India Cloud Computing Market | Analysis 2019-2031

INDIA CLOUD COMPUTING INDUSTRY SNAPSHOT

• DataCube Research foresees the India cloud computing market making significant strides on the global stage, with projected revenue reaching US$ 32.88 billion by 2024. Moreover, our analysis indicates a promising trajectory, an anticipated CAGR of 21.60% from 2023 to 2031 to reach US$ 133.43 billion by 2031.
• Within the Indian cloud computing market, our research highlights the dominance of the Software as a Service (SaaS) segment, which claimed the largest market share of 72.34% in 2023. This underscores the segment's robust position and potential for continued growth.
• In our projections, we also pay close attention to end user dynamics. We anticipate the IT and Telecom sector to emerge as a key driver of growth, expanding with a fastest CAGR of 19.41% during the forecast period spanning 2023 to 2031.

INDIA CLOUD COMPUTING INDUSTRY SCENARIO, TRENDS AND DEVELOPMENTS

In the past few years, cloud computing has become a critical business solution from the IT industry buzz word. This technology is transforming business models and changing the way enterprises operate. Organizations from various industry verticals that are undergoing a significant restructuring or reorganization, or have complex supply chain network are increasingly adopting cloud-based solutions and services to save cost and increase return on investment. Further, the pay-as-you-go model is making cloud computing affordable and attractive solutions for small and mid-enterprises (SMEs). Additionally, SMEs in India are considered to be early adopters of cloud services especially software as a service (SaaS).
 

Majority of the CIOs from large end user organizations still consider embracing cloud computing technology entirely to be the risk-based decision, as migrating all the critical business process towards cloud give rise to threat associated with data security and sovereignty. The penetration of cloud computing services in India is only near to 65%, it represents a further scope of penetration and opportunities for major cloud vendors. Also, the growing shift of enterprises towards CAPEX to OPEX model is anticipated to increase the adoption of cloud computing services at a significant pace in India, thus, driving the growth of the India cloud computing market.
 

Key factors increasing the adoption of cloud computing technology in India are presence of a large number of SMBs and their growing inclination towards cloud computing, availability of large data centers operated by telecommunication service providers, Reduction in IT infrastructure cost, and Proliferation of connected devices and eCommerce growth. Additionally, growing awareness among enterprises regarding benefits of cloud computing is projected to fuel growth of the India cloud computing market during the projection period. However, factors such as inefficient fibre optic network and connectivity infrastructure, threat associated with data privacy and security and rising cyber-attacks, and legacy IT infrastructure are hampering performance of India cloud computing industry. Also, below developments and trends are observed in Indian cloud computing industry:
 

• In January 2024, The Reserve Bank of India (RBI) announced plans to set up a specialized cloud facility to proactively address the escalating threat of cybercrime in the financial sector. This move aligns with the industry's increasing reliance on cloud technology to bolster data security, scalability, and business continuity.
   
• In January 2024, Air India's transition to a cloud-only IT infrastructure marks a significant milestone in the aviation industry. By shutting down its traditional data centers and migrating all computational workloads to the cloud, Air India demonstrates its commitment to embracing cutting-edge technology for improved efficiency and agility.
   
• Tech Mahindra's collaboration with Amazon Web Services (AWS) in January 2024 underscores the growing demand for cloud-based solutions tailored to the specific requirements of sports organizations and broadcasters. This partnership highlights the potential of cloud platforms to revolutionize the sports industry by offering advanced capabilities such as data analytics, content management, and fan engagement solutions. Thereby, transforming India cloud computing market.
   
• In the same month and year, Wipro partnered with RSA Security. This move reflects the industry's ongoing shift towards cloud-based infrastructure and applications. By assisting RSA Security in migrating to the cloud, Wipro aims to optimize operations, strengthen security measures, and enhance organizational agility in an increasingly digital environment.
   
• In February 2024, Lenovo's introduction of hybrid cloud platforms and services signifies the rising importance of cloud technology in enabling AI-driven innovations. By leveraging its ThinkAgile hyperconverged solutions and ThinkSystem servers powered by Intel Xeon processors, Lenovo concentrates on offering scalable and high-performance infrastructure for deploying AI workloads, thereby driving digital transformation and business growth.
   
• Recently, Amazon Web Services introduced the AWS GovCloud (India) Region. The motive behind this initiative is to serve Indian government agencies and other end users with highly regulated data needs.
   
• As a part of expansion in India cloud computing market, Microsoft expanded its Azure presence in the Central India region in December 2021 to strengthen its reach and capacity.

INDIA CLOUD COMPUTING MARKET COVERAGE