The size of India's domestic IT services and products markets will touch Rs 1,71,698 crore in 2012, research and advisory firm CyberMedia Research said.

Growing at a compound annual growth rate of 17.3 per cent over the 2010-14 period, the aggregate market size of the domestic IT services and IT products sector will touch Rs 2,33,930 crore, or USD 51 billion, by 2014, it said in a statement here today.

CyberMedia Research Associate Vice President Anirban Banerjee said: "A large chunk of IT hardware and software products will witness good traction on account of the healthy growth in IT services, as enterprises try to gain the best leverage out of their IT deployment."

India's growth story will continue, with the domestic IT services and IT-enabled services markets expected to grow at a CAGR of 21.1 per cent to touch Rs 98,188 crore by 2014.

Of the Rs 98,188 crore domestic IT services and ITeS market in 2014, IT services alone will grow at a CAGR of 16.7 per cent vis-a-vis 2010-2014, while domestic ITeS spending will grow at a CAGR of 30.2 per cent in the same period.

Managed services will emerge as a strong growth driver, with demand for increasingly sophisticated services engagements from the India enterprise segment.

The firm said the India public cloud computing market was expected to grow at a CAGR of 53 per cent over the five-year period from 2010 to 2014 to touch Rs 2,434 crore by 2014.

Penetration of cloud services in the India enterprise segment, which stood at 4 per cent in 2010, will increase to 6.8 per cent by 2012.

Notable verticals that would emerge as large or high growth IT spenders in 2011 and 2012 include healthcare & life sciences, media & entertainment, retail, the government & education sector, smart infrastructure and energy & power utilities, it said.