New Delhi: The Indian domestic software market is poised to touch the $100 billion landmark by 2035. This will translate to a remarkable 500 per cent growth in the next decade, as predicted in an annual survey conducted by SaaSBoomi in conjunction with 1Lattice.
The domestic software market is currently pegged at $20 billion, which is a whopping 700 per cent growth since 2015.
The growth between 2015-2025 was fuelled by a surge in digital adoption, government-backed digital public infrastructure and the formalization of the economy.
The next surge between 2025-2035 will be likely to be driven by AI-led discontinuities in automation, cost-effective software development, expanding SMB adoption and deepening government digital initiatives.
The pattern of players in the domestic software ecosystem is also undergoing a shift. While 3/4th of the current market is dominated by global players, the next decade will see more Indian startups build India-oriented solutions that demonstrate stronger product-market fit and value-driven innovation.
AI and cloud adoption are expected to contribute $35 billion in market expansion. BFSI, healthcare and manufacturing are investing in AI-powered automation and cloud-based efficiencies, pushing software demand up.
Digital natives will increase their software spending to $26 billion in 2035, another whopping 500 per cent jump from $4.6 billion now in 2025.
The SMBS will provide a $13 billion opportunity driven by vertical SaaS solutions. India’s growing startup ecosystem is building industry-specific solutions catering to local regulatory and business requirements.
The cybersecurity market is expected to grow 600% and reach $10 billion in 2035, up from $1.6 billion in 2025. Companies are investing heavily in compliance-driven solutions, data protection frameworks and automated tools to meet compliance requirements.
The government will also ramp up software adoption, hiking its spending to $8 billion by 2035, up from $1.6 billion in 2025. This will be largely driven by DPI initiatives and compliance mandates.
According to Avinash Raghav, Founding Volunteer & CEO, SaaSBoomi, “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 survey report urged Indian software players to build for Bharat using high-touch GTM strategies, designing a multi-product roadmap and targeting SEA and MENA markets.
There are 10 domestic software companies that have scaled up today, and there is potential to create another 50-60 software giants in the next decade.
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