ICT-IOT

Hybrid Cloud Market is Expected to Reach USD 219.32 Billion by 2031

May 2024

ICT-IOT

As per the report published by Kings Research, the global Hybrid Cloud Market was valued at USD 97.76 billion in 2023 and is projected to reach USD 219.32 billion by 2031, growing at a CAGR of 10.79% from 2024 to 2031.

Extending hybrid cloud capabilities to the edge represents a pivotal trend in the evolution of cloud computing architectures. As organizations increasingly adopt distributed and decentralized IT infrastructures to support emerging applications such as the Internet of Things (IoT), edge computing, and real-time analytics, there is a growing need to seamlessly integrate edge environments with hybrid cloud deployments. This trend is further driven by the recognition that processing data and running applications closer to the point of data generation or consumption can reduce latency, improve performance, and enhance efficiency. By extending hybrid cloud capabilities to the edge, organizations are leveraging the scalability, flexibility, and cost-efficiency of cloud computing while meeting the stringent requirements of edge computing scenarios, such as bandwidth constraints, intermittent connectivity, and data sovereignty concerns. For instance, in October 2023, Rackspace Technology unveiled its pioneering Rackspace Managed Cloud (RMC), a holistic service engineered to empower customers by fully delegating the management and operations of their cloud environments.

Moreover, the integration of edge computing with hybrid cloud architectures enables organizations to orchestrate workloads dynamically across distributed edge nodes and centralized cloud environments. This optimization enhances resource utilization and ensures seamless data flow between edge and core systems. Extending hybrid cloud capabilities to the edge represents a strategic imperative for businesses seeking to leverage cloud computing in an increasingly distributed and connected world.

Key Insights

  • Based on component, the solutions segment accounted for the largest market share of 58.65% in 2023
  • Based on service model, the platform as a service (PaaS) segment is estimated to register a CAGR of 12.40% between 2024 and 2031
  • Based on service type, the disaster recovery segment is likely to grow at a 12.67% CAGR between 2024 and 2031
  • Based on organization size, the small and medium enterprises segment is estimated to register a CAGR of 11.51% between 2024 and 2031
  • Based on vertical, the BFSI segment garnered the highest revenue of USD 37.69 billion in 2023
  • On the basis of region, Asia-Pacific is expected to witness the fastest growth, generating a CAGR of 13.39% over the forecast period

Hitachi Vantara Partners with Cisco to Launch Hybrid Cloud Services

January 2024: Hitachi Vantara announced the partnership with Cisco, introducing an innovative suite of hybrid cloud services designed to address ongoing data management challenges faced by modern enterprises.

Rising Demand for Unified Management Solutions to Offer Lucrative Opportunities for Hybrid Cloud Market Expansion

The rising demand for unified management solutions presents lucrative opportunities for the expansion of the hybrid cloud market. As organizations grapple with the complexities of managing hybrid IT environments spanning multiple cloud platforms, on-premises infrastructure, and edge locations, there is a growing need for comprehensive and integrated management solutions that streamline operations, enhance visibility, and ensure governance across hybrid cloud deployments. Unified management solutions offer a centralized platform for provisioning resources, monitoring performance, enforcing security policies, and automating tasks across heterogeneous cloud environments. By providing a single pane of glass view into hybrid infrastructure, these solutions enable IT teams to optimize resource utilization, mitigate risks, and accelerate time-to-value for hybrid cloud initiatives. Moreover, as businesses increasingly prioritize agility, scalability, and cost-efficiency in their IT operations, unified management solutions empower organizations and operational efficiency in hybrid cloud environments. The rising demand for unified management solutions underscores the growing complexity of hybrid IT landscapes and the need for innovative solutions to address evolving challenges and opportunities in the market.

Growing Adoption of Hybrid Cloud Models in Organizations to Boost Market Growth

The surging integration of hybrid cloud models is emerging as a significant driver boosting market growth. Organizations across industries are increasingly recognizing the strategic advantages of hybrid cloud architectures in balancing the benefits of public and private cloud environments to meet their diverse IT requirements and business objectives. This demand is fueled by several factors, including the need for greater flexibility, scalability, and agility in IT operations, as well as the desire to modernize legacy infrastructure and support digital transformation initiatives. Hybrid cloud models enable organizations to seamlessly integrate on-premises systems with public cloud services, allowing them to optimize workload placement, enhance data security, and leverage cloud-native technologies while maintaining control over critical assets and sensitive data. Moreover, regulatory compliance requirements, data sovereignty concerns, and the growing complexity of modern workloads propel the adoption of hybrid cloud models as organizations seek to navigate regulatory landscapes and address evolving business needs effectively. Rising consumer inclination toward hybrid cloud models represents a strategic imperative for organizations aiming to leverage cloud computing capabilities and foster innovation, competitiveness, and growth in the digital era.

Asia-Pacific to Emerge as the Fastest-Growing Region with a CAGR of 13.39% Over the Estimated Timeframe

Based on region, the global hybrid cloud market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is poised to register substantial growth in the foreseeable future. The rapid digital transformation across Asia-Pacific economies is fueling demand for hybrid cloud solutions, as organizations seek to modernize IT infrastructure, enhance agility, and support innovation. With the region experiencing significant economic growth, rapid urbanization, and technological advancement, there is a growing need for scalable and flexible IT architectures capable of meeting the evolving needs of both businesses and consumers. For instance, in November 2023, Atos reaffirmed its enduring partnership with WA Health’s Health Support Services (HSS), the ICT service provider for the Western Australian public health system, through a signing of USD 158.8 million, 5-year contract, focused on delivering managed services, hybrid cloud, and core infrastructure services.

Additionally, increasing investments in cloud infrastructure, data centers, and emerging technologies by governments and enterprises foster the adoption of hybrid cloud models in the region. Moreover, the burgeoning startup ecosystem, coupled with the proliferation of digital-native enterprises, presents lucrative opportunities for hybrid cloud providers catering to the unique needs of Asian businesses. Furthermore, Asia-Pacific's diverse regulatory landscape, cultural nuances, and market dynamics necessitate tailored hybrid cloud solutions that address regional challenges and enable organizations to thrive in a hyper-connected and competitive market environment. Asia-Pacific's robust economic growth, rapid urbanization, and digital transformation initiatives are bolstering its standing in the global hybrid cloud market, thereby driving innovation, investment, and expansion in the foreseeable future.

Market Leaders Undertake Collaborations and Acquisitions for Sustained Growth

The global hybrid cloud market reveals a fragmented landscape, featuring prominent companies including IBM Corporation, Microsoft, Oracle, HITACHI, Amazon Web Services, Inc., Google LLC, Broadcom, RACKSPACE US, INC., NetApp, Fujitsu, Atos SE, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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