Data Center Automation Market Size (2024 - 2029)

The data center automation market is anticipated to experience significant growth, driven by the increasing demand for efficient data management solutions. The expansion of social networking, analytics, cloud computing, and mobile computing is expected to enhance the need for automation in data centers, as it helps manage the vast amounts of unstructured data generated from various sources. Automation is crucial in minimizing errors and optimizing processes, thereby contributing to cost savings and improved efficiency. The market's potential is further supported by the trend of companies outsourcing data center management while retaining core processes in-house, highlighting the strategic importance of automation in enhancing operational effectiveness.

Market Size of Data Center Automation Industry

Data Center Automation Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 17.83 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Data Center Automation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Data Center Automation Market Analysis

The data center automation market is expected to grow at a CAGR of 17.83% during the forecast period. The data center team receives extra support from the opportunities generated by the data center automation, which is the current stage of a deployment strategy for the data center automation in the market.

  • The boom in social networking, analytics, cloud computing, and mobile computing is projected to positively impact the need for data center automation. Approximately 80% of the data generated is unstructured, containing raw audio, file, or text from various sources, such as blogs and social media platforms.
  • Big Data needs to be concise to be analyzed. However, manually handling an enormous amount of data would lead to a high probability of error. Thus, automation plays a vital role in data centers by performing looked-for tasks, which is expected to drive market growth during the forecast period.
  • The market includes several opportunities as the company that owns and operates a data center hires third parties to take over data center management. At the same time, they keep as many processes in-house as possible. As an alternative to managed services, automation can eliminate errors, save time, and optimize the processes for better cost-savings
  • The Organisation for Economic Co-operation and Deployment (OECD) and various sources claim that during the COVID-19 pandemic, internet usage increased by as much as 60% and that demand for data centers increased as a result of the internet of things (IoT) and video streaming services.

Data Center Automation Industry Segmentation

Data center automation is the process of managing and automating the workflow and processes of a data center facility. It automates the bulk of the data center operations, management, monitoring, and maintenance tasks performed manually by human operators.

The data center automation market is segmented by solution (server, database, network, and other solutions), data center type (Tier 1, Tier 2, Tier 3, and Tier 4), deployment mode (on-premise, cloud), end-user vertical (BFSI, healthcare, retail, manufacturing, IT and telecom, and other end-user verticals), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).

The market sizes and forecasts are provided in value (USD million) for all the above segments.

By Solution
Server
Database
Network
Other Solutions
By Data Center Type
Tier 1
Tier 2
Tier 3
Tier 4
By Deployment Mode
On-premise
Cloud
By End-user Vertical
BFSI
Healthcare
Retail
Manufacturing
IT and Telecom
Other End-user Verticals
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Data Center Automation Market Size Summary

The data center automation market is poised for significant growth, driven by the increasing demand for efficient data management solutions amid the surge in data generation from sources like social networking, analytics, cloud computing, and mobile computing. As businesses grapple with the challenge of handling vast amounts of unstructured data, automation emerges as a crucial tool to minimize errors, save time, and optimize processes. The rise in cloud adoption, fueled by the need for agility and flexibility, further propels the market forward. The COVID-19 pandemic has accelerated digital transformation, increasing internet usage and, consequently, the demand for data centers. This trend is particularly evident with the proliferation of IoT devices and video streaming services, which contribute to the exponential growth of data traffic and storage needs.

North America is expected to maintain a dominant position in the data center automation market, supported by early adoption of advanced technologies and substantial investments in cloud-based solutions. The region's robust IT infrastructure and ongoing modernization efforts, such as the US Army's private cloud computing initiatives, underscore the growing importance of data center automation. The market's fragmentation is attributed to the presence of numerous players offering bundled services, including cloud and AI solutions. Key companies like Oracle, Fujitsu, HP, and Microsoft are actively shaping the market landscape. Recent developments, such as ABB's collaboration with ATS Global and Augtera Networks' support for AMD Pensando DPUs, highlight the continuous innovation and strategic partnerships driving the market's expansion.

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Data Center Automation Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of the Impact of Covid-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Solution

      1. 2.1.1 Server

      2. 2.1.2 Database

      3. 2.1.3 Network

      4. 2.1.4 Other Solutions

    2. 2.2 By Data Center Type

      1. 2.2.1 Tier 1

      2. 2.2.2 Tier 2

      3. 2.2.3 Tier 3

      4. 2.2.4 Tier 4

    3. 2.3 By Deployment Mode

      1. 2.3.1 On-premise

      2. 2.3.2 Cloud

    4. 2.4 By End-user Vertical

      1. 2.4.1 BFSI

      2. 2.4.2 Healthcare

      3. 2.4.3 Retail

      4. 2.4.4 Manufacturing

      5. 2.4.5 IT and Telecom

      6. 2.4.6 Other End-user Verticals

    5. 2.5 Geography

      1. 2.5.1 North America

      2. 2.5.2 Europe

      3. 2.5.3 Asia-Pacific

      4. 2.5.4 Latin America

      5. 2.5.5 Middle East & Africa

Data Center Automation Market Size FAQs

The Data Center Automation Market is projected to register a CAGR of 17.83% during the forecast period (2024-2029)

Cisco Systems Inc., ABB Limited, Hewlett Packard Enterprise Company, Oracle Corporation and Microsoft Corporation are the major companies operating in the Data Center Automation Market.

Data Center Automation market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)