber will no longer charge trip-based commissions or cancellation fees.

• In November 2024 - AVEVA launched its cloud-based industrial intelligence platform, "Connect," in India to support digital transformation across sectors like chemicals, power, and energy. Positioned as a key innovation hub, India houses AVEVA's largest R&D center in Hyderabad, supported by a growing workforce in Bangalore. The platform offers advanced SaaS solutions to improve efficiency, sustainability, and profitability for industrial operators and engineers. Backed by Schneider Electric, AVEVA continues to invest heavily in R&D, aiming to transition fully to a subscription-based model.

Scope of the Report

By Deployment Mode

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Application

• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• Human Resource Management (HRM)

• Supply Chain Management (SCM)

• Business Intelligence & Analytics

By Industry Vertical

• BFSI

• Healthcare

• Retail & E-commerce

• IT & Telecom

• Education

By Region

• North India

• South India

• East India

• West India

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1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Software as a Service (SaaS) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising AI Integration
         2. Increasing Demand for Vertical SaaS
         3. Growing Government Support
      2. Restraints
         1. Growing Competition
         2. Increasing Talent Shortages
      3. Opportunities
         1. Rising Focus on Cybersecurity
         2. Growing Global Expansion Potential
      4. Challenges
         1. Increasing Data Privacy & Compliance Concerns
         2. Low Average Revenue Per User
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Software as a Service (SaaS) Market: Marketing Strategies
5. India Software as a Service (SaaS) Market: Pricing Analysis
6. India Software as a Service (SaaS) Market Overview
   1. Market Size & Forecast, 2019-2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Deployment Mode
         1. Public Cloud
         2. Private Cloud
         3. Hybrid Cloud
      2. By Application
         1. Customer Relationship Management (CRM)
         2. Enterprise Resource Planning (ERP)
         3. Human Resource Management (HRM)
         4. Supply Chain Management (SCM)
         5. Business Intelligence & Analytics
      3. By Industry Vertical
         1. BFSI
         2. Healthcare
         3. Retail & E-commerce
         4. IT & Telecom
         5. Education
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Software as a Service (SaaS) Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Deployment Mode
      2. By Application
      3. By Industry Vertical
8. South India Software as a Service (SaaS) Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Deployment Mode
      2. By Application
      3. By Industry Vertical
9. East India Software as a Service (SaaS) Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Deployment Mode
      2. By Application
      3. By Industry Vertical
10. West India Software as a Service (SaaS) Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Deployment Mode
       2. By Application
       3. By Industry Vertical
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Software as a Service (SaaS) Company Market Share Analysis, 2024
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
12. Impact of Escalating Geopolitical Tensions on India Software as a Service (SaaS) Market
13. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Zoho Corporation
    2. Freshworks
    3. Tally Solutions
    4. InMobi
    5. BrowserStack
    6. Chargebee
    7. Capillary Technologies
    8. Icertis
    9. CureMetrix
    10. LogicShore
    11. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Software as a Service (SaaS) Market Segmentation

Figure 2       India Software as a Service (SaaS) Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Figure 5       India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Figure 6       India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Figure 7       India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Figure 8       India Software as a Service (SaaS) Market Share, By Region, By Value (USD Billion) 2019-2031

Figure 9       North India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Figure 10     North India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Figure 11     North India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Figure 12     North India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Figure 13     South India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Figure 14     South India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Figure 15     South India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Figure 16     South India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Figure 17     East India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Figure 18     East India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Figure 19     East India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Figure 20     East India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Figure 21     West India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Figure 22     West India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Figure 23     West India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Figure 24     West India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

List of Tables     

Table 1        India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Table 2        India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Table 3        India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Table 4        India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Table 5        India Software as a Service (SaaS) Market Share, By Region, By Value (USD Billion) 2019-2031

Table 6        North India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Table 7        North India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Table 8        North India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Table 9        North India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Table 10      South India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Table 11      South India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Table 12      South India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Table 13      South India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Table 14      East India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Table 15      East India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Table 16      East India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Table 17      East India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Table 18      West India Software as a Service (SaaS) Market Size, By Value (USD Billion), 2019-2031

Table 19      West India Software as a Service (SaaS) Market Share, By Deployment Mode, By Value (USD Billion) 2019-2031

Table 20      West India Software as a Service (SaaS) Market Share, By Application, By Value (USD Billion) 2019-2031

Table 21      West India Software as a Service (SaaS) Market Share, By Industry Vertical, By Value (USD Billion) 2019-2031

Table 22      Zoho Corporation Company Overview

Table 23      Zoho Corporation Financial Overview

Table 24      Freshworks Company Overview

Table 25      Freshworks Financial Overview

Table 26      Tally Solutions Company Overview

Table 27      Tally Solutions Financial Overview

Table 28      InMobi Company Overview

Table 29      InMobi Financial Overview

Table 30      BrowserStack Company Overview

Table 31      BrowserStack Financial Overview

Table 32      Chargebee Company Overview

Table 33      Chargebee Financial Overview

Table 34      Capillary Technologies Company Overview

Table 35      Capillary Technologies Financial Overview

Table 36      Icertis Company Overview

Table 37      Icertis Financial Overview

Table 38      CureMetrix Company Overview

Table 39      CureMetrix Financial Overview

Table 40      LogicShore Company Overview

Table 41      LogicShore Financial Overview