UK Cloud Block Storage Market Size and Forecast by Type, Deployment Model, Organization Size, Subscription Model, Industry, and Use Case: 2019-2033

UK Cloud Block Storage Market Outlook

The UK block storage market is experiencing robust growth in 2025, fuelled by the increasing need for high-performance storage solutions that support mission-critical applications such as database systems, enterprise virtualization, containerized workloads, and low-latency computing in both private and hybrid cloud environments

According to David Gomes, Manager – IT, recent infrastructure contracts and public sector trends indicate that the UK block storage market is poised to grow at a CAGR of approximately XX.7% during the forecast period. This momentum is being driven by enterprise demand for scalable, persistent storage volumes that offer consistent IOPS performance and granular control at the volume level—especially as businesses migrate workloads to cloud-native platforms and infrastructure-as-a-service (IaaS) models

Strategic public sector investments are playing a catalytic role. The UK government’s £366 million cloud modernization plan includes overhauls of core infrastructure where block storage systems are essential for running virtual machines (VMs), handling transactional databases, and ensuring system resiliency through RAID configurations and multi-zone replication.

Simultaneously, DEFRA’s recently announced £226.8 million tender for hosting and storage solutions (source) is anticipated to prioritize high-availability block storage that can support tier-1 applications in regulatory, scientific, and agricultural databases that demand ultra-fast read/write capabilities and snapshot backups

Enterprises in finance, healthcare, and digital services are rapidly shifting to cloud-managed block storage services such as Amazon EBS, Azure Managed Disks, and Google Persistent Disks. These services enable fine-tuned performance control—measured in IOPS and throughput—and are optimized for structured workloads requiring deterministic latency.

In particular, UK banks and financial institutions are transitioning tiered application stacks to cloud-hosted environments where block storage volumes underpin PostgreSQL, Oracle, and SAP HANA deployments, offering both performance elasticity and encryption-by-default security

The rise of Kubernetes and containerized environments is also reshaping the UK block storage market. With Stateful Sets and persistent volumes becoming a necessity in production clusters, developers and DevOps teams are demanding CSI (Container Storage Interface) compliant block storage options that integrate seamlessly into CI/CD pipelines.

Providers that offer Kubernetes-native snapshots, rapid cloning, and zonal redundancy are seeing higher adoption in the UK, especially among tech firms building distributed applications or managing multi-cloud deployments

Notably, sovereign cloud developments are further intensifying interest in UK-hosted block storage. SAP’s launch of its UK Sovereign Cloud in 2025 ensures that block-level data—including healthcare imaging systems, legal documentation databases, and government procurement systems—remains fully compliant with GDPR and UK-specific data locality laws. These offerings are specifically architected to deliver volume-level encryption, policy-driven retention, and audit trails for regulated environments

Wasabi’s expansion into the country storage market, though primarily focused on object storage, includes data management enhancements that align with the emerging need to bridge file, object, and block ecosystems—paving the way for unified storage backplanes that support increasingly complex enterprise environments

Security, performance, and availability continue to be top selection criteria for block storage buyers. Enterprises are leveraging encryption at rest and in transit, performance tuning through IOPS provisioning, and snapshot-based disaster recovery mechanisms. There is also increasing preference for NVMe-backed block storage and storage tiering that allows cold data migration to lower-cost volumes, optimizing cost-efficiency while maintaining performance for active data layers

With the UK government awarding over £1 billion in 2024–25 toward public cloud adoption, much of this infrastructure investment is expected to rely heavily on scalable block storage architectures. These storage layers will be essential in enabling secure, high-speed computer services for national databases, AI model training, digital ID systems, and government procurement platforms

Authors: David Gomes (Manager - IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]