– Growing interest in cloud infrastructure due to India’s IT market growth and increase in users –
– Cloud market is expected to reach USD 2026 billion by 161, growing at a CAGR of 30.6% –
Market Status
The Indian cloud infrastructure market is expected to grow 2021 times from $45 million in 3,947 to $2026 million in 161, with an average annual growth rate of 4,578%.
< India Cloud Infrastructure Market Status and Forecast >
(Unit: billion USD)
Source: Netscribes, estimates after 2022
Major companies in India are using cloud services to improve IT operational efficiency, reduce storage and server costs, and configure flexible infrastructure.
There are various reasons for the growth of the population cloud market, but the increase in the number of the population and the increase in the age group of the economically active population are cited as important reasons. India's population is expected to surpass 22 billion in '14 and reach 27 billion in '14, surpassing China to become the world's number one.
< India Population Status and Prospect >
(Unit: billion people)
Source: IMF, estimates after 2022
Despite the large population, the average age is about 29, which is very young. Despite the aging population, the proportion of those aged 25 to 49, the center of economic activity, is expected to increase from 2010% in 34.1 to 2025% in 37.3, which means that the number of young Indians accustomed to the IT life environment continues to increase. The scale and the required infrastructure are also expected to continue to increase.
< Current status and forecast of population distribution by generation in India >
(unit: %)
Source: Netscribes, estimates for 2025
Cloud computing refers to providing computing services such as servers, storage, software, databases, and networks to customers through the Internet. Cloud services are divided into IaaS (Infrastructure as a Service) that provides basic infrastructure, Paas (Platform as a Service) that provides a development environment in advance, and SaaS (Software as a Service) that provides software loaded do.
< India 2019-22 public cloud market size by service >
(Unit: million USD)
Source: Garthner
Among various services, IaaS (Infrastructure as a Service) is expected to record the highest growth rate, surpassing the SaaS (Software as a Service), which has the highest proportion. This means that the number of cases of converting each company's IT infrastructure to the cloud from simple service use is increasing.
The reason for the continued growth of the Indian cloud infrastructure market is the increase in the need for infrastructure improvement and cost reduction due to the use of cloud computing. there will be
□ Market changes due to Corona
In 2019, the cloud services market, which was already in a transition phase after the coronavirus, grew faster, and the Indian economy was faced with a serious economic situation during the pandemic, but total spending on cloud infrastructure grew by about 2021% compared to 15.
According to a report released by the Enterprise Cloud Index, more than 65% of enterprises in India have increased their investments in the cloud due to the pandemic, and even after the coronavirus, more than 62% of enterprises are planning to build a cloud platform for digital transformation.
In addition, it was confirmed that more than 65% of cloud-using companies were more satisfied with cloud use than the previous IT system, and accordingly, the number of cloud users increased by 2021% in 31. In particular, educational institutions have adopted various application computing to overcome pandemic-related constraints.
< India Cloud Ecosystem Status >
Source: Netscribes
competitive trends
In the Indian cloud infrastructure security market, competition between Indian companies such as Infosys, Tata Consultancy Services (TCS), and Wipro and global IT companies such as Amazon, Google, and M/S is fierce.
< India Cloud Infrastructure Major Companies >
Source: website of each company, Bengaluru Trade Center
Interview with local experts
According to an interview with a marketer at Oracle India, "The transition from the digital economy to the cloud has become a necessity for business." “We are experiencing tremendous momentum for the cloud in India, and we are seeing tremendous growth every year, and that growth will continue.”
implication
The Indian cloud market is expected to continue to grow due to the increase of individual users based on the continuously growing population, as well as the conversion of companies to the cloud IT system after the pandemic. Although many Indian and global companies are providing cloud services, it can be said that this is an early market where the market share in India is not high.
A cloud service consists of hardware such as servers and network equipment and various software. The Indian market can be a great opportunity for domestic cloud service companies as well as hardware and software companies. In addition, it should be interested in various aspects to target the Indian market, such as technical cooperation and establishment of a joint venture beyond simple product export.
Source: Comprehensive data from local media such as IMF, Garthner, Statista, Netscribes, The Economic Times, and KOTRA Bengaluru Trade Center