Cloud Database and DBaaS Market

[284 Pages Report] The global Cloud Database and DBaaS market size is expected to grow from USD 21.3 billion in 2023 to USD 57.5 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 22.0% during the forecast period. The growing need for continuous innovation, digitalization, and rising demand for smartphones, tablets, and social media are the major factors fueling the growth of the Cloud Database and DBaaS  market. Further, the increasing adoption of Cloud Databases and DBaaS by medium businesses and small businesses, with limited resources available to optimize their operations, has significantly contributed to the growth in the market in terms of the user base.

A database-as-a-service provided on a cloud computing platform is referred to as a cloud database or DBaaS. The rental of databases with enormous storage capacities by cloud database service providers enables effective management and analysis of large amounts of data. Additionally, these services give businesses access to a cloud database system, saving them the time it would take them to set up the necessary hardware, install the necessary software, and configure the system. The software's upkeep and any necessary upgrades are also handled by the service providers.  The cost-effectiveness and effective time management of cloud databases and DBaaS services are some additional advantages.

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Drivers: The growing demand for structured data in various enterprises

Quantitative data, also known as structured data, is organized in a way that machine learning algorithms can easily understand. Structured query language (SQL) is a programming language created by IBM in 1974 that enables business users to input, search, and manipulate structured data using a relational database. Structured data is ideal for machine learning algorithms due to its organized architecture, which simplifies data manipulation and querying. Even users with basic knowledge of the data's topic can access and interpret structured data without requiring an in-depth understanding of various data types. Structured data has more tools available for its usage and analysis than unstructured data since it predates it. For instance, CRM software utilizes analytical tools to process structured data and produce datasets that reveal customer behavior patterns and trends. Data from online bookings of hotel and ticket reservations adhere to a pre-defined data model’s ‘rows and columns’ format. Accounting firms or departments use structured data to process and record financial transactions. Nowadays, many technology companies utilize cloud databases to cater to various industries. Barracuda Networks, for example, provides a cloud-based Advanced Threat Protection (ATP) network that safeguards businesses worldwide from malware, ransomware, targeted attacks, and zero-day threats. The ATP network relies on Apache Cassandra as the underlying database and Astra DB, a Cassandra-based DBaaS, to simplify operation and management. This drives the enterprise cloud database and DBaaS market.

Restraint: Lack of technical knowledge and expertise

When it comes to using cloud databases and DBaaS, it's essential that experts or staff have the necessary technical skills and knowledge to implement, process, analyze, and secure cloud solutions. Unfortunately, many organizations are losing out on market share and money due to a lack of cloud expertise, which prevents them from taking advantage of emerging technologies. This is largely due to a severe shortage of technical skills among IT workers, particularly in the realm of cloud databases and DBaaS. Companies are struggling with various talent-related issues, including the need for rapid hiring processes, high wages for seasoned cloud workers, and difficulties finding candidates who are a good fit for their organizational culture. Ultimately, the growth engines of these companies could sputter if there aren't enough skilled cloud workers available. While 80% of IT leaders acknowledge that a lack of skilled workers is preventing companies from expanding their modern software engineering and cloud environments, more than 90% of them are actively working to address this issue.

Opportunities: Adoption of IoT and connected devices

It's no secret that technological advancements are being made every day. A couple of these technologies that have gained much attention are IoT and cloud computing, which are closely related. IoT has experienced remarkable growth, with over 10 billion active devices currently in use and an expected growth of 25.4 billion by 2030. Meanwhile, cloud services are being used by 94% of businesses, with 83% of enterprise workloads being hosted in the cloud. IoT devices generate a lot of data that requires collection and processing, either locally or remotely. While remote hosting and analytics are more practical and cost-effective in many IoT applications, edge computing has emerged as a promising alternative. Edge computing can filter data and send only some of it to distant servers, reducing the demand for cloud storage. It has enormous potential for real-time data analytics and is expected to work alongside IoT devices and cloud computing in the future. However, it's impractical for most businesses to move all their data processing and storage back to the edge.

Challenges: Risk of vendor lock-in

Cloud database and DBaaS adoption face a significant obstacle in the form of vendor lock-in, as there are no industry standards in place. While there are technologically-based solutions and initiatives being developed to address this issue, the complexity of the problem in the cloud context is not fully understood due to limited research. Consequently, many clients are unaware of proprietary standards that hinder application portability and interoperability when using vendor services. For example, migrating data from one data center to another can be challenging due to compatibility issues resulting from changes made in the original provider’s system. In this highly competitive environment, companies cannot rely on just one provider to maintain their edge over rivals, and they are constantly looking for improvements and better cloud databases and DBaaS services. Vendor lock-in can be caused by incompatible technologies, high initial costs for switching vendors, poor business practices, and contractual restrictions. These factors are holding back the adoption of cloud databases and DBaaS services and making it difficult for vendors to keep up with the competition in the market.

Ecosystem

Based on organization size, large enterprises segment to be the largest contributor to the Cloud Database and DBaaS market growth during the forecast period.

Based on organization sizes, the large enterprise segment is expected to hold a higher market share. The global business practices of organizations have undergone a significant change because of the cloud database and DBaaS market. Enterprise-scale businesses are abandoning dated on-premises database solutions in favor of adaptable, cloud-based alternatives. During the forecast period, the market growth for cloud databases is anticipated to be aided by the rising demand from large-scale businesses for digital database management and storage. Large businesses are increasingly choosing private cloud databases built on No SQL-implemented storage, which ensures security and offers additional advantages like less complicated infrastructure configuration and administrative burdens. To create their cloud-based applications and solutions, businesses can use cloud virtualization solutions, tools, and databases.

The market will be further stimulated by the expanding use of databases as virtual image machines. Small and Medium-sized Enterprises (SMEs) are expected to grow at a higher CAGR during the forecast period. By reimagining entire industries, the Internet of Things promises to connect the world in truly revolutionary ways. Small businesses will be able to make better decisions thanks to the business intelligence generated by cloud-based analytics. Expensive offices will make way for effective, on-demand workplaces that don't require commuting time or expensive IT teams and can adapt to a worker's specific needs. Teams will all have access to up-to-the-minute, reliable data, breaking down silos and making fragmented data easily accessible. This information will aid SMEs in creating distinctive customer journeys and enhancing their employee experiences, in addition to serving as a foundation for better decision-making.

Based on vertical, the retail & consumer goods segment is to be a larger dominator in the Cloud Database and DBaaS market during the forecast period.

Notably, cloud-based technology transformation can benefit retailers greatly in terms of sustainability. By making the best use of the hardware, a cloud migration can have numerous positive direct environmental effects. However, cloud journeys also give retailers the opportunity to make the next step towards responsibility by promoting sustainable customer experiences, circular business models, and traceable and improved supply chains. Many retailers had started shifting operations to the cloud even before the pandemic. The pandemic has also oftentimes accelerated those plans. Although the current environment is extremely difficult for retailers, things will eventually improve. And when it does, retailers who haven't benefited from this opportunity to transform their company will be at a disadvantage to those who have. And doing so entails more than just transferring more current systems and applications to the cloud. Retailers that have used the cloud to quickly reimagine their businesses on a cloud-enabled, sustainable technology platform will transform into true digital retailers, able to keep up with the pace of change and cost-effectively and continuously evolve and innovate to deliver the experiences customers want. Due to the rising demand for online shopping as well as the fiercer competition, retail companies must make full use of the most cutting-edge technologies available to them in order to survive and thrive.

One such technology that makes workflows simpler lowers IT costs, and enhances customer experience is cloud computing. One of the key elements influencing a consumer's purchase decision is the product's price. Because of this, it's crucial for sellers to monitor competitor pricing, examine historical sales trends and margin implications, and use this data to establish reasonable prices for their goods both in-person and online. However, performing all of this manually takes a lot of time and can result in unreliable data. Although it can take data from numerous sources and prepare it for pricing analysis, cloud computing in retail offers accurate data and can save a significant amount of time for data specialists. Cloud-based retail solutions can also automatically update prices in-store and online. One of the hardest jobs in the retail sector is managing, monitoring, and maintaining inventory. Businesses with numerous store locations will find it even harder to track and keep an eye on their inventory in real-time. However, real-time data is offered by retail cloud services, allowing for inventory tracking and monitoring in real time. Retail businesses with multiple stores no longer need to manually sync their various store inventories thanks to cloud computing.

Asia Pacific to grow at the highest CAGR during the forecast period.

In Australia, Newcastle Council's Smart City Strategy focuses on how Big Data, the Internet of Things, and cloud connectivity can contribute to the development of more livable and forward-thinking urban environments. Cloud computing was widely regarded as the cornerstone of Malaysia's digital transformation during the endemic phase of COVID-19. Primary vendors like Alibaba Cloud have made it possible for small businesses to trade as successfully as large corporations. This has made it possible for these companies to fully utilize the services. The two main market leaders for data centers in the Asia-Pacific region are China and Australia. The largest optical fiber network, 4G, and 5G independent networking networks are all found in China. 916,000 base stations have been constructed for 5G at this time, which accounts for more than 365 million of the 70% to 80% of 5G connections worldwide. Significantly more data is being consumed as a result of the rising demand for OTT services and online streaming content on large display formats. Although there is no Netflix in China, there are local OTT services like Yuoku, Tencent Video, Mango TV, and Bilibili. With an estimated 34 billion USD in revenue in 2021, the online streaming market is anticipated to grow in value. Around 10-12% of data is currently created and processed outside of a centralized data center or cloud in Australia, but this percentage is predicted to rise to 65-70% by 2025, following a global trend that is also present in Australia. The COVID-19 crisis made clear how urgently Australia needs digital infrastructure to boost connectivity. Because of the growing demand for high-speed Internet services and the government's emphasis on aggressive fiber to the x (FTTx) network expansions across the country as part of the National Broadband Network (NBN) project, fiber lines are predicted to continue to be the dominant fixed broadband technology through 2025. In August 2022, the Australian operator Telstra chose new partners for the rollout of its transport network infrastructure and purchased Mad Max-style equipment that can lay two fiber cables at once as it accelerated the construction of its high-capacity data transport networks across a nation known for its unique environmental difficulties.

Key Players

Google (US), Microsoft (US), AWS (US), IBM (US), Oracle v (US), Alibaba Cloud (China), SAP (Germany), MongoDB (US), EnterpriseDB (US), Redis Labs (US), Tencent (China), Rackspace (US), Teradata (US), CenturyLink (US), Neo4J (US), Datastax (US), Tigergraph (US), MariaDB (US), RDX (US), SingleStore (US)  are the key players in the Cloud Database and DBaaS market.

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Scope of the Report

This research report categorizes the Cloud Database and DBaaS market based on database type component, service, deployment model, organization size, vertical, and region.

Based on Database Type, the Cloud Database and DBaaS market has been segmented as follows:

• Structured Query Language
• Not Only Structured Query Language

Based on Components, the Cloud Database and DBaaS market has been segmented as follows:

• Solutions
• Services

Based on Service, the Cloud Database and DBaaS market has been segmented as follows:

• Professional Services
• Consulting
• Implementation
• Support and Maintenance
• Managed Services

Based on the Deployment Model, the Cloud Database and DBaaS market has been segmented as follows:

• Private Cloud
• Public Cloud
• Hybrid Cloud

Based on Organization Size, the Cloud Database and DBaaS market has been segmented as follows:

• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

Based on vertical, the Cloud Database and DBaaS market has been segmented as follows:

• BFSI
• IT & Telecom
• Government
• Retail & Consumer Goods
• Manufacturing
• Energy & Utilities
• Media & Entertainment
• Healthcare & Life Sciences
• Other Verticals (Education, Travel & Hospitality, and Transportation)

Based on regions, the Cloud Database and DBaaS market has been segmented as follows:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Middle East and Africa
  • United Arab Emirates (UAE)
  • Saudi Arabia
  • Rest of the Middle East and Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In May 2022, Google launched Manufacturing Data Engine and Manufacturing Connect. These two new solutions allowed manufacturers to connect previously siloed assets, process and standardize data, and improve visibility from the factory floor to the cloud. Once the data is unified, the solutions enable three critical AI and analytics-based use cases: manufacturing analytics and insights, predictive maintenance, and machine-level anomaly detection.
• In October 2022, Microsoft partnered with LSEG. LSEG and Microsoft announced a 10-year strategic partnership for next-generation data and analytics solutions, as well as cloud infrastructure solutions; Microsoft will make an equity investment in LSEG through share acquisition. New collaboration with Microsoft Azure, AI, and Microsoft Teams to architect LSEG's data infrastructure and build intuitive next-generation productivity, data and analytics, and modeling solutions.
• In May 2023, IBM acquired Polar Security. Polar Security, a technology innovator that helps businesses discover, continuously monitor, and secure the cloud, has been acquired by IBM. Polar Security’s DSPM technology will be integrated into IBM's Guardium family of leading data security products. With the addition of Polar Security's DSPM technology, IBM Security® Guardium will provide security teams with a data security platform that spans all data types and storage locations: SaaS, on-premises, and public cloud infrastructure.

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