Indian Domestic Software Market to Reach $100 Billion by 2035

By siliconindia  |  Thursday, 27 March 2025, 02:49:21 PM IST

Indian Domestic Software Market to Reach $100 Billion by 2035

India's domestic software market is poised for remarkable growth, with projections indicating a five-fold increase to reach $100 billion by 2035, according to a recent report by SaaSBoomi and 1Lattice. Currently valued at $20 billion in 2025, this expansion is expected to be driven by several key factors, including AI-led automation, cost-effective software development, increased adoption by small and medium businesses (SMBs), and expanding government digital initiatives.

The report highlights that India’s software market has already grown seven times since 2015, yet approximately 75% of the market remains dominated by global players. To capitalize on the next phase of growth, Indian startups must focus on developing homegrown solutions that cater to the unique business and regulatory needs of the country.

Enterprise AI and cloud adoption are anticipated to be significant contributors to this growth, potentially adding $35 billion to the market. Digital-first businesses are projected to increase their software spending dramatically, from $4.6 billion in 2025 to $26 billion by 2035. Additionally, SMBs are expected to unlock a $13 billion opportunity through vertical SaaS solutions.

Cybersecurity is another critical area of growth, with the market size expected to rise from $1.6 billion in 2025 to $10 billion by 2035. As India’s digital economy expands, businesses are investing heavily in data security and compliance solutions to meet regulatory requirements, such as the DPDP Act 2023 and the RBI’s fintech security guidelines.

Government spending on software is also set to increase significantly, from $1.6 billion in 2025 to $8 billion by 2035. Amar Choudhary, CEO of 1Lattice, emphasized that the future of SaaS will belong to companies that achieve efficiency without sacrificing ambition. Avinash Raghava, CEO of SaaSBoomi, noted that while the Indian software ecosystem has been overshadowed by global players, the domestic market presents vast and untapped opportunities.

 

 

 

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