Checklist For Choosing The Right Database Engine
Is the data separated from the application by a network? → choose client/server
Relational database engines act as bandwidth-reducing data filters. So it is best to keep the database engine and the data on the same physical device so that the high-bandwidth engine-to-disk link does not have to traverse the network, only the lower-bandwidth application-to-engine link.
But SQLite is built into the application. So if the data is on a separate device from the application, it is required that the higher bandwidth engine-to-disk link be across the network. This works, but it is suboptimal. Hence, it is usually better to select a client/server database engine when the data is on a separate device from the application.
Nota Bene: In this rule, "application" means the code that issues SQL statements. If the "application" is an application server and if the content resides on the same physical machine as the application server, then SQLite might still be appropriate even though the end user is another network hop away.
Many concurrent writers? → choose client/server
If many threads and/or processes need to write the database at the same instant (and they cannot queue up and take turns) then it is best to select a database engine that supports that capability, which always means a client/server database engine.
SQLite only supports one writer at a time per database file. But in most cases, a write transaction only takes milliseconds and so multiple writers can simply take turns. SQLite will handle more write concurrency that many people suspect. Nevertheless, client/server database systems, because they have a long-running server process at hand to coordinate access, can usually handle far more write concurrency than SQLite ever will.
Big data? → choose client/server
If your data will grow to a size that you are uncomfortable or unable to fit into a single disk file, then you should select a solution other than SQLite. SQLite supports databases up to 140 terabytes in size, assuming you can find a disk drive and filesystem that will support 140-terabyte files. Even so, when the size of the content looks like it might creep into the terabyte range, it would be good to consider a centralized client/server database.
Otherwise → choose SQLite!
For device-local storage with low writer concurrency and less than a terabyte of content, SQLite is almost always a better solution. SQLite is fast and reliable and it requires no configuration or maintenance. It keeps thing simple. SQLite "just works".