Business

India’s SaaS Industry To Reach $100 Billion By 2035; Driven By AI And Cloud

India’s SaaS industry will grow from $20 billion to $100 billion by 2035, according to SaaSBoomi. AI-driven automation, cost-effective software, and rising SMB adoption will fuel this growth.

Expanding government digital initiatives will also play a key role.

Enterprise AI and cloud adoption will add $35 billion to the market.

Sectors like BFSI, healthcare, and manufacturing are investing in AI-powered automation and cloud solutions. This shift is driving software demand across industries.

Digital-native businesses will increase software spending from $4.6 billion in 2025 to $26 billion by 2035.

Localized SaaS solutions will be crucial for companies looking to scale globally.

“For Indian SaaS firms, success will depend on building scalable, India-specific solutions. AI and vertical SaaS will drive growth,” said Avinash Raghava, CEO, SaaSBoomi.

A report by SaaSBoomi and 1Lattice highlights SMBs as another key driver. Vertical SaaS solutions will unlock a $13 billion market opportunity.

India’s cybersecurity market will surge from $1.6 billion to $10 billion.

The Digital Personal Data Protection (DPDP) Act 2023 and RBI’s fintech security rules are pushing companies to invest in data protection and automation.

“The future of SaaS belongs to efficient, capital-strong businesses,” said Amar Choudhary, CEO, 1Lattice.

Investors now prefer companies with strong fundamentals over aggressive expansion.

With AI adoption rising, SaaS startups growing, and regulations tightening, India’s SaaS industry is set to become a global leader.

Also Read: Indian Airlines Boost Weekly Flights By 5.5% For Summer 2025

Ajaypal Choudhary

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