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India's cloud computing market should be driven by organizations seeking to enhance their efficiency and competitiveness through adopting digital transformation techniques, with this trend likely taking effect between 2023-2029.
India Cloud Computing Market - Industry Trends & Forecast Report
The Indian cloud computing market growth was projected to reach USD 6.47 billion by 2022, growing with an expected compound annual growth rate (CAGR) rate of 18.37% between 2023-2029, reaching an eventual valuation of USD 17.8 billion at that point in time. Market expansion can mainly be attributed to an increasing adoption of digital transformation methods by businesses looking to boost competitiveness and efficiency. Consumers and businesses are beginning to recognize the advantages of adopting cloud services, which free them from having to purchase and maintain complex IT equipment to run software, store/retrieve data, or collaborate online.
Scaling resources up or down as required, flexibility and cost savings all become possible with cloud services. As businesses strive to remain competitive and meet client demands, more are turning to cloud technology in response to increasing demands for online services, digital transformation initiatives and remote work solutions. This transformation is revolutionizing how technology and businesses use them, thus contributing to India's ongoing cloud computing market growth.
India Cloud Computing Market - Overview
Cloud computing refers to the online delivery of computer services like storage, processing, and software without actual physical hardware requirements or access constraints from distant data centers providing users and organizations with scalability, cost efficiency, flexibility, and scalability benefits from distant locations. Public, private hybrid and community clouds all fall under this definition and fall into Infrastructure as a Service (IaaS), Platform as a Service (PaaS) or Software as a Service (SaaS).
Cloud technology has revolutionized IT by offering flexible pay-as-you-go access to vast computational resources via pay-as-you-go subscriptions. This technology has completely transformed the IT industry by offering affordable pay-as-go access.
India Cloud Computing Market- Growth Drivers
Increasing Demand For Data Storage And Processing
Demand for processing and data storage capacity has contributed significantly to cloud computing's explosive expansion across India. Data-intensive applications, big data analytics, machine learning (ML) and artificial intelligence (AI), the rapid expansion of the IoT ecosystem and shifting attitudes toward remote working and collaboration are all contributing to an ever-increasing need.
As cloud computing stands as the perfect answer for managing these complex issues, its presence provides an agile and scalable infrastructure capable of handling vast quantities of data while providing smooth processing, analysis and insight extraction processes. India-based organizations and businesses are realizing the significance of data as an asset and using it strategically.
As a result, this has resulted in changes across e-commerce, finance, healthcare and telecom sectors, sparking major shifts within telecommunications as well as impactful cloud computing business growth that contributes significantly to economic expansion as well as technological progress in India.
High Risk Of Cyber Attacks
Cyber attacks pose a significant obstacle to India's cloud computing business, and their presence poses real threats that hinder growth and potential. India was second only to the US as an attack target between 2021 and 2022, according to cybersecurity startup CloudSEK. There were approximately 500 attacks last year, an increase of approximately one-fourth compared with prior years.
Businesses and organizations may find it challenging to fully trust cloud services due to this worrying trend, requiring significant money and effort to be invested into robust cybersecurity systems that protect against threats like these. Resources that might otherwise have been utilized for cloud service development and improvement have been diverted away, hampering cloud computing's rapid advancement and wide acceptance.
The scenario not only restricts its benefits but also underscores the imperative for India to foster collaboration and fortify its security measures against the challenges of cybersecurity in the cloud market.
Impact Of COVID-19 On India Cloud Computing Market
COVID-19 had a dramatic impact on India's cloud computing market, altering how both individuals and companies utilize this form of technology. Many quickly switched over to online pastimes or distant jobs as the pandemic forced people into social isolation and forced them into staying home more often for days at a time. Cloud computing proved essential in quickly adapting to changing business demands by offering workers all of the resources and infrastructure required for remote operation while upholding business continuity.
Cloud solutions have become an indispensable asset across industries such as education, healthcare, and e-commerce, facilitating seamless online purchasing transactions and providing access to telehealth services and remote learning options. As more data and transactions moved online, this heightened reliance on cloud storage brought attention to just how essential cybersecurity is, with data protection and privacy being of utmost priority now.
Cloud computing's prominence in India's digital transformation journey was underlined by this pandemic, drawing attention to its ability to empower businesses, boost productivity, and spur innovation while emphasizing its need for effective security measures against new cyber attacks.
Read More: Cloud Computing: A Game Changer? Maximize Your Impact with Our Detailed Guide!
India Cloud Computing Market- Segmental Coverage
By Enterprise Size
India's cloud computing market can be divided into two groups according to enterprise size: major companies and small and medium-sized organizations (SMEs). A higher compound annual growth rate is predicted for SMEs over their forecast period. These firms, both startups and smaller ones, are increasingly turning to cloud technology due to its accessibility, scalability, and lower costs.
Small and Medium Enterprises (SMEs) benefit greatly from cloud computing because it enables them to innovate successfully in their markets by having access to cutting-edge tools and resources without incurring large upfront fees. India is witnessing an ever-increasing interest among SMEs for these services due to their increasing need for cost-effective solutions with operational effectiveness.
By End User
India's cloud computing market can be divided by end user into categories, including BFSI, telecom & IT, media & entertainment, energy & utilities manufacturing production, e-commerce, government public sector healthcare etc. Over the forecast period, e-commerce industry growth is anticipated at an exceptionally rapid compound annual compounding rate. Cloud computing plays an integral part in supporting e-commerce businesses by helping manage websites efficiently, process client transactions effectively, and store vast quantities of information securely.
E-commerce businesses operate virtual marketplaces where people can buy and sell goods and services online. These e-commerce enterprises are utilizing cloud solutions more frequently than before as the demand for digital transactions and shopping increases exponentially. The growing cloud computing adoption trends indicate a significant shift towards utilizing cloud services for enhanced efficiency and scalability in various industries. Cloud solutions provide:
- Safe and seamless operations.
- Expeditious order processing.
- Enhanced consumer experiences.
- Overall cost efficiency for retailers.
E-commerce's sudden need for these cloud services has driven India's cloud computing market upwards. It showcases how critical cloud tech is in supporting an ever-evolving e-commerce sector.
By Service
India's cloud computing market includes infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) segments. As most software is provided through the internet, much of India's cloud technology deployment specifically SaaS applications, resides within this segment and accounts for its largest market share by service type. SaaS makes software readily accessible without the hassle of installation on their computers, offering people easy and convenient ways to gain access and utilize applications without installing them themselves.
These applications can help people manage data, communicate, collaborate and collaborate across both individual computers and enterprises and their wide use in India's cloud computing sector is a testament to SaaS as one of its major driving forces for effective software delivery and digital transformation.
By Deployment
The Indian cloud computing industry can be divided into public, private, and hybrid segments depending on deployment type. Private clouds make up the highest market share. Private deployment gives organizations more control and protection over their data by setting up separate cloud environments for it, as evidenced by their widespread deployment. Individualized and secure solutions tailored to particular organizational requirements make private clouds a popular choice in the Indian market.
By Region
India's cloud computing market can be divided into four regions: North, South, East and West. South India is expected to lead in terms of cloud adoption as long-standing studies show its centers for creativity and technology are Bengaluru and Hyderabad, respectively. These cities have distinguished themselves in the IT and technology industries and played significant roles in developing and adopting cloud computing technologies.
They boast a significant concentration of tech startups, research centers, tech corporations and qualified individuals who have created an ecosystem aimed at driving technological and digital innovation and transformation, contributing to regional market expansion over the coming years.
Competitive Landscape
Infosys, Wipro Limited, CipherCloud, Cirrologix Private Limited, App Point, and iNube Software Solutions Pvt Ltd dominate India's cloud computing market through licensing agreements, joint ventures, mergers and acquisitions as well as product introduction.
Other organizations use strategies like licensing agreements to increase market share, such as partnerships or even licensing agreements between their products; for instance, license agreements can increase their market presence significantly.
Key Observations About The Indian Cloud Market
- There will still be a need for public clouds among big and medium-sized businesses.
- Indian startups typically don't have any internal applications or platforms and have a cloud-only policy.
- Businesses who are preparing to modernize their technology or simplify their application portfolios use a cloud-first or cloud-only strategy.
- For significant cloud migrations in Indian organizations, partners are essential to success.
- For Indian businesses, cloud-native technology is the new standard.
- Banks have been leading the way in the transition to hyper scalers. Axis Bank, for instance, declared that they will move 70% of their on-site infrastructure to AWS.
What Does The Future Of The Indian Cloud Market Look Like?
- FinOps may still be relatively novel in India, but within a year, its adoption will become widespread. Cloud service providers have released adoption roadmaps designed to ease Indian firms into FinOps adoption supporting fundamental functions like cost allocation and reporting as well as architectural efficiency enhancement and systemic accountability promotion.
- Service providers and hyper scalers alike will soon unveil AI-enabled offerings tailored specifically for their services or hyper scaler offerings. TCS (Tata Consultancy Services) and Google announced the creation of TCS Generative AI product; Wipro also unveiled their own Generative AI offering simultaneously, while Mphasis's recently established business uni strives to combine AI capabilities with pre-existing infrastructure solutions from top hyper scalers.
- Industry clouds will become more widely adopted. While India currently only offers limited industry cloud services, MSMEs are eager to use them quickly as part of their digital transformation efforts. Cloud computing offers immense promise in manufacturing, shipping, insurance, retail and healthcare so industry clouds that cater to over 63 million SMEs from these sectors will undoubtedly gain in popularity and become indispensable service providers.
Conclusion
The cloud computing market in India represents a groundbreaking phenomenon within its rapidly developing technology sector. Projections project that the Indian cloud computing market will increase at an incredible compound annual compound growth rate of 18.37% from its projected USD 6.47 billion value by 2022 up to USD 17.8 billion projected value by 2029 due to firms taking part in digital transformation initiatives.
The foundation of contemporary IT infrastructure is now anchored by cloud service providers, delivering cost-efficiency, dynamic scalability, and seamless data management services. Furthermore, its role as an anchor to remote employment, education, and healthcare services highlighted its significance even more strongly during the effects of the COVID-19 pandemic.
Cyber attacks pose one of the greatest dangers associated with digital growth; for the country's digital future to remain secure, strong cybersecurity measures are vitally important.
Cooperation and strengthened cyber defences are integral as India navigates this digital transition. India's market for cloud computing serves not only to demonstrate technological progress but also to drive economic expansion and technological leadership. AI/ML convergence with industry-specific clouds usher in an exciting era of digital possibilities powered by established firms as well as startup innovators, creating an ecosystem in India's cloud computing market that acts as an accelerator of technological progress.
