The shapefile format has limitations such as size restrictions, limited data types, and lack of support for certain spatial types. Esri's File Geodatabase (FGDB) format is considered a replacement, offering improvements like file size flexibility and rich data types, but it lacks open-source support and requires proprietary Esri APIs. The GeoPackage (GPKG) format, developed by the Open Geospatial Consortium (OGC), addresses these issues with an open-source SQLite storage engine, platform independence, and extensibility through documentation and extensions.