Indian SaaS Market Set to Reach Rs. 8,57,700 Crore (US$ 100 Billion) by 2035
India’s Software-as-a-Service (SaaS) industry is expected to grow to Rs. 8,57,700 crore (US$ 100 billion) by 2035, up from the current Rs. 1,71,540 crore (US$ 20 billion).
- This growth is driven by AI-powered automation, cost-effective software development, and increasing adoption by small and medium businesses (SMBs).
- According to a SaaSBoomi report, enterprise AI and cloud adoption will contribute Rs. 3,00,195 crore (US$ 35 billion) to market expansion.
Industries like banking, financial services, insurance (BFSI), healthcare, and manufacturing are rapidly investing in AI-driven automation and cloud-based efficiencies.
- Digital-native businesses will significantly increase 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 deeper digital transformation.
Growth in Vertical SaaS and Cybersecurity
The report highlights that vertical SaaS solutions will create a Rs. 1,11,501 crore (US$ 13 billion) opportunity, as startups develop industry-specific software to meet local regulatory and business requirements.
- This trend is expected to enhance efficiency, compliance, and innovation across multiple sectors.
India’s cybersecurity market is also projected to expand from Rs. 13,723 crore (US$ 1.6 billion) to Rs. 85,770 crore (US$ 10 billion).
- Growth will be fueled by the Digital Personal Data Protection (DPDP) Act 2023 and the Reserve Bank of India’s fintech security regulations, strengthening data security frameworks across industries.
As India’s SaaS ecosystem evolves, AI integration, regulatory support, and digital adoption will play a pivotal role in shaping the future of the software sector.