UK Cloud Migration Services Market Research Report: By Service Type (Automation, Integration, Disaster Recovery, Application Hosting and Monitoring, DevOps, Training and Consulting, Support and Maintenance), By Application (Project Management, Infrastructure Management, Security and Compliance Management), By Organization Size (Large Enterprises, SMEs), By Deployment Model (Public, Private, Hybrid Cloud) and By Vertical (BFSI, Healthcare and Life Sciences, Telecommunications and ITES, Manufacturing, Retail, Entertainment) - Forecast to 2035

UK Cloud Migration Services Market Overview

As per MRFR analysis, the UK Cloud Migration Services Market Size was estimated at 0.95 (USD Billion) in 2023.

The UK Cloud Migration Services Market is expected to grow from 1.08 (USD Billion) in 2024 to 5.5 (USD Billion) by 2035. The UK Cloud Migration Services Market CAGR (growth rate) is expected to be around 15.919% during the forecast period (2025 - 2035).

Key UK Cloud Migration Services Market Trends Highlighted

The UK Cloud Migration Services Market is witnessing significant trends that drive its growth. A notable trend is the increasing adoption of hybrid and multi-cloud strategies among businesses. Organizations in the UK are seeking flexibility and improved redundancy, which allows them to optimize their operations through a combination of private and public cloud solutions. This shift is enhanced by the support from the UK government, which encourages digital transformation and the use of cloud technology across various sectors. Key market drivers include the rising demand for enhanced data security and compliance with regulations like the General Data Protection Regulation (GDPR).

UK businesses follow strict legal regimes and concentrate on safe cloud migration to protect their private data. Furthermore, since companies want to keep output in a flexible work environment, the demand for remote working solutions has sped up the migration to cloud services. In the field of serverless computing and creative cloud-native applications, the region presents significant prospects for research. Small and medium-sized businesses growing in the UK create a market for customised cloud solutions meeting their particular needs. Recent trends show a shift towards managed cloud services, in which businesses rely on outside vendors to handle cloud infrastructure management so they may concentrate on their main business operations.

In summary, the UK Cloud Migration Services Market is shaped by hybrid cloud adoption, emphasis on data security, and the push for innovative cloud solutions, creating a dynamic landscape for businesses to navigate as they transition to cloud environments.

Fig 1: UK Cloud Migration Services Market Overview

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

UK Cloud Migration Services Market Drivers

Increasing Adoption of Digital Transformation in UK Enterprises

The UK Cloud Migration Services Market is experiencing a significant uptick due to the widespread digital transformation initiatives undertaken by enterprises seeking to enhance operational efficiency and customer engagement. According to a recent UK Government report, approximately 85% of businesses in the UK have accelerated their digital transformation efforts in the last three years, particularly after the COVID-19 pandemic. This transformation is driving the demand for cloud services as companies look to migrate their legacy systems to cloud-based solutions.

For instance, organizations like The Co-operative Group have reported that transitioning to the cloud has improved their data accessibility and operational agility. The growing necessity for advanced technological capabilities among UK companies is expected to further propel the demand for cloud migration services, making it a critical driver in the UK Cloud Migration Services Market.

Government Initiatives and Funding for Cloud Adoption

The UK Government has actively promoted cloud adoption among public sector organizations to enhance service delivery and streamline operations. Initiatives such as the 'Cloud First' policy encourage public sector bodies to consider cloud solutions as a primary option for their IT needs, resulting in an anticipated increase in cloud migration projects. The UK Digital Strategy emphasizes investing over 1 billion in cloud services to enhance public services.

Furthermore, partnerships between the government and established cloud providers like Amazon Web Services and Microsoft Azure foster innovation and provide the necessary infrastructure for migration. This increased government support not only drives demand for cloud migration services but also positions the UK Cloud Migration Services Market for robust growth in the coming years.

Rising Demand for Scalability and Flexibility in IT Infrastructure

Organizations across various sectors in the UK are increasingly seeking scalable and flexible IT infrastructure to adapt to market changes and enhance competitive advantage. A recent survey indicated that nearly 70% of UK businesses are shifting towards cloud solutions to enable better resource allocation and scalability. Major companies, such as Tesco, have recognized the benefits of cloud solutions, stating that cloud migration allows them to easily scale IT resources in response to fluctuating business demands.

As businesses continue to prioritize agility and cost-effectiveness, the need for cloud migration services as a means to achieve these goals will continue to drive growth in the UK Cloud Migration Services Market.

Increasing Cybersecurity Concerns and Compliance Requirements

The rise in cyber threats and stringent compliance regulations has increased the demand for cloud migration services among UK organizations. According to the UK Cyber Security Breaches Survey, 39% of businesses experienced a cybersecurity breach or attack in the past year, prompting the need for more secure and compliant IT infrastructure. Many cloud providers have enhanced their security measures and compliance certifications to address these concerns, making cloud migration a viable solution for organizations seeking to bolster their cybersecurity posture, especially in highly regulated industries like finance and healthcare.

Established firms like Barclays have turned to cloud services to meet compliance standards while ensuring robust security measures are in place, driving further demand within the UK Cloud Migration Services Market.

UK Cloud Migration Services Market Segment Insights

Cloud Migration Services Market Service Type Insights

The UK Cloud Migration Services Market is witnessing significant growth, primarily influenced by various service types that cater to diverse business needs, promoting enhanced operational efficiency and scalability. As businesses increasingly transition their operations to cloud-based platforms, Automation is becoming a critical component, enabling organizations to improve processes, reduce manual workload, and increase accuracy. The Integration service type is equally vital in ensuring seamless compatibility among various applications and systems, aiding firms in optimizing their existing IT infrastructure while facilitating a smooth transition to cloud environments. Disaster Recovery services also hold a prominent place in the market as they provide essential backup solutions, ensuring business continuity and data preservation in the event of unexpected incidents, which is a prime concern for many UK businesses facing increasing cyber threats.

The Application Hosting and Monitoring aspect of cloud migration is significant as it allows organizations to run their applications on robust cloud infrastructures, while monitoring tools help manage performance and resource usage effectively in real-time. Moreover, with the growing focus on DevOps practices, there is an upsurge in the demand for integrated development and operational processes. This service type is crucial as it bridges the gap between development and IT operations, fostering a culture of collaboration and efficiency that is highly valued in today's fast-paced business environment. Training and Consulting services play a major role in equipping organizations with the knowledge and skills needed for a successful migration process, guiding stakeholders through planning, execution, and post-migration strategies. Finally, the Support and Maintenance segment is essential for ongoing operational effectiveness, providing businesses in the UK with the assurance that their cloud infrastructure is running smoothly and efficiently, which is essential for sustaining growth in a competitive digital landscape. Collectively, these service types drive the UK Cloud Migration Services Market forward by addressing critical business requirements and contributing to the overall trend of digital transformation in the region.

Fig 2: UK Cloud Migration Services Market Insights

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Cloud Migration Services Market Application Insights

The UK Cloud Migration Services Market is experiencing robust growth, particularly within the Application segment, which plays a critical role in facilitating businesses' transition to cloud-based solutions. This segment encompasses several key areas, including Project Management, Infrastructure Management, and Security and Compliance Management, each contributing to the seamless execution of cloud migration processes. Project Management tools are pivotal as they enhance coordination and efficiency during migration, ensuring timelines are met without disruptions.

Infrastructure Management is significant, as it optimizes IT resources in the cloud environment, maintaining performance and reliability essential for businesses. Meanwhile, Security and Compliance Management is increasingly important in the UK, given the stringent regulatory landscape and rising concerns about data protection. Organizations are compelled to prioritize security protocols to safeguard sensitive information, which bolsters trust in cloud services. As demand for digital transformation accelerates, the Application segment stands out for its vital contributions to the overall success of cloud migration, reinforcing the need for effective solutions that address diverse business requirements in the evolving UK market.

Cloud Migration Services Market Organization Size Insights

The UK Cloud Migration Services Market showcases a diverse landscape, particularly when examining the Organization Size segment that encompasses Large Enterprises and Small to Medium Enterprises (SMEs). Large Enterprises typically exhibit a higher adoption rate of cloud migration services driven by the need for enhanced scalability, efficiency, and centralized systems. This demographic often seeks customized solutions to handle intricate workloads and vast data pools, thereby facilitating streamlined operations and cost reductions. On the other hand, SMEs are increasingly recognizing the significance of cloud migration as a means to leverage advanced technologies, enhance operational flexibility, and improve competitiveness.

The appeal of cost-effective solutions and ease of deployment makes cloud migration particularly attractive to this group. As a result, SMEs are gradually shifting from traditional systems, enabling them to harness the cloud’s potential for innovation and digital transformation. The growing awareness and need for security, compliance, and managed services further highlight the importance of both segments in the overall UK Cloud Migration Services Market, marking a robust trend toward digital adoption across various industries. This ecosystem reflects the vital role that both organization sizes play, addressing unique challenges while capitalizing on the opportunities presented by cloud technologies.

Cloud Migration Services Market Deployment Model Insights

The Deployment Model segment of the UK Cloud Migration Services Market encompasses Public, Private, and Hybrid Cloud solutions, each offering unique advantages suited to varying business needs. Public Cloud services are highly favored for their cost-effectiveness and scalability, catering to organizations seeking flexibility and the ability to scale resources rapidly. Private Cloud, conversely, appeals to enterprises requiring enhanced security and control over their data, often due to regulatory compliance demands prevalent in the UK’s data protection landscape.

Hybrid Cloud serves as a strategic choice for businesses that need a balance of both models, allowing them to leverage the benefits of both Public and Private Clouds to optimize workflows and resource management. This segment demonstrates significant growth potential, driven by the increasing demand for agility in IT infrastructure, the ongoing transition to digital business operations, and the need for tailored solutions that address specific organizational needs. As organizations across the UK navigate their digital transformation journeys, understanding the nuances of these deployment options becomes critical for aligning technological strategies with business objectives, thereby fostering market growth and innovation.

Cloud Migration Services Market Vertical Insights

The UK Cloud Migration Services Market is experiencing significant growth, driven by various industries increasingly adopting cloud technologies. Verticals such as Banking, Financial Services, and Insurance (BFSI) are highlighting the necessity for enhanced data security and regulatory compliance, making cloud solutions vital for operational efficiency. The Healthcare and Life Sciences sector is embracing cloud migration to improve patient data management and streamline research processes, evidencing its importance in delivering better healthcare outcomes.

Telecommunications and IT Enabled Services (ITES) are leveraging cloud services for scalability and improved customer engagement, reflecting the sector's need for innovative solutions. Moreover, the Manufacturing domain is utilizing these services for optimizing supply chains and enhancing production capabilities. Retail businesses are recognizing the cloud's potential in providing personalized customer experiences and robust inventory management systems. Additionally, the Entertainment sector is transforming through cloud integration, enabling on-demand content delivery and better user engagement.

As a whole, these sectors are shifting towards cloud migration to enhance agility, drive innovation, and support ongoing digital transformation in the UK marketplace.

UK Cloud Migration Services Market Key Players and Competitive Insights

The UK Cloud Migration Services Market is characterized by its dynamic nature, driven by the increasing demand for agile, scalable, and secure cloud solutions across various industries. Companies are looking for efficient ways to transition their workloads and applications to cloud environments, thus creating opportunities for service providers that specialize in facilitating cloud migrations. Competitive insights indicate a rapidly evolving landscape where innovation, strategic partnerships, and customer-centric approaches play crucial roles. Enterprises often assess multiple vendors based on their ability to provide tailored solutions, expertise in different cloud environments, and the effectiveness of their migration methodologies, which underscore the importance of differentiation among competitors.

Saberpoint has carved a niche in the UK Cloud Migration Services Market through a robust service portfolio that emphasizes personalized customer engagement and strategic adaptability. The company leverages its technical expertise to guide businesses of all sizes through the complexities of cloud migration, ensuring minimal disruption to operations. With a strong focus on building lasting client relationships, Saberpoint has established a reputation for delivering bespoke solutions that address the unique requirements of each organization. Their strengths lie in a responsive approach to client needs, strong capabilities in designing and implementing efficient migration plans, and a commitment to ensuring that clients achieve their desired business outcomes post-migration. Additionally, Saberpoint’s dedication to continuous improvement and staying abreast of emerging technologies gives it a competitive edge in an increasingly crowded marketplace.

Capgemini stands out as a major player in the UK Cloud Migration Services Market, offering a comprehensive suite of services that cater to businesses looking to migrate their applications and data to the cloud. With a strong market presence, Capgemini emphasizes its expertise in hybrid and multi-cloud strategies, enabling organizations to optimize their cloud environments effectively. Key products and services include cloud assessment, migration planning, implementation, and ongoing management, which position the company as a one-stop solution for clients. Capgemini's strengths are amplified by its extensive experience across various sectors, innovative solutions, and robust partnerships with leading cloud providers. Furthermore, the company has pursued strategic mergers and acquisitions to bolster its capabilities and market position, ensuring that it remains at the forefront of cloud transformation initiatives for UK enterprises. This strategic direction affirms Capgemini's commitment to delivering high-quality services while adapting rapidly to the evolving demands of the cloud landscape.

Key Companies in the UK Cloud Migration Services Market Include

• Saberpoint

• Capgemini

• Fujitsu

• Accenture

• Atos

• DXC Technology

• Google

• Red Hat

• Microsoft

• Rackspace

• Oracle

• IBM

• Salesforce

• Cloudreach

• Amazon Web Services

UK Cloud Migration Services Market Developments

The UK Cloud Migration Services Market has seen significant activity recently as organizations continue to shift operations to cloud-based platforms. In August 2023, Accenture completed its acquisition of the UK-based cloud transformation company, Cloudreach, enhancing its capabilities in cloud migration and management services. This move aligns with the rising demand for seamless digital transitions across various sectors in the UK. Companies such as Capgemini and Fujitsu are ramping up their service offerings to cater to the increasing complexity of hybrid cloud environments. Furthermore, Microsoft and Amazon Web Services continue to dominate the market, reporting growth driven by their extensive service portfolios. In recent years, notable developments include IBM’s strategic partnerships within the financial services sector aimed at accelerating cloud integration and the overall expansion of Oracle's cloud services in the region. The growth in this market is reflected in increasing investments, with the UK government supporting the transition to digital technologies through initiatives aimed at stimulating cloud adoption. These developments signify robust competition and innovation within the UK Cloud Migration Services Market, driven by evolving customer needs and technological advancements.

Cloud Migration Services Market Segmentation Insights

Cloud Migration Services Market Service Type Outlook

• Automation

• Integration

• Disaster Recovery

• Application Hosting and Monitoring

• DevOps

• Training and Consulting

• Support and Maintenance

Cloud Migration Services Market Application Outlook

• Project Management

• Infrastructure Management

• Security and Compliance Management

Cloud Migration Services Market Organization Size Outlook

• Large Enterprises

• SMEs

Cloud Migration Services Market Deployment Model Outlook

• Public

• Private

• Hybrid Cloud

Cloud Migration Services Market Vertical Outlook

• BFSI

• Healthcare and Life Sciences

• Telecommunications and ITES

• Manufacturing

• Retail

• Entertainment

Report Attribute/Metric	Details
Market Size 2023	0.95 (USD Billion)
Market Size 2024	1.08 (USD Billion)
Market Size 2035	5.5 (USD Billion)
Compound Annual Growth Rate (CAGR)	15.919% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Saberpoint, Capgemini, Fujitsu, Accenture, Atos, DXC Technology, Google, Red Hat, Microsoft, Rackspace, Oracle, IBM, Salesforce, Cloudreach, Amazon Web Services
Segments Covered	Service Type, Application, Organization Size, Deployment Model, Vertical
Key Market Opportunities	Increased demand for remote work, Expansion of hybrid cloud solutions, Rising regulatory compliance needs, Growth in data analytics migration, Small business digital transformation efforts
Key Market Dynamics	Increased data security concerns, demand for cost efficiency, scalability and flexibility requirements, regulatory compliance pressures, competition among service providers
Countries Covered	UK