UK Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The UK Data Center Storage Market size is estimated at USD 2.45 billion in 2024, and is expected to reach USD 3.81 billion by 2029, growing at a CAGR of 7.63% during the forecast period (2024-2029).
Key Highlights
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
Under Construction IT Load Capacity: The upcoming IT load capacity of the United Kingdom data center market is expected to reach more than 3000 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 17 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 8,89,000 units by 2029. London is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 58 submarine cable systems connecting the United Kingdom, and many are under construction.
An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within the UK, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives.
The key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce & digital services, renewable energy & sustainability, and smart cities & IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.
UK Data Center Storage Market Trends
IT & Telecommunication Segment Holds the Major Share.
The UK cloud computing market is poised for significant growth over the next five years, driven by the convergence of emerging technologies such as artificial intelligence, Internet of Things, and machine learning. These advancements will play a pivotal role in fostering innovation and expanding the capabilities of cloud computing services.
In the realm of cloud storage, customers and companies leverage provider servers and hardware to store data or run systems. Some colocation providers go beyond offering data center hosting and provide managed services, isolating virtualized workloads in a multi-tenant server environment.
The United Kingdom has demonstrated noteworthy progress in expanding broadband internet connections. The government has set ambitious targets, aiming to make a 5G signal available to most of the population by 2027, connect 15 million more premises to full fiber by 2025, and achieve total fiber coverage throughout the country by 2033.
Cloud adoption by businesses in the UK has exceeded 50%, with a steady increase over the years. In 2016, 30% of UK businesses purchased cloud computing services online, a figure that rose to 44% in 2018 and further increased to 62% in 2020. The UK government, recognizing the value of cloud services, announced in June 2022 that the expenditure on cloud services for the fiscal year 2021-2022 would surpass ?280 million through the G-Cloud Procurement Framework.
A noteworthy development in March 2022 was Amazon Web Services (AWS) doubling its investment in the UK with a commitment of GBP 1.8 billion (USD 2.24 billion) over the next two years for cloud computing infrastructure. While AWS remains a key player, it faces growing competition from tech giants Microsoft and Google in the enterprise customer landscape. These developments are expected to not only drive the growth of data centers but also substantiate the expansion of storage solutions in the region.
Hybrid Storage is Expected to Hold a Significant Market Share
The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
London is a global financial center, and the financial services sector relies heavily on data center storage. In addition, there are strict rules on data storage, privacy, and security in different sectors of the UK, such as finance and healthcare. In order to ensure the integrity and legal compliance of data, these hybrids allow organizations to tailor their storage strategies according to particular legislative requirements.
The UK business climate is cost-conscious, with hybrid storage tools enabling organizations to optimize their costs effectively. Businesses can align their storage costs with actual use through the use of on-premises storage for critical and frequently accessed data and cloud storage for less critical or archived data.
The increasing focus on digitalization, Internet penetration (Internet penetration stood at 97.8% by the start of 2023 with 0.3% growth between 2022 and 2023), and the United Kingdom is the fourth-largest market for e-commerce. In 2021 and 2022, consumers across the UK were turning toward e-commerce, and over 85% of UK residents are shopping online across the country, creating more need for storage facilities, resulting in huge demand for data centers and, consequently, the need for more storage solutions within data centers.
The key players in the market focus on improving the data center storage solutions to meet the market demand. In June 2023, to provide customers with greater speed, agility, flexibility, and choice in their hybrid cloud strategy, Hewlett Packard Enterprise (HPE) and Equinix have announced an expanded partnership to preconfigure HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition in Equinix data centers worldwide.
UK Data Center Storage Industry Overview
Anticipated data center construction projects in the United Kingdom are expected to drive increased demand in the United Kingdom Data Center Storage Market in the coming years. The market is moderately consolidated, with key players such as Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd., and Hitachi Vantara LLC. These major players, holding significant market shares, are actively working to expand their regional customer base.
In March 2023, Hewlett Packard Enterprise (HPE) announced a definitive agreement to acquire OpsRamp, an information operations management (ITOM) company. OpsRamp specializes in observing, tracking, automating, and managing IT infrastructure, cloud resources, workloads, and applications in hybrid and multi-cloud environments, collaborating with some of the world's leading hyperscalers.
In November 2022, Pure Storage, a prominent data storage firm, expanded its Kubernetes Data Platform as part of the Portworx Enterprise 3.0 suite, designed for efficient management as a service. This expansion, geared towards DevOps teams deploying Kubernetes applications in production environments, aims to enhance the accessibility and scalability of client data.
These strategic developments underline the dynamic nature of the United Kingdom Data Center Storage Market, with major players actively engaged in acquisitions and expansions to meet the evolving needs of the market.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
Under Construction IT Load Capacity: The upcoming IT load capacity of the United Kingdom data center market is expected to reach more than 3000 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 17 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 8,89,000 units by 2029. London is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 58 submarine cable systems connecting the United Kingdom, and many are under construction.
An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within the UK, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives.
The key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce & digital services, renewable energy & sustainability, and smart cities & IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.
UK Data Center Storage Market Trends
IT & Telecommunication Segment Holds the Major Share.
The UK cloud computing market is poised for significant growth over the next five years, driven by the convergence of emerging technologies such as artificial intelligence, Internet of Things, and machine learning. These advancements will play a pivotal role in fostering innovation and expanding the capabilities of cloud computing services.
In the realm of cloud storage, customers and companies leverage provider servers and hardware to store data or run systems. Some colocation providers go beyond offering data center hosting and provide managed services, isolating virtualized workloads in a multi-tenant server environment.
The United Kingdom has demonstrated noteworthy progress in expanding broadband internet connections. The government has set ambitious targets, aiming to make a 5G signal available to most of the population by 2027, connect 15 million more premises to full fiber by 2025, and achieve total fiber coverage throughout the country by 2033.
Cloud adoption by businesses in the UK has exceeded 50%, with a steady increase over the years. In 2016, 30% of UK businesses purchased cloud computing services online, a figure that rose to 44% in 2018 and further increased to 62% in 2020. The UK government, recognizing the value of cloud services, announced in June 2022 that the expenditure on cloud services for the fiscal year 2021-2022 would surpass ?280 million through the G-Cloud Procurement Framework.
A noteworthy development in March 2022 was Amazon Web Services (AWS) doubling its investment in the UK with a commitment of GBP 1.8 billion (USD 2.24 billion) over the next two years for cloud computing infrastructure. While AWS remains a key player, it faces growing competition from tech giants Microsoft and Google in the enterprise customer landscape. These developments are expected to not only drive the growth of data centers but also substantiate the expansion of storage solutions in the region.
Hybrid Storage is Expected to Hold a Significant Market Share
The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
London is a global financial center, and the financial services sector relies heavily on data center storage. In addition, there are strict rules on data storage, privacy, and security in different sectors of the UK, such as finance and healthcare. In order to ensure the integrity and legal compliance of data, these hybrids allow organizations to tailor their storage strategies according to particular legislative requirements.
The UK business climate is cost-conscious, with hybrid storage tools enabling organizations to optimize their costs effectively. Businesses can align their storage costs with actual use through the use of on-premises storage for critical and frequently accessed data and cloud storage for less critical or archived data.
The increasing focus on digitalization, Internet penetration (Internet penetration stood at 97.8% by the start of 2023 with 0.3% growth between 2022 and 2023), and the United Kingdom is the fourth-largest market for e-commerce. In 2021 and 2022, consumers across the UK were turning toward e-commerce, and over 85% of UK residents are shopping online across the country, creating more need for storage facilities, resulting in huge demand for data centers and, consequently, the need for more storage solutions within data centers.
The key players in the market focus on improving the data center storage solutions to meet the market demand. In June 2023, to provide customers with greater speed, agility, flexibility, and choice in their hybrid cloud strategy, Hewlett Packard Enterprise (HPE) and Equinix have announced an expanded partnership to preconfigure HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition in Equinix data centers worldwide.
UK Data Center Storage Industry Overview
Anticipated data center construction projects in the United Kingdom are expected to drive increased demand in the United Kingdom Data Center Storage Market in the coming years. The market is moderately consolidated, with key players such as Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd., and Hitachi Vantara LLC. These major players, holding significant market shares, are actively working to expand their regional customer base.
In March 2023, Hewlett Packard Enterprise (HPE) announced a definitive agreement to acquire OpsRamp, an information operations management (ITOM) company. OpsRamp specializes in observing, tracking, automating, and managing IT infrastructure, cloud resources, workloads, and applications in hybrid and multi-cloud environments, collaborating with some of the world's leading hyperscalers.
In November 2022, Pure Storage, a prominent data storage firm, expanded its Kubernetes Data Platform as part of the Portworx Enterprise 3.0 suite, designed for efficient management as a service. This expansion, geared towards DevOps teams deploying Kubernetes applications in production environments, aims to enhance the accessibility and scalability of client data.
These strategic developments underline the dynamic nature of the United Kingdom Data Center Storage Market, with major players actively engaged in acquisitions and expansions to meet the evolving needs of the market.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 The Expansion of IT infrastructure in the Country Drives the Market Growth
4.2.2 Increase in the Demand for Energy-Efficient and Cost-Effective Data Centers Drives the Market Growth
4.3 Market Restraints
4.3.1 High Initial Investments
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5 MARKET SEGMENTATION
5.1 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-User
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 NetApp Inc.
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 Hitachi Vantara LLC
6.1.6 Kingston Technology Company Inc.
6.1.7 Pure Storage Inc.
6.1.8 Infinidat Ltd.
6.1.9 Lenovo Group Limited
6.1.10 Fujitsu Limited
6.1.11 Zadara Inc.
6.1.12 Nutanix Inc.
6.1.13 Oracle Corporation
6.1.14 Commvault Systems Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 The Expansion of IT infrastructure in the Country Drives the Market Growth
4.2.2 Increase in the Demand for Energy-Efficient and Cost-Effective Data Centers Drives the Market Growth
4.3 Market Restraints
4.3.1 High Initial Investments
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5 MARKET SEGMENTATION
5.1 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-User
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 NetApp Inc.
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 Hitachi Vantara LLC
6.1.6 Kingston Technology Company Inc.
6.1.7 Pure Storage Inc.
6.1.8 Infinidat Ltd.
6.1.9 Lenovo Group Limited
6.1.10 Fujitsu Limited
6.1.11 Zadara Inc.
6.1.12 Nutanix Inc.
6.1.13 Oracle Corporation
6.1.14 Commvault Systems Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
