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The Backend-as-a-Service (BaaS) Market size is estimated to grow at a CAGR of 23.2% between 2023 and 2028. The market size is forecast to increase by USD 6.90 billion. The growth of the market depends on several factors, including the increasing adoption of smartphones, the rising applications in E-Commerce and CRM, and the growth of Baas in consumer goods industries. The global backend as a service (BaaS) market refers to the market for cloud-based infrastructure and tools that enable developers to build, deploy, and manage the backend of their applications. BaaS providers offer a variety of services and features, including database management, push notifications, user authentication, file storage, and server-side scripting, among others. This market typically serves developers and enterprises that rely on backend services to power their mobile applications, web services, and other software solutions. BaaS platforms provide a simplified and scalable approach to backend development, allowing developers to focus on creating innovative user experiences rather than managing complex server infrastructures.
This backend as a service market report extensively covers market segmentation by deployment (on-premises and cloud), end-user (large enterprises and SMEs), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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One of the key factors driving the backend as a service market growth is the increasing adoption of smartphones. There is an increasing use of smartphone mobile applications as they use a wide range of mobile applications for work, play, communication, shopping, and other activities. In addition, platforms that offer backend services as a service (BaaS) give developers access to cloud-based infrastructure and tools for creating, deploying, and managing mobile applications.
Moreover, by offering features such as data storage, server-side logic, push notifications, and user authentication, these platforms free up developers to concentrate more on building new and reliable front-end experiences. In addition, the increasing number of people using smartphones is fuelling demand for mobile apps, which is driving up the use of BaaS platforms. Hence, such factors are positively impacting the backend-as-a-service (BaaS) market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the backend as a service market growth is the increasing adoption of cloud-based infrastructure. The growing adoption of cloud-based infrastructure is indeed a primary trend in the global backend as a service (BaaS) market. In addition, developers can concentrate on frontend development and application logic by outsourcing infrastructure management and backend development responsibilities to a cloud computing service called BaaS.
Moreover, there is a growing use of cloud-based infrastructure in the BaaS market due to factors such as scalability and flexibility, cost savings, simple integration, enhanced security, global accessibility, quick development, and deployment. In addition, BaaS frees up developers' time and resources by taking care of things like patch management, system upgrades, and server maintenance. Hence, such factors are positively impacting the backend-as-a-service market. Therefore, it is expected to hinder the market growth during the forecast period.
Issues in data security and privacy are some of the key challenges hindering the backend as a service market growth. Some of the main challenges associated with the backend as a service market include data breaches, compliance with regulations, lack of control, data residency, and sovereignty, vulnerabilities in third-party libraries, insider threats, and inadequate encryption techniques. In addition, a key component of data security is encryption.
Moreover, poor encryption procedures or careless handling of encryption keys can result in data breaches and jeopardize user privacy. In addition, while utilizing a backend as a service platform, businesses may find that their visibility and control over the security measures put in place by the supplier are restricted. Furthermore, concerns concerning the security and privacy of their data may arise from this lack of control. Hence, such factors are negatively impacting the backend-as-a-service market. Therefore, it is expected to hinder the market growth during the forecast period.
The on-premises segment is estimated to witness significant growth during the forecast period. The on-premises deployment segment in the global backend as a service (BaaS) market can be referred to as when the backend infrastructure and services are hosted and controlled within the company's own premises or data center. In addition, in this market, companies seek to use BaaS capabilities in their own dedicated environment while maintaining total control over their backend infrastructure. Furthermore, they usually have direct access to the underlying systems and implement BaaS solutions on their own hardware.
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The on-premises segment was the largest segment and was valued at USD 904.05 million in 2018. Moreover, the on-premises segment is pertinent to businesses with stringent compliance and data security needs, whereby they are required by law or policy to retain sensitive data on their own property. In addition, it is also appropriate for companies that have made large investments in their current IT infrastructure and would rather use their own resources to implement BaaS solutions internally. Furthermore, having direct control over backend systems gives firms advantages like improved data control and flexibility. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The growing demand for BaaS in the large enterprises segment will increase the market growth. The large enterprises segment in the global backend as a service (BaaS) market can be referred to as the use of BaaS solutions by large-scale organizations across various industries. In addition, these businesses usually have sophisticated IT infrastructure needs and a large volume of data. Moreover, backend services, like database management, user authentication, server management, and data storage, are essential to the operations of large organizations, which frequently comprise numerous teams and departments. Furthermore, by offering these businesses a scalable and effective way to connect and manage various backend services, BaaS systems help to lower the complexity and expense of managing IT infrastructure. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that is contributing to the backend-as-a-service market growth in North America is the need for BaaS solutions is fuelled by the growing popularity of cloud computing and the requirement for quicker application development and deployment. In addition, businesses are searching more and more for methods to shorten the time to market and optimize their development processes. Moreover, the growing popularity of developing mobile apps is fuelling the demand for BaaS solutions. Furthermore, backend development is something that mobile app developers want to make easier, and BaaS offers the infrastructure and technologies that make this possible. Hence, such factors are driving the market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global backend as a service market witnessed a significant impact as the pandemic has caused many businesses to cut back on their IT spending, which has put more pressure on BaaS vendors to provide flexible payment alternatives and low pricing. in North America. However, in 2021, the initiation of large-scale vaccination drives has lifted the lockdown and travel restrictions, and for businesses that have been driven by the pandemic to step up their digital transformation initiatives, BaaS solutions are essential for facilitating remote collaboration and work. Such factors are expected to drive the market during the forecast period
The backend as a service market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Backend as a Service Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
8base Inc: The company offers backend as a service that powers everything that needs to build and run professional grade web and mobile applications faster and securely without needing to reinvent the wheel.
Airship Group Inc: The company offers backend as a service which encompasses a small amount of functionality, and serves requests from other services over well defined protocols that contains message composition and reporting, billing and usage reports, and service management.
Alphabet Inc: The company offers backend as a service which is fully managed, scalable infrastructure to accelerate app development, automate tasks, and free up engineering time so they could focus on bringing their ideas to life.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The backend as a service market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 - 2022.
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Backend As A Service Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 23.2% |
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Market Growth 2024-2028 |
USD 6.90 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
22.9 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 49% |
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Key countries |
US, Canada, China, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Buddy, 8base Inc., Airship Group Inc, Alphabet Inc., Amazon.com Inc., Apptread, Axway Software SA, Back4App Inc., Convertigo SA, Couchbase Inc., Exadel Inc., International Business Machines Corp., Kii Corp., MadAppGang Pty Ltd., Microsoft Corp., Optimove Inc., Oracle Corp., Progress Software Corp., PubNub Inc., and Temenos AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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