UK Cloud Computing Market Size

UK Cloud Computing Market Analysis

The UK Cloud Computing Market size is estimated at USD 55.03 billion in 2024, and is expected to reach USD 110.91 billion by 2029, growing at a CAGR of 15.05% during the forecast period (2024-2029).

• 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.