Indian Software-as-a-Service (SaaS) market likely to grow to Rs. 8,57,700 crore (US$ 100 billion) by 2035, says report

India’s Software-as-a-Service (SaaS) industry is projected to reach Rs. 8,57,700 crore (US$ 100 billion) by 2035, up from Rs. 1,71,540 crore (US$ 20 billion) currently, driven by artificial intelligence (AI)-powered automation, cost-effective software development, and expanding small and medium business (SMB) adoption, according to a SaaSBoomi report. Enterprise AI and cloud adoption are expected to contribute Rs. 3,00,195 crore (US$ 35 billion) to market expansion, with industries such as banking, financial services and insurance (BFSI), healthcare, and manufacturing increasingly investing in AI-driven automation and cloud-based efficiencies. Digital-native businesses will raise their software spending from Rs. 39,454 crore (US$ 4.6 billion) in FY25 to Rs. 2,23,002 crore (US$ 26 billion) by 2035, reflecting their deepening digital transformation. 

The report emphasises that vertical SaaS solutions will unlock an Rs. 1,11,501 crore (US$ 13 billion) opportunity as India’s startups focus on industry-specific software tailored to local regulatory and business requirements. Additionally, India’s cybersecurity market is expected to grow from Rs. 13,723 crore (US$ 1.6 billion) to Rs. 85,770 crore (US$ 10 billion), driven by the Digital Personal Data Protection (DPDP) Act 2023 and the Reserve Bank of India’s fintech security regulations.  

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.