CHENNAI: India’s domestic software market is projected to grow 5X in the next decade from $20 billion in 2025 to hit $100 billion by 2035, a new report shows.
SaaSBoomi, in collaboration with 1Lattice, released a report on Tuesday, which shows that the domestic IT software market will be driven by expanding adoption of tech by SMEs, deepening government digital initiatives and AI-led automation.
While global players like Salesforce, SAP, Oracle, and others currently rake in almost 75 per cent of the software spending in India, bootstrapped pioneers like Zoho, Tally, and others are giving them a tough fight, the report notes. The next decade will see more Indian software makers gain share, with homegrown companies positioned to claim up to 50 per cent of the $100 billion market, the report predicts.
India has produced about ten domestic software companies of scale so far, and by encouraging innovation, addressing critical gaps, and improving capital efficiency, there is potential to create another 50–60 software giants in the next decade, it recommends.
“Companies across BFSI, healthcare, and manufacturing are investing in AI-powered automation and cloud-based efficiencies, pushing software demand across sectors. Meanwhile, digital-native businesses will increase their software spend from $4.6 billion in 2025 to $26 billion by 2035, as they build deeper digital capabilities,” the report said. It also urges software firms to “build their products for Bharat” and also target adjacent markets like Southeast Asia (SEA) and MENA for scale.
“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. For Indian SaaS firms, success will depend on their ability to build localized 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,” Avinash Raghava, Founding Volunteer & CEO, SaaSBoomi, said,
Gowri Shankar Nagarajan, Volunteer at SaaSBoomi and VC at Antler, said, “To seize the $100 billion opportunity ahead, India’s domestic software firms must redefine their approach: reorienting strategies, collaborating more effectively, and focusing on long-term, sustainable growth.”
Source: The Hindu Business Line
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