Hybrid Cloud Market, by Component (Solutions, Services), End-user Industry (Government and Public Sector, Healthcare, BFSI, Retail, Information and Communication Technology, Media and Entertainment), Workloads, Organization size, Vertical, and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Hybrid Cloud market size was estimated at USD 96.2 billion in 2023 and is projected to reach USD 278.51 billion in 2030 at a CAGR of 16.4% during the forecast period 2023-2030.
A hybrid cloud is an integrated cloud service that uses both private and public clouds to perform individual functions within the same organization. The importance of the hybrid cloud has grown due to the versatility and dynamism of the work. It offers several advantages such as cost-effectiveness and scalability, flexibility and security. Because of these advantages, organizations are moving to hybrid clouds to achieve security for data, applications and mass storage to reduce their capital costs by adopting a combination of private and public cloud models.
Digital transformation is a key factor driving demand for cloud services. Due to the advantages offered by hybrid cloud, major players are adopting hybrid cloud platforms to meet current business requirements in line with digital transformation. Small-scale industries are also modernizing their IT infrastructure, which is fueling market growth. However, lack of expertise and poor security practices may hinder market growth during the forecast period.
The spread of the COVID-19 pandemic resulted in increased adoption of Hybrid Cloud to manage to change business scenarios. Many countries across the globe mandated work from home based on public health safety concerns that drove the need for remote working infrastructure. Therefore, organizations operating at all levels, including government bodies, expected a wide range of potential impacts, such as increased demand for virtual services coupled with rising citizen expectations around the delivery of these services, the longer-term potential for reshaping the government workforce, and the need to provide adaptive and dynamic regulatory models. Additionally, the COVID-19 pandemic accelerated cloud usage for US companies in every industry. Many US enterprises prioritizing cloud adoption in their organization noted the increased importance of cloud due to the pandemic.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The hybrid cloud platform has grown in popularity because it not only offers flexibility, scalability and multi-cloud mode, but also guarantees data security to organizations. In addition, the move to hybrid clouds makes information and service integrity a key priority for organizations. That's why it's important to get the right mix of on-premises and multi-service offerings to ensure continuous availability of data that can be coordinated across multiple platforms. In addition, according to the study, IT managers spend 56% of their time on maintenance and operations and 24% on technology development. Additionally, they spend 20% of their time working with business leaders on digital transformation initiatives, which is extremely time-consuming and expensive. Hence the inclination of organizations to the hybrid cloud. These factors have led to the expansion of the market and increased demand for Hybrid Cloud solutions.
North America to Dominate the Market