UK Cloud Storage Market Overview

The UK cloud storage market was valued at USD 5.1 Billion in 2024 and is expected to grow at a CAGR of 15.96% during the forecast period from 2025 to 2033, reaching USD 25.7 Billion by 2033. Market growth is driven by increasing smartphone adoption, expansion of data centers, demand for cost-effective IT solutions, advancements in cloud security, and reinforcing regulatory compliance. The market is highly concentrated with Amazon Web Services (AWS) and Microsoft Azure dominating 60–80% of the IaaS and PaaS segments as of 2022.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

UK Cloud Storage Market Key Takeaways

• The UK cloud storage market size was USD 5.1 Billion in 2024.
• The market is projected to grow at a CAGR of 15.96% during 2025-2033.
• The forecast period for the market is 2025 to 2033.
• Market growth is fueled by rising smartphone adoption and expansion of data centers.
• Demand for scalable, economical IT solutions, and hybrid work models underpin market growth.
• Regulatory compliance and enhanced data security measures remain critical drivers.
• Government initiatives like "Cloud First" policy promote cloud adoption in public sectors.

Sample Request Link: https://www.imarcgroup.com/uk-cloud-storage-market/requestsample

UK Cloud Storage Market Growth Factors

The UK cloud storage market is driven by increasing smartphone adoption; in 2023, 98% of all adults aged between 16 and 24 years possess a smartphone. Smartphones, tablets, wearables, and other IoT devices produce huge volumes of data, such as user content, application data, and health metrics, which need centralized and scalable cloud storage solutions. Expansion of capacity is easily achieved with cloud storage. Real-time data updates are possible, which enable on-time business decisions and decrease the need to invest in physical infrastructure.

The expansion of data centers significantly contributes to the market's growth. For example, on 11 September 2024, Amazon Web Services announced a USD 10.5 billion investment in UK data centers aimed at supporting AI applications and the digital economy. Local data centers improve cloud infrastructure reliability, latency, and ensure compliance with regulations like GDPR and data residency. This also improves disaster recovery and redundancy, thus enabling broader adoptions of cloud storage.

There is an increasing demand in the UK for scalable and affordable IT solutions. Traditional on-premise infrastructure requires very high upfront costs with limited scalability, while cloud storage provides a pay-as-you-go model that is particularly appealing to SMEs. Large enterprises adopt hybrid and multi-cloud strategies for cost optimization and redundancy. The rise in tools such as GoogleDrive supports cloud integrations within enterprise workflows, thus catalyzing digital transformation and paving the way for long-term growth of cloud storage in the UK.

UK Cloud Storage Market Segmentation

Component Insights:

• Solution: Detailed analysis provided on cloud storage solutions.
• Services: Detailed analysis provided on cloud storage service offerings.

Deployment Type Insights:

• Private: Analyzed market segment focusing on private cloud deployments.
• Public: Analyzed market segment focusing on public cloud deployments.
• Hybrid: Analyzed market segment focusing on hybrid deployment models.

User Type Insights:

• Large Enterprises: Detailed insights on large enterprise adoption of cloud storage.
• Small and Medium-sized Enterprises: Coverage of SMEs leveraging cloud storage solutions.

Industry Vertical Insights:

• BFSI: Banking, financial services, and insurance sector cloud storage usage analyzed.
• Government and Public Sector: Cloud storage trends within governmental entities examined.
• Healthcare: Analysis of the healthcare vertical's cloud storage adoption.
• IT and Telecom: Cloud storage adoption in IT and telecommunications sector.
• Retail: Cloud storage usage and trends in retail industry.
• Manufacturing: Insights into manufacturing sector cloud storage deployments.
• Media and Entertainment: Usage patterns and trends within media and entertainment sectors.
• Others: Additional industries covered in the report.

Regional Insights

London is identified as a dominant region in the UK cloud storage market. Other major regional markets include South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others. The expansion of data centers and strong regional digital infrastructure investments enhance cloud storage adoption and ensure compliance with local data residency laws, fostering fast and reliable cloud service delivery.

Recent Developments & News

• March 2025: Oracle announced a USD 5 Billion investment over five years to expand UK cloud infrastructure, enhancing AI-driven growth and multicloud integration.
• December 2024: Wasabi Technologies expanded its UK presence by integrating with IBM Cloud’s London Multizone Region, improving data residency compliance and AI media solutions.
• July 2024: Amazon Web Services pledged USD 10.3 million in cloud storage credits to UK Biobank, matched by the UK government for a total of USD 20.6 million.
• June 2024: Seagate expanded its Lyve Cloud S3 compatible object storage service with a second data center in London, partnering with Climb Channel Solutions and Exertis for distribution.

Key Players

• Amazon Web Services (AWS)
• Microsoft Azure
• Oracle
• Wasabi Technologies
• IBM Cloud
• Seagate

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Request Customization:- https://www.imarcgroup.com/request?type=report&id=24953&flag=E

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: sales@imarcgroup.com,

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302