Born in Eastbourne, Hobden made his debut for the club in 2014 and played for them in all three formats, the BBC reported.
He was a fast bowler who played his last game against Essex last August.
"Sussex Cricket is deeply shocked and saddened to hear of the passing of Matthew Hobden," the county said in a statement.
"Matthew was an exciting young cricketer with a big future ahead of him in the game. He was a fantastic individual who had progressed through Sussex's Youth and Academy ranks, having been born locally in Eastbourne."
"He made his First Class debut for Sussex in 2014 and had represented the county across all three formats over the past two seasons. He will be greatly missed," the statement added.
Angus Porter, chief executive of the Professional Cricketers' Association, said: "Matt was a young seamer with immense potential."
"The PCA will work closely with Sussex to ensure that their players and coaching staff are supported during this difficult period for the club."
Hobden took 48 wickets at an average of 39.35 for Sussex.
No detail of his death has been released.