In 2021, the global hybrid cloud market was valued at 85 billion U.S. dollars and is expected to reach 262 billion U.S. dollars in 2027. Over this period, the Asia Pacific region is expected to grow at the highest rate. Some key players in this market are Cisco, HPE, AWS, and IBM. What is hybrid cloud? Hybrid cloud is an approach or an architectural style that combines at least one private cloud with at least one public cloud. In general, hybrid clouds consolidate IT resources, connect multiple computers through a network, orchestrate processes with the help of automation, and rely on a single plane of management. Connecting these processes and environments efficiently makes it possible to manage complex cloud networks comprehensively, which is why hybrid cloud support has become a major consideration for IT leaders when selecting a cloud provider. What are hybrid cloud benefits? Among the benefits organizations utilize by deploying a hybrid cloud strategy is the flexibility from easily and securely storing and moving data and workloads in different environments. If utilized correctly, this approach can give organizations greater control over their private data. However, in order to realize these benefits, organizations worldwide indicate needing management capabilities for hybrid cloud strategies, such as performance monitoring and analytics or cloud cost management.

The Report Offers Hybrid Cloud Market Analysis and is Segmented by Type (Solutions, Services), End-User Industry (Government and Public Sector, Healthcare, BFSI, Retail, Information and Communication Technology, Media and Entertainment), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East & Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Segments.

Snapshot img

Hybrid Cloud Market Size 2024-2028

The hybrid cloud market size is forecast to increase by USD 245.30 billion at a CAGR of 27.16% between 2023 and 2028.

Hybrid cloud computing, which combines the benefits of both private and public cloud services, is a significant area of investment for IT spending In the digital age. According to analytics, The market is expected to grow steadily, driven by trends such as simplified disaster recovery, enhanced containerization, and improved network connectivity. These trends are crucial for businesses undergoing digital transformation, particularly in sectors like IT services, industrial services, and content providers. 
Hypervisor technology plays a pivotal role in enabling seamless integration between public and private clouds. However, challenges persist, including data security concerns and latency issues. Addressing these challenges through automation and advanced analytics will be essential for businesses looking to optimize their IT infrastructure and stay competitive in the digital landscape.

What will be the Size of the Hybrid Cloud Market During the Forecast Period?

Request Free Sample

The market continues to experience robust growth, driven by the increasing demand for cost efficiency, scalability, and agility in IT infrastructure. Businesses across various sectors, including telecommunications, healthcare services, and enterprises, are adopting hybrid cloud solutions to enhance their IT capabilities and improve data protection. The market is characterized by the integration of public and private cloud, enabling businesses to leverage the benefits of both environments. 
Hybrid cloud solutions offer enhanced security features, enabling businesses to manage critical banking processes and sensitive data with confidence. The collaboration between business and IT departments is a key driver of hybrid cloud adoption, with IT spending on cloud services projected to increase significantly in the coming years.
Cyclical demand and emergency needs are also contributing to the market's growth, with virtual services becoming increasingly important for businesses in the banking sector and other industries. The dynamic regulatory landscape and the digitization of critical processes are further fueling the adoption of hybrid cloud solutions. Legacy technologies and transactions without cloud capabilities are being phased out, as more and more businesses recognize the benefits of hybrid cloud infrastructure. The market is composed of various components, including management services, service types, and telecommunications. Public bodies and non-critical IT infrastructure are also adopting hybrid cloud solutions to optimize their operations and enhance their digital capabilities.

How is this Hybrid Cloud Industry segmented and which is the largest segment?

The hybrid cloud industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Component

  Services
  Solution


End-user

  BFSI
  Retail
  Healthcare
  Telecom
  Others


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  South America



  Middle East and Africa

By Component Insights

The services segment is estimated to witness significant growth during the forecast period.

The market encompasses various professional services, including consulting, migration, training, and support. The services segment experiences significant growth due to the increasing demand for cloud storage solutions among organizations. Consulting services are increasingly popular as businesses seek expert advice on optimizing their storage infrastructure to align with industry trends. Migration services are in high demand as companies transition their data to hybrid cloud storage, requiring specialized technical expertise to ensure secure and accurate data transfer from traditional methods. These services contribute to cost efficiency, scalability, agility, security, and business-IT collaboration for enterprises across industries, including telecommunications, healthcare, and finance. Hybrid cloud deployment models offer organizations the flexibility to combine public and private clouds, enabling customized solutions for sensitive business processes and non-critical applications. Cloud infrastructure and service models cater to organizations of all sizes and verticals, enabling digital transformation, analytics, and innovation.

Get a glance at the Hybrid Cloud Industry report of share of various segments Request Free Sample

The Services segment was valued at USD 29.30 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 39% to the g

The global private cloud services market is set to grow, with a valuation of USD 124.6 billion in 2025, and it is going to touch USD 618.3 billion by 2035. The CAGR of 15.9% is likely during the projection period proposed.

Country-wise CAGR Analysis of the Private Cloud Services Market (2025 to 2035)

Competitive Outlook

In the fourth quarter of 2024, the most popular vendor in the cloud infrastructure services market, Amazon Web Services (AWS), controlled 33 percent of the entire market. Microsoft Azure takes second place with 20 percent market share, followed by Google Cloud with 10 percent market share. Together, these three cloud vendors account for 63 percent of total spend in the fourth quarter of 2024. Organizations use cloud services from these vendors for machine learning, data analytics, cloud native development, application migration, and other services. AWS Services Amazon Web Services is used by many organizations because it offers a wide variety of services and products to its customers that improve business agility while being secure and reliable. One of AWS’s most used services is Amazon EC2, which lets customers create virtual machines for their strategic projects while spending less time on maintaining servers. Another important service is Amazon Simple Storage Service (S3), which offers a secure file storage service. In addition, Amazon also offers security, website infrastructure management, and identity and access management solutions. Cloud infrastructure services Vendors offering cloud services to a global customer base do so through different types of cloud computing, which include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Further, there are different cloud computing deployment models available for customers, namely private cloud and public cloud, as well as community cloud and hybrid cloud. A cloud deployment model is defined based on the location where the deployment resides, and who has access to and control over the infrastructure.

Hybrid Cloud Market size was valued at USD 111.98 Billion in 2024 and is projected to reach USD 587.64 Billion by 2031, growing at a CAGR of 25.40% from 2024 to 2031.

Global Hybrid Cloud Market Drivers

Increased Cloud Adoption: The growing adoption of cloud computing has led to a demand for hybrid cloud solutions that combine the benefits of public and private clouds. Flexibility and Scalability: Hybrid clouds offer flexibility and scalability, allowing organizations to adapt their IT infrastructure to changing business needs. Cost Optimization: Hybrid clouds can help organizations optimize costs by leveraging the most cost-effective cloud resources for different workloads.

Global Hybrid Cloud Market Restraints

Complexity and Management: Managing a hybrid cloud environment can be complex, requiring specialized skills and expertise. Vendor Lock-in: Relying on multiple cloud providers can create vendor lock-in, limiting flexibility and increasing costs.

Public Cloud Market size was valued at USD 444.7 billion in 2019 and is poised to grow from USD 521.63 billion in 2023 to USD 2193.04 billion by 2031, growing at a CAGR of 17.3% in the forecast period (2024-2031).

Hybrid Cloud Market Size, Share, Statistics, Trends Analysis & Industry Report by Service (SaaS, IaaS, and PaaS), By Enterprise (Large Enterprise and Small and Medium Enterprise), By End-Use (BFSI, IT & Telecom, Retail & Consumer Goods, Manufacturing, Energy and Utilities, Healthcare, Media & Entertainment, Government & Public Sector, and Others) and By Region - Market Scope, Growth Opportunities & Global Forecast, 2020-2027

Hybrid Cloud Market By Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Component, By Delivery Model, By Organization Size, By End User, By Region, Competition Forecast and Opportunities

Analyze the market segmentation of the Hybrid Cloud industry. Gain insights into market share distribution with a detailed breakdown of key segments and their growth.

Globally, the public cloud market is currently valued at 685.3823 billion USD and is projected to reach a staggering 2,225.9945 billion USD by 2033, reflecting a robust CAGR of 12.81% from 2025 to 2033. Faster digital transformation, rising cloud-native application development, increased affordability, and rapid penetration of mobile devices and IoT are some key growth drivers shaping the public cloud market. Furthermore, the adoption of innovative technologies like AI, ML, and analytics further fuels demand for cloud computing resources. Regionally, North America holds the largest market share, followed by Europe and Asia Pacific. Leading cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) dominate the market, offering comprehensive cloud services across IaaS, PaaS, and SaaS models. Key trends shaping the market include the increasing adoption of multi-cloud and hybrid cloud solutions, the rise of edge computing, and the growing significance of data security and compliance. Despite these growth drivers, factors such as data privacy and security concerns, legacy systems, and potential vendor lock-in can restrain market growth to some extent. Recent developments include: In March 2023, Alibaba Cloud, the foundation of Alibaba Group's digital technology and intelligence, announced its partnership with long-time partner Dubai Holding to upgrade the facility with cutting-edge cloud infrastructure and a wider range of products and services in analytics, databases, industry solutions, and AI services to provide customers with the best digital solutions during their journey towards digitalization. In February 2023, Alibaba Cloud, the digital technology and intelligence core of Alibaba Group has been selected by e-commerce platform MyEUShop and its joint venture logistics partner, Nederlands Express (NLE), as their preferred cloud service provider and technology partner. MyEUShop and NLE will receive assistance from Alibaba Cloud to optimize their retail solutions and e-commerce platform infrastructure to achieve future commercial growth. In March 2023, AWS, a division of Amazon.com, Inc., has announced plans to open a region for its infrastructure in Malaysia. The new Amazon Region will allow developers, start-ups, entrepreneurs, businesses, government, educational, and charity institutions more options for using Malaysian data centers to operate their applications and serve end users. In October 2022, UBS and Microsoft announced a significant expansion of their collaboration to expand UBS's public cloud footprint over the next five years. As part of this transformational endeavour, UBS intends to operate more than half of its applications, including key workloads, on Microsoft Azure, the firm's primary cloud platform. The collaboration advances UBS's "cloud-first" strategy and modernization of its global technology estate. In July 2022, in India, Adobe Experience Manager (AEM) as a Cloud Service, powered by Adobe Experience Cloud, is now generally available, according to Adobe. With SaaS-like agility and experience management capabilities, AEM, a cloud-native solution, helps businesses manage and scale customized digital content for every channel. This enables marketers and developers to quickly create powerful, personalized digital experiences in just a few weeks, unlike the industry norm of months. . Notable trends are: Increasing demand for immersive virtual reality experiences is driving the market growth..

Cloud computing has become an integral part of modern business operations, with public cloud services leading the way. A 2024 survey reveals that 97 percent of businesses worldwide prefer using public cloud services, highlighting the widespread adoption of this cost-effective model. The pay-as-you-go approach allows companies to scale resources as needed, making it an attractive option for organizations of all sizes. Market leaders and revenue growth The cloud computing market is dominated by a few key players, with Amazon Web Services (AWS) maintaining a strong lead. In 2023, AWS held a 48 percent market share in the global infrastructure as a service (IaaS) and platform as a service (PaaS) sectors. Microsoft Azure, Alibaba Cloud, and Google Cloud Platform follow, with the four hyperscalers expected to generate a combined revenue of 167.3 billion U.S. dollars. These companies leverage their global scale, innovative technology, and deep expertise to offer a wide range of services beyond basic cloud computing resources. Regional market forecasts The data center market, closely tied to cloud computing, is poised for significant growth across all regions by 2029. The United States is projected to lead with an estimated revenue of 212.06 billion U.S. dollars, far outpacing other markets such as the United Kingdom, which is forecast to reach 23.76 billion U.S. dollars. This substantial difference underscores the dominance of the U.S. market in the global cloud computing landscape and highlights the potential for continued expansion in other regions.

Global Hybrid Cloud Market size was valued at USD 65.48 Billion in 2021 and is poised to grow from USD 73.25 Billion in 2022 to USD 179.71 Billion by 2030, growing at a CAGR of 11.87% in the forecast period (2023-2030).

The size and share of the market is categorized based on Application (IT Management, Data Integration, Security, Compliance, Infrastructure Management) and Product (Cloud Integration, Cloud Security, Cloud Management Platforms, Hybrid Cloud Platforms, Multi-Cloud Solutions) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The global hybrid cloud market was approximately USD 45.19 Billion in 2024 and is expected to witness substantial growth. With a projected CAGR of 21.20% from 2025 and 2034, the market size is anticipated to reach USD 309.08 Billion by 2034. This rapid growth is driven by increasing demand for flexible IT infrastructure, seamless data flow across platforms, and enhanced data security. Organisations are also adopting hybrid cloud solutions to meet evolving regulatory requirements, balancing public and private cloud benefits to optimise operations in a complex digital environment.

The size of the Hybrid Cloud market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 22.12% during the forecast period.A hybrid cloud is an on-premises data center, or private cloud, combined with a public cloud, so that data and applications can be shared between different clouds. It offers flexibility and scalability to organizations using the advantages of both private and public cloud deployments.Hybrid cloud solutions have gained immense popularity as it can help meet a host of business requirements. An organization can maintain sensitive data while at the same time enjoying the benefits that come with scalability and cost-effectiveness through public cloud service. Hybrid cloud also boosts disaster recovery capabilities since an organization has a backup site in the public cloud, and, finally, one can optimize resource utilization with hybrid cloud by shifting loads between private and public clouds in response to demand.The need for agility, scalability, and cost efficiency for IT infrastructure is the emerging demand for the hybrid cloud market. Hybrid cloud solutions would be necessary for organizations moving toward digital transformation and towards cloud computing to achieve any business objectives. Recent developments include: April 2023: DXC Technology announced the release of DXC Secure Network Fabric, a hybrid cloud-optimized comprehensive data center platform. DXC Secure Network Fabric, developed in conjunction with Hewlett Packard Enterprise and AMD, is a comprehensive software-defined data center system that automates, modernizes, simplifies, and secures the data center networks at a reduced cost., January 2023: Hybrid cloud data management and storage technology vendor, Cloudian closed a fund-raising round of USD 60 million which was to be used to scale the company inorder to meet an increasing number of use cases. The fund-raising round includes investments from multiple investment firms and Intel Capital, and other strategic investors. The total funding in Cloudian reached USD 233 million.. Key drivers for this market are: Rising Need for Interoperability Standards Between Cloud Services and Existing Systems, The Ability to Offer Improved Business Performance and Greater Return on Investments as Businesses Embracing Digitalization. Potential restraints include: Significant Investment Costs. Notable trends are: Banking, Finance, Services, and Insurance (BFSI) Sector to Hold Major Share in the Market.

According to Cognitive Market Research, the global hybrid cloud in the BFSI market size will be USD 9124.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 15.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 3649.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 2737.26 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 2098.57 million in 2024 and will progress at a compound annual growth rate (CAGR) of 17.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 456.21 million in 2024 and will progress at a compound annual growth rate (CAGR) of 14.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 182.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.7% from 2024 to 2031.
The service category is the fastest growing segment of the hybrid cloud in BFSI industry

Market Dynamics of Hybrid Cloud in BFSI Market

Key Drivers for Hybrid Cloud in BFSI Market

Increasing Adoption Of Cloud-Based Core Banking Systems Boosts Market Growth

The increasing adoption of cloud-based core banking systems is significantly boosting market growth in the hybrid cloud segment of the BFSI sector. Financial institutions are turning to cloud solutions to increase operational efficiency, lower costs, and improve client experiences. These systems enable banks to provide innovative services and respond quickly to market developments while protecting data and complying with regulations. The hybrid cloud approach enables the smooth integration of legacy systems with sophisticated cloud technologies, hence increasing flexibility and scalability. As banks look to capitalize on advanced analytics and AI capabilities, demand for hybrid cloud solutions continues to rise, strengthening overall market growth. For instance, Zoho, a major player in Software-as-a-Service (SaaS), entered the payments sector by launching Zoho Payments in August 2024, a unified online payment solution for businesses. Announced at the Global Fintech Fest, it includes B2B payments using NPCs's Bharat Bill Payment System (BBPS).

Increasing Adoption of IoT and AI Technologies to Drive Market Growth

The increasing implementation of IoT and AI technologies is expected to drive considerable growth in the BFSI hybrid cloud market. IoT allows banks and financial institutions to collect and analyze massive amounts of real-time data from connected devices, resulting in better decision-making and operational efficiency. Whereas artificial intelligence (AI) enables sophisticated data analytics, risk management, and personalized customer service. Hybrid cloud solutions provide the infrastructure needed to support various technologies, including scalability, adaptability, and cost-effectiveness. As IoT and AI keep transforming financial services, hybrid cloud application is expected to rise, enabling institutions to meet growing consumer expectations, regulatory constraints, and competitive pressures.

Restraint Factor for the Hybrid Cloud in BFSI Market

Difficulty in Managing and Monitoring Hybrid Cloud Resources Restricts Market Growth

The hybrid cloud in the BFSI market is hindered by the challenges of managing and monitoring resources, which constrains market growth. The integration of on-premises infrastructure with cloud environments often results in complexity, making it difficult to track and optimize resources across multiple platforms. This complexity necessitates specialized skills, posing difficulties for financial institutions to maintain seamless operations. Moreover, ensuring data consistency, monitoring performance, and maintaining security across hybrid setups requires advanced tools and processes, which can be costly and challenging to implement. These operational obstacles limit scalability and reduce the efficiency of hybrid cloud adoption, thereby hindering its full potential in transforming the BFSI sector's IT infrastructure and service delivery.

Key Opportunity of Market.

Increasing Demand f...

Global Hybrid Cloud Market is poised to witness substantial growth, reaching a value of USD 506.94 Billion by the year 2033, up from USD 117.66 Billion attained in 2024. The market is anticipated to display a Compound Annual Growth Rate (CAGR) of 17.62% between 2025 and 2033.

The Global Hybrid Cloud market size to cross USD 506.94 Billion by 2033. [https://edison.valuemarketresearch.com//uploads/

The hybrid cloud market offers various products, including:Hybrid Cloud Platforms: These platforms provide a unified management interface for both on-premises and cloud infrastructure, enabling seamless integration and workload migration.Hybrid Cloud Management Tools: These tools help enterprises manage their hybrid cloud environments effectively, including monitoring, provisioning, and orchestration.Hybrid Cloud Security Solutions: These solutions provide enhanced security measures for hybrid cloud environments, including firewalls, intrusion detection systems, and data encryption. Recent developments include: May 2024 : Red Hat and Oracle have made Red Hat OpenShift available on Oracle Cloud Infrastructure (OCI) via virtual machines. The cooperation seeks to develop an environment for hybrid cloud apps using OCI's distributed cloud and Red Hat's OpenShift.The integrated solution lets Red Hat's OpenShift, a leader in cloud-native application development, be deployed on OCI in 69 locations, including Australia. Customers may tailor their location and operating model to regulatory compliance, performance, and cost. This new solution deepens Red Hat and Oracle's collaboration, which started with Red Hat Enterprise Linux certification for OCI bare metal and Oracle VMware Cloud Solution workloads. The milestone was noted by Oracle Cloud Infrastructure Senior Vice President Karan Batta: "With Red Hat OpenShift on OCI, customers can easily extend their Red Hat OpenShift environments to OCI and run their workloads from anywhere via OCI's distributed cloud."Customers may move and operate Red Hat OpenShift workloads on OCI with confidence because to the two technology titans' open support agreements. Customer-managed deployments support Red Hat OpenShift Platform Plus, Container Platform, and Kubernetes Engine.. Key drivers for this market are: Growing Demand for Agile, Scalable, and Cost-Effective Computing Rising Need for Interoperability Standards between Cloud Services and Existing Systems Focus on Avoiding Vendor Lock-In .

The worldwide public cloud computing market continues to grow and is expected to reach an estimated 723.42 billion U.S. dollars in 2025. This encompasses business processes, platform, infrastructure, software, management, security, and advertising services delivered by public cloud services. A public cloud is a cloud deployment model that offers computing services over the internet. The physical hardware of this cloud model is shared by multiple companies. The services offered to customers include storage, bandwidth, or CPU cycles. Public clouds are cost-effective Among the many benefits of a public cloud is that services are offered to the customer through a pay-as-you-go model. This means that no upfront investments must be made, which otherwise lead to running costs for maintaining on-premise hardware and application infrastructure. Instead, the cloud service provider ensures proper management and maintenance of the system and the customer only pays for services consumed. AWS, Azure, and Google are dominating the market Key companies offering public cloud platforms to customers are Amazon Web Services, Microsoft Azure, and Google Cloud. Their preeminence on the market is demonstrated by organizations’ plans to continually migrate their data to the cloud and use cloud applications for their business operations on a global scale.