The Indian software market is estimated to reach $7.6 billion by the end of 2021, a new International Data Corporation (IDC) report said on Thursday.
The Indian software market was pegged at $7 billion in 2020, registering a growth of 13.4 percent year-over-year (YoY) compared with that in 2019.
India accounted for a 17.5 percent share of the overall Asia/Pacific (excluding Japan and China) (APEJC) region software market in 2020.
Microsoft, Oracle, and SAP maintained leadership positions in the Indian market the same year.
“Although the pandemic had a minor impact on the overall growth of the India software market, it acted as a catalyst for strong growth across some of the software segments as enterprises reevaluated their IT strategies and took concrete steps to move toward digital business models,” said Shweta Baidya, Senior Research Manager for Software and IT Services at IDC India.
IDC estimates that India’s overall software market is likely to grow at a compound annual growth rate (CAGR) of 11.6 percent from 2020 to 2025.
“Digitally matured enterprises were able to smoothly navigate through the crisis and maintain business continuity and operational resilience. However, enterprises with traditional business models charted out new strategies to leverage cloud and digital to stay relevant and consistent,” Baidya added.
According to the report, the Indian enterprise will continue to invest in technologies that will help them spur innovation to improve operational efficiency and employee productivity, and in turn, maintain business momentum.
IDC expects the contribution of platform-as-a-service (PaaS) and software-as-a-service (SaaS) markets to the overall software market to increase from 36.8 percent in 2020 to 57.1 percent in 2025.