China’s hybrid cloud market to grow 22.7% in H2 2025

In recent years, with the deepening demand for cloud-based business operations from enterprises across various industries, cloud infrastructure has undergone tremendous changes and innovations, bringing new technological directions to enterprise IT infrastructure, application architecture, and application development models. Hybrid cloud is gradually becoming the mainstream cloud infrastructure deployment model in the Chinese market. Through different deployment locations and delivery models, combined with the characteristics of different business applications, enterprise-level private cloud infrastructure is built, dynamically meeting the business development needs of enterprises from both the perspectives of efficiency and operating costs. Therefore, International Data Corporation (IDC) has launched its first data tracking study on the Chinese hybrid cloud market.

International Data Corporation (IDC) recently released its report, “China Hybrid Cloud/Private Cloud Market Tracker, 2025H2″. IDC data shows that the hybrid cloud market will grow by 22.7% year-on-year in the second half of 2025, reaching a market size of RMB 101.47 billion, with a total market size of RMB 145.17 billion for the whole of 2025.

IDC believes that the technology trend in the hybrid cloud market is evolving towards supporting capabilities for ” intelligent computing + AI applications ” .

• AI applications are extending to vertical industries such as government and manufacturing, and the application of edge inference and intelligent agents is driving the construction of edge intelligent computing platforms.
• Localized computing power dominates the expansion and upgrading of computing resources in central and state-owned enterprises;
• AIOps intelligent operation and maintenance enhances integrated management capabilities for general computing and intelligent computing;
• FinOps operations management helps enterprises intelligently manage their cloud platform investment budgets.
• IDC defines the hybrid cloud market based on the actual situation in the Chinese market. In the Chinese market, hybrid cloud/private cloud and dedicated cloud usually refer to the same cloud deployment model, namely, a model with a privately deployed cloud platform as the core, capable of connecting to public cloud networks, and having the ability to interconnect and invoke public cloud services. IDC divides the overall hybrid cloud market into three sub-markets: hybrid cloud infrastructure hardware, hybrid cloud infrastructure system software, and hybrid cloud platform software and services.

In the second half of 2025, competition in China’s hybrid cloud market will shift from building and operating cloud platform general computing infrastructure capabilities to upgrading intelligent computing infrastructure. AI application support such as intelligent agents and intelligent operation and management will become the core competitive points of hybrid cloud.

The Chinese hybrid cloud market will exhibit the following characteristics in the second half of 2025 :
The computing power ratio has changed significantly.
With the large-scale deployment of AI applications such as intelligent computing platforms and intelligent agents, the proportion of AI computing power has increased significantly, resulting in structural changes in computing power between general computing and intelligent computing.

The need for heterogeneous computing power management is becoming increasingly prominent.

By integrating heterogeneous hardware and chip computing resources, and realizing intelligent scheduling and collaboration of heterogeneous computing power through a computing power management platform, the demand for hybrid cloud intelligent computing platform construction is accelerating.

Emphasis on both localized computing power and AI security
Localization policies continue to drive the comprehensive replacement of government and enterprise cloud infrastructure, while security and compliance requirements further impose higher data and application security requirements on industries such as finance, government, and healthcare, promoting the in-depth development of hybrid cloud in key industries.

The demand for AI applications such as intelligent agents is exploding.

Currently, intelligent agents are being deployed and operated on a large scale across various industries, driving the accelerated expansion of enterprise hybrid cloud infrastructure.

The demand for edge reasoning continues to grow.

Enterprise applications are seeing a significant increase in demand for edge inference, and hybrid cloud models help customers build cloud-edge integrated intelligent computing platforms to meet the needs of large-scale edge AI application deployments.

Market structure
In the second half of 2025, the Chinese hybrid cloud market size reached 101.47 billion yuan, a year-on-year increase of 22.7%. The overall competition in the hybrid cloud market has shifted from the construction and operation of cloud platform general computing infrastructure capabilities to the upgrading of intelligent computing infrastructure. AI application support such as intelligent agents and intelligent operation and management have become the core competitive points of hybrid cloud at present.

In the second half of 2025, the market size of China’s hybrid cloud infrastructure hardware reached 45.91 billion yuan, a year-on-year increase of 25.7%. Competition in hybrid cloud infrastructure hardware has shifted from “general computing + intelligent computing” to “heterogeneous integration”, with heterogeneous chip adaptation and computing power management becoming the core competitive points.

In the second half of 2025, the market size of hybrid cloud infrastructure system software in China reached RMB 18.04 billion, a year-on-year increase of 19.9%. Driven by the application of intelligent agents and AI, the demand for hybrid cloud intelligent computing in industries such as government, enterprise, manufacturing, healthcare, and finance has increased significantly, leading to a demand for hybrid cloud IaaS software.

In the second half of 2025, the market size of hybrid cloud platform software and services in China reached 37.52 billion yuan, a year-on-year increase of 20.7%. Driven by the application of AI in intelligent agents, the demand for hybrid cloud intelligent computing in industries such as government and enterprise, manufacturing, healthcare, and finance has increased significantly, leading to a demand for hybrid cloud PaaS software and services.

IDC predicts that China’s hybrid cloud market will maintain rapid growth from 2025 to 2030 , with an estimated compound annual growth rate of 18.4%, reaching a total market size of RMB 337.04 billion in 2030. Currently, with the rapid implementation of new AI technologies and applications such as intelligent computing and intelligent agents, a significant increase is expected in 2026. In the medium term, the growth rate will decline before recovering, while in the long term, it will maintain steady growth.

Zhang Li, Senior Research Manager at IDC China, stated that in 2025, with the continued deepening of cloud platform localization and the large-scale implementation of AI applications such as intelligent agents, the Chinese hybrid cloud market will form an overall trend of “localized cloud platform construction and expansion as the foundation, and the continued high-speed growth of AI application demand as the driving force.” The Chinese hybrid cloud market in the second half of 2025 will exhibit the following five major characteristics: significant changes in computing power ratios, prominent demand for heterogeneous computing power management, equal emphasis on localized computing power and AI security, explosive growth in demand for AI applications such as intelligent agents, and continued development of edge inference demand. IDC