Hybrid Cloud Market Size 2024-2028 

The hybrid cloud market size is projected to increase by USD 245.30 billion, at a CAGR of 27.16% between between 2023 and 2028.  Hybrid cloud environments enable organizations to strategically deploy workloads across public and private clouds, leveraging each platform's strengths while maintaining control over sensitive data and applications. This flexibility not only improves disaster recovery capabilities but also enhances operational efficiency and agility, supporting dynamic business requirements and growth initiatives. Additionally, the cost-effectiveness of hybrid cloud solutions allows businesses to allocate resources more efficiently, reallocating savings towards innovation and competitive differentiation. Furthermore, the comprehensive security and compliance frameworks inherent in hybrid cloud deployments mitigate risks associated with data breaches and regulatory non-compliance, instilling trust among customers and stakeholders.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Technologies Inc., DXC Technology Co., Equinix Inc., Furukawa Electric Co. Ltd., Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., Kyndryl Inc., Lumen Technologies Inc., Microsoft Corp., Nutanix Inc., Oracle Corp., Panzura LLC, Rackspace Technology Inc., and VMware Inc.

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

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Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc - The company offers Accenture Hybrid Cloud Platform. 

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Overview

The Hybrid Cloud market addresses business-IT collaboration across sectors like telecommunications and banking, ensuring data protection and flexibility in service types. It caters to public bodies with solutions for cyclical demand and emergency needs, offering virtual services amidst dynamic regulatory environments. Particularly in the banking sector, it supports both critical banking processes and noncritical operations while optimizing IT spending and transitioning from legacy technologies. Hybrid Cloud solutions enable organizations to maintain operational continuity, enhance security, and scale resources effectively between private and public cloud environments, meeting diverse regulatory requirements and business demands with agility.

Key Driver

Hybrid cloud solutions' lower TCO is notably driving the market growth. Public cloud solutions offer the flexibility to utilize additional computing or storage resources as per the customer's needs. This is particularly useful for customers who may require extra resources for a limited time. However, for daily operational tasks, organizations require dedicated resources. Running dedicated hardware for sustained computing or storage needs can be an expensive task for an organization. These solutions offer the option to use the public cloud for testing and developing new applications. This allows organizations to use their on-premises equipment for their critical tasks while developing new applications on the cloud.

Moreover, once the development is complete, organizations can deploy the applications on-premises or on the private cloud. This reduces the overall cost associated with testing and developing new applications. Therefore, factors such as these solutions and lower total cost of ownership (TCO) will drive the growth of the global market during the forecast period.

Significant Trends

Growing demand for colocation service providers is an emerging trend shaping the market growth. These solutions are currently the most widely adopted cloud strategy worldwide. Many companies are choosing to run some of their workloads on private clouds while running the rest on public clouds. In order to support their cloud computing needs, various companies are increasingly using colocation facilities. Colocation data centres have emerged as an excellent foundation for these services, allowing companies to achieve a mix of the right amounts of flexibility, scalability, security, and control. There are multiple benefits that colocation data centres offer during the deployment process.

Additionally, colocation service providers give customers the option to choose a low-latency, redundant path to a public cloud service provider of their choice. Colocation service providers often construct their facilities near a public cloud service provider for strategic reasons, and they also allow applications to move between different public cloud service providers as needed. Equinix and Rackspace are two of the leading colocation service providers in the global market. Therefore, these factors will drive the growth of the global market during the forecast period.

Major Restrain

Compatibility issues between public and private clouds are a significant challenge hindering the market.  growth.  These solutions bring numerous advantages. Nevertheless, they can also present technical and management challenges. There has to be API compatibility between the public and private cloud components of the  infrastructure for the movement of workloads between public and private clouds. An organization may be required to change some of its workloads to provide compatibility with some of the public cloud service offerings.

In addition, workloads should ideally be interoperable with numerous public cloud providers. Organizations that use microservices and container architecture need to provide platform compatibility between different solutions. The docker platform is not used by some public cloud service providers. Also, organizations must provide compatibility between the container platforms. Such factors are expected to restrict the market growth during the forecast period. 

Market Segmentation

By Component Segment

The market share growth by the services segment will be significant during the forecast period. The services segment of the global market comprises different professional services such as consulting, migration, training, and support. Among end-users, the demand for cloud storage services within the services segment is increasing.

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The services segment was the largest and was valued at USD 29.30 billion in 2018. With hybrid cloud storage solutions, the services segment is crucial for businesses to work seamlessly. The services provide end-users with consultation on data storage architecture, migration services to transfer data securely, training support, and technical support for seamless operations. These services are critical to companies as they provide structural guidance, enhance the efficiency of operations, and boost productivity. Therefore, the demand for the services is anticipated to increase, which is expected to drive the growth of the global market through the services segment during the forecast period.

Regional Overview

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North America is estimated to contribute 39% to the growth of the global market during the forecast period. 
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America is expected to lead in terms of revenue contribution in the cloud services market. When public cloud services were introduced more than a decade ago, North America was the fastest region to adopt them. Most of the established global public cloud providers are headquartered in the United States and have multiple data centres throughout the country. These solutions offer organizations additional computing or storage capabilities based on their business requirements. Regulations such as HIPAA and PCI-DSS are driving North American organizations to consider hybrid cloud approaches due to their benefits, such as cloud governance and security.

In addition, the enterprise solution is expected to increase the profitability of managed service providers (MSPs). The offering includes a single-tenant hosted private cloud solution developed by CenturyLink. The solution is expected to provide significant flexibility, cost savings, and data security. Such factors are expected to drive the market growth during the forecast period. 

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. The market trends and analysis focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

Segment Overview

The market 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 Outlook
  • Services
  • Solution

• End-user Outlook
  • BFSI
  • Retail
  • Healthcare
  • Telecom
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market analyst Overview

The market is witnessing a surge in demand for cloud and industrialized services, particularly with the rise of hybrid infrastructure services and cloud IaaS and hosting. This growth is reshaping the traditional data center outsourcing (DCO) landscape, leading to a shift towards hybrid cloud deployment. Companies are leveraging hybrid cloud models to manage short-term spikes in demand and handle sensitive data or applications more effectively. The market is also influenced by factors such as remote working infrastructure due to work from home trends, public health safety concerns, and the need for government workforce solutions.  The market caters to enterprises of varying organization sizes and verticals, offering flexible service models and hybrid hosting solutions. It supports digital transformation through cloud infrastructure and hybrid multicloud infrastructure, enhancing computing capacity and capital efficiency. This market facilitates remote working systems and online documentation while optimizing on-premises infrastructure with consolidated operations.

Further, by integrating automation and observability, hybrid cloud solutions enable enhanced analytics and operational visibility, ideal for managing noncritical applications effectively. They bridge the gap between traditional cloud models and Hybrid Cloud Mesh, ensuring enterprises achieve scalability and agility in their IT environments amidst evolving industrial service demands and infrastructure utility needs. Hyperscale cloud and data center modernization are driving the market towards unified operations, security and governance, and application innovation. This transformation aims to enhance agility, cost efficiency, and adaptability to digital disruptions.

Additionally, technological advances in edge computing, the Internet of Things (IoT), and artificial intelligence are further shaping the market, leading to a greater reliance on hybrid IT services and strategies. The market is also witnessing a shift towards bring-your-own-device (BYOD) culture, emphasizing the importance of securing sensitive business information accessed through tablets and smartphones. This evolution is gradually replacing traditional IT infrastructure with on-premise private and public cloud services, integrating communication and enabling transactions without cards and digitization of bank branches for cost reduction and improved BFSI industry response to consumers' preference.

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What are the Key Data Covered in this Hybrid Cloud Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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