UK Cloud Computing Market | Analysis 2019-2031

UK CLOUD COMPUTING INDUSTRY SNAPSHOT

• Revenue in the UK cloud computing market 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.
• In the UK cloud computing market, 33.17% of total revenue will be generated through IT and Telecom end user by 2031.
• The IT and Telecom sector is expected to emerge as fastest growing segment with 10.18% CAGR, in terms of revenue generation during the forecast period.

UK CLOUD COMPUTING INDUSTRY SCENARIO, TRENDS, AND DEVELOPMENTS

Cloud computing adoption is promptly gaining momentum among businesses–across various sectors in the UK– and playing a vital role in the delivery of digital services to consumers. To assess the effectiveness of UK cloud computing market and determine the need for regulatory intervention, DataCube Research has conducted a comprehensive market study into the provision of cloud services in the UK. Cloud computing has become a critical element across various facets of the Internet, serving as an essential resource for delivering online services utilized by numerous UK consumers, such as streaming, social media, and communication platforms. Moreover, cloud computing is poised to serve as a foundational pillar in the advancement of artificial intelligence (AI), offering the necessary infrastructure and computing resources essential for training and deployment of AI models at a scale. Furthermore, AI technology is anticipated to enhance the capabilities of software applications hosted within the cloud. This, in turn, emphasizes the significance cloud computing services in driving digital innovation and functionality enhancements.
 

What is the current scenario of UK cloud computing market?

• As per the industry experts, only 16% of organizations are using container technologies currently, over two-thirds i.e. around 70% latest infrastructure technologies are anticipated to play a strategic role in their organization within the next 18 to 24 months.
   
• End user verticals in the UK are emphasizing on adopting cloud-native approach where they are increasing investing their major IT budget on advanced cloud infrastructure services such as Docker and Kubernetes (or K8s).
   
• At present, cloud services switching cost is high in UK which is limiting the adoption of multi-cloud services among customers. In addition, lack of interoperability and portability restricts end users capability to seamlessly shift and adopt multi-cloud approach.
   
• The government’s approach to digital transformation encompasses comprehensive support for cloud computing and cloud-enabled organizations across different service and deployment models. Moreover, the introduction of the UK's National Data Strategy in December 2020, along with the subsequent consultation response, underscores the government's commitment to advancing cloud technology.
   

Leading companies in UK cloud computing market?

It's imperative to recognize the dominance of key players in the UK cloud computing market, notably Amazon Web Services (AWS) and Microsoft, often referred to as hyperscalers.
 

• In 2023, these two industry giants collectively commanded a substantial 64% share of the UK IaaS market revenue. This dominance underscores their strong market presence and influence within the UK's rapidly evolving cloud computing landscape. Such market concentration not only reflects the level of trust and reliance that businesses place in these providers but also presents opportunities and challenges for other players seeking to carve out their niche in this competitive space.

UK CLOUD COMPUTING MARKET COVERAGE