Database as a Service (DBaaS) Market - Forecasts from 2023 to 2028

The database as a service (DBaaS) market is projected to grow at a CAGR of 21.59% to reach US$71.545 billion in 2028 from US$18.214 billion in 2021.

Database as a Service (DBaaS), also known as Managed Database Service, is a form of cloud technology that permits users to link to and manage a virtual database system without requiring procuring and deploying their private infrastructure, setting up their personal data program, or administering the database individually. Frequent modifications, recoveries, and verifying that the database connection is secure and always operational are all maintained by the cloud provider. Database and information storage suppliers have partnered with well-known cloud service providers in supplying featured variants of their software, allowing users to avail benefits of cloud processing for their services' resource retention, retrieval, and navigation operations.

A company must decide which database technologies are most effective for its application before choosing a DBaaS provider, and that supplier must support those technologies. The majority of DBaaS services offer integrated management tools that make it easier to configure, monitor and maintain the databases. These tools include archiving, access control, and activity monitoring. A consistent set of API methods can be used to supply and manage a variety of database engines, streamlining and standardizing the development process.

The rising implementation of cloud services in several industries has been a major driver for the database as a service (DBaaS) market.

The DBaaS market is anticipated to benefit from the increase in the volume of data generated across the different industry verticals. The need for DBaaS technologies and systems is predicted to increase as more people utilize cloud services to store important data and as demand for self-driving cloud databases increases. This market's expansion is also anticipated to be fueled by DBaaS systems' operational efficacy, seamless integration, and cost-effectiveness compared to conventional databases and the use of these systems in several industries like healthcare, retail as well as telecom, where a lot of data is generated. With the rising incorporation of technology and smart systems in these industries, the demand for DBaaS systems is expected to increase during the projected period.

The DBaaS market has also flourished due to efforts from businesses to create more cognitive programs to improve the effectiveness of organizational processes and offer better consumer experiences. DataStax, a database-as-a-service (DBaaS) company, announced in January 2023 that it was acquiring Kaskada, a supplier of machine learning services based in Seattle. According to DataStax, the acquisition of Kaskada will enable it to expand the capabilities of its products, including its serverless, NoSQL database-as-a-service AstraDB and Astra Streaming, to include data-based, event-driven, and real-time machine learning capabilities.

Key Developments

In July 2022, StarRocks introduced a managed database-as-a-service (DBaaS) solution, powered by the Apache Doris open-source project. With a focus on online transaction processing (OLAP) workloads, the new cloud-native StarRocks Cloud service provides a fully-managed version of the StarRocks SQL-compatible MPP data warehouse. The business asserts that it can respond to inquiries more quickly and inexpensively than current options. The cost of StarRocks Cloud is determined by data and compute consumption levels. Prepaid enterprise pricing is also offered, and the service can be integrated with existing data infrastructure.

In December 2022, Aiven, a supplier of cloud databases as a service added the managed ClickHouse analytics database platform to its list of generally accessible services. An increasing number of open-source data technologies, such as Kafka, Cassandra, PostgreSQL, and Redis, are supported by the well-funded vendor's cloud DBaaS services. Aiven released the managed open-source ClickHouse analytics database's initial beta version in September 2022, with just enough features for simple applications. Aiven later made the ClickHouse service available to all of its users with multimode support after making it generally available.

Based on industry verticals, the database as a service (DBaaS) market is expected to witness strong growth in retail.

Since DBaaS enables companies to offer quick and simple service to their consumers, it helps to increase overall customer satisfaction. It can be utilized in automated checkout systems that allow customers to make purchases from stores without physically being there. They no longer have to wait in line to make these purchases as they can do it without going into the store. Customers can accomplish this by scanning their mobile devices as they enter the shop, which makes use of the data connections made possible by their mobile devices. They can just enter the store and directly collect the products they have purchased after scanning their phones.

Utilizing chatbots is another method by which DBaaS services can increase overall customer happiness. Customers can get quick and simple information by employing chatbots driven by databases, whether they are in-store chatbots, chatbots inside mobile apps, or chatbots on websites. Vendors reduce and could even eliminate the need for customers to wait for assistance by implementing several in-store chatbots. These in-store chatbots can provide customers with any additional information they may require, including the location of a certain item in the store, its price, and other details.

North America holds a significant share of the database as a service (DBaaS) market.

Based on geography, the Database as a service (DBaaS) market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. While Asia-Pacific is anticipated to experience the fastest growth rate, North America is anticipated to hold considerable market shares for DBaaS during the anticipated period. The market's prominence in North America can be attributed to the region's rapid adoption of cloud databases and DBaaS services. Furthermore, due to the presence of significant key companies in this area like Amazon, Oracle, and IBM, these technologies are frequently being integrated into cloud database systems and services. Due to the rapid development of the information technology sector in this area and the sizeable electronics industry as a result of the presence of major electronics manufacturers in the region, Asia-Pacific is predicted to experience substantial growth during the projected period.

Market Segmentation:

By Type

• SQL
• NoSQL

By Deployment

• Cloud
• On-Premises

By Enterprise Size

• Small and Medium
• Large

By Industry Vertical

• BFSI
• Healthcare
• Retail
• IT and Telecom
• Manufacturing
• Media & Entertainment
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Other
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others