Hobden made his first-class debut for Sussex in 2014 and represented the county across all formats of the game over the past three seasons.
A cause of death has not been announced.
"Matt was a young cricketer with huge potential, and he is going to be missed so badly by all the guys," Kevin Shine, the ECB's lead fast bowling coach, said in a statement.
"He made you smile every time you saw him, because he was so excited to be there and wanted to be the best he could."
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In a statement, Sussex said: "Sussex Cricket is deeply shocked and saddened to hear of the passing of Matthew Hobden.
"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.
Sussex captain Ed Joyce wrote on Twitter: "In shock. Can't get my head around the news. RIP Matt Hobden. Thoughts with his family."
Former Sussex and England wicketkeeper-batsman Matt Prior tweeted: "Thoughts & prayers with all of Matt Hobden's family at this tragic time. A great guy with a huge future taken far too soon."
England one-day captain Eoin Morgan said: "Thoughts and prayers are with Matt Hobden's family and friends at this extremely difficult time.