Mobile Ecosystem to Drive $5.9 Billion Cloud Backend-as-a-Service Market

The demand for cloud-based backend services could triple in the next five years. The prediction comes courtesy of a new report from MarketsandMarkets, which projects that the Cloud Mobile Backend-as-a-Service (BaaS) Market will jump from $2.0 billion to $5.9 billion between 2020 and 2025. Those numbers represent a CAGR of 23.9 percent.

The research firm attributes that growth to the growing ubiquity of mobile devices, and the evolving ecosystem of mobile apps that run on them. Those apps require backend capabilities, which forces app developers to search for a BaaS solution if they do not have the resources or do not want to build and run that backend on their own.

With that in mind, MarketsandMarkets believes that the database management application segment will grow significantly as more companies move forward with their digital transformations. The firm expects to see that trend in every industry, regardless of the size of the organization, though it will be especially pronounced with small and medium-sized enterprises. BaaS technology will make it easier for those organizations to comply with various security regulations and reduce risk while simultaneously reducing their administrative costs. As a result, they are expected to grow the Cloud BaaS market at a higher rate.

North America has the largest share of the Cloud BaaS market as a region, thanks in large part to the presence of major technology giants like Microsoft and IBM. The North American market is also fully mature, to the point that companies in many industries regularly update their infrastructure to keep up with the latest innovations.

MarketsandMarkets identified Temenos and EXADEL as some of the key players in the Cloud Mobile BaaS space, placing them alongside perennial titans like Google and Amazon (and its Amazon Web Services). The latter recently started offering native support for the WebAuthn authentication protocol, while the Department of Defense has broadened its search for a cloud partner for its Automated Biometric Identification System.