According to a report by International Data Corporation (IDC), the Indian public cloud services (PCS) market, including infrastructure‑as‑a‑service (IaaS), platform‑as‑a‑service (PaaS) solutions, and software‑as‑a‑service (SaaS), revenue totalled $10.9 billion for 2024. The overall Indian public cloud services market is expected to reach $30.4 billion by 2029, growing at a CAGR of 22.6 per cent for 2024‑29.
Commenting on the report, associate research director, Cloud and Artificial Intelligence (AI), IDC India, said, “Indian enterprises are increasingly investing in public cloud services to modernise legacy systems, introduce digital services, improve efficiency, and drive innovation. AI adoption will be a key catalyst, with a significant portion of services being deployed on public cloud platforms. Growth will be fuelled by rising demand for AI‑powered software, fully managed compute and storage systems, and SaaS, especially collaboration, content services, and core business applications delivered via consumption‑based models.”
As per the report, the top two vendors continued to hold more than 40 per cent of the market in 2024. SaaS remained the largest category in the overall public cloud services market, followed by IaaS and PaaS.
While segments like AI platforms and application development software posted strong growth, IaaS, collaborative applications, customer relationship management (CRM), and enterprise resource management (ERM) continued to be the largest segments by revenue.
Meanwhile, senior market analyst, IDC India, said, “With public cloud continuing to be one of the top deployment models for Indian enterprises, the domestic public cloud market recorded robust growth in 2024. This momentum is driven by enterprises increasingly prioritising automation, streamlining business processes, enhancing employee productivity, and improving customer experience. Additionally, the rising adoption of generative AI (GenAI) tools and services and sustained application modernisation initiatives will accelerate public cloud adoption in the coming years.”
