Analysis: Profiling the Indian SAAS Landscape – A $1 Trillion Opportunity for Businesses
India’s rapidly digitizing business ecosystem has accelerated opportunities for the Software-as-a-Service (SaaS) segment within the information technology (IT) sector. Many reports project that India will soon become a global SaaS leader, propelled by factors like a large talent pool, enabling policies, increased access to capital, high market demand from SME firms, etc.
Software-as-a-Service (SaaS) is leading the next wave of disruption in India’s information technology (IT) sector. As India’s digital economy expands and more work spaces go into hybrid mode, there is a significant shift underway towards cloud-based platforms.
The Indian business landscape is currently home to more than 100 unicorn start-ups, with SaaS among the leading segments.
According to a report by venture capital firm Bessemer Venture Partners, the Indian SaaS market value is projected to reach US$50 billion by 2030. Another 2022 study, by EY and CII titled “India: The next global SaaS capital”, indicates that the Indian SaaS market will grow multi-fold by 2025 and accounting for a global market share in the range of seven to 10 percent, up from the current range of two to four percent.
Growth trends in the Indian SaaS landscape
A 2021 joint report by SaaSBOOMi-McKinsey titled “Shaping India’s SaaS Landscape” projects India to be “on the cusp of unlocking a US$1 trillion opportunity for SaaS companies by 2030”. The report states that software accounts for 20 percent of the total enterprise spending on technology but has a value creation of nearly 50 percent. The SaaS industry, which is currently US$2.6 billion in size is expected to multiply its revenue by 20 times by 2030, generating a revenue in the range of US$50-70 billion in the process.
Photo courtesy of Xresch.
Source: India Briefing (link opens in a new window)