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Indian SaaS Market Poised for $100 Billion Growth by 2035, Report Reveals

SaaS

Business Honor
28 March, 2025

AI, automation, and SMB adoption to drive SaaS industry’s remarkable expansion in India.

India’s Software-as-a-Service (SaaS) market is projected to reach a staggering $100 billion by 2035, marking a significant increase from its current $20 billion value. This growth will be largely fueled by artificial intelligence (AI)-driven automation, the expanding adoption of cloud-based solutions, and a deeper digital transformation across industries, according to a new report by SaasBoomi.

A key contributor to this growth is the rising demand for enterprise-level AI and cloud services, particularly within sectors such as banking, financial services, insurance (BFSI), healthcare, and manufacturing. These industries are increasingly investing in AI-powered automation and cloud efficiencies, which are expected to account for $35 billion in market expansion by 2035.

The report also highlights that digital-native businesses, which are accelerating their digital transformation, will see a significant increase in their software spend, growing from $4.6 billion in 2025 to $26 billion by 2035. This shift reflects a broader trend of organizations seeking to build deeper and more advanced digital capabilities.

For Indian SaaS companies, success will hinge on the ability to develop localized solutions that can scale globally. The next decade will likely be defined by Indian firms’ ability to address the unique challenges of the local market, leveraging vertical SaaS solutions and AI to cater to specific regional needs.

Small and medium businesses (SMBs) are another crucial driver of SaaS growth in India. With the rise of vertical SaaS solutions, this segment is poised to unlock a $13 billion opportunity. The country’s rapidly growing cybersecurity sector, which is expected to surge from $1.6 billion to $10 billion, also presents significant growth potential, as businesses invest in security solutions to comply with new regulations like the Digital Personal Data Protection (DPDP) Act.

As India’s digital economy continues to evolve, SaaS companies are well-positioned to meet the increasing demand for cost-effective, scalable, and secure solutions.