India cloud infrastructure as a service market is anticipated to grow at a high CAGR in the forecast period, 2025-2029. Cloud Infrastructure as a Service (IaaS) is a cloud computing model that enables organizations to outsource resources, such as hardware, software, and computing power, over the Internet rather than investing in their own physical infrastructure. With IaaS, organizations can access the underlying infrastructure needed to power their applications without having to own and manage them directly. By taking advantage of the economies of scale enabled by IaaS, businesses of all sizes can access and use powerful technology. Additionally, IaaS allows organizations to focus on their core business operations by eliminating the cost and complexity of managing their own infrastructure.
India is experiencing a rapid adoption of cloud technology and the market for Cloud Infrastructure as a Service (IaaS) is one of the most rapidly growing in the world. IaaS provides companies with the ability to outsource the physical storage and computing power for their applications. With IaaS, companies have access to standardized technology components, as well as advanced scalability and automation capabilities. This makes it easier for companies to quickly deploy new applications and services without the cost of hardware and software. Indian companies are leveraging IaaS to increase their operational efficiency and accelerate innovation without capital expenditure. In addition to decreased latency and increased performance, IaaS offers companies the advantage of cost savings. This has made it a popular choice for companies seeking to adopt cloud technology. With cloud technology providing companies with more efficient and cost-effective solutions, IaaS is set to become an essential part of the cloud infrastructure in India. Indian businesses further adopt IaaS, the market is expected to grow exponentially.
Increasing demand for cost-effective solutions
The increasing demand for cost-effective solutions is a significant driver for the India cloud infrastructure as a service (IaaS) market. Several factors contribute to this demand and shape the market landscape in India.
Firstly, cost-effectiveness is a crucial consideration for businesses in India. Many organizations, particularly startups, small and medium-sized enterprises (SMEs), and even large enterprises, face budget constraints and limited resources. Traditional on-premises infrastructure requires substantial upfront investments in hardware, software licenses, maintenance, and skilled personnel. In contrast, IaaS offers a pay-as-you-go model, allowing businesses to pay for the resources they consume. This eliminates the need for upfront capital expenditure, reducing financial barriers and enabling organizations to allocate their funds more efficiently.
Additionally, the scalability and flexibility of IaaS contribute to its cost-effectiveness. Businesses can easily scale their infrastructure up or down based on their current needs, paying only for the resources they require at any given time. This eliminates the need to overprovision infrastructure and reduces wastage, leading to optimal resource utilization and cost savings. IaaS providers offer on-demand availability of computer, storage, and networking resources, enabling businesses to respond quickly to fluctuating workloads and seasonal demands without incurring unnecessary costs.
Moreover, IaaS eliminates the need for businesses to manage and maintain their own hardware and software infrastructure. The responsibility for infrastructure management, including hardware provisioning, software updates, security patches, and backups, is shifted to the IaaS provider. This significantly reduces operational costs associated with infrastructure maintenance, system administration, and IT staff requirements. Businesses can focus their resources and expertise on core competencies, innovation, and value-added activities rather than infrastructure management. IaaS allows businesses to leverage advanced technologies and services without additional costs. IaaS providers often offer a wide range of value-added services, such as database management systems, AI/ML tools, analytics platforms, and security services. By accessing these services through the IaaS platform, businesses can take advantage of cutting-edge technologies without investing in specialized hardware or software licenses, making it highly cost-effective.
In conclusion, the increasing demand for cost-effective solutions is a key driver for the India IaaS market. The pay-as-you-go model, scalability, flexibility, reduced infrastructure management overheads, and access to advanced services contribute to the cost-effectiveness of IaaS. As businesses in India seek to optimize their IT infrastructure spending and achieve better cost-efficiency, the adoption of IaaS is expected to continue growing in the coming years.
Rising adoption of cloud computing
India is not an exception to the trend of rising cloud computing use worldwide. Cost reductions, scalability, flexibility, and improved collaboration are just a few advantages of cloud computing. These benefits have spurred the evolution of the India Cloud Infrastructure as a Service (IaaS) industry and are anticipated to do so in the upcoming years.
Firstly, the rising efforts to digitize numerous sectors are one of the main factors influencing the use of cloud computing in India. Indian companies and organizations are using cloud-based solutions to streamline operations, boost efficiency, and lower infrastructure costs as they work to modernize their business practices. Cloud infrastructure usage is being encouraged by government programs like Digital India and Smart Cities in industries including e-governance, healthcare, education, and finance.
Secondly, another significant driver is the growing need for data processing and storage capacity. A strong and scalable infrastructure is required to store, handle, and analyze the growing amount of digital data produced by organizations, consumers, and the Internet of Things (IoT). Businesses can offload their data management needs to cloud IaaS providers, who supply the essential infrastructure, including servers, storage, and networking resources, allowing them to concentrate on their core skills.
Additionally, cloud usage in India has increased due to rising smartphone and internet access penetration rates. The number of internet users and users of digital services has significantly increased as a result of the availability of inexpensive smartphones and data plans. Without the requirement for a significant local infrastructure, cloud computing enables these users to access programs, data, and services using their devices from anywhere, at any time.
Additionally, the COVID-19 pandemic has sped up India's use of cloud services. The cloud emerged as a critical enabler when businesses switched to remote work and online operations, offering the essential infrastructure and technologies for collaboration, communication, and remote access to resources. This experience has demonstrated the adaptability and resilience of cloud computing, which will boost its use in the post-pandemic period.
In conclusion, factors including digitalization initiatives, data storage requirements, smartphone penetration, and the COVID-19 pandemic's effects are driving the increased popularity of cloud computing in India. These elements have helped the India cloud infrastructure as a service market expand, and this development is anticipated to continue. The need for cloud infrastructure services will rise further as businesses and organizations in India come to understand the advantages of cloud computing, spurring the nation's innovation and economic expansion.
Recent Development
· In May 2023, Amazon Web Services (AWS) recently announced its plans to invest a whopping sum of 105,600 crores (US $12.7 billion) into Indian cloud infrastructure market by 2030. This investment is aimed at meeting the ever-growing customer needs in the country. The investment will be used to build data center infrastructure and is expected to create around 130,000 full-time job opportunities for Indian businesses in diverse roles such as construction and engineering, and telecoms. Apart from contributing towards building the much-needed infrastructure, AWS would focus on providing cloud skills training to citizens as well as contributing towards renewable energy projects. After assessing a report from 451 Research in 2021, Amazon concluded that organizations in the Asia-Pacific region have the potential to reduce their carbon footprint by more than 78% if they shifted from on-premises data centers to the cloud.
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Market Segments
The India cloud infrastructure as a service market is segmented based on type, solution, end user industry, and region. Based on type, the market is segmented into public and private. Based on Solution, the market is divided into network as a service, disaster recovery as a service, and managed hosting services. Based on user type, the market is segmented into small & medium business, and large enterprises. Based on end-user industry, the market is segmented into it & telecom, BFSI, healthcare, government, education, defence, and others. The regional segmentation is among East India, West India, North India, and South India.
Market Players
Major players of India cloud infrastructure as a service market are Amazon Data Services India Pvt Ltd, Apollo Global Management India Pvt Ltd, MTS SYSTEMS CORPORATION, Netmagic Solutions Pvt Ltd, Hewlett Packard Enterprise Pvt Ltd, Cisco Systems India Pvt Ltd, Dell India Pvt Ltd, IBM India Pvt Ltd, Microsoft India Corporation Pvt Ltd, NTT Communications Pvt Ltd, and VMWare Software Pvt Ltd.
Attribute | Details |
Base Year | 2023 |
Historic Data | 2019 – 2022 |
Estimated Year | 2024 |
Forecast Period | 2025 – 2029 |
Quantitative Units | Revenue in USD Million, and CAGR for 2019-2023 and 2024-2029 |
Report coverage | Revenue forecast, company share, growth factors, and trends |
Segments covered | Type Solution User Type End-User Industry Region |
Regional scope | East India, West India, North India, South India |
Key companies profiled | Amazon Data Services India Pvt Ltd, Apollo Global Management India Pvt Ltd, Netmagic Solutions Pvt Ltd, Hewlett Packard Enterprise Pvt Ltd, Cisco Systems India Pvt Ltd, Dell India Pvt Ltd, IBM India Pvt Ltd, Microsoft India Corporation Pvt Ltd, NTT Communications Pvt Ltd, VMWare Software Pvt Ltd. |
Customization scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Report Scope:
In this report, India Cloud Infrastructure as a Service Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
· India Cloud Infrastructure as a Service Market, By Type
o Public
o Private
o Managed Hosting Services
· India Cloud Infrastructure as a Service Market, By Solution
o Network As A Service
o Disaster Recovery as a Service
o Managed Hosting Services
· India Cloud Infrastructure as a Service Market, By User Type
o Small & Medium Business
o Large Enterprises
· India Cloud Infrastructure as a Service Market, By End-User Industry
o IT & Telecom
o BFSI
o Healthcare
o Government
o Education
o Defence
o Others
· India Cloud Infrastructure as a Service Market, By Region:
o East India
o West India
o North India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in India Cloud Infrastructure as a Service Market
Available Customizations:
India Cloud Infrastructure as a Service Market with the given market data, Tech Sci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information
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