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Microsoft says that the Windows 10 development team is using a new compression algorithm in combination with the removal of a recovery image to cut down on the amount of storage space the OS will need on PCs, tablets and smartphones



From Windows Central:
Microsoft uses the example of a device which has 32GB of storage. Older versions of Windows might allow for 17.6GB of free storage on that device, but the use of the new compression technique, along with the ditching of a recovery image, with the 64-bit version of Windows 10 frees up another 6.6GB of storage space, giving that device a total of 24.2GB of free space, with just 7.8GB used for the OS itself.

If Windows 10 users still want to have a recovery image for their device, in case something goes wrong, they are free to make one.
  Windows 10 will free up more storage space for your PC, tablet or phone