India’s software market set to cross $8.2 billion in 2021: IDC

IDC expects the revenue share of Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) in the overall software market to grow from 37.1% in 2020 to 59% in 2025. 25.1%.

In the report released on Thursday, IDC said that going forward, the demand for Robotic Process Automation (RPA), Artificial Intelligence (AI), conferencing and collaborative applications, IT Service Management (ITSM) and digital commerce applications will also increase. The new data protection and data localization policies will prompt organizations in India to rethink their compliance framework. IDC said this will increase demand for data protection and privacy compliance solutions.

Hemant Gudiwada, Associate Market Analyst, IDC India, believes that the cloud, artificial intelligence (AI) and security related software markets will continue to grow for the next few quarters.

“Indian enterprises are continuing their digital transformation initiatives with a clear focus on scalable, secure and agile infrastructure. They have increased investments in the cloud for scalability, accurately leveraging AI data and serving customers more efficiently. and provides security to protect your network systems,” he said.

IDC data for the first half of 2021 shows that the software market size in India was $4.0 billion, growing at 15.9% year-on-year (YoY) and the software market in the Asia-Pacific region excluding Japan had a share of 18.3%. and China (APeJC) region. Microsoft, Oracle and SAP were the top software service providers in India during this period.

According to IDC, there was a sharp jump in the software market during the first half of 2021 due to an uptick in demand. Most enterprises are back to pre-pandemic level of utilization, while the rest expect operations to return to normal by the end of 2021 or the first half of 2022.

IDC categorizes the software market into three categories- Applications, Application Development & Deployment, and Systems Infrastructure Software. During the first half of 2021, applications accounted for the majority of the software market (60.9%), followed by application development and deployment (21%) and system infrastructure software (18.1%).

Shweta Baidya, Senior Research Manager, Software and IT Services at IDC India, said, “The strongest growth was seen due to the adoption of cloud-based solutions in collaborative applications, artificial intelligence platforms, system and service management and security.”

Software vendors are re-aligning their portfolios to meet the evolving needs of their customers, explains Baidya. “There is an emphasis on solutions that are agile, scalable and secure, and enterprises are clearly prioritizing vendors with the platform offering over point solutions,” he said.