PUBLISHER: The Business Research Company | PRODUCT CODE: 1664388
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664388
A hybrid cloud refers to the amalgamation of at least two computing operating systems environments that collaborate in sharing information and consistently operating a set of applications for a business or enterprise over the internet. The primary objective of a hybrid cloud is to establish an IT infrastructure design that integrates a company's internal IT resources with the infrastructure and services provided by third-party cloud providers.
The primary components of hybrid cloud encompass solutions and services. Hybrid cloud solutions enable the on-demand provision of IT resources through the internet for accessing and storing data and applications online. Various workloads encompass storage, backup and disaster recovery, application development and testing, database management, business analytics, integration and orchestration, customer relationship management, enterprise resource management, cloud collaboration, content management, and other functionalities. The range of organizations using hybrid cloud includes large enterprises and small and medium-sized enterprises, serving end-use industries such as government and public sector, healthcare, banking, finance, services, insurance (BFSI), retail, information and communication technology, media and entertainment, and others.
The hybrid cloud market research report is one of a series of new reports from The Business Research Company that provides hybrid cloud market statistics, including hybrid cloud industry global market size, regional shares, competitors with a hybrid cloud market share, detailed hybrid cloud market segments, market trends and opportunities, and any further data you may need to thrive in the hybrid cloud industry. This hybrid cloud market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The hybrid cloud market size has grown rapidly in recent years. It will grow from $112.42 billion in 2024 to $128.64 billion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to complex application requirements, business agility and flexibility needs, security concerns, legacy infrastructure integration, cost optimization strategies.
The hybrid cloud market size is expected to see rapid growth in the next few years. It will grow to $259.13 billion in 2029 at a compound annual growth rate (CAGR) of 19.1%. The growth in the forecast period can be attributed to increasing cloud adoption, digital transformation, data security concerns, remote workforce expansion, multi-cloud management, AI and analytics expansion. Major trends in the forecast period include business continuity and disaster recovery, AI and analytics integration, edge computing integration, cost optimization strategies, multi-cloud management, remote workforce enablement.
The rising adoption of cloud services is anticipated to drive the growth of the hybrid cloud market in the coming years. Cloud services encompass a broad array of services that are provided on demand to clients and businesses via the internet. A hybrid cloud integrates on-premises infrastructure with both public and private cloud services. This combination allows enterprises to leverage the security of private cloud environments while also enjoying the cost efficiency, scalability, security, and control associated with public cloud services. As a result of these advantages, there is a growing demand for hybrid cloud solutions. For example, in April 2024, the European Commission, a government body based in Belgium, reported that in 2023, 77.6% of large enterprises were using cloud computing services, marking a 6-percentage point increase since 2021. For medium-sized enterprises, cloud service adoption rose to 59% in 2023, up from 53% in 2021. Additionally, small businesses experienced a rise of 3.8 percentage points, reaching 41.7% during the same timeframe. Thus, the increasing adoption of cloud services is fueling the growth of the hybrid cloud market.
Another driving factor for the growth of the hybrid cloud market is the increasing emphasis on data security and compliance regulations. Data security and compliance regulations involve a formal governance framework ensuring organizations comply with applicable laws, rules, and standards for securing and managing data against threats. Hybrid cloud solutions enable businesses, especially those in finance, healthcare, and government sectors, to store sensitive data on-site, addressing concerns related to data privacy and regulatory compliance. For instance, in July 2023, the US Securities and Exchange Commission (SEC) passed regulations mandating the reporting of significant cybersecurity incidents and disclosures about annual cybersecurity risk management, strategy, and governance.
Technological advancement is a significant trend gaining traction in the hybrid cloud market. Key players are investing in developing sophisticated technologies to enhance efficiency and scalability, thereby maintaining their competitive edge in the hybrid cloud sector. For example, in October 2022, Flexential, a US-based IT service management company, introduced new Hybrid IT options on its National FlexAnywhere Platform, featuring Cloud Solution Expansion at the Gartner IT Symposium/Xpo 2022. This innovative platform enables Flexential customers to extend their applications and workloads beyond traditional on-premises data centers. The hybrid cloud deployments on Flexential's national FlexAnywhere infrastructure alleviate the organization's burden of managing the underlying infrastructure while ensuring superior application performance.
Prominent companies in the hybrid cloud market are concentrating on implementing security features for AirLink router management, such as hybrid cloud security, to reinforce their market position. Hybrid cloud security refers to a strategy that secures a computing environment combining on-premises infrastructure, private cloud, and public cloud services. For instance, in October 2023, Semtech Corporation, a US-based provider of high-performance semiconductors, IoT systems, and cloud connectivity services, announced a patent-pending hybrid cloud security feature for AirLink router management. This innovation enhances the collaboration between on-site infrastructure under customer control and the flexibility of cloud technology, delivering unparalleled security and control that aligns with Zero Trust strategies.
In August 2024, Hewlett Packard Enterprise (HPE), a US-based information technology firm, acquired Morpheus Data for an undisclosed sum. This acquisition seeks to reduce IT complexity by incorporating Morpheus's features for multi-vendor and multi-cloud application provisioning, orchestration, and automation. Morpheus Data is a US-based software company that functions as a next-generation hybrid cloud management and application infrastructure automation engine.
Major companies operating in the hybrid cloud market include Amazon Inc., Fujitsu Ltd., Oracle Corporation, Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., DXC Technology Company, Alibaba Group Holding Limited, Google LLC, Hewlett Packard Enterprise Company, International Business Machines Corporation, Microsoft Corporation, Equinix Inc., Rackspace Technology Inc., VMware Inc., Panzura Inc., Lumen Technologies Inc., NetApp Inc., Atos SE, Red Hat Inc., Nutanix Inc., Lenovo Group Limited, Juniper Networks Inc., DigitalOcean LLC, Zerto Corporation, NTT Data Corporation, Hitachi Vantara Corporation, InterVision Systems LLC, Scale Computing Inc., Stratoscale Inc., Morpheus Data LLC, Joyent Inc., DataCore Software Corporation, Virtuozzo International GmbH
North America was the largest region in the hybrid cloud market in 2024. Asia-Pacific is expected to be the fastest-growing region in the hybrid cloud market during the forecast period. The regions covered in the hybrid cloud market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the hybrid cloud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The hybrid cloud market includes revenues earned by entities by offering cloud storage management, security and regulatory compliance services, microservices architecture. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Hybrid Cloud Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on hybrid cloud market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for hybrid cloud ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The hybrid cloud market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.