Hybrid Cloud Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 172.77 Billion |
| Market Size (2030) | USD 311.75 Billion |
| Growth Rate (2025 - 2030) | 12.53% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Hybrid Cloud Market Analysis by Mordor Intelligence
The hybrid cloud market is valued at USD 172.77 billion in 2025 and is forecast to reach USD 311.75 billion by 2030, reflecting a 12.53% CAGR during 2025-2030. Enterprises are steering toward distributed architectures that balance operational control with cloud-native speed, especially as generative-AI workloads require tight linkage between edge and centralized compute resources. Growing sovereignty rules, multicloud preferences, and maturing container orchestration frameworks spur demand for hybrid deployment models. Edge computing investments shorten latency for AI inference while retaining on-premises data for compliance. Large data-center operators are aligning infrastructure projects with corporate decarbonization targets, adding sustainability as a procurement criterion. Strategic acquisitions by hyperscalers and specialized edge providers intensify competitive differentiation across the hybrid cloud market.
Key Report Takeaways
- By component, solutions led with 65.5% of hybrid cloud market share in 2024; services are on track to expand at a 15.3% CAGR through 2030.
- By service model, SaaS held 54.7% revenue share in 2024, while IaaS is projected to grow at 14.1% CAGR during 2025-2030.
- By organization size, large enterprises accounted for 62.3% of the hybrid cloud market size in 2024; SMEs are expected to post the highest 14.6% CAGR to 2030.
- By end-user industry, BFSI commanded 23.1% share of the hybrid cloud market size in 2024 and healthcare is advancing at a 13.9% CAGR through 2030.
- By geography, North America led with 25.8% share in 2024, whereas Asia-Pacific is forecast to expand at a 13.2% CAGR to 2030.
Global Hybrid Cloud Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surge in multicloud adoption among large enterprises | +2.8% | Global, with concentration in North America and EU | Medium term (2-4 years) |
| Rising demand for data-sovereign architectures | +2.1% | Europe and Asia-Pacific core, spill-over to MEA | Long term (≥ 4 years) |
| GenAI workload acceleration needs cloud-edge proximity | +3.2% | Global, with early gains in North America, China, Japan | Short term (≤ 2 years) |
| Edge-native container orchestration frameworks mature | +1.9% | Global, with advanced adoption in North America and Northern Europe | Medium term (2-4 years) |
| Green datacenter mandates push hybrid repatriation | +1.4% | Europe and North America, expanding to Asia-Pacific | Long term (≥ 4 years) |
| Rising enterprise focus on cost optimization and FinOps capabilities | +1.2% | Global, with higher urgency in North America and Europe | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Surge in Multicloud Adoption Among Large Enterprises
Hybrid environments now underpin deliberate multicloud strategies, with 87% of enterprises operating workloads across more than one provider.[1]HCLTech, “Cloud Native Agility and Sovereign Control,” hcltech.comPlatform teams standardize tooling to curb redundant spend and improve governance consistency. Financial-operations practices are embedded at design stages to cut waste in the hybrid cloud market. Vendors respond by offering unified billing dashboards that map usage to cost centers. As multicloud maturity rises, seamless workload portability becomes a core purchase criterion for the hybrid cloud market.
Rising Demand for Data-Sovereign Architectures
Strict privacy regimes reshuffle workload placement decisions, particularly in Europe where 84% of organizations either use or plan sovereign cloud solutions within 12 months.[2]VMware, “Sovereign Cloud Adoption in Europe,” vmware.comAustralia and parts of Asia adopt similar rules, pressing providers to launch region-specific control planes. Specialized sovereign offerings promise residency, key management, and local operator staffing. Hyperscalers now integrate confidential computing and dedicated EU support models to retain share in the hybrid cloud market. Compliance complexity therefore fuels demand for architecture designs that keep sensitive data in jurisdiction while leveraging global scale for less regulated workloads.
GenAI Workload Acceleration Needs Cloud-Edge Proximity
Generative-AI initiatives drive rapid refresh cycles for GPUs, high-speed fabrics, and low-latency storage. Ninety percent of enterprises report that GenAI strategy affects infrastructure planning.[3]Nutanix, “Enterprise Cloud Index 2025,” nutanix.com Model training remains centralized, yet inference increasingly executes near users to reduce response time. AWS and NVIDIA extended cooperation with the Project Ceiba supercomputer to address these scaling requirements AWS. Consequently, orchestration software must schedule AI pipelines across edge clusters and core data centers without manual intervention, deepening reliance on the hybrid cloud market.
Green Datacenter Mandates Push Hybrid Repatriation
Climate commitments are shaping workload allocation. AWS diverts 99% of retired hardware from landfills and extended server lifetimes to six years. Google secures long-term clean-energy contracts and experiments with tariff models tied to renewable projects. Operators like CyrusOne pledge climate neutrality by 2030. Enterprises now weigh carbon intensity alongside latency and cost, spurring selective repatriation of predictable workloads to energy-efficient on-premises systems, thereby reinforcing demand across the hybrid cloud market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Migration complexity and legacy integration costs | -1.8% | Global, with higher impact in North America and Europe | Short term (≤ 2 years) |
| Skills shortage in cloud-native security and FinOps | -1.4% | Global, with acute shortages in Asia-Pacific and emerging markets | Medium term (2-4 years) |
| Hidden egress-fee economics limit workload portability | -0.9% | Global, with higher impact on multicloud adopters | Medium term (2-4 years) |
| Geo-political data localization rules fragment architectures | -1.1% | Global, with concentration in China, Russia, EU | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Migration Complexity and Legacy Integration Costs
Modernization projects often reveal undocumented dependencies that inflate timelines and budgets. Large banks report significant overruns when refactoring core payment systems for hybrid environments. Seventy-three percent of enterprises now refactor rather than lift-and-shift, extending schedules yet delivering better resilience. Continuous integration pipelines and API gateways partly mitigate the hurdle, but technical debt remains a near-term drag on the hybrid cloud market.
Skills Shortage in Cloud-Native Security and FinOps
Organizations struggle to recruit practitioners who blend DevSecOps and financial governance skills. A recent market survey found that nine out of ten IT leaders see avoidable cloud spending due to expertise gaps. Vendors respond with managed FinOps services and automated guardrails embedded in control planes. Kyndryl, for example, surpassed 11,000 AWS certifications to deepen service depth. Until training pipelines catch up, the talent gap will cap adoption speed within the hybrid cloud market.
Segment Analysis
By Component: Services Accelerate Hybrid Integration
Services revenue is forecast to rise at 15.3% CAGR through 2030, even though solutions retained 65.5% hybrid cloud market share in 2024. The higher growth stems from enterprises requesting expert guidance for multicloud orchestration, sovereignty mapping, and AI stack tuning. Rackspace and AWS launched Rapid Migration Offer programs that bundle tooling with professional services to shorten cut-over durations.
Demand for managed FinOps, container security, and platform operations pushes providers to expand service lines. Nutanix introduced an Enterprise AI platform that blends software with consulting to offset skills shortages. These trends suggest the services segment will account for a larger slice of hybrid cloud market size as organizations outsource complexity.
By Service Model: IaaS Drives Infrastructure Modernization
IaaS is projected to grow at 14.1% CAGR during 2025-2030, while SaaS keeps 54.7% share thanks to entrenched enterprise suites. Generative-AI training needs GPU-rich clusters that customers often build on IaaS for custom tuning. Oracle extended its distributed cloud line with Roving Edge devices that place compute in austere locations, underscoring the versatility of IaaS.
Platform-as-a-Service occupies a strategic bridge, offering abstraction yet permitting custom runtimes. Snowflake linked its platform with Azure OpenAI Service to simplify model usage for analytics developers. The convergence of AI and development workflows will keep all three models interlinked within the hybrid cloud market.
By Organization Size: SMEs Embrace Cloud-Native Solutions
Large enterprises owned 62.3% of the hybrid cloud market size in 2024 because of multi-year transformation programs. They also fund advanced sovereign and AI initiatives that demand deep customization. In contrast, SMEs lead growth at 14.6% CAGR since they adopt green-field cloud-native stacks without legacy burdens. OECD observations confirm that smaller firms strengthened digital resilience by accelerating cloud uptake during recent disruptions. Vendors tailor consumption-based pricing and managed services to this cohort, lowering entry costs. As skills gaps persist, SMEs remain more likely to source turnkey solutions, sustaining momentum for the hybrid cloud market.
By End-User Industry: Healthcare Accelerates Digital Transformation
BFSI remains the largest customer group with 23.1% hybrid cloud market share in 2024, powered by real-time fraud analytics and compliance automation. Yet healthcare shows the fastest 13.9% CAGR to 2030 as digital records, telehealth, and regulatory audits push hospitals to modernize. T-Systems launched Health Hybrid Cloud to deliver HIPAA-aligned disaster recovery and data residency.
The July 2024 CloudStrike outage highlighted the need for vendor diversification and local failover. Consequently, even risk-averse health systems accelerate moves to hybrid cloud market platforms that secure sensitive data while connecting to AI diagnostic tools.
Geography Analysis
North America captured 25.8% revenue share in 2024 and benefits from dense hyperscaler footprints that simplify multicloud adoption. TP ICAP plans to shift 80% of systems to AWS by 2026 while creating AI labs for capital-markets innovation. Federal privacy rules remain manageable, allowing firms to optimize workload placement freely across the hybrid cloud market.
Asia-Pacific exhibits the steepest 13.2% CAGR through 2030, driven by capacity additions and rising digital-service demand. Microsoft pledged USD 2.9 billion for new AI and cloud zones in Japan to address growing inference requirements. China’s providers pursue overseas expansion as domestic growth moderates. Regional data-center capacity now totals 12,206 MW in operation with 14,338 MW under build, underpinning future hybrid cloud market growth.
Europe advances at a steady clip as 84% of firms either deploy or plan sovereign cloud framework adoption. Microsoft rolled out a layered sovereignty solution spanning logical isolation, local key control, and EU-native support teams. Stricter data-localization laws in Russia and Saudi Arabia add complexity but also create opportunities for regional specialists. Emerging markets across MEA and South America accelerate investment as submarine cable routes and renewable energy projects reduce barriers, expanding the hybrid cloud market.
Competitive Landscape
Competitive intensity is moderate with a tilt toward platform convergence. IBM closed its USD 6.4 billion acquisition of HashiCorp to integrate infrastructure automation into Red Hat OpenShift, extending end-to-end control across the hybrid cloud market. Hyperscalers add on-premises appliances and sovereign control planes to defend share. Red Hat deepened collaboration with AWS to streamline virtualization migrations and embed AI tooling for container stacks.
Edge specialists exploit gaps by offering lightweight orchestration and regional compliance overlays. OVHcloud secured validation of its Paris-aligned decarbonization trajectory, appealing to European buyers bound by ESG mandates. Partnerships multiply as vendors blend networking, storage, and compute bundles, as seen in Hitachi Vantara’s trio with Cisco and Red Hat aimed at private-cloud speed. Demonstrable AI readiness, carbon transparency, and zero-trust security now separate leaders from fast followers within the hybrid cloud market.
Hybrid Cloud Industry Leaders
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Cisco Systems Inc.
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Hewlett Packard Enterprise Company
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Amazon Web Services (Amazon Inc.)
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Accenture PLC
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IBM Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Couchbase to be acquired by Haveli Investments for USD 1.5 billion, transitioning the AI-ready database specialist to private ownership.
- January 2025: Microsoft released a package of sovereign capabilities for European clients, adding regional support teams and customer-controlled encryption domains.
- June 2025: Snowflake bought Crunchy Data for USD 250 million to boost native PostgreSQL support across hybrid deployments.
- May 2025: NetApp and Google Cloud upgraded NetApp Volumes with Vertex AI ties and 1 PiB single volume capacity.
- May 2025: Nutanix unveiled Enterprise AI with NVIDIA AI Enterprise integration for agent-based workloads across edge and core.
Global Hybrid Cloud Market Report Scope
A hybrid cloud refers to a model or approach in information technology (IT) infrastructure. A hybrid cloud integrates public cloud services, private cloud services, and on-premises infrastructure. It also provides orchestration, management, and application portability.
The hybrid cloud market is segmented by type (solutions, services), end-user industry (government & public sector, healthcare, BFSI, retail, information & communication technology, media & 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.
| Solutions |
| Services |
| Infrastructure as a Service (IaaS) |
| Platform as a Service (PaaS) |
| Software as a Service (SaaS) |
| Large Enterprises |
| Small and Medium Enterprises (SMEs) |
| Government and Public Sector |
| Healthcare and Life Sciences |
| Banking, Financial Services and Insurance (BFSI) |
| Retail and E-Commerce |
| Information and Communication Technology and Telecom |
| Manufacturing |
| Media and Entertainment |
| Others |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| South Korea | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Egypt | ||
| Rest of Africa | ||
| By Component | Solutions | ||
| Services | |||
| By Service Model | Infrastructure as a Service (IaaS) | ||
| Platform as a Service (PaaS) | |||
| Software as a Service (SaaS) | |||
| By Organization Size | Large Enterprises | ||
| Small and Medium Enterprises (SMEs) | |||
| By End-user Industry | Government and Public Sector | ||
| Healthcare and Life Sciences | |||
| Banking, Financial Services and Insurance (BFSI) | |||
| Retail and E-Commerce | |||
| Information and Communication Technology and Telecom | |||
| Manufacturing | |||
| Media and Entertainment | |||
| Others | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| South Korea | |||
| India | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current value of the hybrid cloud market?
The hybrid cloud market is worth USD 172.77 billion in 2025 and is projected to reach USD 311.75 billion by 2030.
Which segment will grow fastest through 2030?
Services are forecast to expand at a 15.3% CAGR owing to rising demand for migration, FinOps, and AI-enablement expertise.
Why is Asia-Pacific the most attractive growth region?
Large-scale data-center builds and government-driven digital initiatives lift Asia-Pacific’s forecast CAGR to 13.2%, the highest globally.
How do data-sovereignty rules influence deployment choices?
European and Asia-Pacific mandates push enterprises to keep sensitive workloads in country, accelerating adoption of sovereign cloud options within hybrid architectures.
What skills are most scarce for hybrid cloud success?
Cloud-native security, DevSecOps, and financial-operations competencies remain in short supply, prompting organizations to rely on managed services and training partnerships.
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