By 2025, Hybrid Cloud Market Size Will Exceed USD 171.93 Billion, Driven by Multi-Cloud Adoption

The Hybrid Cloud Market was valued at $36,138 million in 2017; by 2025, it is anticipated to have grown to $171,926 million, with a CAGR of 21.7%.

The market is expected to rise as a result of a shift in consumer preference toward hybrid clouds, an increase in digital disruptions, growing usage of hybrid clouds in IT service management (ITSM) models, and rising demand for scalable, agile, and affordable cloud computing solutions. However, it is anticipated that the growth of the market will be hampered by security concerns and workload complexity in the hybrid cloud environment.

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Based on component, the solution segment dominated the global hybrid cloud market in 2017 and is expected to continue this trend during the forecast period owing to the growing demand for hybrid cloud solutions, as large number of companies are expected to commit to multi-cloud architectures, both public and private, and other solutions from different providers. Furthermore, the services segment is expected to grow at the highest CAGR during the forecast period, as it provides a cost-effective way of allowing easy access to the organizations and ensuring more secure operations.

The hybrid cloud market is currently undergoing a transformative phase, driven by the increasing need for flexible and scalable IT solutions that can seamlessly bridge on-premises infrastructure with cloud environments. This market is marked by several significant trends that are shaping its evolution. Hybrid cloud adoption is gaining momentum as organizations seek to balance the benefits of public cloud services with the control and security of private infrastructure. This trend is driven by the recognition that a hybrid approach enables businesses to optimize their workloads, improve resource utilization, and enhance data governance while adapting to varying business needs.

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Multi-cloud strategies are becoming a cornerstone of hybrid cloud architectures. Organizations are leveraging a combination of public and private clouds from different providers to avoid vendor lock-in, enhance redundancy, and ensure high availability. This trend reflects the growing realization that a multi-cloud approach offers greater flexibility, resilience, and risk mitigation.

Containerization and microservices are reshaping how applications are developed, deployed, and managed within hybrid cloud environments. Containers provide a consistent and portable way to package applications and their dependencies, enabling seamless migration between different cloud platforms and on-premises systems. This trend empowers organizations to build and manage applications more efficiently, accelerating innovation and reducing time-to-market.

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Advanced orchestration and management tools are emerging to simplify the complexity of hybrid cloud deployments. Automation frameworks, AI-driven analytics, and unified management platforms are streamlining the provisioning, monitoring, and optimization of hybrid infrastructure. This trend is crucial in ensuring seamless operations across diverse environments while optimizing resource allocation and cost management.

Some of the key market players profiled in the report include Microsoft Corporation, Amazon Web Services, Inc., VMware, Inc., Rackspace Inc., Hewlett Packard Enterprise, Dell EMC, International Business Machines Corporation (IBM), Google LLC, Verizon Enterprise, Cisco Systems, Inc., and others.

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