Hybrid Cloud Market to Grow at 19% during 2022 2028

The global hybrid cloud market is growing at a high CAGR because of the increasing adoption of cloud-based solutions post the COVID-19 pandemic. Additionally, the market is also being strengthened by a growing focus on business efficiency and scalability

A recent study conducted by the strategic consulting and market research firmReport Ocean revealed that the global hybrid cloud market was worth USD 60.6 billion in the year 2021. The market is estimated to grow at a CAGR of 19.40%, earning revenue of around USD 209.8 billion by the end of 2028. The hybrid cloud market is flourishing at a high rate owing to the increasing adoption of cloud-based solutions post the COVID-19 pandemic and the growing focus on boosting business efficiency and scalability. Furthermore, the growing adoption of advanced technologies, such as artificial intelligence (AI), IoT, big data, etc., that is generating huge volumes of data, is also providing lucrative growth opportunities to the global hybrid cloud market. However, high insecurity regarding privacy and data protection may act as a huge restraint for the markets growth.

Rising Application of Hybrid Cloud in Storage, Backup, and Disaster Recovery

Based on applications, the global hybrid cloud market is segmented into storage, backup, and disaster recovery, application development and testing, database management, business analytics, integration and orchestration, customer relationship management, enterprise resource management, cloud collaboration and content management, and others. The storage, backup, and disaster recovery segment accounts for the largest market share as it enables companies to categorize their data based on the level of sensitivity into on-premises and public cloud models and enjoy better flexibility and data management.

Increasing Adoption of Hybrid Cloud in BFSI Sector is Driving the Market Growth

Based on end-users, the global hybrid cloud market is segmented into banking, financial services, and insurance, IT and telecommunications, government and public sector, retail and consumer goods, manufacturing, energy and utilities, media and entertainment, healthcare and life sciences, and others. Among these, the BFSI segment holds the largest market share as hybrid cloud technology facilitates better data management in banks. Additionally, banks can use hybrid cloud to separate sensitive data from low risk data by splitting them into private and public clouds.

Hybrid Cloud Market - By Organization Size

Based on organization size, the hybrid cloud market is segmented into small and medium-sized enterprises and large enterprises. The large enterprise segment holds the largest market share. Most large enterprises around the globe are working on hybrid cloud today as it allows them to expand their business in new markets without the need for huge capital expenditures. However, the small and medium-sized enterprises are projected to witness the highest CAGR during the forecast period as hybrid cloud solutions offer rapid elasticity, ease, and cost-effectiveness with limited capital investment.

Global Hybrid Cloud Market - Regional Insights

Geographically, the global hybrid cloud market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. North America dominates the hybrid cloud market. However, the Asia-Pacific region is projected to witness the highest growth rate during the forecast period. The rising investments in IT infrastructure in emerging economies, such as India, China, Japan, Singapore, etc. is driving the APAC regions hybrid cloud market Furthermore, the increasing adoption of advanced technologies and cloud-based solutions among various verticals, including manufacturing, retail, BFSI, healthcare, etc., is also providing lucrative growth opportunities to the hybrid cloud market in the Asia Pacific.

Impact of COVID-19 on the Global Hybrid Cloud Market

The unprecedented COVID-19 pandemic outbreak emerged as a major driving factor for the global hybrid cloud market. Through the application of hybrid cloud services and solutions, the companies were able to overcome the challenge of mobility restrictions and deliver their services to their customers besides exploiting various growth opportunities. In addition, the transition to a work-from-home scenario provided lucrative growth prospects to the market. Furthermore, organizations can also maximize cybersecurity when dealing with data breaches and attacks using the private and public cloud models.

Global Hybrid Cloud Market - Competitive Landscape

The leading players in the global hybrid cloud market are Cisco Systems Inc., NTT Communications Corporation, Hewlett Packard Enterprise Company, Fujitsu Ltd., Amazon Web Services, Intel Corporation, Citrix Systems Inc., Dell EMC, IBM Corporation, RightScale Inc., Alibaba Group Holding Limited, Panzura Inc., Rackspace US Inc., Vmware Inc., and other prominent players.

The global hybrid cloud market is highly concentrated among a handful of players, including Amazon Web Services, Microsoft, and Google. Several other multinational corporations such as IBM, HP, etc., also cover substantial market growth. However, with expanding market scope, the hybrid cloud startups are also getting significant growth opportunities. The market participants constantly launch customized services and solutions to cater to different types of businesses in different industries. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.