China Hybrid Cloud Market Overview, 2030

China's hybrid cloud market has evolved rapidly, driven by the convergence of government policy, enterprise digital transformation, and growing demand for operational flexibility. China's “Cloud First” strategy, embedded in policies like the “14th Five-Year Plan” and the “Digital China” initiative, has accelerated cloud adoption across sectors, particularly within state-owned enterprises, manufacturing, and financial services. In a highly regulated IT environment, hybrid cloud architecture allows businesses to balance data sovereignty and security mandates with the performance and scalability of public cloud services. The hybrid model is particularly suited to industries where sensitive information (like banking and healthcare) must reside on private infrastructure, while high-volume, non-sensitive operations run on public cloud platforms. Leading domestic cloud providers such as Alibaba Cloud, Huawei Cloud, Tencent Cloud, and China Telecom are investing in hybrid cloud offerings tailored to localized compliance requirements and integrating AI, big data, and edge computing capabilities. The integration of smart manufacturing initiatives and IoT frameworks with hybrid cloud solutions has gained traction across China's industrial belts, especially in Guangdong and Zhejiang provinces. Furthermore, a rising number of cross-border e-commerce and logistics enterprises are opting for hybrid cloud to maintain resilience and ensure real-time global connectivity. As geopolitical tensions lead to tighter tech export controls, China's hybrid cloud market is further shaped by a growing push for domestic innovation and self-reliance in cloud infrastructure, creating opportunities for homegrown IT service firms. This environment has also fostered collaboration between telecom providers and cloud vendors to deploy edge nodes and hybrid infrastructure near key urban and industrial centers.

According to the research report ""China Hybrid Cloud Market Overview, 2030,"" published by Bonafide Research, the China Hybrid Cloud market is anticipated to grow at more than 17.54% from 2025 to 2030. The growth trajectory of China’s hybrid cloud market is shaped by unique macroeconomic and regulatory dynamics that differentiate it from global markets. A significant factor propelling market growth is the Chinese government's strategic support for digital infrastructure, which prioritizes the cloud economy as a pillar for achieving national modernization and global tech competitiveness. Initiatives like “New Infrastructure” and the push to upgrade traditional industries with smart capabilities have created substantial demand for hybrid solutions that ensure seamless data management across on-premise systems and cloud environments. Additionally, as Chinese enterprises scale their operations across multiple provinces with diverse regulatory constraints, hybrid cloud becomes a practical solution for maintaining compliance while facilitating centralized management. High data volume generated by video surveillance, online education, and smart city initiatives is pushing organizations to adopt hybrid cloud models that enable local processing with centralized control. Moreover, as cyberattacks and ransomware incidents become more sophisticated, especially in the banking and retail sectors, organizations are leveraging hybrid architectures to bolster data backup, isolation, and business continuity. Hybrid cloud also allows flexible workload migration between public and private environments, ensuring business agility amid market uncertainty or regulatory shifts. Chinese financial institutions, which operate under rigid data localization laws and security protocols, are among the earliest adopters of hybrid models to streamline internal operations while maintaining regulatory transparency. At the same time, competitive pricing among domestic cloud vendors, bundled services, and industry-specific cloud solutions have lowered the entry barrier for SMEs and regional players. The rise of low-code platforms, cloud-native development tools, and Kubernetes-based hybrid orchestration is further enabling enterprises to manage distributed environments more effectively.

Software as a Service (SaaS) segment dominates due to its widespread adoption across non-IT enterprises seeking immediate value and low-maintenance solutions. Chinese firms across sectors like retail, manufacturing, and education are increasingly utilizing SaaS-based CRM, HRM, and ERP systems to digitalize workflows without the need for heavy infrastructure investment. Local vendors such as Kingdee, Yonyou, and Huawei are tailoring SaaS applications to Chinese business models and regulatory expectations, accelerating their adoption. Government-owned and mid-sized enterprises often prefer SaaS for front-end modernization, especially in customer service and e-commerce channels, which demand scalability and high availability. Platform as a Service (PaaS) is the fastest-growing segment as it underpins the development of custom applications and integration of AI/ML workloads. The surge in AI adoption and intelligent automation bolstered by China's AI strategy is prompting enterprises to turn to PaaS platforms to develop, test, and deploy intelligent services in regulated environments. PaaS is also gaining traction among fintech firms building customized platforms to meet evolving customer expectations while complying with security norms. Infrastructure as a Service (IaaS), although mature, continues to grow steadily, particularly among large organizations expanding geographically or implementing hybrid disaster recovery setups. The integration of IaaS with telecom networks and edge nodes is creating hybrid infrastructures that serve both urban hubs and Tier 2/3 cities. As China moves toward autonomous infrastructure management and DevOps-enabled environments, hybrid cloud service models are evolving into modular, API-driven solutions.

In the China hybrid cloud ecosystem, solution offerings represent the largest component by value, as enterprises prioritize investments in scalable, integrated software stacks to enable workload orchestration across cloud and on-prem environments. This includes hybrid cloud management platforms, data integration tools, and security frameworks that enable unified monitoring and governance across distributed systems. China's large manufacturing base is heavily investing in such solutions to support predictive maintenance, supply chain tracking, and cross-factory digital integration. With the proliferation of 5G and IoT infrastructure, hybrid cloud solutions are now embedded with edge capabilities, allowing near-real-time processing while ensuring core data remains secured. Enterprises are also deploying solutions for containerization, microservices, and API management to decouple legacy systems and migrate critical parts to the cloud. Meanwhile, services including consulting, integration, migration, and managed support represent the fastest-growing component segment. As Chinese enterprises move beyond basic cloud usage, the complexity of managing hybrid systems has increased, creating demand for professional services that can ensure smooth transitions, compliance adherence, and cost optimization. Domestic service providers are playing a critical role in training IT teams, setting up hybrid governance structures, and offering post-migration support. Many local system integrators are partnering with cloud hyperscalers to offer bundled packages, including private data center upgrades integrated with public cloud capabilities. The rapid expansion of hybrid use cases in mid-sized cities has also led to the rise of regional service providers specializing in vertical-specific needs such as healthcare compliance, manufacturing automation, or retail personalization.

Large enterprises in China are the dominant adopters of hybrid cloud infrastructure due to their complex IT landscapes, multi-location operations, and the need to comply with stringent regulatory frameworks. Key players in banking, telecommunications, and public utilities are utilizing hybrid cloud to modernize legacy infrastructure while ensuring internal control over critical business functions. These organizations often maintain private cloud or on-premise environments for core financial or citizen data while leveraging public cloud capabilities for AI analytics, mobile platforms, and customer-facing applications. National banks and telecom giants such as China Mobile and ICBC have developed in-house hybrid architectures, often in collaboration with local cloud providers, to maintain autonomy while benefiting from scalability. Government support for smart cities and digital healthcare has further driven large-scale hybrid deployments across urban clusters like the Yangtze River Delta and Greater Bay Area. On the other hand, small and medium-sized enterprises (SMEs) are increasingly adopting hybrid cloud to manage costs, increase agility, and address localized compliance requirements. Many SMEs are taking advantage of prefabricated hybrid solutions offered by domestic vendors, which combine virtualized infrastructure with software platforms tailored to specific industries. The fast-paced nature of China’s startup ecosystem especially in sectors like online education, logistics, and health tech favors hybrid deployment models that can quickly scale without compromising control. Additionally, city-level regulations often differ across provinces, making hybrid cloud an attractive model for regionally expanding SMEs. The emergence of government-backed digital transformation subsidies and industrial cloud parks has further reduced the entry barrier for small firms to adopt hybrid architecture. Training programs and SME-specific consulting services are helping reduce knowledge gaps, while the availability of lightweight, modular platforms makes hybrid cloud a strategic asset for businesses of all sizes navigating China’s complex IT environment.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Hybrid Cloud Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Service Model
• Software as a Service (SaaS)
• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)

By Component
• Solution
• Services

By Enterprise Size
• Large Enterprises
• Small and Medium-sized Enterprises

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry. Show more