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India Infrastructure As A Service Market

ID: MRFR/ICT/61871-HCR
200 Pages
Aarti Dhapte
February 2026

India Infrastructure as a Service Market Size, Share and Research Report: By Solution (Managed Hosting Services, Storage As A Service, High-Performance Computing As A Service, Disaster Recovery As A Service, Others), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By End User (SMEs, Large Enterprises) and By End Users (IT & Telecom, BFSI, Healthcare, Retail, E-Commerce, Government & Defense, Others)- Industry Forecast to 2035

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India Infrastructure As A Service Market Summary

As per Market Research Future analysis, the India Infrastructure As A Service Market size was estimated at 3500.0 USD Million in 2024. The Infrastructure As-a-service market is projected to grow from 4071.9 USD Million in 2025 to 18500.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 16.3% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The India The infrastructure as-a-service market is poised for substantial growth. This growth is driven by evolving technological demands and strategic government initiatives.

  • The largest segment in the India IaaS market is expected to be the compute services segment, while the fastest-growing segment is likely to be storage services.
  • Rising demand for hybrid solutions indicates a shift towards flexible and scalable infrastructure options among enterprises.
  • A growing focus on sustainability suggests that companies are increasingly prioritizing eco-friendly practices in their infrastructure choices.
  • Key market drivers include the growing adoption of cloud technologies and government initiatives that support digital transformation.

Market Size & Forecast

2024 Market Size 3500.0 (USD Million)
2035 Market Size 18500.0 (USD Million)
CAGR (2025 - 2035) 16.34%

Major Players

Amazon Web Services (US), Microsoft Azure (US), Google Cloud (US), IBM Cloud (US), Oracle Cloud (US), Alibaba Cloud (CN), DigitalOcean (US), Linode (US), Vultr (US)

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Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
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India Infrastructure As A Service Market Trends

The market is experiencing notable growth, driven by the increasing demand for scalable and flexible computing resources. Organizations are increasingly adopting cloud solutions to enhance operational efficiency and reduce costs. This shift is largely influenced by the India Infrastructure As A Service Market conditions and technological advancements. As companies seek to optimize their IT infrastructure, the infrastructure as-a-service market is positioned to play a crucial role in facilitating this transformation. Furthermore, the rise of digital transformation initiatives across various sectors is propelling the adoption of cloud services, as organizations recognize the benefits of leveraging advanced technologies to improve service delivery and customer engagement. In addition, the infrastructure as-a-service market is witnessing a surge in investment from both domestic and international players. This influx of capital is likely to foster innovation and enhance service offerings, thereby attracting a broader customer base. The increasing focus on data security and compliance is also shaping the landscape, as businesses prioritize solutions that ensure the protection of sensitive information. Overall, the infrastructure as-a-service market is poised for continued expansion, driven by evolving business needs and technological advancements that promise to reshape the future of IT infrastructure.

Rising Demand for Hybrid Solutions

The infrastructure as-a-service market is seeing a growing preference for hybrid cloud solutions. Organizations are increasingly looking to combine on-premises infrastructure with cloud services to achieve greater flexibility and control. This trend allows businesses to optimize their resources while ensuring compliance with regulatory requirements.

Focus on Sustainability

Sustainability is becoming a key consideration in the infrastructure as-a-service market. Companies are actively seeking solutions that minimize their environmental impact. This shift is prompting service providers to adopt energy-efficient technologies and practices, aligning with broader corporate sustainability goals.

Enhanced Security Measures

As cyber threats continue to evolve, the infrastructure as-a-service market is witnessing a heightened emphasis on security. Providers are investing in advanced security protocols and compliance measures to protect customer data. This trend reflects the growing awareness of the importance of safeguarding sensitive information in a digital landscape.

India Infrastructure As A Service Market Drivers

Government Initiatives and Support

Government initiatives aimed at promoting digitalization and technology adoption are significantly influencing the infrastructure as-a-service market in India. Programs such as Digital India and Make in India are designed to enhance the country's technological capabilities and infrastructure. These initiatives encourage businesses to adopt cloud solutions, thereby driving the demand for infrastructure as-a-service offerings. The Indian government has also been investing in data centers and cloud infrastructure, which is expected to bolster the market further. With the government's focus on improving internet connectivity and digital literacy, the infrastructure as-a-service market is poised for substantial growth. As a result, businesses are likely to leverage these government-backed initiatives to enhance their IT capabilities and streamline operations, contributing to the overall expansion of the market.

Increased Focus on Cost Efficiency

Cost efficiency remains a critical driver for the infrastructure as-a-service market in India. Organizations are increasingly seeking ways to minimize operational expenses while maximizing productivity. By adopting infrastructure as-a-service solutions, companies can avoid the high capital expenditures associated with traditional IT infrastructure. This model allows businesses to pay only for the resources they use, which can lead to significant savings. Recent studies indicate that companies can reduce their IT costs by up to 30% by migrating to cloud-based services. As more organizations recognize the financial benefits of this model, the infrastructure as-a-service market is likely to experience accelerated growth. Additionally, the ability to scale resources up or down based on demand further enhances cost efficiency, making this market an attractive option for businesses across various sectors.

Emergence of Startups and Innovation

The emergence of startups and innovation in the technology sector is a significant driver for the infrastructure as-a-service market in India. Startups are increasingly adopting cloud-based solutions to accelerate their growth and enhance their operational capabilities. The flexibility and scalability offered by infrastructure as-a-service solutions allow these new businesses to focus on innovation without the burden of managing physical infrastructure. Furthermore, the Indian startup ecosystem is thriving, with over 50 unicorns emerging in recent years. This trend indicates a growing reliance on cloud technologies, which is likely to propel the infrastructure as-a-service market forward. As startups continue to seek agile and cost-effective solutions, the demand for infrastructure as-a-service offerings is expected to rise, fostering a dynamic environment for technological advancement.

Growing Adoption of Cloud Technologies

The increasing adoption of cloud technologies in India is a primary driver for the infrastructure as-a-service market. Organizations are transitioning from traditional IT setups to cloud-based solutions to enhance operational efficiency and reduce costs. According to recent data, the cloud computing market in India is projected to reach $10 billion by 2025, indicating a robust growth trajectory. This shift is largely attributed to the need for scalable resources and the flexibility that cloud services offer. As businesses seek to optimize their IT infrastructure, This trend is likely to benefit significantly. Furthermore, the rise of remote work and digital transformation initiatives across various sectors is propelling the demand for cloud-based services, thereby reinforcing the infrastructure as-a-service market's position in the Indian economy.

Rising Data Generation and Storage Needs

The exponential growth of data generation in India is driving the infrastructure as-a-service market. With the proliferation of IoT devices, social media, and digital transactions, organizations are faced with the challenge of managing vast amounts of data. This surge in data necessitates robust storage solutions, which infrastructure as-a-service providers can offer. The market is expected to grow as businesses seek scalable and flexible storage options to accommodate their data needs. According to estimates, data generation in India is projected to reach 175 zettabytes by 2025, highlighting the urgent need for efficient data management solutions. Consequently, the infrastructure as-a-service market is likely to thrive as organizations look for ways to leverage cloud technologies to store, analyze, and secure their data effectively.

Market Segment Insights

By Deployment Model: Public Cloud (Largest) vs. Hybrid Cloud (Fastest-Growing)

In the India infrastructure as-a-service market, the deployment model segment is primarily dominated by Public Cloud services, which attract a significant share of enterprises due to their scalability and cost-effectiveness. Hybrid Cloud is also becoming increasingly popular as organizations seek to balance efficiency and control. This trend indicates a notable shift in preferences as businesses optimize their IT strategies to leverage the advantages of both models, enhancing their overall operational capabilities. Growth trends in this segment are driven by the increasing need for flexible and resilient IT infrastructure among organizations in India. The Public Cloud model continues to grow as businesses recognize its benefits for rapid deployment and access to the latest technologies. Conversely, Hybrid Cloud is the fastest-growing segment due to its ability to meet diverse regulatory and security requirements, making it attractive for businesses with sensitive data needs.

Public Cloud (Dominant) vs. Hybrid Cloud (Emerging)

Public Cloud solutions are characterized by their widespread accessibility and on-demand resource allocation, enabling organizations to scale up or down as needed, thus reducing capital expenditure. As the dominant force in the deployment model segment, Public Cloud facilitates innovative service offerings and rapid market entry for various industries. On the other hand, Hybrid Cloud is emerging as a strategic alternative, providing businesses the flexibility to manage workloads across both public and private environments. This model allows organizations to combine the cost benefits of Public Cloud services with the enhanced security features of Private Cloud, addressing various compliance requirements while still benefiting from the agility of cloud computing.

By Service Type: Compute (Largest) vs. Disaster Recovery (Fastest-Growing)

The India infrastructure as-a-service market displays a diverse landscape where the Compute segment holds the largest share, reflecting its foundational role in cloud services. This segment benefits from the increasing demand for scalable computing resources among enterprises looking to enhance operational efficiency. In contrast, Disaster Recovery is emerging as the fastest-growing segment, driven by the rising awareness of data protection and the need for businesses to ensure business continuity amid potential disruptions. Growth trends show that the Compute segment continues to be a dominant force, attracting significant investments as companies migrate to the cloud. Meanwhile, Disaster Recovery is increasingly recognized as essential for organizational resilience, with businesses prioritizing solutions that safeguard critical data. The evolving regulatory environment and the rise of cyber threats further propel the growth of Disaster Recovery solutions, making it a vital area for future developments.

Compute (Dominant) vs. Disaster Recovery (Emerging)

The Compute segment stands out in the India infrastructure as-a-service market as the dominant force due to its extensive capabilities that cater to a wide array of applications, from running complex algorithms to supporting web hosting. This segment is characterized by its robust infrastructure that allows for flexibility and scalability, making it indispensable for businesses aiming for growth. Conversely, Disaster Recovery is an emerging segment, gaining prominence as organizations recognize the necessity of protecting their digital assets. This segment focuses on providing reliable backup solutions and rapid recovery options, which are crucial in today’s fast-paced business environment. The innovation in cloud-based disaster recovery services is fostering a competitive edge among providers, ensuring that this segment continues to expand rapidly.

By End-user: IT and Telecommunications (Largest) vs. Government (Fastest-Growing)

In the India infrastructure as-a-service market, the End-user segment is primarily dominated by IT and Telecommunications, capturing a significant portion of the market share. This segment benefits from the rapid digital transformation and increasing reliance on cloud services across various industries. Following closely are the BFSI and Healthcare sectors, which are also witnessing substantial adoption of infrastructure solutions. Retail and Government, while important, remain smaller players in this competitive landscape. Growth trends in this segment indicate that IT and Telecommunications will continue to lead due to ongoing innovation and the demand for high-performance computing. However, the Government sector is emerging as the fastest-growing segment. This rapid expansion is driven by government initiatives aimed at digitization, cybersecurity, and the push towards smart city projects, which require robust infrastructure support.

IT and Telecommunications: Dominant vs. Government: Emerging

The IT and Telecommunications sector stands out in the India infrastructure as-a-service market as the dominant player, characterized by its extensive usage of cloud services, innovative technologies, and a focus on data security. Companies in this segment are leveraging IaaS to enhance operational efficiency and meet the increasing demand for scalable IT resources. In contrast, the Government sector is an emerging force, fueled by various initiatives to improve public services through technology. With an increasing emphasis on digital transformation, the Government is adopting IaaS solutions to enable efficient service delivery, enhance transparency, and foster economic growth. This juxtaposition showcases the distinct characteristics of both segments, highlighting the robust nature of IT and Telecommunications, while illustrating the burgeoning potential of the Government sector.

By Application: Data Backup (Largest) vs. Big Data Analytics (Fastest-Growing)

In the India infrastructure as-a-service market, segment values such as Business Continuity, Data Backup, Test and Development, and Big Data Analytics have distinct market share distributions. Data Backup leads as the largest segment, garnering significant attention from organizations for its critical role in safeguarding important information. Meanwhile, Business Continuity follows closely, providing companies with essential solutions for maintaining operations during disruptions. Test and Development, although valuable, holds a smaller share compared to the leading segments but still plays a pivotal role in facilitating innovative applications. Growth trends in the application segment are notable, particularly with Big Data Analytics emerging as the fastest-growing area. The rise in data generation across industries drives demand for powerful analytical tools that can leverage this data for strategic decision-making. Additionally, the increasing focus on data security and operational resilience is propelling the Business Continuity and Data Backup segments forward, as organizations prioritize system reliability in their IT strategies.

Data Backup (Dominant) vs. Big Data Analytics (Emerging)

Data Backup holds a dominant position in the application segment, serving as a foundational element for robust IT strategies. This segment prioritizes the protection of critical data through comprehensive backup solutions that ensure data integrity and availability. Organizations are increasingly investing in services that provide automated backup solutions to minimize data loss risks. On the other hand, Big Data Analytics is emerging rapidly, driven by the need for organizations to synthesize large volumes of data for insights. Companies are adapting to advanced analytics platforms to enhance their decision-making capabilities. While Data Backup emphasizes data protection, Big Data Analytics highlights the transformative potential of data, making both segments crucial to the evolving technological landscape.

Get more detailed insights about India Infrastructure As A Service Market

Key Players and Competitive Insights

The infrastructure as-a-service market in India is characterized by a dynamic competitive landscape, driven by rapid digital transformation and increasing demand for scalable cloud solutions. Major players such as Amazon Web Services (US), Microsoft Azure (US), and Google Cloud (US) are at the forefront, leveraging their extensive global networks and technological prowess. These companies focus on innovation and strategic partnerships to enhance their service offerings, thereby shaping a competitive environment that is both aggressive and collaborative. The emphasis on localized services and compliance with regional regulations further intensifies the competition, as companies strive to meet the unique needs of Indian enterprises.Key business tactics employed by these players include optimizing supply chains and localizing service delivery to better cater to the Indian market. The competitive structure appears moderately fragmented, with a mix of established giants and emerging players like DigitalOcean (US) and Vultr (US) carving out niches. This fragmentation allows for diverse service offerings, yet the collective influence of the major players remains substantial, as they set benchmarks for service quality and innovation.

In October Amazon Web Services (US) announced the launch of a new data center in Mumbai, aimed at enhancing its cloud service capabilities in the region. This strategic move is likely to bolster AWS's market share by providing faster and more reliable services to local businesses, thereby reinforcing its position as a leader in the infrastructure as-a-service sector. The establishment of this facility underscores AWS's commitment to meeting the growing demand for cloud solutions in India.

In September Microsoft Azure (US) expanded its partnership with local telecommunications providers to enhance connectivity for its cloud services. This initiative is expected to improve service accessibility and performance for Indian enterprises, particularly in rural and semi-urban areas. By strengthening its local partnerships, Microsoft Azure is positioning itself to capture a larger share of the market, catering to the diverse needs of Indian customers.

In August Google Cloud (US) launched a new initiative focused on sustainability, aiming to help Indian businesses reduce their carbon footprint through cloud-based solutions. This strategic focus on sustainability not only aligns with global trends but also resonates with the increasing environmental consciousness among Indian consumers and businesses. By promoting eco-friendly practices, Google Cloud is likely to differentiate itself in a competitive market, appealing to a growing segment of environmentally aware customers.

As of November current trends in the infrastructure as-a-service market include a strong emphasis on digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are increasingly shaping the competitive landscape, as companies collaborate to enhance their technological capabilities and service offerings. Looking ahead, competitive differentiation is expected to evolve, shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine how companies engage with customers, ultimately fostering a more resilient and adaptive market environment.

Key Companies in the India Infrastructure As A Service Market include

Industry Developments

The India Infrastructure as a Service Market is witnessing significant advancements, with companies such as Oracle, Microsoft, and Amazon Web Services expanding their capabilities. In recent months, September 2023 marked Microsoft's strategic initiative to enhance cloud services in India by opening new data centers, addressing the growing demand for scalable infrastructure solutions. Concurrently, Oracle has been investing in local data zones to deliver improved latency and compliance with Indian regulations. In October 2022, Hewlett Packard Enterprise established a partnership with Tata Communications to facilitate edge computing services across India.

Meanwhile, Sify Technologies and ESDS Software Solution are both enhancing their offerings, focusing on hybrid cloud solutions to meet diverse customer needs. In August 2023, a noteworthy acquisition involved Rackspace acquiring Netmagic Solutions to broaden their service portfolio in the subcontinent. This consolidation is expected to drive innovation and efficiency in the market. Current projections indicate substantial growth, with a market valuation expected to double by 2025, fueled by increasing digital transformation investments across various sectors in India. These developments highlight robust growth and intensifying competition within the Indian Infrastructure as a Service landscape.

Future Outlook

India Infrastructure As A Service Market Future Outlook

The Infrastructure as a Service Market in India is poised for growth at 16.34% CAGR from 2025 to 2035, driven by digital transformation, cloud adoption, and scalability needs.

New opportunities lie in:

  • Development of hybrid cloud solutions for SMEs
  • Expansion of edge computing services in urban areas
  • Integration of AI-driven analytics for resource optimization

By 2035, the market is expected to achieve substantial growth, reflecting robust demand and innovation.

Market Segmentation

India Infrastructure As A Service Market End-user Outlook

  • IT and Telecommunications
  • BFSI
  • Healthcare
  • Retail
  • Government

India Infrastructure As A Service Market Application Outlook

  • Business Continuity
  • Data Backup
  • Test and Development
  • Big Data Analytics

India Infrastructure As A Service Market Service Type Outlook

  • Compute
  • Storage
  • Networking
  • Disaster Recovery

India Infrastructure As A Service Market Deployment Model Outlook

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Report Scope

MARKET SIZE 2024 3500.0(USD Million)
MARKET SIZE 2025 4071.9(USD Million)
MARKET SIZE 2035 18500.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 16.34% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Amazon Web Services (US), Microsoft Azure (US), Google Cloud (US), IBM Cloud (US), Oracle Cloud (US), Alibaba Cloud (CN), DigitalOcean (US), Linode (US), Vultr (US)
Segments Covered Deployment Model, Service Type, End-user, Application
Key Market Opportunities Growing demand for scalable cloud solutions drives innovation in the infrastructure as-a-service market.
Key Market Dynamics Rising demand for scalable cloud solutions drives competitive innovation in the infrastructure as-a-service market.
Countries Covered India
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FAQs

What is the expected market size of the India Infrastructure as a Service Market by 2024?

The India Infrastructure as a Service Market is expected to be valued at 3.67 billion USD by the year 2024.

What will be the market size of the India Infrastructure as a Service Market by 2035?

By 2035, the India Infrastructure as a Service Market is projected to reach a valuation of 23.45 billion USD.

What is the forecasted compound annual growth rate (CAGR) for the India Infrastructure as a Service Market from 2025 to 2035?

The expected CAGR for the India Infrastructure as a Service Market from 2025 to 2035 is 18.366 percent.

Which solution segment is expected to dominate the India Infrastructure as a Service Market by 2035?

By 2035, the Managed Hosting Services segment is expected to dominate, reaching a value of 5.71 billion USD.

What are the projected market values for Storage As A Service by 2035?

By 2035, the Storage As A Service segment is projected to achieve a market size of 4.68 billion USD.

Which key players are leading the India Infrastructure as a Service Market?

Key players in the India Infrastructure as a Service Market include Oracle, Microsoft, and Amazon Web Services, among others.

What market value is expected for Disaster Recovery As A Service by the year 2035?

By 2035, the Disaster Recovery As A Service segment is expected to have a market value of 4.12 billion USD.

How much is the High-Performance Computing As A Service segment expected to be worth in 2035?

The High-Performance Computing As A Service segment is projected to be worth 3.61 billion USD by 2035.

What challenges might influence the growth of the India Infrastructure as a Service Market?

Challenges such as data security concerns and competition among key players may influence the growth of the market.

How is the market growth rate different across various solution segments?

Market growth rates may vary by segment, with Managed Hosting Services likely experiencing the highest growth through increased adoption and demand.

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