The public cloud services market in India is projected to grow 28.5% this year, with the application services segment and other verticals expanding at a quick pace, market research firm Gartner said on Tuesday.
The overall India market is forecast to touch $2.5 billion in 2019 from $1.96 billion last year, Gartner said in a statement. By 2022, the market size is projected to increase to $4.8 billion.
The cloud application services segment—commonly known as software-as-a-service (SaaS)—accounts for nearly half the market and is likely to grow 27% in India this year. The system infrastructure services segment—or infrastructure-as-a-service (IaaS)—is projected to expand 35%.
Globally, the public cloud services market is likely to grow 17.5% in 2019 to $214.2 billion from $182.4 billion in 2018, Gartner said.
It also said that the fastest-growing segment will be IaaS, which is predicted to expand 27.5% in 2019. Platform-as-a-service (PaaS) will likely see the next best growth rate at 21.8%. The SaaS segment is forecast to reach $94.8 billion from $80 billion.
“Cloud services are definitely shaking up the industry,” said Sid Nag, research vice president at Gartner. “At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organizations.”
The report also said that the global public cloud revenue market is forecast to reach $331.2 billion by the end of 2022. “What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three times the growth of overall IT services,” Nag said.
According to recent Gartner surveys, more than a third of organisations see cloud investments as a top-three investing priority, which is impacting market offerings.
The market research firm expects that, by the end of 2019, more than 30% technology providers’ new software investment will shift from cloud-first to cloud-only.
This means that licence-based software consumption will plummet while SaaS and subscription-based cloud consumption models continue their rise, the firm said.
Gartner also expects that most companies' cloud budgets will be spent on cloud-related services by 2022 and it will form 28% of the budget from the current 19%.