UK Cloud Computing Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 63.31 Billion |
| Market Size (2030) | USD 127.62 Billion |
| CAGR (2025 - 2030) | 15.05% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
UK Cloud Computing Market Analysis
The UK Cloud Computing Market size is estimated at USD 63.31 billion in 2025, and is expected to reach USD 127.62 billion by 2030, at a CAGR of 15.05% during the forecast period (2025-2030).
- The UK cloud computing market is both mature and rapidly expanding. As a pivotal global financial and technological center, the United Kingdom has witnessed a surge in cloud adoption across diverse industries. This growth is largely fueled by digital transformation efforts, data localization mandates, and the quest for scalable IT infrastructures. The market is characterized by strong governmental support, a thriving tech ecosystem, and a robust demand from key sectors, including finance, healthcare, and retail.
- In the United Kingdom, the financial services sector is at the forefront of cloud computing adoption. Financial institutions, including banks, are transitioning to the cloud to boost operational efficiency, elevate customer experiences, and adhere to regulatory standards.
- Through initiatives such as the G-Cloud framework, the UK government is championing cloud adoption. This framework streamlines the procurement process for public sector organizations, leading to a notable uptick in cloud services utilization. This has significantly boosted cloud adoption in the public sector.
- Following Brexit, UK firms increasingly prioritize local cloud providers, underscoring a heightened focus on data sovereignty and compliance with data protection laws. This trend is driving demand for UK-based cloud solutions.
- Various industries, including healthcare, retail, and manufacturing, are undergoing digital transformation, leading to increased demand for cloud services. The need for scalable and flexible IT infrastructure pushes businesses to adopt cloud technologies.
- For instance, in July 2024, 10x Banking, a cloud-native core banking platform, unveiled a groundbreaking 'meta core' technology. This innovative core technology aims to expedite the transformation journey for banks and financial services. This announcement comes from a USD 45 million funding round in January, spearheaded by prominent investors BlackRock and J.P. Morgan. Notably, 10x Banking is the driving force behind the UK's emerging banks, including Chase UK and Westpac.
- In May 2024, Currys, an international electrical retailer based in the United Kingdom, chose Microsoft and Accenture, in collaboration with their joint venture Avanade, to spearhead its cloud computing infrastructure. These three firms aim to modernize and streamline Currys' technology framework, paving the way for the retailer to harness Microsoft's artificial intelligence (AI) innovations. In this modernization effort, Currys will transition nine of its data centers—housing over 2,000 servers and 200 applications—to Azure.
- However, challenges persist. Data security and privacy concerns cast a shadow over cloud adoption in the United Kingdom. Businesses tread cautiously, wary of potential data breaches and the need to comply with stringent regulations like GDPR.
UK Cloud Computing Market Trends
Strong Government Support for Promoting Cloud Adoption
- The UK government has rolled out the G-Cloud framework, creating a digital marketplace where public sector organizations can easily procure cloud services from a roster of pre-approved suppliers. This setup allows public-sector entities to swiftly compare and acquire services without an exhaustive review process. As a result, the initiative has significantly accelerated the adoption of cloud services, simplifying the transition to cloud technologies for public sector entities.
- In February 2024, the UK government unveiled two tenders for cloud services, with potential expenditures reaching up to EUR 7.5 billion (USD 9.5 billion) under the established framework agreements. The Crown Commercial Service, acting as the purchasing arm of the Cabinet Office, initiated the competition for G-Cloud 14 Lots 1-3. This framework deal, primarily focused on cloud hosting, is accessible to a diverse array of local public sector bodies and holds a potential value of up to EUR 6.5 billion (~USD 7.03 billion).
- Through initiatives like the "Cloud First" policy, the UK government is steering public sector organizations toward prioritizing cloud-based solutions for their IT projects. This push has catalyzed substantial investments in cloud infrastructure and services throughout the United Kingdom.
- The UK government is channeling funds into digital infrastructure projects, notably 5G networks and high-speed internet. These enhancements bolster the reach and efficiency of cloud computing services, ensuring that both businesses and public services can harness the full potential of cloud technologies.
- As per GSMA Intelligence, in 2022, 4G (or LTE) technology dominated mobile data connections in the United Kingdom. However, this landscape is poised for a shift, with projections indicating that by 2030, a staggering 93% of all connections will be powered by faster 5G technology.
BFSI is Expected to Hold a Major Share of the Market
- In the United Kingdom, the BFSI sector faces stringent regulatory requirements, including GDPR and FCA guidelines, demanding robust data management and security solutions. Cloud service providers, equipped with necessary compliance frameworks, make cloud computing an appealing choice for financial institutions.
- Cloud computing provides BFSI firms with cost-effective solutions by minimizing the reliance on physical infrastructure and enabling flexible scaling of IT resources. This cost efficiency is paramount in the competitive financial market, where agility can yield a significant edge.
- For instance, in November 2023, Aldermore Bank, a UK retail bank and lender, formed a strategic alliance with Mambu, a cloud banking platform. Aldermore Bank caters to homeowners, landlords, and business owners with financing solutions, alongside offering savings accounts and motor finance. Through this collaboration, Aldermore aims to modernize its technological approach, enhancing its clientele's unique experience. Mambu, a rapidly expanding SaaS cloud banking platform in the United Kingdom, accelerates the design and development of diverse financial offerings for a wide range of clients, including banks, lenders, fintechs, retailers, and telcos.
- The UK's rapid surge of FinTech companies, often dubbed Europe's FinTech capital, has further propelled the BFSI sector's embrace of cloud computing. With cloud technology, these firms can swiftly innovate, scale, and deliver competitive digital financial services.
- For instance, as reported by Innovate Finance, the United Kingdom witnessed a significant decline in fintech investments in 2023, reversing a trend of consistent growth. Investments plummeted to USD 5.12 billion in 2023, a steep drop from the USD 14.62 billion recorded the previous year.
UK Cloud Computing Industry Overview
The UK cloud computing market is fragmented, with major players like Amazon Web Services, Google LLC, etc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
UK Cloud Computing Market Leaders
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Alibaba Group Holding Limited
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Amazon Web Services (AWS)
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Google LLC
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IBM Corporation
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Microsoft Corporation
- *Disclaimer: Major Players sorted in no particular order
UK Cloud Computing Market News
- August 2024: Wipro, a technology services and consulting firm, was chosen by the John Lewis Partnership (JLP) to overhaul and modernize its IT infrastructure. This transformation initiative aims to bolster the UK retailer's industry leadership and ensure its business is poised for sustainable growth. Under this collaboration, Wipro FullStride Cloud will enhance JLP's existing cloud infrastructure, network, and end-user services for an additional four years. The Wipro FullStride Cloud team, in conjunction with JLP and Google Cloud, will lead a strategic shift of JLP's X86 platform to the cloud. This move is set to unlock new business value, enhance agility, optimize operational costs, and streamline business processes. Wipro and JLP will explore cutting-edge solutions to solidify their industry leadership and position the retailer at the vanguard of retail technology and store modernization.
- June 2024: UK Power Networks is undergoing a significant cloud transformation. The London-based energy distributor and system operator is nearing the completion of a major migration to a hybrid cloud infrastructure. This infrastructure will serve about one-third of all residents and businesses across the United Kingdom. While UK Power Networks primarily relies on Microsoft Azure for its cloud needs, it will continue to operate on-premises systems in two dedicated data centers. These centers, tasked with housing highly sensitive data and services, are fortified to guard against potential cyberattacks.
UK Cloud Computing Industry Segmentation
Cloud computing provides on-demand access to computer resources, particularly data storage and processing power, without requiring users to manage them directly. Computing resources, including physical and virtual servers, data storage, networking capabilities, application development tools, software, and AI-powered analytics, are now accessible over the Internet with a pay-per-use pricing model.
The report covers cloud computing companies in the United Kingdom. The market is segmented by type (public cloud (IaaS, PaaS, and Saas), private cloud, and hybrid cloud), organization type (SMEs and large enterprises), and end-user industries (manufacturing, education, retail, transportation and logistics, healthcare, BFSI, telecom and IT, government, and public sector). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Public Cloud | IaaS |
| PaaS | ||
| SaaS | ||
| Private Cloud | ||
| Hybrid Cloud | ||
| Organization Size | SMEs | |
| Large Enterprises | ||
| End-user Industries | Manufacturing | |
| Education | ||
| Retail | ||
| Transportation and Logistics | ||
| Healthcare | ||
| BFSI | ||
| Telecom and IT | ||
| Government and Public Sector | ||
| Other End-user Industries (Utilities, Media & Entertainment, etc.) |
UK Cloud Computing Market Research FAQs
How big is the UK Cloud Computing Market?
The UK Cloud Computing Market size is expected to reach USD 63.31 billion in 2025 and grow at a CAGR of 15.05% to reach USD 127.62 billion by 2030.
What is the current UK Cloud Computing Market size?
In 2025, the UK Cloud Computing Market size is expected to reach USD 63.31 billion.
Who are the key players in UK Cloud Computing Market?
Alibaba Group Holding Limited, Amazon Web Services (AWS), Google LLC, IBM Corporation and Microsoft Corporation are the major companies operating in the UK Cloud Computing Market.
What years does this UK Cloud Computing Market cover, and what was the market size in 2024?
In 2024, the UK Cloud Computing Market size was estimated at USD 53.78 billion. The report covers the UK Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Cloud Computing Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
UK Cloud Computing Industry Report
Statistics for the 2025 UK Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Cloud Computing analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
