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

UK Cloud File Storage Market Outlook

The market is undergoing significant transformation in 2025 as organizations modernize their IT infrastructure to support distributed workforces, compliance with data sovereignty regulations, and integration with hybrid cloud environments.

As per David Gomes, Manager – IT, the UK object storage market driven by heightened demand for scalable Network Attached Storage (NAS), high-performance file systems, and secure collaboration tools across sectors such as finance, media, and public administration

The shift toward cloud-native file storage solutions is particularly pronounced in regulated industries where strict access control, version history, and audit capabilities are critical. Recent initiatives by the UK government, including the £366 million investment to overhaul legacy hosting systems, are reinforcing the demand for modern file storage frameworks that support agile operations, encrypted access, and remote accessibility.

Notably, DEFRA’s £226.8 million hosting and storage tender highlights the role of advanced file storage platforms in managing agricultural, regulatory, and scientific datasets—often requiring hierarchical file systems, structured file metadata, and large-scale file versioning

In the private sector, enterprises are increasingly adopting scalable file storage platforms that integrate with Microsoft Azure Files, Amazon FSx, and Google Filestore to optimize latency-sensitive workloads such as CAD rendering, financial modelling, and large-scale content editing.

With file storage often serving as the foundation for collaborative workflows, UK-based businesses are prioritizing solutions with strong access permissions, POSIX compatibility, and seamless Active Directory integration. For example, media production firms are turning to file-based storage systems capable of supporting high IOPS and parallel file access to facilitate 4K/8K post-production processes and archival continuity

The sovereign data agenda has further elevated the relevance of UK-based cloud file storage offerings. SAP’s UK Sovereign Cloud launch in April 2025 has enabled enterprises and public sector bodies to store structured files—such as financial ledgers, HR documents, and patient records—within UK jurisdiction, fulfilling GDPR and national compliance mandates

Similarly, Wasabi and other UK-hosted service providers are incorporating file gateway capabilities to extend compatibility between object storage backends and legacy file-based applications, thus modernizing storage without disrupting existing file system workflows

File storage is also seeing increased traction as the preferred medium for edge computing scenarios in the UK. As smart city projects and connected infrastructure expand, file storage’s support for rapid file sync, offline access, and incremental updates makes it highly suitable for decentralized data architectures.

Energy providers, telecom operators, and infrastructure agencies are leveraging distributed file systems that allow real-time access and synchronization between edge devices and central clouds, reducing data silos and improving data governance

Security and compliance remain top decision criteria. Features such as encryption at rest and in transit, role-based access control (RBAC), immutable snapshots, and ransomware detection are now default requirements in file storage RFPs across the UK. Enterprises are also implementing intelligent file tiering—moving infrequently accessed files to lower-cost storage classes—driven by sustainability mandates and OPEX optimization

The market is becoming increasingly competitive, with hyperscale’s, mid-market cloud vendors, and storage-focused ISVs offering differentiated file services. For B2B technology leaders, selecting the right file storage solution now involves evaluating performance, sovereignty, integrations, and long-term cost-effectiveness.

As the UK intensifies its push toward digitization and localized control over digital infrastructure, cloud-based file storage is set to play a central role in how organizations scale securely and compliantly

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]