Technology advancements are driving increased consumer demand for innovative, smart and connected products. India’s small businesses, known as micro, small and medium enterprises (MSMEs), are the backbone of the economy. There are over 63 million MSMEs in India, contributing around 30% of the country’s GDP and employing over 110 million people.
SMBs must adopt a digital transformation strategy that implements a multi-engineering approach across the entire product design-through-manufacturing lifecycle with affordable, scalable and flexible software solutions in order to tackle the obstacles in the path towards digitalization. A key competitive advantage for SMBs is software-as-a-service (SaaS) and implementing a comprehensive digital twin.
Addressing SMB and Business Start-up Challenges in India
SMBs and start-ups also face challenges beyond design complexity as they compete against larger enterprises. In addition to structural limitations like capital, workforce, and infrastructure, many Indian SMBs and start-ups also struggle with digital readiness—a crucial barrier when adopting transformative technologies like AI and automation. While these technologies promise immense benefits such as increased operational efficiency, reduced costs, and real-time insights, their implementation can be hampered by resource constraints, skill gaps, and insufficient technical infrastructure. And these gaps are very wide in India.
Therefore, digital transformation in India is particularly crucial to start-ups and SMBs since they must adapt quickly to meet the changing needs of their customers under volatile business conditions. With the rapid advancements in technology in India, and initiatives like ‘Make in India’, consumer demand for innovative, smart, and connected products is pushing manufacturers to speed up time-to-market efficiently and sustainably. With complex designs and supply chain challenges impacting time-to-market, collaborating efficiently is key amongst employees, stakeholders, contractors, suppliers, and partners.
The Government of India has taken several reform initiatives to create an enabling environment for providing an impetus to manufacturing, design, innovation and startups. India has emerged as the fastest growing economy globally. India’s rate of growth of 7.5% is accelerating and it remains an oasis of growth in the midst of a subdued economic landscape across the world. The Hon’ble Prime Minister has given impetus to growth with several innovative initiatives such as “Make in India”, “Digital India”, “100 Smart Cities” and “Skill India”.
Software as a Service (SaaS) for SMBs
Cloud-based product lifecycle management (PLM) software is required to implement a digital transformation strategy and streamline processes from design through manufacturing. PLM software provides great value to SMBs and start-ups by connecting and aligning data, company and vendor business processes, and technologies to help develop and bring quality products to market faster. The Indian PLM market is experiencing significant transformation driven by the broader digital revolution across manufacturing sectors. It is estimated at USD 435.72 million in 2025, and is expected to reach USD 750.23 million by 2030, at a CAGR of 11.48% during the forecast period (2025-2030).
It is now easy for start-ups and SMBs to adopt cloud-based SaaS PLM solutions without a significant upfront investment. Leveraging the connectivity inherent in SaaS and cloud-based technologies, SMBs can focus on innovative product development and optimization while providing all company employees (including remote workers and contractors) and their supply chain access to cloud-ready, secure, and connected tools where and when they need them.
Start Your Digital Transformation Journey with SaaS
The Software as a Service (SaaS) industry in India has grown over the past decade – from a nascent industry to one of the most dynamic and fastest-growing markets globally. Now, with its unique mix of a large pool of skilled technology professionals, cost arbitrage and an increasing start-up ecosystem driven by the growing need for digital transformation, India’s SaaS sector is at a stage where it can be considered a global powerhouse.
Automation is achievable using cloud-based SaaS – plus low- or no-code technologies provide competitive digital transformation advantages. Over the recent past, it has been noted that the Indian SaaS space has continued to record a robust growth rate of ~30% on a year-on-year basis. The growth was mainly driven by rapid adoption of cloud computing, increase of digitally run companies, the adoption of working-from-home culture and online collaboration.
With today’s advanced SaaS offerings, it is easy to get started using a PLM software solution that has preconfigured engineering and business templates, such as Siemens Xcelerator software portfolio. These include the PLM engineering essentials that SMBs and start-ups require from MCAD, ECAD and multi-CAD engineering and data management, to bill-of-materials (BOM) and document management, through manufacturing process and data management. Siemens Xcelerator software ensures comprehensive end-to-end connectivity and collaboration with all manufacturing employees, stakeholders, partners, and suppliers. These templates help SMBs mitigate risk, shorten learning curves, and solve critical design through manufacturing challenges quickly and confidently so they can focus on innovation and time-to-profit targets. As a result, innovative SMBs are already leveraging digitalization through SaaS to gain a competitive advantage.
The Future of SaaS in India: Key Growth Drivers
India’s SaaS sector is poised for strong growth, driven by several key factors:
Expanding Market: As SMEs and traditional industries like manufacturing, retail, and agriculture embrace digital solutions, the demand for SaaS is expected to surge.
Rise of Unicorns: NASSCOM projects India will see around 50 SaaS unicorns by 2030, fueled by growing demand and robust venture capital funding.
M&A Momentum: Increased M&A activity is likely as companies aim to broaden their product portfolios and scale. Global tech giants and private equity players are expected to invest in high-growth Indian SaaS firms.
Product Innovation: To stay competitive, companies must leverage emerging technologies like AI, Blockchain, and IoT to develop cutting-edge, globally relevant solutions.
Customer Success as a Differentiator: In a crowded market, proactive support and strong customer relationships will be crucial for driving satisfaction and retention.
According to research from the Digital Twin Consortium, only 8% of digital twin implementations achieve comprehensive integration across product lifecycle, production, performance analytics, and closed-loop optimization. Siemens is consistently positioned in this highest tier of implementation sophistication through its unified approach to virtualization. Also, independent research from Frost & Sullivan awarded Siemens the 2023 Digital Twin Technology Leadership Award, noting that “Siemens stands apart with its truly comprehensive approach that bridges traditionally siloed product and production processes through integrated digital thread,” a capability that many competitors struggle to deliver.
Simple Energy Success with Siemens Xcelerator Software
One such digital transformation customer is Skyroot Aerospace, a Hyderabad-based space-tech pioneer and India’s first private company to launch a rocket into space. Skyroot uses Polarion™ software from the Siemens Xcelerator portfolio as its digital foundation to optimize software workflows and enhance efficiency while developing its next-generation launch vehicles, including the upcoming Vikram-1 orbital rocket.
“Polarion provides a seamless solution to manage our software workflows, allowing our team to focus on what they do best. With Siemens’ deep expertise in aerospace, we know we have a trusted partner as we continue to push the boundaries of space technology,” said Naga Bharath Daka, Co-founder & COO, Skyroot Aerospace.
Digitalization Drives Future Innovation for Sustainable Business Success
The promise of digital transformation provides countless benefits for SMBs and start-up companies. To gain a competitive advantage, business leaders must invest in new digitalization solutions which are now accessible and affordable with leading partners such as Siemens Digital Industries Software. India has one of the world’s largest tech startup ecosystems, with over 35,000 tech startups, including nearly 4,000 focused on deep tech innovation, indicating India’s position as a rising global innovation hub. In 2024 alone, deep tech startups in India attracted USD 1.6 billion in funding, a 78 per cent increase over 2023. This surge demonstrates growing investor confidence in India’s capability to build foundational technologies.
Its digital transformation stands at an inflection point, driven by innovation, inclusivity, and a deepening trust in technology. The country is not just a growing market but a global launchpad for digital products and AI-led solutions. With a projected $1 trillion digital economy on the horizon, India’s unmatched scale in digital adoption—from UPI to AI safeguards—demonstrates a model for the world. But as the digital momentum accelerates, the focus on trust, safety, and responsible tech development remains paramount. Together, India and its global tech partners are not only shaping a vibrant digital ecosystem but also laying the foundation for a secure and sustainable digital future.
Siemens Digital Industries Software hosted Realize LIVE Asia-Pacific on August 5 at the Sheraton Grand Bengaluru Whitefield Hotel & Convention Center. This flagship event spotlighted Siemens’ vision for digital transformation, with key updates on Artificial Intelligence, Digital Twin, Sustainability, MBSE, and the Future of Mobility. Attendees, including media and analysts, had exclusive access to Siemens leaders, product news, and customer success stories across industries, making it a unique opportunity to engage with the company’s evolving technology strategy.