Database Software Market Definition
The database software market consists of the sales revenues earned by entities (organizations, sole traders and partnerships) that are engaged in computer software publishing, or publishing and reproduction. Establishments that are engaged in writing, modifying, designing, testing, assisting in installation, providing documentation and supporting software are also included in this market. ,
Database software products are used for creating, editing and managing database files and records. It allows users to store data in the form of structured fields or tables and columns, and data can be retrieved or extracted directly through programmatic access. Database software products are used by many industries for bookkeeping, compiling client lists and maintaining other such similar tasks.
Database Software Market Size
The global database software market reached a value of nearly $78.72 billion in 2019, having grown at a compound annual growth rate (CAGR) of 10.6% since 2015, and is expected to grow at a CAGR of 7.3% to nearly $104.42 billion by 2023. The market is then expected to grow to $123.93 billion in 2025 at a CAGR of 8.9% and to $172.59 billion in 2030 at a CAGR of 6.9%.
Growth in the historic period resulted from technological advances, digitization, and economic growth. Factors that negatively affected growth in the historic period were cyber security, and consumer reluctance.
Going forward, increase in amount of data generated is expected to drive the market. Factors that could hinder the growth of the database software market in the future include increasing number of laws, barriers to entry, and rise in open source software.
Database Software Market Drivers
The key drivers of the database software market include:
Increase In Amount Of Data Generated
Increase in the amount of data generated by industries in their regular operations and integration of technologies including Internet of Things (IoT) in the process are expected to benefit the forecast period as it rises the need of using database software to handle vast amount of data with confidentiality, integrity, and availability. In addition, the introduction of customer-interface applications and the implementation of cloud computing technologies in industries including small scale enterprises have also increased the demand for database software. For example, companies including Coca-Cola has invested in FileMaker, a custom database software to deal with its large amount of data in a more efficient way. The use of FileMaker enables managers to analyze reports to get a glimpse of what is happening company-wide in-real time.
Database Software Market Restraints
The key restraints on the database software market include:
Open Source Software Gaining Ground
Over the next five years, the database market is predicted to experience loss of revenue as companies increasingly provide open source alternatives. Open source has become a preferred platform for users to operate software products on the internet for free of cost. This not only restricts revenues of firms providing such a platform, but also hinders revenue of firms employing a license or subscription business model. According to a study by Gartner, by 2022, 70% of new in-house applications will be developed on an open-source database management system. This is expected to be a significant restraint for the database software industry in the forecast period.
Database Software Market Trends
Major trends influencing the database software market include:
Increased Focus On Database Security
Database software manufacturers are increasingly investing in security measures in order to protect data. Data privacy and security risks can be a major restraint in the growth of database software market. During November 2019 alone, there were reported cases of more than 1 billion breaches, most of them caused due to one leaked database. Understanding this risk, database software companies are increasingly investing in security of databases and are trying to make the cloud a protected place to store sensitive information. Companies such as Oracle and Microsoft are increasingly investing in database security to protect data. Oracle’s database software claims to offer various levels of security for database protection including encryption.
Shift To Offline Network Connectivity
Database software companies are increasingly investing in database software which can be accessed without network connectivity to improve the customer’s convenience and experience. The shift to make applications more responsive and less dependent on network connectivity, the trend of offline usage or less dependency on the network is gaining popularity. Applications nowadays are kept on local databases or a copy of the database is made over cloud onto a local device and synced whenever there is a network connectivity. This allows faster and responsive applications which are functional even when there is no or limited internet connectivity. Companies such as Oracle, Microsoft and Realm have mobile versions of their database software, which can be accessed with limited network connectivity.
Opportunities And Recommendations In The Database Software Market
Opportunities – The top growth potential in the database software market segmented by type of software will arise in the database maintenance management market, which will gain $13,877.7 million of global annual sales by 2023. The top growth potential in the database software market segmented by type of deployment will arise in the cloud market, which will gain $57,664.9 million of global annual sales by 2023. The top growth potential in the database software market segmented by type of end user will arise in the others market, which will gain $7,836.9 million of global annual sales by 2023.The database software market will gain the most in the USA at $6,869.8 million.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the database software companies consider focusing on cloud based database products, database security and use of hybrid transactional and analytical processing systems (HTAP), consider expanding through collaborations, leverage technology to maximize reach and increase visibility through a high-performance website and focus on offering their products and solutions on a subscription or pay-per-usage payment models, among other strategies.
The major players covered in the global database software market are Oracle, Microsoft, IBM, SAP, Amazon, Redis, Teradata, Couch base, SQLite, MongoDB, Tandem, Mark Logic, ArangoDB, MariaDB, TablePlus, EnterpriseOB, RavenDB, NCR, Pervasive Software, FileMaker Inc., Software AG, HP (Vertica System), Informatica Corporation, InterSystems, iWay Software (subsidiary of IBI), MetaMatrix (subsidiary of Red Hat), Actian Corporation.
The countries covered in the global database software market are Brazil, China, France, Germany, India, Indonesia, Japan, South Korea, Russia, UK, USA, Australia. The regions covered in the global database software market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Database Software Market Segmentation
The database software market is segmented by type of product, by type of deployment, by end-user and by geography.
By Type Of Product-
The database software market can be segmented by type of product into
The database maintenance management market was the largest segment of the database software market, accounting for $40,164 million or 51.0% of the total market in 2019. It is also expected to be the fastest-growing segment going forward at a CAGR of 7.7%.
- a) Database Maintenance Management
- b) Database Operation Management
By Type of Deployment–
The database software market is segmented by deployment into
The on-premise market was the largest segment of the database software market by deployment, accounting for $56,107 million or 71.3% of the total market in 2019. The cloud market is expected to be the fastest-growing segment going forward at a CAGR of 37.3%.
The database software market can be segmented by end-user into
The others segment was the largest segment of the database software market by end user, accounting for $ 23,241 million or 29.5% of the total market in 2019. The media & entertainment market is expected to be the fastest-growing segment going forward at a CAGR of 8.4%.
- a) BFSI
- b) IT & Telecom
- c) Media & Entertainment
- d) Healthcare
- e) Others
By Geography- The Database Software market is segmented into
North America was the largest region in the database software market, accounting for 44.2% of the global market in 2019. It was followed by Asia Pacific, Western Europe and the other regions. Going forward, the fastest growing regions in the database software market will be Asia-Pacific and South America.
- o North America
- o Western Europe
- o Asia Pacific
- South Korea
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Database Software Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Oracle Corporation
- • Microsoft Corporation
- • IBM
- • SAP SE
- • Amazon
- • Teradata
- • MongoDB
- • Mark Logic
- • Couch base
- • SQLite
- • Datastax
- • InterSystems
- • MariaDB
- • ScienceSoft
- • AI Software
- • Fujitsu
- • Huawei
- • Software AG
- • Amazon Web Services (AWS)
- • Rocket Software