Hybrid Cloud Networking Global Market Report 2025

The hybrid cloud networking market size has grown exponentially in recent years. It will grow from $9.79 billion in 2024 to $12.05 billion in 2025 at a compound annual growth rate (CAGR) of 23.1%. The growth in the historic period can be attributed to increasing adoption of cloud computing, rising need for scalable IT infrastructure, demand for cost-efficient IT solutions, enterprise digital transformation initiatives, and growth in big data analytics.

The hybrid cloud networking market size is expected to see exponential growth in the next few years. It will grow to $27.31 billion in 2029 at a compound annual growth rate (CAGR) of 22.7%. The growth in the forecast period can be attributed to rising demand for hybrid cloud security solutions, integration of AI and machine learning, expansion of multi-cloud strategies, growing adoption of IoT and edge computing, and increasing regulatory compliance and data privacy requirements. Key trends in the forecast period include AI-ready hybrid cloud platforms, edge-to-cloud integration, adoption of as-a-service models, high-performance computing with advanced processors, and built-in AI accelerators for complex workloads.

The increasing focus on cybersecurity is expected to drive the growth of the hybrid cloud networking market in the coming years. Cybersecurity involves protecting computer systems, networks, and data from unauthorized access, cyberattacks, and digital threats. The rising need for cybersecurity is driven by increasing cyber threats, as organizations require stronger measures to safeguard sensitive data and maintain trust. Hybrid cloud networking supports cybersecurity by providing secure connectivity across public and private clouds, enhancing data protection, threat monitoring, and compliance while reducing vulnerabilities. For example, in June 2025, GOV.UK reported improvements in cyber hygiene among small businesses in the UK, including an increase in cyber security risk assessments to 48% (up from 41% in 2024), cyber insurance adoption to 62% (up from 49% in 2024), formal cyber security policies covering risks to 59% (up from 51% in 2024), and business continuity plans addressing cyber security to 53% (up from 44% in 2024). This demonstrates how the growing emphasis on cybersecurity is fueling the hybrid cloud networking market.

Key companies in the hybrid cloud networking market are focusing on technological innovation in hybrid cloud and AI infrastructure, including AI-ready hybrid cloud platforms, edge-to-cloud integration, scalable as-a-service models, high-performance computing with advanced processors, and built-in AI accelerators to efficiently manage complex workloads across public, private, and multi-cloud environments. An AI-ready hybrid cloud platform is a cloud infrastructure designed to support AI workloads, combining high-performance computing, scalable storage, and hybrid cloud connectivity for efficient AI training and inferencing. For instance, in December 2023, Lenovo Group Limited, a China-based technology company specializing in PCs, servers, storage, and hybrid cloud infrastructure, launched its latest ThinkAgile hybrid cloud solutions and ThinkSystem servers to advance AI adoption. Powered by 5th Gen Intel Xeon Scalable processors, these platforms provide enhanced cloud deployment, hybrid connectivity, and AI workload performance. With built-in AI acceleration and energy-efficient designs, they efficiently handle large-scale AI training and inference tasks. Lenovo’s TruScale as-a-Service and professional services offer flexible, scalable, and cost-effective hybrid cloud solutions with seamless edge-to-cloud integration, strengthening Lenovo’s position in hybrid cloud networking and AI infrastructure and enabling enterprises to deploy AI faster, optimize IT resources, and achieve improved business outcomes.

In March 2023, Hewlett Packard Enterprise Company (HPE), a US-based provider of enterprise products, solutions, and services, acquired OpsRamp, Inc. for an undisclosed amount. Through this acquisition, HPE aims to enhance its hybrid cloud capabilities by integrating OpsRamp’s IT operations management platform to simplify, automate, and optimize multi-vendor and multi-cloud IT environments. OpsRamp Inc. is a US-based company specializing in hybrid cloud networking solutions.

Major players in the hybrid cloud networking market are Google LLC, Microsoft Corporation, Amazon Web Services (AWS), Dell Technologies, Huawei Technologies Co. Ltd., IBM Corporation, Oracle Corporation, Cisco Systems, Hewlett Packard Enterprise (HPE), Equinix Inc., Palo Alto Networks, Arista Networks, Fortinet Inc., Juniper Networks, Snowflake Inc., VMware Inc., F5 Networks, Check Point Software Technologies Ltd., Nutanix Inc., Extreme Networks, NetApp Inc., Citrix Systems, and Alibaba Cloud.

North America was the largest region in the hybrid cloud networking market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in hybrid cloud networking report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the hybrid cloud networking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The hybrid cloud networking market research report is one of a series of new reports that provides hybrid cloud networking market statistics, including hybrid cloud networking industry global market size, regional shares, competitors with a hybrid cloud networking market share, detailed hybrid cloud networking market segments, market trends and opportunities, and any further data you may need to thrive in the hybrid cloud networking industry. This hybrid cloud networking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Hybrid cloud networking is an information technology (IT) architecture that combines on-premises infrastructure, private cloud resources, and public cloud services into a unified environment, allowing seamless management and movement of data and applications across these platforms. This approach enables organizations to leverage the security and control of private resources while benefiting from the scalability, cost-effectiveness, and flexibility of public cloud platforms.

The key components of hybrid cloud networking include solutions and services. Solutions consist of integrated networking platforms, tools, and infrastructure that enable seamless connectivity, data exchange, and workload management across public, private, and hybrid cloud environments. These systems are deployed through public cloud, private cloud, and hybrid cloud models, serving organizations of all sizes, including small and medium enterprises (SMEs) and large enterprises. The key end users include banking, financial services, and insurance (BFSI), healthcare, IT and telecommunications, retail, manufacturing, government, and others.

The hybrid cloud networking market consists of revenues earned by entities by providing services such as managed cloud consulting, network security services, hybrid cloud integration, data backup and recovery services, IT infrastructure monitoring, application migration services, IT support and maintenance, cloud orchestration services, and disaster recovery services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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