India’s public cloud services market achieved $5.2 billion in revenue during the first half of 2024, marking a crucial milestone in the nation’s digital transformation journey. According to the International Data Corporation (IDC), this sector is expected to grow at a compound annual rate of 24.3%, reaching $25.5 billion by 2028. As organizations increasingly prioritize efficiency and cost optimization, public cloud adoption has emerged as a key strategic focus.
Notably, enterprises are migrating mission-critical workloads to the public cloud, reflecting their commitment to modernization. “Digital transformation initiatives and cost-conscious strategies are driving Indian businesses toward cloud services,” explained Harish Krishnakumar, Senior Market Analyst at IDC India. Moreover, the adoption of generative AI (GenAI) has significantly boosted this trend, with companies seeking cloud providers to support innovative AI implementations.
SaaS continues to dominate as the top deployment category, while IaaS and PaaS are experiencing robust growth. Furthermore, segments such as AI platforms and application development software are expanding rapidly, complementing well-established enterprise tools like customer relationship management and collaborative applications. Consequently, enterprises are increasingly leveraging AI-driven tools to enhance customer experiences, develop new solutions, and improve cloud security.
Rajiv Ranjan, Associate Research Director at IDC India, emphasized the broader impact: “As organizations modernize applications on the public cloud, many are adopting multi-cloud architectures to optimize operations and infrastructure. Additionally, public cloud usage is extending beyond traditional applications to edge computing, offering new opportunities for innovation.”
India’s public cloud market demonstrates the nation’s accelerating technological advancement. By embracing GenAI and modern cloud solutions, enterprises are paving the way for transformative growth in an increasingly competitive digital economy.
