UK Cloud Computing Market by Service Model, Deployment Model, Subscription Model, Enterprise Size, End User – Industry Analysis, Size and Forecast, 2019-2032

UK Cloud Computing Market Growth and Performance

• The UK cloud computing market size is estimated to amount to US$ 30.23 billion in 2024. The market is expected to grow at a CAGR of 9.43% from 2023 to 2031.
• By service model the largest segment is projected to be Software as a Service (SaaS) with a market value of US$ 31.76 billion in 2031.

UK Cloud Computing Market Outlook

The UK cloud computing market is rapidly evolving as businesses across industries increasingly adopt cloud solutions to enhance digital service delivery. Cloud computing is now a crucial component of the digital ecosystem, supporting applications such as streaming services, social media, and AI-powered solutions. With the UK government’s commitment to digital transformation and emerging cloud-native technologies, the market is poised for continued growth. The UK cloud computing market growth is driven by the widespread adoption of cloud-native technologies and increasing investment in advanced cloud infrastructure. According to industry experts, while only 16% of organizations currently utilize container technologies, nearly 70% anticipate integrating the latest infrastructure technologies, such as Kubernetes and Docker, within the next 18 to 24 months. This shift highlights the growing demand for scalable and efficient cloud solutions in the UK.

The UK cloud computing market outlook remains promising, with cloud computing playing a pivotal role in artificial intelligence (AI) development. AI technology is expected to further enhance software capabilities hosted in the cloud, driving innovation and operational efficiencies. Additionally, the UK government’s National Data Strategy, introduced in December 2020, underscores a strong commitment to fostering cloud adoption across various sectors.

UK Cloud Computing Market Trends

Key UK cloud computing market trends include:

• Cloud-Native Adoption: Organizations are increasingly shifting towards a cloud-native approach, with significant investment in Kubernetes and containerization technologies.
• Multi-Cloud Limitations: Despite growing interest in multi-cloud strategies, high switching costs and lack of interoperability are key barriers to widespread adoption.
• Government Support: The UK government continues to promote cloud computing through digital transformation initiatives and policy frameworks that facilitate cloud adoption.
• AI-Driven Cloud Expansion: Cloud computing is providing the necessary infrastructure for AI model training and deployment, further accelerating market growth.

UK Cloud Computing Market Competitive Landscape

The UK cloud computing market competitive landscape is highly concentrated, with dominant players such as Amazon Web Services (AWS) and Microsoft leading the market. These hyperscalers commanded a combined X4% share of the UK Infrastructure-as-a-Service (IaaS) market revenue in 2023. Their influence underscores the market’s reliance on established providers, creating both opportunities and challenges for other entrants looking to gain traction in this competitive space.

UK Cloud Computing Market Development

The UK cloud computing market development is centered on enhancing cloud infrastructure, increasing interoperability, and fostering digital innovation. Despite challenges such as high switching costs and interoperability issues, ongoing investments in cloud-native technologies and government-backed digital initiatives are expected to drive further market expansion. Organizations are prioritizing cloud adoption to remain competitive and meet evolving consumer demands.

UK Cloud Computing Market Scope