
India's Cloud Iaas Market To Triple By 2030: Smes And Startups Are Driving Cloud Iaas Adoption In India With The Pay-As-You-Go Advantage
Dublin, March 07, 2025 (GLOBE NEWSWIRE) -- The "India Cloud Infrastructure as a Service market 2020-2030" report has been added to ResearchAndMarkets.com's offering.
The India Cloud Infrastructure as a Service Market was valued at USD 23.91 Billion in 2024, and is expected to reach USD 76.81 Billion by 2030, rising at a CAGR of 21.29%.
Key Market Drivers
Cost Efficiency and Scalability
A major driver of the India Cloud IaaS market is the cost efficiency and scalability that cloud solutions offer to businesses. As a rapidly growing economy with a diverse business landscape, India faces challenges related to capital expenditure management and operational cost optimization. Cloud infrastructure provides an affordable alternative to traditional on-premises IT infrastructure, enabling businesses to allocate resources more effectively and reduce operational burdens.
For many organizations, especially small and medium-sized enterprises (SMEs) and startups, the high initial capital investment required for purchasing and maintaining physical infrastructure is often a significant barrier. Cloud IaaS operates on a pay-as-you-go model, enabling businesses to pay only for the resources they use and avoid substantial capital expenditures.
This model is highly attractive to organizations looking for flexible and cost-effective IT solutions without committing large financial resources upfront. Additionally, IaaS scalability allows businesses to adjust their infrastructure in response to demand. For example, during peak demand periods, such as sales seasons or product launches, companies can rapidly expand their computing resources, and during off-peak times, they can scale down to save costs. This dynamic flexibility offers a competitive edge over traditional data centers, where scaling up or down requires significant time, resources, and costs.
IaaS providers offer a range of services and pricing models tailored to various business needs, allowing companies to customize their infrastructure based on project requirements. This ensures that businesses only pay for what they actually need, thereby reducing operational costs. By offloading infrastructure management to cloud providers, businesses can focus on their core activities, such as product development, customer service improvement, and growth. Furthermore, the reduced need for in-house IT teams to manage and maintain hardware, software, and security lowers operational expenses.
Key Market Challenges
Data Security and Privacy Concerns
A key challenge in the India Cloud IaaS market is addressing data security and privacy concerns. As more businesses migrate to the cloud, they entrust cloud service providers with sensitive data, making data security a primary concern. This challenge is amplified in India, where digital transformation is rapidly increasing, resulting in more data being generated and stored in the cloud.
IaaS solutions often involve storing data in remote data centers operated by third-party providers. Although these providers implement robust security measures, businesses still worry about data breaches, unauthorized access, and cyberattacks. The risk of exposure to sensitive data - such as customer information or intellectual property - can be particularly alarming if adequate security protocols are not in place. This concern is especially pronounced in industries such as finance, healthcare, and e-commerce, where data breaches can result in substantial financial loss, regulatory penalties, and reputational damage.
Moreover, data sovereignty is a critical issue in India, where businesses must comply with local laws regarding data storage and management. The government has introduced policies such as the Personal Data Protection Bill to address privacy concerns, but uncertainty remains regarding their enforcement and impact on cloud adoption. Issues related to data residency, such as whether data is stored in foreign or local data centers, create additional complexity. Indian businesses must ensure compliance with national and international data storage regulations, which may deter some from fully embracing cloud IaaS solutions.
Key Market Trends
Increased Adoption of Hybrid and Multi-Cloud Strategies
A prominent trend in the India Cloud IaaS market is the growing adoption of hybrid and multi-cloud strategies. Companies are increasingly moving away from a single-cloud approach and opting to deploy workloads across multiple cloud environments to maximize performance, flexibility, and cost efficiency.
Hybrid cloud environments combine private and public cloud resources, allowing businesses to keep certain workloads on-premises or in private clouds while utilizing public cloud infrastructure for scalability and flexibility. This strategy enables greater control over sensitive data and applications while leveraging the cost benefits and scalability of public cloud platforms. For example, organizations in sectors such as finance, healthcare, and government prefer to store sensitive data on private clouds for compliance reasons, while using public clouds for less-sensitive applications like analytics or development.
Similarly, multi-cloud strategies involve using services from different cloud providers, such as AWS, Microsoft Azure, and Google Cloud, simultaneously. This approach helps organizations avoid vendor lock-in, increases resilience, and allows them to choose the best platform for each application. Multi-cloud strategies also mitigate risks related to downtime or performance issues associated with relying on a single provider. By distributing workloads across multiple providers, businesses can ensure higher availability and reliability.
In India, the adoption of hybrid and multi-cloud strategies is driven by the diverse needs of businesses, ranging from compliance requirements to cost optimization. The increasing complexity of digital transformation and the demand for scalable, flexible solutions are also contributing to this shift. Cloud providers are responding to this demand by offering solutions that support seamless integration between private and public cloud environments and by providing enhanced tools to manage multi-cloud deployments.
Key Players Profiled in India's Cloud Infrastructure as a Service Market
- Amazon Web Services (AWS)
- Microsoft Corporation
- IBM Corporation
- Oracle Corporation
- Huawei Technologies Co. Ltd.
- Rackspace Technology Inc.
- Salesforce Inc.
- SAP SE
Report Scope
India Cloud IaaS Market, By Type:
- Public
- Private
India Cloud IaaS Market, By Solution:
- Network as a Service
- Disaster Recovery as a Service
- Managed Hosting Services
India Cloud IaaS Market, By Enterprise Size:
- Small & Medium Enterprises
- Large Enterprises
India Cloud IaaS Market, By End User:
- IT & Telecom
- BFSI (Banking, Financial Services, and Insurance)
- Healthcare
- Government
- Education
- Defense
- Others
India Cloud IaaS Market, By Region:
- South India
- North India
- West India
- East India
Key Attributes
Report Attribute | Details |
No. of Pages | 88 |
Forecast Period | 2024-2030 |
Estimated Market Value (USD) in 2024 | $23.91 Billion |
Forecasted Market Value (USD) by 2030 | $76.81 Billion |
Compound Annual Growth Rate | 21.2% |
Regions Covered | India |
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Attachment
- Indian Cloud Infrastructure as a Service Market


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