Driven by Adoption of Cloud Technologies, India's Domestic IT Market to Touch USD 67 Billion by 2020: Zinnov Study

BENGALURU, March 17, 2015 /PRNewswire/ --

India's massive growth presents a huge opportunity in the domestic market. A recent report, released by Zinnov Management Consulting on "India's Domestic IT Market Landscape 2015", sized the domestic IT market at USD 36 billion in 2015. This market is expected to grow at 14% CAGR to reach USD 67 billion in 2020.

     (Logo: http://photos.prnewswire.com/prnh/20130213/594614 )

Key Findings of the Study: 

• India Domestic IT Market sized at USD 36 billion in 2015. 
• India Domestic IT Market projected to grow at 14% CAGR to USD 67 billion by 2020. 
• India to become second largest IT Market in APAC region by 2018 
• Growth of IT Market to be driven by upgradation of legacy systems, growing acceptance of cloud based solutions, emerging technologies like Internet of Things, Big Data and Mobility as well as a focus from the India government on digital India.
• Government, BFSI, education, healthcare and telecom to be key growth verticals.
• Total Cloud Market in India to grow at 45% CAGR to 14.8 billion 
• Cloud contribution to IT Spend to rise to 17% of overall market by 2020. 
• Public Cloud Market in India is USD 700-800 million in 2015 and will rise to USD 7.0-7.4 billion in 2020. 
• Private Cloud Market in India is USD 1.6-1.8 billion in 2015 and will rise to USD 7.4-7.6 billion in 2020. 

The Indian Government's Digital India project will be an exponential driver for massive growth in IT adoption. The estimated budget of Digital India is going to be USD 19 billion between 2014-2018.

The Zinnov study found that increased access to enabling infrastructure such as increased use of smartphones, and easy access to Internet will result in greater adoption of technology by small businesses.

The study highlights key vertical wise initiatives of IT adoption across government, BFSI, education, healthcare and telecom. All of this is expected to help India become the 2^nd largest IT market in APAC by 2018.

The key drivers of IT growth highlighted in the report are:

• Upgradation of legacy systems
• Growing acceptance of cloud based solutions
• Emerging technologies like Internet of Things, Big Data and Mobility
• Focus from the India government on digital India

The study reveals that total cloud market in India will grow at 45% CAGR to USD 14.8 billion in 2020. The study estimates the private cloud to increase to USD 7.4-7.6 billion in 2020. The public cloud market is expected to grow to an almost equivalent size at USD 7.0-7.4 billion in 2020.

The study finds that Indian CIOs site favourable reasons for continued success of the cloud market including cloud technology being the number one priority and the belief that SMAC stack will provide a competitive advantage for their organisations.

According to Pari Natarajan - Co-Founder and CEO, Zinnov Management Consulting, "We believe multiple factors are driving the adoption of cloud solutions. We see cloud advertising, Software as a Services, and business process as a service becoming critical categories of cloud adoption."  

Multiple factors are expected to result in significant adoption of cloud solutions. Some of the primary drivers are setting up of local datacenters. The expected 3X increase in Internet penetration, backed by a Digital India initiative, is expected to attract USD 17 billion investment in the next 3-4 years. 90% of SMBs are expected to be tech influenced by 2020. This coupled with over 3X growth in total number of technology startups in India offering vertical specific innovative solutions backed with affordable pricing will drive adoption of cloud solutions.

About Zinnov Management Consulting:  

Zinnov was founded in 2002 and is headquartered out of Bangalore. The company has locations in Houston, Silicon Valley, Bangalore and Gurgaon. Zinnov offers offshore advisory services; and assistance with conducting market analysis, exploratory research for expansion and business analytics. Zinnov also provides business consulting and support services, which include customized consulting engagements, operational dashboards, industry trends and best practices monitoring, and policies in the areas of technology & IT services, business and corporate services, growth strategies, expansion initiatives, branding, and process improvements.

Zinnov serves clients in software, automotive, telecom & networking, semiconductor, consumer electronics, storage, healthcare, banking, and financial services and retail verticals in US, Europe, Japan and India.

For more information, visit: www.zinnov.com

Media Contact:
Karthik Ananth
E-mail: [email protected]
Tel: +91-9902099374
Director of Marketing
Zinnov Management Consulting