India's public cloud services market to reach $10.8 bn by 2025: IDC

That's a CAGR of 24.1% for 2020-25; SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in 1H2021

India’s public cloud services (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), is expected to reach $10.8 billion by 2025, growing at a CAGR of 24.1% for 2020-25, according to the International Data Corporation (IDC) Worldwide Semi-annual Public Cloud Services Tracker, 1H 2021release.

The overall market revenue totaled $2.2 billion for the first half of 2021 (January-June).

"Organisations in India cite increased investment plans for cloud infrastructure and platforms in the coming 12 months to aid in faster and more effective ways of application development and access to technologies. Additionally, cloud-native services are becoming crucial for enabling new architectures and functionalities," says Rishu Sharma, Associate Research Director, Cloud and Artificial Intelligence, IDC India.

Sharma further added that cloud continues to be the foundational pillar for innovation, collaboration, and digital transformation and is witnessing an accelerated adoption by enterprises in India.

SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in 1H2021. Public cloud spending continued to increase among enterprises, with the top two service providers holding more than 49% of the Indian public cloud services market.

The impact of the COVID-19 pandemic continued to be the key driver of cloud adoption in 1H2021, as enterprises continued their investments in cloud infrastructure, platforms, and software to improve the resiliency of their business operations.

Apart from large enterprises, small and medium businesses also continued to witness a significant increase in public cloud adoption due to the demand for cloud-based applications for collaboration, Enterprise Resource Management (ERM), Customer Relationship Management (CRM), security, etc.

"With many businesses expected to transition to a hybrid work model in the upcoming months, this would result in an increase in public cloud investments due to the demand for remote compute and storage, conferencing and collaboration applications, VDI, cloud security, etc," said Harish Krishnakumar, Senior Market Analyst, IDC India.