The UK community cloud market size reached USD 240.90 Million in 2024. The market is projected to reach USD 2,576.17 Million by 2033, exhibiting a growth rate (CAGR) of 26.74% during 2025-2033. The market is driven by rising data sovereignty and regulatory compliance demands, especially post-Brexit, as organizations seek localized, secure cloud solutions. Cost efficiency also fuels adoption, with shared infrastructure lowering expenses for public sector bodies and SMEs. Moreover, there is increasing demand for sector-specific customization, offering tailored services to meet the unique needs of industries like healthcare, government, and education, thus strengthening the UK community cloud market share.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 240.90 Million |
Market Forecast in 2033 | USD 2,576.17 Million |
Market Growth Rate 2025-2033 | 26.74% |
Data Sovereignty and Compliance Requirements
One of the UK community cloud market trends is the growing need for data sovereignty and regulatory compliance, with 82% of UK organizations already implementing policies to control where their data is stored and a further 13% planning to do so. Regulatory frameworks such as the UK GDPR and sector-specific standards like the NHS Data Security and Protection Toolkit demand that sensitive data, especially in healthcare, education, and government sectors, is processed and stored within UK borders. Community Clouds are designed specifically to address these requirements, providing stringent control over data residency, access, and security to lower compliance risks and steer clear of costly fines. Post-Brexit uncertainties regarding cross-border data transfers have further driven demand for localized, compliant cloud services. This emphasis on legal compliance, data security, and operational trust makes community cloud a preferred solution for public sector and highly regulated industries seeking control and transparency.
Demand for Sector-Specific Customization
The growing demand for tailored, sector-specific cloud solutions drives the UK community cloud market growth. Community Clouds are designed to meet the distinct operational, compliance, and security needs of specific industries such as healthcare, education, and government services. Unlike generic public cloud platforms, these clouds provide custom configurations, policies, and services that align closely with industry workflows, legal obligations, and performance expectations. While education-focused clouds facilitate virtual learning platforms and research data sharing, NHS-focused Community Clouds, for instance, provide integrated capabilities for patient data protection. This specialization improves operational efficiency, enhances user trust, and simplifies compliance processes. As sectors increasingly adopt digital transformation strategies, the need for technology platforms that reflect the nuances of their daily operations grows, making Community Cloud an ideal, purpose-built solution offering sector relevance rather than a one-size-fits-all approach.
Cost Efficiency and Resource Optimization
Cost optimization remains a key driver for community cloud adoption in the UK, particularly for public sector and non-profit organizations with limited budgets but high computing and security demands. By allowing multiple entities such as local councils or healthcare trusts to share infrastructure, Community Cloud reduces capital expenditure compared to private clouds. This shared model enables economies of scale, optimizing hardware usage, operational expenses, and management efforts. Globally, organizations report 20–40% infrastructure cost savings, with some achieving up to 53% savings after migrating workloads to the cloud. This cost efficiency makes community clouds financially attractive, especially for small to medium-sized organisations. In addition, shared platforms for applications, data analytics, and security services lower the overall cost of innovation and digital transformation, allowing members to access advanced IT services without significant financial strain.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on component, application and industry vertical.
Component Insights:
The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware (server, networking, storage, and others), software (enterprise application software, collaboration tools software, and dashboards business intelligence software), and services (training services, maintenance and support, regulation and compliance, and consulting).
Application Insights:
A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes cloud-based storage, cloud backup and recovery, cloud security and data privacy, high performance computation, and analytics and web-based applications.
Industry Vertical Insights:
The report has provided a detailed breakup and analysis of the market based on the industry vertical. This includes BFSI, gaming, government, healthcare, education, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include London, Southeast, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Components Covered |
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Applications Covered | Cloud-Based Storage, Cloud Backup and Recovery, Cloud Security and Data Privacy, High Performance Computation, Analytics and Web-Based Applications |
Industry Verticals Covered | BFSI, Gaming, Government, Healthcare, Education, Others |
Regions Covered | London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: