SaaS sector in India is poised for significant growth

AI is the next revolution in software, and we expect all software to transition to AI-native, AI-enabled, or AI-infused in some way over the coming months.
 
AI complements the growth of SaaS sector in India and is indeed poised for significant growth. The sector has witnessed substantial expansion, more recent estimates suggest a target of $50 billion by 2030.
 
According to a recent report, the Indian start-up ecosystem is poised to attract $1 billion in new venture funding in 2024, representing a 25% increase compared to the previous year. The report highlights that a significant portion of this investment will be channelled towards AI-focused companies, underscoring the growing importance of artificial intelligence in the start-up landscape.

 
A Survey findings indicate that approximately 60% of start-ups that were previously operating as pure SaaS (Software as a Service) companies are now transitioning into AI-enabled SaaS providers. This evolution reflects the broader industry trend where AI is becoming integral to software offerings.
 
India has a unique position with its large base of AI developers and global leadership in business and professional services. With this there are transformative impact of AI, stating, “2024 is the year artificial intelligence goes mainstream, marking a pivotal shift from emerging technology to a cornerstone of business and industrial operations”.
 
 
This shift towards AI underscores its growing role as a key driver of innovation and growth, positioning it as an essential component of India's burgeoning tech ecosystem.
 
Secondly, Wealth-tech software and industrial-tech software have emerged as prominent areas, driven by factors such as increasing equity participation and initiatives like Make in India, which promotes sustainable industrial operations. Another sector that has garnered considerable attention is cybersecurity, reflecting the growing importance of digital security in the business world.
 
The strong focus on cybersecurity is further evidenced by the projected growth of the cyber insurance sector, which is expected to expand by 50% year-on-year over the next five years, potentially reaching $800 million by 2030.

Dr. Deepak Kumar Sahu, Editor-in-Chief-VARINDIA