Press Release

India Cloud Infrastructure as a Service Market is expected to grow at a CAGR of 21.29% Through 2029

The prevalence of cloud services in India has caused the Cloud Infrastructure as a Service market to experience rapid growth in the near future.


According to TechSci Research report, “India Cloud Infrastructure as a Service Market - By Region, Competition Forecast & Opportunities, 2019-2029F”, the India Cloud Infrastructure as a Service Market is expected to register robust growth during the forecast period 2025-2029.

India has developed a strong and rapidly growing Cloud Infrastructure as a Service (IaaS) market. Organizations have begun to explore its potential to reduce costs, improve efficiency, and offer a competitive edge. IaaS offer cloud-based computing resources, such as servers, storage, networks, applications, software, and analytics, on a pay-per-use basis. It is capable of providing resources for applications, which makes it highly scalable and cost-efficient. Additionally, India’s IaaS market continues to benefit from the Government’s “Digital India” initiative for the development of digital infrastructure... As a result, the demand for Cloud Infrastructure as a Services is expected to increase over the forecast period.

As organizations in India embrace digitalization, the demand for scalable and flexible infrastructure solutions becomes crucial. IaaS offers a virtualized computing environment that enables businesses to rapidly scale their resources and adapt to changing requirements, driving innovation and agility. Traditional IT infrastructure often requires significant capital expenditure and ongoing maintenance costs. IaaS eliminates the need for physical infrastructure, allowing businesses to shift to an operational expenditure model and pay only for the resources they consume. This cost-effectiveness attracts organizations across various sectors, from startups to large enterprises.

Indian businesses face dynamic demands and seasonal fluctuations, making scalability a critical requirement. IaaS provides the ability to quickly scale resources up or down, ensuring that businesses can handle peak workloads efficiently while minimizing costs during off-peak periods. Data security is a top concern for Indian businesses. Reputed IaaS providers offer robust security measures, including encryption, access controls, and regular backups, ensuring data confidentiality, integrity, and availability. This reassurance encourages organizations to adopt IaaS solutions, especially in sectors dealing with sensitive information such as finance, healthcare, and government. While India has made significant strides in improving internet connectivity, challenges persist, particularly in remote areas. Inadequate bandwidth and unreliable network infrastructure can hinder the seamless adoption of IaaS solutions, impacting performance and user experience. To fuel the market growth, collaborations between cloud service providers and local businesses will play a crucial role. Customized solutions tailored for the unique requirements of various industries, such as e-commerce, healthcare, and manufacturing, will drive adoption further, the increasing adoption of Cloud Infrastructure as a Service solutions is expected to drive the growth of the India Cloud Infrastructure as a Service market in the coming years.

 

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Based on type, the market is segmented into public and private, Private segment will dominate the market, In the India cloud infrastructure market, the private segment is poised to dominate based on several key factors driving its adoption across various industries. Private cloud solutions offer dedicated resources and enhanced security, making them particularly attractive to businesses with stringent data privacy and regulatory requirements. Industries such as banking, financial services, healthcare, and government sectors prioritize private cloud infrastructure to maintain control over sensitive data and ensure compliance with industry regulations.


Security concerns play a pivotal role in the preference for private cloud solutions. Many enterprises perceive private clouds as offering superior security compared to public alternatives, as they provide dedicated infrastructure and customizable security measures. This is crucial for protecting sensitive customer information, financial transactions, and intellectual property from cyber threats and data breaches.


Moreover, the scalability and customization capabilities of private clouds cater to the specific needs of large enterprises and organizations with complex IT environments. These companies often require robust infrastructure that can handle mission-critical applications, high-performance computing, and extensive data analytics. Private clouds offer the flexibility to customize resources and applications according to business requirements, enabling greater operational efficiency and agility.


The adoption of private cloud solutions also aligns with the trend towards digital transformation and modernization initiatives across sectors. Enterprises are increasingly integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), and IoT into their operations, which require robust and scalable computing resources. Private clouds provide the reliability and performance needed to support these innovative technologies while maintaining data sovereignty and operational control.


Additionally, the economic benefits of private clouds, including predictable costs, improved resource utilization, and reduced IT management complexity, appeal to organizations seeking to optimize their IT investments. By consolidating and centralizing IT infrastructure within a private cloud environment, businesses can achieve cost savings through efficient resource allocation and better utilization of hardware and software assets.


Overall, the dominance of the private cloud segment in India's cloud infrastructure market is driven by its superior security, scalability, customization capabilities, alignment with digital transformation initiatives, and economic advantages. As enterprises continue to prioritize data security, compliance, and operational efficiency, private cloud solutions are expected to remain the preferred choice for organizations across diverse industries in India.


Key market players in the India cloud infrastructure as a service market include:

  •         Amazon Data Services India Private Limited
  •         Apollo Global Management India Pvt Ltd
  •         NTT Ltd.
  •         Hewlett Packard Enterprise Development LP
  •         Cisco Systems, Inc.
  •         Dell International Services India Private Limited
  •         IBM Corporation
  •         Microsoft Corporation
  •         NTT Communications Corporation
  •         Broadcom Inc.


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“The India IaaS market is on a trajectory of significant expansion. The increasing adoption of cloud computing technologies across various sectors, including e-commerce, healthcare, finance, and government, is fueling the demand for IaaS solutions. As businesses continue to prioritize scalability, cost optimization, and security, the IaaS market in India is expected to witness substantial growth in the coming years. It is now considering IaaS as a catalyst for India's digital transformation journey. With the government's digital India initiative and businesses' increasing reliance on technology, IaaS provides the foundation for organizations to modernize their IT infrastructure, innovate rapidly, and drive operational efficiency. The scalability and flexibility offered by IaaS are viewed as essential enablers for businesses seeking to compete in the digital era. Both, global and domestic cloud service providers are actively expanding their presence in the country, offering a wide range of IaaS solutions tailored for the needs of Indian businesses. This competition benefits users by providing them with a choice of providers, driving innovation, and encouraging pricing competitiveness.” said Mr. Karan Chechi, Research Director of TechSci Research, a research based global management consulting firm.

"India Cloud Infrastructure as a Service Market By Type (Public, Private), By Solution (Network As A Service, Disaster Recovery as a Service, Managed Hosting Services), By User Type (Small & Medium Business, Large Enterprises), By End-User Industry (IT & Telecom, BFSI, Healthcare, Government, Education, Defense, Others), By Region, Competition, Forecast and Opportunities, 2029F”, has assessed the India cloud infrastructure as a service market's future development potential and provides data and information on market size, structure, and projected market growth. The report's goal is to give current market knowledge and assist decision makers in making informed investment decisions. Furthermore, the study identifies and analyses emerging trends, as well as key drivers, constraints, and opportunities in the India cloud infrastructure as a service market.


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