India's Software Market Projected to Reach $100 Billion by 2035: Report
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Synopsis
India's software market is projected to grow fivefold, reaching $100 billion by 2035, driven by AI automation, SMB adoption, and government initiatives, according to a report by SaaSBoomi and 1Lattice.
Key Takeaways
- India's software market will reach $100 billion by 2035.
- Growth driven by AI and cloud adoption.
- SMBs and cybersecurity are key growth areas.
- Government software spending to rise significantly.
- Homegrown solutions are essential for future growth.
New Delhi, March 25 (NationPress) The domestic software market in India is poised for remarkable expansion, with forecasts suggesting a five-fold growth over the next ten years, aiming for $100 billion by 2035, as stated in a recent report released on Tuesday.
This surge is anticipated to be fueled by AI-driven automation, cost-efficient software development, heightened adoption by small and medium businesses (SMBs), and the proliferation of government digital initiatives, according to insights from SaaSBoomi and 1Lattice.
The current valuation of the software market stands at $20 billion in 2025.
The report underscores that India’s software sector has experienced a sevenfold increase since 2015. However, approximately 75 percent of the market remains under the control of international firms.
To advance to the next growth phase, Indian startups must create homegrown solutions that cater to the distinctive business and regulatory demands of the country.
A significant driver of this growth will be the uptake of enterprise AI and cloud technology, projected to contribute an additional $35 billion to the market.
Moreover, digital-first enterprises are expected to significantly ramp up their software expenditures, escalating from $4.6 billion in 2025 to $26 billion by 2035.
SMBs will also be vital in propelling market expansion, with vertical SaaS solutions unlocking a $13 billion opportunity.
The cybersecurity sector is another area anticipated to witness substantial growth, with its market size expected to leap from $1.6 billion in 2025 to $10 billion by 2035.
As India’s digital economy continues to evolve, businesses are making significant investments in data security and compliance-focused solutions, particularly to adhere to regulatory requirements like the DPDP Act 2023 and the RBI’s fintech security guidelines.
Government expenditure on software is also projected to rise considerably, from $1.6 billion in 2025 to $8 billion by 2035.
“The future of SaaS will belong to companies that master efficiency without sacrificing ambition,” remarked Amar Choudhary, CEO and Co-founder of 1Lattice.
“India’s software ecosystem has long been overshadowed by global players, but we are now at a tipping point. The opportunity in our domestic market is vast and untapped,” added Avinash Raghava, CEO of SaaSBoomi.
