Global hybrid cloud market size is projected to reach USD 347.82 billion by 2031, supported by growing enterprise cloud adoption, increasing demand for workload portability, and rising investments in AI-enabled hybrid solutions.
Hyderabad, India, Jan. 28, 2026 (GLOBE NEWSWIRE) — According to Mordor Intelligence, the hybrid cloud market continues to gain strong traction as enterprises increasingly adopt flexible cloud architectures that combine on-premises infrastructure with public and private cloud environments. The hybrid cloud market size was valued at USD 172.77 billion in 2025 and is estimated to grow from USD 194.14 billion in 2026 to USD 347.82 billion by 2031, registering a CAGR of 12.37% during the forecast period (2026–2031).
This sustained hybrid cloud market growth is driven by rising demand for workload portability, cost optimization, enhanced security, and compliance with regional data regulations. Organizations across BFSI, healthcare, manufacturing, and IT services are accelerating hybrid deployments to support cloud-native applications, AI workloads, and disaster recovery strategies, reinforcing a positive hybrid cloud market forecast globally.
Hybrid Cloud Market Innovation and Deployment Trends
Data Sovereignty Driving Hybrid Cloud Architecture Choices
Growing regulatory pressure around data privacy is reshaping how enterprises design their hybrid environments. Organizations are increasingly prioritizing architectures that keep sensitive information within national or regional boundaries while still benefiting from cloud scalability. To meet these expectations, cloud providers are rolling out localized control frameworks, enhanced security features, and region-specific support models. This shift is strengthening demand for hybrid cloud strategies that balance compliance requirements with operational flexibility, reinforcing long-term adoption across regulated markets.
Hybrid Cloud as the Backbone of Enterprise Multi-cloud Strategies
Large enterprises are increasingly using hybrid environments as the foundation for broader multi-cloud strategies. To manage complexity and control costs, organizations are standardizing platforms, governance models, and financial oversight early in their cloud architecture planning. In response, cloud providers are enhancing visibility tools and simplifying cross-platform management. As adoption matures, the ability to move workloads smoothly across environments is becoming a key decision factor, strengthening demand across the hybrid cloud market.
Hybrid Cloud Market Segmentation Analysis
By Component
- Solutions
- Services
By Service Model
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
By Organization Size
- Large Enterprises
- Small and Medium Enterprises (SMEs)
By End-User Industry
- Government and Public Sector
- Healthcare and Life Sciences
- Banking, Financial Services, and Insurance (BFSI)
- Retail and E-commerce
- Information and Communication Technology and Telecom
- Manufacturing
- Media and Entertainment
- Others
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
- Middle East
- Saudi Arabia
- United Arab Emirates
- Turkey
- Rest of the Middle East
- Africa
- South Africa
- Nigeria
- Egypt
- Rest of Africa
For a full breakdown of market size, segmentation data, and competitive intelligence, access all details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/hybrid-cloud-market?utm_source=globenewswire
Hybrid Cloud Market Regional Outlook
North America continues to benefit from a mature cloud ecosystem, where widespread hyperscale presence makes it easier for enterprises to operate across multiple cloud environments. Flexible regulatory conditions allow organizations to optimize where workloads run, encouraging advanced hybrid and AI-driven deployments. This environment supports steady adoption of hybrid cloud architectures across financial services, technology, and enterprise sectors.
Asia-Pacific stands out for its rapid expansion, supported by rising demand for digital services and continued investments in cloud and AI infrastructure. Regional providers and global vendors are expanding capacity to support advanced workloads, while enterprises increasingly adopt hybrid models to balance performance, scalability, and regional compliance needs. These dynamics position the region as a key contributor to future hybrid cloud market growth.
Hybrid Cloud Market Competitive Landscape
The hybrid cloud market remains highly competitive, with global technology providers focusing on platform innovation, ecosystem partnerships, and managed services. Key players covered by Mordor Intelligence include:
- Amazon Web Services Inc.
- Microsoft Corporation
- Google LLC
- IBM Corporation
- Oracle Corporation
- Hewlett Packard Enterprise Company
- VMware Inc.
- Cisco Systems Inc.
- And Others
Check out related reports published by Mordor Intelligence:
Cloud Computing Market Size
The cloud computing market is expected to grow from USD 0.86 trillion in 2025 to USD 1.04 trillion in 2026 and reach USD 2.65 trillion by 2031, registering a CAGR of 20.65% during 2026–2031. Growth is driven by accelerated digital transformation, rising adoption of AI, big data, and IoT workloads, increasing demand for hybrid and multi-cloud strategies, and continued investments in hyperscale data centers and cloud-native applications.
Amazon (AWS), Microsoft, Google Cloud, Alibaba Cloud, and IBM are the major companies operating in this market.
Read more about companies active in the cloud computing: https://www.mordorintelligence.com/industry-reports/cloud-computing-market/companies?utm_source=globenewswire
Telecom Cloud Market Share
The telecom cloud market is projected to grow from USD 31.34 billion in 2025 to USD 39.79 billion in 2026 and reach USD 131.19 billion by 2031, at a CAGR of 26.95% over the forecast period. Key drivers include the shift to cloud-native network architectures, rapid 5G rollouts, adoption of Open RAN and virtualized network functions, and the need for scalable, cost-efficient telecom infrastructure.
AT&T Inc., BT Group PLC, Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., and Telstra Corporation Ltd. are the major companies operating in this market.
Read more about companies active in the telecom cloud market: https://www.mordorintelligence.com/industry-reports/telecom-cloud-market/companies?utm_source=globenewswire
Infrastructure as a Service (IaaS) Market
The Infrastructure as a Service market is expected to grow from USD 188.56 billion in 2025 to USD 225.47 billion in 2026 and reach USD 551.08 billion by 2031, registering a CAGR of 19.58% during 2026–2031. Market growth is supported by enterprise cloud migration, rising demand for flexible computing and storage resources, increasing adoption of virtualization and container technologies, and growing use of AI and data-intensive applications.
Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), Oracle Cloud Infrastructure (OCI), and IBM Cloud are the major companies operating in this market.
Read more about companies active in the Infrastructure as a Service Market: https://www.mordorintelligence.com/industry-reports/infrastructure-as-a-service-market/companies?utm_source=globenewswire
About Mordor Intelligence
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