Indian public cloud services market to grow at 24% CAGR for 2021-26: IDC

The Indian Public Cloud Services (PCS) market is expected to reach $13.5 billion by 2026, growing at a Compound Annual Growth Rate (CAGR) of 24 per cent for 2021-26, according to research firm, International Data Corporation (IDC).

The PCS market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), revenue totalled $4.6 billion, said the report.

India continues to be among the fastest growing market for PCS providers due to the robust demand from large enterprises, small and medium businesses and digital natives.

In 2021, enterprises invested in public cloud to ensure business continuity, drive digital innovation improved resilience and productivity. There has been an increased demand for cloud-based security applications as organisations expect part of their hybrid workforce to return to offices in 2022.

Rishu Sharma, Associate Research Director, Cloud and Artificial Intelligence, said, “With digital innovation leading the top business objectives for Indian organisations, cloud adoption is set to accelerate in 2022.” This is driven by the need for agility, flexibility, and faster access to digital technologies. Cloud gains momentum across segments, he added.

SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in 2021. Public cloud spending continued to increase among enterprises, with the top two service providers holding more than 45 per cent of the Indian PCS market, the report stated .

“The increased spend is expected to continue in the upcoming years as enterprises invest in emerging technologies like Artificial Intelligence/Machine Learning (AI/ML), Internet of Things (IoT), blockchain, etc., to automate processes and drive innovation with public cloud as the foundation,” said Harish Krishnakumar, Senior Market Analyst.   The Hindu BusinessLine