Indian software market to touch $100B by 2035: SaaSBoomi

The Indian software market is projected to reach a size of $100 billion by 2035 from the current value of $20 billion, spearheaded by artificial intelligence (AI), according to a report.

SaaSBoomi, the community of software-as-a-service (SaaS) founders and other software developers, noted in its annual report that the projected 5x growth in the next decade will be driven by AI-led developments in automation, cost-effective software development, expanding SMB adoption, and deepening government digital initiatives.

With nearly 75% of the current market dominated by global players, the report said that the next decade will require a radically different playbook—one where Indian startups build India-oriented solutions that demonstrate stronger product-market fit and value-driven innovation.

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“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,” SaaSBoomi CEO Avinash Raghava said.

According to the report, growing enterprise AI and cloud adoption is expected to contribute $35 billion in market expansion. 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.

Gowri Shankar Nagarajan, Volunteer at SaaSBoomi and VC at Antler, said, “We are entering a phase where India can no longer afford to be a bystander in the global tech race. 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.”

This market expansion is expected to see SMBs being a major driver of growth, as vertical SaaS solutions are set to unlock a $13 billion opportunity. The cybersecurity market is expected to grow 6x from $1.6 billion in 2025 to $10 billion by 2035. The government, too, is expected to ramp up software adoption, increasing its software spend from $1.6 billion in 2025 to $8 billion by 2035, largely due to DPI initiatives and compliance mandates.

Amar Choudhary, CEO and Co-founder, 1Lattice, said, “The future of SaaS will belong to companies that master efficiency without sacrificing ambition. Investors today are looking for capital-efficient businesses with strong fundamentals.”