cloud database and Database as a Service (DBaaS) market size is expected to grow from USD 12.0 billion in 2020 to USD 24.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.7% during the forecast period. The growing demand to process low-latency queries is one of the major factors driving the growth of the market.
Market Key Players Analysis
Google (US), Microsoft (US), AWS (US), IBM (US), Oracle (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), and MemSQL (US) are some of the leading companies operating in this market.
AWS (US) is recognized as one of the leading vendors in the cloud database and DBaaS market. It offers various web-based services to augment the efficiency of different businesses across the globe. The company is a pioneer in providing infrastructure platforms in the cloud, which is its greatest strength. It further offers the flexibility of choosing from its vast platform solutions as per the needs of the enterprises, and its pay-as-you-go model also boosts its value proposition among the enterprises. The company provides competent solutions at comparatively lower prices, thus, providing a competitive advantage to it. It focuses on upgrading its product offerings to extend its customer base and gain a competitive advantage. AWS focuses on organic and inorganic growth strategies. For instance, in February 2019, AWS collaborated with Lyft. Lyft leveraged AWS services, such as Machine Learning (ML), database, and analytics. Lyft relies on Amazon DynamoDB, which delivers high performance to assist mission-critical workloads, including ride-tracking system.
Microsoft (US) is an American multinational technology and consulting firm. In the cloud database and DBaaS market, Microsoft offers Azure Structured Query Language (SQL) Database and Azure Cosmos DB. Azure SQL Database is a fully managed relational database that is also an intelligent and scalable cloud database service that offers the broadest SQL server engine compatibility. It also offers other features, such as frictionless migration, built-in ML, high availability, and advanced security. Azure Cosmos DB is a multi-modal, fully managed non-relational database service. It is globally distributed over multiple Azure regions. It also provides scalability, high availability, consistency, and low latency.
The Banking, Financial Services and Insurance vertical segment to account for the highest market share during the forecast period
The Banking, Financial Services and Insurance (BFSI) vertical is one of the most data-centric verticals where large volumes of databases are generated at an exponential rate. Various factors are expected to contribute to the growth of the database in the financial sector. Some of these factors include electronic transactions, Automated Teller Machines (ATMs), credit cards, call centers, and mobile-based sources. The database generated from these sources is scattered across various branches and departments across various financial institutions and needs to be interlinked together. The linking of this database is important to derive meaningful insights and sustain in the competitive market. The BFSI vertical demands an additional secured environment to secure its online transactions 24*7, which can be achieved by cloud database and DBaaS. Hence, the adoption of cloud database and DBaaS solution helps BFSI companies to store, manage, access, and modify data for further processes. Cloud database and DBaaS ensure the seamless execution of transactions. These solutions further improve the accuracy and efficiency of various processes and assist in the regulatory and compliance reporting by collating data from multiple sources. Most banks are increasingly deploying cloud database and DBaaS solutions to enhance performance and improve cost-savings.
The Not only Structured Query Language segment to grow at a higher CAGR during the forecast period
The growing amount of digital data in unstructured data format generates the need for dynamic scalable database. Structured Query Language (SQL) offers databases only in the tabular format, but Not only Structured Query Language (NoSQL) offers database and queries in various formats: column, graphical, document, and others. Thus, the need is fulfilled by the non-relational database with its highly scalable and easy to program model. NoSQL is also known as non-relational database. It offers great features to the clients; scalability is apparently the most important one. In addition to this, NoSQL allows users to store and retrieve unstructured data. Today, most of the cloud database and DBaaS vendors provide NoSQL compatible cloud database services. Owing to this, dealing with huge data processing on the web has been made cost-effective.