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According to the latest report by International Data Corporation (IDC) Worldwide, the Indian public cloud services market totaled revenue of $4.6 Billion in the second half of 2021. IDC expects that by 2026, the overall Indian public cloud services will reach $13.5 billion, growing at a CAGR of 24%.

With digital innovation leading the top business objectives for Indian organizations, cloud adoption is set to accelerate in 2022. Driven by the need for agility, flexibility, and faster access to digital technologies, cloud continues to gain momentum across segments. Additionally, the need to leverage data intelligently, is supreme and enterprises are able to do so with access to technologies that are built on a cloud foundation, saysRishu Sharma, Associate Research Director, Cloud and Artificial Intelligence, IDC India.

SaaS was the largest component of the overall public cloud services in India in 2021, followed by IaaS and PaaS. Enterprises have increased their spending on the public cloud and the top two cloud service providers are holding over 45% of the public cloud services market in India.

Public cloud adoption continued to surge in 2021 as enterprises invested in public cloud as part of their digital transformation initiatives to improve business resiliency and become a digital-first organization. The increased spend is expected to continue in the upcoming years as enterprises invest in emerging technologies like AI/ML, IoT, blockchain, etc., to automate processes and drive innovation with public cloud as the foundation. The increasing investments in areas like edge computing and IoT will drive the demand for public cloud infrastructure services, especially storage and data management, saysHarish Krishnakumar, Senior Market Analyst, IDC India.

India is a rapidly growing market for public cloud service providers. The demand from large enterprises, digital natives, and small and medium businesses drives this growth. Businesses continued to invest in public cloud services in 2021 to make sure they stayed running, became more resilient and productive and drove digital innovation. With organizations preferring a hybrid work mode in 2022, the demand for cloud-based security applications is increasing. Organizations are migrating their existing workloads to the public cloud and the demand for cloud-native application development has also increased, all of these driven by the need to fulfill the customer demands faster.

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IDC expects the Indian public cloud services market to grow at a CAGR of 24% by 2026 - Wire19