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Hybrid Cloud Market Growth Forecast at 12.37% CAGR Through 2031 Amid Rising Enterprise Cloud Adoption, according to a 2026 Mordor Intelligence Report

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MSFT Microsoft is identified as a major player in the hybrid cloud market, which is experiencing strong growth driven by enterprise adoption, AI workloads, and multi-cloud strategies. The company's cloud offerings are expected to benefit from these trends. GOOGL Google Cloud is listed as a major company in the growing hybrid cloud and IaaS markets. The increasing demand for hybrid and multi-cloud strategies, along with AI workloads, positions Google for significant growth. AMZN Amazon (AWS) is highlighted as a major player in the expanding hybrid cloud and IaaS markets. The overall growth in cloud adoption, AI, and multi-cloud strategies is expected to positively impact Amazon's cloud services. IBM IBM is mentioned as a key company in the hybrid cloud and IaaS markets, which are both projected to grow substantially. The company's focus on platform innovation and managed services aligns with market trends. VZ Verizon is listed as a major company in the telecom cloud market, which is experiencing significant growth. While the article highlights market expansion, specific sentiment towards Verizon's performance within this context is not detailed. T AT&T Inc. is identified as a major player in the growing telecom cloud market. The article notes the market's expansion driven by 5G and cloud-native architectures, but provides no specific sentiment for AT&T. ERIC Ericsson is named as a major company in the expanding telecom cloud market. The article focuses on market growth drivers like 5G and cloud-native networks, without offering specific sentiment for Ericsson.

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

By Service Model

By Organization Size

By End-User Industry

By Geography

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:

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

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.