India’s SaaS Industry Poised to Reach USD 100 Billion by 2035: Report

New Delhi, Mar 26 (KNN) India’s Software-as-a-Service (SaaS) industry is on a robust growth trajectory, with market size expected to expand from USD 20 billion to USD 100 billion by 2035.

According to a recent report by SaaSBoomi and 1Lattice, this surge will be driven by artificial intelligence-led automation, cost-effective software development, and an increasing adoption of digital tools by small and medium businesses (SMBs) and government initiatives.

A key contributor to this expansion will be enterprise AI and cloud adoption, projected to add USD 35 billion to the market. Industries such as banking, financial services and insurance (BFSI), healthcare, and manufacturing are significantly investing in AI-powered automation and cloud-based solutions, increasing software demand across sectors.

Digital-native businesses are also expected to boost their software expenditure from USD 4.6 billion in 2025 to USD 26 billion by 2035 as they enhance their technological capabilities.

Avinash Raghava, founding volunteer and CEO of SaaSBoomi, emphasised the importance of localised innovation, stating, “For Indian SaaS firms, success will depend on their ability to build localised solutions that scale globally, leveraging AI and vertical SaaS to tackle challenges that are uniquely Indian. The next decade will be defined by the ability of Indian companies to address these gaps.”

SMBs are anticipated to be a major driver of this growth, unlocking a USD 13 billion opportunity through vertical SaaS solutions.

Unlike global SaaS giants that focus on horizontal markets, Indian startups are creating industry-specific solutions tailored to local regulatory and business requirements.

Cybersecurity is another burgeoning sector, forecasted to rise from USD 1.6 billion to USD 10 billion, driven by stringent compliance mandates like the Digital Personal Data Protection (DPDP) Act 2023 and the Reserve Bank of India’s fintech security norms.

Amar Choudhary, CEO and co-founder of 1Lattice, remarked, “The future of SaaS will belong to companies that master efficiency without sacrificing ambition. Investors today are looking for capital-efficient businesses with strong fundamentals.”

With rapid digitisation and AI-driven innovations, India’s SaaS ecosystem is well-positioned to become a global powerhouse in the coming decade.

(KNN Bureau)