The only time you need to consider a client-server setup is:

• Where you have multiple physical machines accessing the same database server over a network. In this setup you have a shared database between multiple clients.
• If your machine is extremely write busy, like accepting thousand upon thousands of simultaneous write requests every second, then you also need a client-server setup because a client-server database is specifically build to handle that.
• If you're working with very big datasets, like in the terabytes size. A client-server approach is better suited for large datasets because the database will split files up into smaller files whereas SQLite only works with a single file.