The Hybrid Cloud Market is estimated to reach USD 171 billion by 2027, growing at a CAGR of 18.2% over the forecast period (2020-2027) attributed to growing adoption of hybrid cloud in IT service management (ITSM).
Major Hybrid Cloud Market Drivers
Hybrid Cloud Market is majorly driven by growing demand for cost-effective computing solutions, decline in traditional data sourcing outsourcing, increasing adoption of Software as a Service (SaaS) and multi cloud adoption rates around the world and emerging trend of Work from Home (WFH). For instance, Global public cloud market was estimated around USD 490 billion in 2022 and is expected to grow at a CAGR of 22.5% till 2026. While the SaaS market is estimated at USD 185 billion in 2022. Expansion in these market are expected to create lucrative growth opportunities for the Hybrid Cloud Market. Hybrid Cloud computing is gaining traction amongst companies as it increases scalability and agility and improve risk management of businesses, which is accelerating the market growth. Moreover, growing demand for hybrid cloud services from end-use industries such as BSFI, Manufacturing, Healthcare and Government and emergence of hybrid IT services are augmenting the market growth.
Major IT players worldwide spend approximately 56% of their time on maintenance and 24% on resolving technical issues across multiple channels. Effective deployment of hybrid cloud can help these businesses to tackle such problems. Additionally, integration of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML) and Internet of Things (IoT) in Hybrid Cloud solutions, growing focus of companies on reducing their operational costs, rising adoption of hybrid cloud services by small and medium enterprises, and increasing demand for greater computational power, are some of the additional factors supplementing the market growth. However, limited knowledge amongst end-users about the security features offered by hybrid cloud is restricting the market growth. Enterprises are sensitive towards shifting their businesses to cloud to data security and privacy, which is negatively impacting the market growth.
Based on Service, the SaaS segment is predicted to capture the largest market share during the forecast period
Companies are using Software as a service solution as it reduces maintenance costs and time of prototyping, increases scalability and is easy to use, which some of the factors driving the segment’s growth. While Infrastructure-as-a Service (IaaS) is gaining popularity in the market as it helps organizations to relocate workloads from on-premises systems to cloud, which is critical for business processes.
Based on End-Use, the BSFI segment is projected to grow at a remarkable CAGR over the forecast period
Enterprises operating in BSFI vertical are increasingly adopting cloud solutions as it offers interoperability, 24*7 uptime, secures storage, and helps in managing customer’s data, which is accelerating the segment’s growth. While hybrid cloud solutions are gaining popularity in the retail industry owing to its capability to improve customer service and supply chain operations and increase security and reliability of businesses.
Based on Region, the North American region is anticipated to hold the highest market share during the forecast period
North American Hybrid Cloud Market is driven by increasing adoption of cloud computing solutions by enterprises, growing demand for hybridization services in United States and presence of some of the leading players such as Microsoft, IBM Corporation and Cisco. For instance, cloud spending by enterprise in United States already reached USD 23 billion during the third quarter of 2022. European Hybrid Cloud Market is primarily driven by growing demand for digital transformation across end-use industries.
Top Market Players
The leading players operating in the Hybrid Cloud Market are IBM, Hewlett Packard Enterprise Development LP, CISCO, Dell Inc., VMware, Inc, Microsoft, RACKSPACE TECHNOLOGY, Verizon, Google, and Amazon, among others.
About GMI Research
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