Hybrid Cloud Market Analysis

Hybrid Cloud Market Overview

The Hybrid Cloud Market size is projected to grow from USD 96.04 Billion in 2024 to USD 319.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.21% during the forecast period (2024 - 2032). Additionally, the market size for Hybrid Cloud was valued at USD 80.9 Billion in 2023.

Rising requirements for flexible, scalable, and economical computing and increased usage across retail sector are the key market drivers enhancing market growth.

Figure1: Hybrid Cloud Market, 2018 - 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hybrid Cloud Market Trends

Growing need for flexible, scalable, and economical computing is driving the market growth

Market CAGR for the hybrid cloud market is driven by the rising need for flexible, scalable, and economical computing. Businesses are utilizing the hybrid cloud strategy to handle issues that are challenging to resolve with customary IT infrastructure. The hybrid cloud bridges the gap between IT and businesses by improving agility and efficiency and quickly delivering IT resources at an affordable price. It allows businesses to grow their apps and infrastructure as needed and delivers outstanding user performance. Hybrid clouds provide scalable economies of scale while safeguarding sensitive data for businesses. If safe, scalable, and economical resources were more easily accessible, businesses would be more inclined to investigate other operational options, promoting adopting the hybrid cloud environment. This component will significantly increase throughout the forecasted timeframe.

Additionally, a cost-effective, secure infrastructure that can deliver cutting-edge services to clients and give businesses a competitive edge is another advantage of hybrid cloud solutions for retailers. Many large and medium-sized businesses use hybrid cloud computing solutions since it provides a secure firewall for private services and enough integration for public ones. For instance, Enterprise workloads swiftly migrate away from traditional data center infrastructure, reducing from 41% to 18% in two years, according to the Nutanix Enterprise Cloud Index study. At 21%, the retail sector has the second-highest penetration of hybrid cloud limitations, and 93% of respondents consider the hybrid cloud to be the best model- higher than the worldwide average for other sectors. Thus, driving the hybrid cloud market revenue.

Hybrid Cloud Market Segment Insights

Hybrid Cloud Component Insights

The Hybrid Cloud market segmentation, based on Components, includes Solutions and Services. The solution segment dominated the market, accounting for maximum market revenue. There is an increasing interest in accepting of cloud-native hybrid cloud management solutions, which drives category revenue growth. Some tools use the method of an open-source Infrastructure-as-a-Service (IaaS), which derives pre-integrated with public and private cloud infrastructure. OpenStack, Apache CloudStack, and more are the major companies launching hybrid cloud management solutions to drive the revenue growth segment.

Hybrid Cloud Service Type Insights

The hybrid cloud market segmentation, based on service type, includes hybrid hosting, cloud management, orchestration, and disaster recovery. The cloud management category generated the most income. Complex IT processes and sluggish operations can be observed when managing a separate cloud platform with effective highway tools.

Furthermore, hybrid hosting is anticipated to be the fastest-growing segment in the projected period. As a result of the numerous benefits, such as a single point of contact, sharing the network infrastructure and a single point of delivery and management for hosting services result in a high demand for this among businesses.

Hybrid Cloud Service Model Insights

The hybrid cloud market segmentation, based on the service model, includes Infrastructure-as-a-service, Software-as-a-service, and Platform-as-a-service. The software-as-a-service model is holding the maximum market revenue. Delivering Software-as-a-Service, a cloud service provider manages the software application. Software-as-a-Service (SaaS) apps are typically web applications or mobile apps that users can access using a web browser. Users are connected to the cloud applications via a dashboard or APIs and are cared for software upgrades, bug fixes, and other regular software maintenance.

During the projected period, the Infrastructure-as-a-Service segment is anticipated to be the fastest-growing segment. The benefits of Infrastructure-as-a-Service help allocate resources for more crucial business activities by migrating workloads from on-premises systems to the cloud.

Hybrid Cloud Organization Size Insights

The hybrid cloud market segmentation, based on organization size, includes large enterprises and SMEs. The SMEs segment is dominating the market. Small and medium-sized businesses have been quick to respond to new customer requirements or changing market conditions without the need for a significant initial investment, such as in hardware infrastructure and software licenses, which have drawn out implementation processes. As a result, businesses can easily provide new products or services to customers more quickly.

Large enterprises are anticipated to be the fastest-growing segment in the projected period. Adopting work-from-home scenarios has resulted in the quick acceptance of hybrid cloud solutions.

Figure 2: Hybrid Cloud Market, by Organization Size, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hybrid Cloud Vertical Insights

The hybrid cloud market segmentation, based on vertical, includes BFSI, IT & telecom, retail, manufacturing, media & entertainment, healthcare, transportation, and others. The BFSI segment holds the maximum market share. Hybrid cloud computing has helped the BFSI sector forecast innovation, enhance customer relationships, cut costs, and expand flexibility.

The retail segment is anticipated to be the fastest-growing segment in the projected period. The requirement for quickness has been important for retail businesses, and a hybrid cloud method creates more flexibility when only one cloud service is used. That flexibility has led to more consistency in the retail industry.

Hybrid Cloud Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American hybrid cloud market will dominate this market, owing to increased technological advancement. In addition, the growing number of cloud computing methods will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: HYBRID CLOUD MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Hybrid Cloud market accounts for the second-largest market share due to the increasing demand for the digital transformation of several regional industries. Further, the German hybrid cloud market held the largest market share, and the UK hybrid cloud market was the fastest-growing market in the European region.

The Asia-Pacific hybrid cloud market is expected to grow at the fastest CAGR from 2023 to 2032. Hybrid cloud technologies are supporting to deal with growing complex IT environments. Moreover, China’s hybrid cloud market held the largest market share, and the Indian hybrid cloud market was the fastest-growing market in the Asia-Pacific region.

Hybrid Cloud Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Hybrid Cloud market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The hybrid cloud industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the hybrid cloud industry to benefit clients and increase the market sector. In recent years, the hybrid cloud industry has offered some of the most significant advantages to cloud computing. Major players in the hybrid cloud market, including IBM, Splunk Inc., McAfee (Intel), Rapid7 Inc., SolarWinds Corp, BlackStratus, AlienVault (AT & T Inc.), RSA (EMC Corporation), Micro Focus, International Plc, Amazon Web Services (AWS), ManageEngine (ZOHO Corporation), and others, are attempting to rise market demand by investing in research and development operations.

Amazon Web Services (AWS) is a secondary of Amazon that delivers on-demand cloud computing platforms and APIs to individuals, governments, and companies on a metered, pay-as-you-go basis. These cloud computing web services deliver services linked to computing, networking, storage, middleware, IoT, and another dispensation capability, as well as software tools via an AWS server. For instance: In October 2022, Amazon Web Services (AWS) launched a new AWS local Zone in Delhi. It would permit customers to place AWS data storage, computing, and other services over a massive population and information technology. The company also plans to launch 31 new local zones in the next two years.

The Business Machines Corporation (IBM) is an American international technology corporation. It’s headquartered in Armonk, New York. It provides computer hardware, software, and middleware and offers consulting services and hosting in areas ranging from mainframe computers to nanotechnology. For Instance: In September 2022, the cooperation between IBM and VMware has been strengthened. The partnership is meant to assist partners and clients in modernizing their workflow. In this arrangement, IBM will be a consultant to VMware Inc., a GSI partner, to deliver collaboratively built cloud solutions. Both groups intend to assist clients in regulated areas, including financial services, healthcare, and government. They will work to address some of the main issues like the expense, difficulty, and danger of migrating to the cloud.

Key Companies in the Hybrid Cloud market include

• 
  

  IBM

  
  


• 
  

  Splunk Inc.

  
  


• 
  

  McAfee (Intel)

  
  


• 
  

  Rapid7 Inc.

  
  


• 
  

  SolarWinds Corp

  
  


• 
  

  BlackStratus

  
  


• 
  

  AlienVault (AT&T Inc.)

  
  


• 
  

  RSA (EMC Corporation)

  
  


• 
  

  Micro Focus

  
  


• 
  

  International Plc

  
  


• 
  

  Amazon Web Services

  
  


• 
  

  ManageEngine (ZOHO Corporation)

  
  

Hybrid Cloud Industry Developments

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.

Customers may expand their Red Hat OpenShift ecosystems to OCI and manage deployments from the Red Hat portal. Oracle provides Container Storage Interface (CSI) and Cloud Control Manager (CCM) tools to integrate OCI storage with Red Hat OpenShift and provide API operability.

OCI's distributed cloud includes U.S., U.K., and Australian Oracle Government Cloud regions. OCI Dedicated Regions at customer-controlled locations, partner-enabled Oracle Alloy regions, Compute Cloud@Customer in customers' data centers, and Oracle EU Sovereign Cloud are also included. Each of these services supports Red Hat OpenShift 4.14 and 4.15 on OCI Compute flexible virtual machine shapes. Telecommunications, banking, and healthcare, which operate across several countries and complicated regulatory contexts, need this deployment flexibility.

OCI Compute's customizable virtual machine shapes and OCI Block Storage auto-tuning volumes optimize performance to possibly halve compute costs and reduce storage costs to one-third of competing hyperscalers. Soon, further bare metal validation is planned.

Hybrid Cloud Market Segmentation

Hybrid Cloud Component Outlook

• 
  

  Solution

  
  


• 
  

  Services

  
  

Hybrid Cloud Service Type Outlook

• 
  

  Hybrid Hosting

  
  


• 
  

  Cloud Management

  
  


• 
  

  Orchestration

  
  


• 
  

  Disaster Recovery

  
  

Hybrid Cloud Service Model Outlook

• 
  

  Infrastructure-as-a-Service

  
  


• 
  

  Software-as-a-Service

  
  


• 
  

  Platform-as-a-Service

  
  

Hybrid Cloud Organization Size Outlook

• 
  

  SMEs

  
  


• 
  

  Large Enterprises

  
  

Hybrid Cloud Vertical Outlook

• 
  

  BFSI

  
  


• 
  

  IT & Telecom

  
  


• 
  

  Retail

  
  


• 
  

  Manufacturing

  
  


• 
  

  Media & Entertainment

  
  


• 
  

  Healthcare

  
  


• 
  

  Transportation

  
  


• 
  

  Others

  
  

Hybrid Cloud Regional Outlook

• 
  

  North America

  
  

• 
  

  US

  
  


• 
  

  Canada

  
  

• 
  

  Europe

  
  

• 
  

  Germany

  
  


• 
  

  France

  
  


• 
  

  UK

  
  


• 
  

  Italy

  
  


• 
  

  Spain

  
  


• 
  

  Rest of Europe

  
  

• 
  

  Asia-Pacific

  
  

• 
  

  China

  
  


• 
  

  Japan

  
  


• 
  

  India

  
  


• 
  

  Australia

  
  


• 
  

  South Korea

  
  


• 
  

  Australia

  
  


• 
  

  Rest of Asia-Pacific

  
  

• 
  

  Rest of the World

  
  

• 
  

  Middle East

  
  


• 
  

  Africa

  
  


• 
  

  Latin America