India Cloud Computing Market Size

India Cloud Computing Market Analysis

The India Cloud Computing Market size is estimated at USD 17.87 billion in 2024, and is expected to reach USD 43.66 billion by 2029, growing at a CAGR of 19.57% during the forecast period (2024-2029).

As India shifts from an emerging market to a developed economy, advanced technology is poised to play a pivotal role. Given the vastness of India's digital populace and the swift ascent of its digital economy, there is an urgent need for an expanded network of data centers. In this landscape, cloud computing in India has shifted from merely facilitating operations to actively driving innovation, flexibility, and business growth.

• Industries, including IT, BFSI, healthcare, and retail, are increasingly adopting cloud solutions to lead digital transformation, boost operational efficiency, and enhance customer experiences.
• The Indian government's push toward a Digital India initiative is accelerating the embrace of cloud computing. Programs such as the National e-Governance Plan (NeGP) and the Government Community Cloud (GCC) amplify the demand for cloud services. The proliferation of startups and small and medium enterprises (SMEs) in India is fueling the demand for cloud services as these companies seek cost-effective, scalable, and flexible IT solutions.
• Cloud computing is a critical enabler for emerging technologies like AI, IoT, and big data analytics. As Indian firms increasingly adopt these technologies, the demand for cloud infrastructure intensifies.
• In June 2024, Bharti Airtel, a telecom service provider, partnered with Google Cloud in a long-term collaboration to provide state-of-the-art cloud solutions to businesses throughout India. This strategic alliance aims to hasten the adoption and modernization of cloud services for Airtel's clientele. As a result of this partnership, Airtel will deliver a range of advanced cloud offerings from Google Cloud to its diverse customer base, which includes more than 2,000 large enterprises and a million burgeoning businesses.
• Further, in January 2024, Digital Realty, a worldwide leader in cloud- and carrier-neutral data center, colocation, and interconnection solutions, inaugurated its inaugural data center in India. Situated on a sprawling 10-acre campus in Chennai's industrial and manufacturing hub, the facility boasts a robust capacity, supporting up to 100 megawatts of critical IT load. This launch marks a pivotal expansion for Digital Realty, reinforcing its commitment to addressing the global surge in digital transformation demands.
• Despite the rapid adoption of cloud computing, data privacy and security remain significant challenges. Companies are cautious about migrating sensitive data to the cloud due to concerns over data breaches and compliance with local regulations.