Bangalore, Feb. 27: India’s massive growth presents a huge opportunity in the domestic market. A recent report released by Zinnov Management Consulting on “India’s Domestic IT Market Landscape 2015”, sized the domestic IT market at USD 36 Billion in 2015. This market is expected to grow at 14% CAGR to reach USD 65 Billion in 2020.
The Indian Government’s Digital India project will be an exponential driver for massive growth in IT adoption. The estimated budget of Digital India is going to be USD 19 Billion between 2014 -2018.
Zinnov study found that increased access to enabling infrastructure such as increased use of smart phones, and easy access to internet will result in greater adoption of technology by Small Businesses.
The study highlights key vertical wise initiatives of IT adoption across government, BFSI, Education, Healthcare and Telecom. All of this is expected to Help India become the 2nd Largest IT market in APAC by 2018.
The key drivers of IT growth highlighted in the report are:
· Up gradation of legacy systems
· Growing acceptance of cloud based solutions
· Emerging technologies like Internet of Things, Big Data and Mobility
· Focus from the India government on digital India.
According to the report the total cloud market in India will grow at 45% CAGR to USD 14.8 Billion in 2020. The study estimates the private cloud to increase to USD 7.4-7.6 Billion in 2020. The public cloud market is expected to almost of equivalent size at USD 7.0-7.4 Billion in 2020.
Study finds that Indian CIO’s site favorable reasons for continued success of the cloud market including cloud technology being the number one priority and the belief the SMAC stack will provide a competitive advantage for their organizations.
According to Pari Natarajan, Co Founder and CEO, Zinnov Management Consulting, “We believe multiple factors are driving the adoption of cloud solutions. We see cloud advertising, software as a services and business process as a service becoming critical categories of cloud adoption.”
Key Findings of the Study
· India Domestic IT Market sized at USD 36 Billion in 2015.
· India Domestic IT Market projected to grow at 14% CAGR to USD 67 Billion by 2020.
· India to become second largest IT Market in APAC Region by 2018
· Growth of IT Market to be driven by up gradation of legacy systems, growing acceptance of cloud based solutions, emerging technologies like Internet of Things, Big Data and Mobility as well as a focus from the India government on digital India.
· Government, BFSI, Education, Healthcare & Telecom to be key growth verticals.
· Total Cloud Market in India to grow at 45% CAGR to 14.8 Billion
· Cloud contribution to IT Spend to rise to 17% of overall market by 2020.
· Public Cloud Market in India is USD 700 -800 Million in 2015 and will rise to USD 7.0-7.4 Billion in 2020
· Private Cloud Market in India is USD 1.6-1.8 Billion in 2015 and will rise to USD 7.4-7.6 Billion in 2020.