My iPad storage is almost full, can't update software. But I have a lot of space on iCloud. Can I store apps on iCloud so I can update software?

Unfortunately, no.

The iPhone needs to have certain information readily available, and you have used up enough of it so that the new software can’t download.

iCloud is for overall system backups and Apple documents.

It looks like you may need to look into getting more storage the next time you buy an iPad.

there is something you could look into though…”Optimizing storage” on your iPad!

Heres a link to help.

Manage your photo and video storage - Apple Support

giuliana163 Said:

"My iPad storage is almost full, can't update software. But I have a lot of space on iCloud. Can I store apps on iCloud so I can update software?"

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Troubleshooting iPad Storage:

Internal storage cannot be upgraded. It is what it is. So, the maximum internal storage capacity never increases, even if you upgraded your iCloud plan. Learn More here: What's the Difference Between Device Storage and iCloud Storage? Apple Support

So, what to do...

Clear Space Using my User Tips:

• How to Clear Space from your Mobile Device, and What to Clear: - User Tip. You may have too much installed, and need to clear space. So, see my user tip: 
• How to Clear "Other" in your iPhone's Storage - Use Backup - User Tip. Caches would be being used for remembrance of application use. It is essentially the same for an iPad: Backup your iPad, and then restore your iPadfrom the backup you've just created. All System Data will delete.

While it is possible to use subscribe to and use iCloud storage for documents and data - iCloud is not a substitute for internal storage. Apps can only be installed on the device itself.

If your internal storage is full, your only option is to better manage the storage that you have - and delete unused Apps or unneeded data. 

These support pages should prove to be helpful:

About storage on your device and in iCloud – Apple Support

What's the difference between device storage and iCloud storage? – Apple Support

Manage your iCloud storage – Apple Support

How to check the storage on your iPhone, iPad and iPod touch – Apple Support

Clear Other storage on your iPhone or iPad - Apple Support

“Offloading” Apps can be a helpful method of creating temporary space for a software update.

https://9to5mac.com/2020/01/21/how-to-offload-apps-in-ios-to-save-space-without-deleting-their-data/

Additional information about creating sufficient space for installation of a software update can be found here:

If you need more space for an update on your iPhone, iPad, or iPod touch - Apple Support

External storage options can often help with managing limited internal storage. Depending upon your iPad model, the iPad will either have a Lightning or USB-C port - and may therefore require either an Adapter or USB hub to connect the USB Storage device. If your iPad has a Lightning port, you’ll need an Apple Lightning to USB3 Camera Adapter:

• Lightning to USB 3 Camera Adapter

https://store.apple.com/uk/xc/product/MK0W2ZM/A

You are welcome. Any success?