Cloud Database Market is forecast to reach $39.1 billion by 2026, after growing at a CAGR of 31.4% during 2021-2026. With rise in the adoption of IoT technologies and the usage of cloud database for computing in various organizations for different applications is analyzed to boost the Cloud Database Market. Moreover the cloud databases provide the customers with improved performance, service resilience and so on, thereby enhancing the overall market demand for Cloud Database during the forecast period. The Cloud database market is driven primarily due to rising usage of internet of things, cloud computing as well as rising use of Cloud database in banking and education. IOT data is complex, accessible by multiple users and many complex queries, both SQL and NoSQL implemented storage, and transactions need to be handled through IOT applications. Cloud database makes the data secure and reliable. Furthermore, Cloud database provides customer with data storage, automatic data backups and replication thereby boosting the adoption of Database as a Service (DBaaS) during the forecast period 2021-2026.
- North America dominates the Cloud Database Market owing to high adoption of cloud computing and storage by the large enterprises and SMEs in the region.
- The growing demand from the large scale enterprises for digital database management and storage, is likely to aid in the market growth of Cloud Database Market during the forecast period 2020-2025.
- The increased number of investments in the IoT applications and its impact on the IT and telecom industry is analyzed to impose a significant rise in the demand for data management services thereby creating significant number of opportunities in Cloud Database Market during 2021-2026.
Cloud Database Market Segment Analysis – By Organization Size
Large enterprises held the largest share in the Cloud Database Market in 2020 and are projected to grow at a CAGR of 33.1% through 2026. Large enterprises are majorly opting for private cloud databases based on No SQL implemented storage thereby ensuring security along with additional benefits including reduced infrastructure configuration, management overheads and so on. Enterprises can use the cloud virtualization solutions, tools and databases to develop their cloud based applications and solutions. The rising usage of databases as a virtual image machine will further drive the market. Forbes has stated that 83% of enterprise workloads will be in cloud by 2020 thereby creating a wide range of opportunities for the Cloud Database Market. It has also stated that in 2019 alone, 30% of all the IT budgets were allocated to the cloud computing thereby contributing to the market share. However small and medium scale enterprises are analyzed to have highest growth rate during the forecast period 2021-2026.
Cloud Database Market Segment Analysis – By Application
IT and Telecom held the major market share Cloud Database Market in 2020 and is also analyzed to grow at highest CAGR of 39.7% during the forecast period 2021-2026. Cloud computing is majorly deployed in IT industry majorly owing to the advantages such as high scalability, low cost and accessed through cloud platform. Moreover the increasing demand for IoT and adoption for database as a server is contributing to the overall IT industry. Adding up to these factors, deployment of cloud digital database reduces the IT complexities and operational costs. It helps in creating Virtual machine images as well. Further the employment of big data management in BFSI applications is also analyzed to boost the market for No SQL implemented storage in DBaaS solutions during the forecast period 2021-2026.
Cloud Database Market Segment Analysis – By Geography
In 2020, North America dominated the Cloud Database Market with a market share of 41.5%, followed by APAC and Europe. The major factor contributing to the major market share is the presence of large cloud database vendors including Amazon, Google, Oracle and so on, as they provide enhanced advanced technical architecture and cloud database security to the customers in this region thereby boosting the market during the forecast period 2021-2026. APAC is also analysed to grow at a highest rate during forecast period owing to the increasing adoption of IoT and the major shift of the various enterprises towards the cloud computing. Moreover the significant rise in the investments towards the shift of enterprises and the use of IoT in various applications including smart homes, roads and so on are boosting the Cloud Database Market.
Cloud Database Market Drivers
Growing demand for Database as a service (DBaaS)
Cloud Database eliminates physical infrastructure, provides faster time to application development at lower cost. Moreover DBaaS solutions provide the benefits including instantaneous scalability, performance guarantees, failover support, declining pricing and specialized expertise. With the rise in cloud computing the demand for server and DBaas has significantly increased, primarily DBaaS provision benefits including lower database licensing and infrastructure costs and so on are impacting in the rise of the demand for DBaas market thereby elevating the growth of the Cloud Database Market.
Rising Data Storage Requirements
Storage capacity automatically scale up if the user is near to its limit. This helps the user by saving the time that might be wasted for future data storage estimation or spending money on capacity until needed. Supporting transactions, maintaining strong consistency and high availability across regions and continents a scalable database service called Cloud Spanner was built. The cloud spanner provides customer with strong listing consistency that reduces the probability of missing files in the midst of huge pile of data. Moreover, No SQL implemented storage in the cloud ensures affordability and the data can be easily accessed from anywhere around the world thereby boosting the market growth. The rise of cloud computing has driven the adoption of SQL based cloud databases which will propel the market.
Cloud Database Market Challenges
- In March 2020, MongoDB entered into a partnership with Informatica and Hitachi Vantara Pentaho to make developments in applications running on cloud database system for modernization of the business and organizations.
- In June 2019, Microsoft and Oracle entered into a partnership for inter cloud operation. This provides the customers with excellent service through fast and highly reliable connectivity of network between Microsoft azure cloud and Oracle cloud.