Data Center Automation Market Demands, Growth Analysis & Industry Report 2024-2032

Written by Business News  »  Updated on: September 11th, 2024

Summary:

  • The global data center automation market size reached USD 5.7 Billion in 2023.
  • The market is expected to reach USD 17.5 Billion by 2032, exhibiting a growth rate (CAGR) of 12.9% during 2024-2032.
  • North America leads the market, accounting for the largest data center automation market share.
  • Based on type, the market has been categorized into tier 1, tier 2, tier 3, and tier 4. 
  • Server holds the largest share in the data center automation industry as automated server management ensures high performance and reduced downtime.
  • On the basis of the deployment mode, the market has been classified into cloud-based, on-premises.
  • Based on the end user, the market has been segmented into enterprises, cloud services providers, and colocation service providers.
  • BFSI holds the largest share in the data center automation industry as automation helps financial institutions streamline operations, reduce costs, and maintain regulatory compliance.
  • The rise in demand for efficient ways to manage the growing volume of data is a primary driver of the data center automation market.
  • The heightened need to reduce operational costs and increase scalability are reshaping the data center automation market.


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Industry Trends and Drivers:

Increasing Demand for Efficient Data Management:

The increasing demand among organizations for more efficient ways to manage their ever-growing volumes of data is creating a positive outlook for the market. Moreover, the rapid expansion of cloud services, big data, and the Internet of Things (IoT), prompting companies to streamline their operations to handle the complexities of modern information technology (IT) environments, is favoring the market growth.

Besides this, automating processes such as data backups, security checks, and resource allocation reduces human error and ensures systems remain operational with minimal downtime. Furthermore, the rising ability of data center automation to automatically balance workloads across servers, manage storage needs, and maintain optimal performance is driving the market growth.

Reducing Operational Costs and Increasing Scalability:

The ability of data center automation to reduce operational costs while increasing scalability is creating a positive outlook for the market. Automating routine tasks such as server configuration, monitoring, and software updates helps reduce the need for a large IT workforce, allowing organizations to allocate resources more efficiently.

Moreover, automation provides a solution to optimize power usage and minimize cooling expenses, which are critical in large data centers. In addition to this, the growing ability to automate infrastructure management as it ensures they expand without significantly increasing overhead is acting as a growth-inducing factor. Furthermore, automation enables businesses to deploy new services and applications faster, increasing their ability to scale in response to market demands.

Heightened Focus on Enhancing Security and Compliance:

The increasing number of cyber threats and stricter regulations regarding data protection, encouraging organizations to ensure that their data centers are secure and compliant at all times, is favoring the market growth. Automation allows for continuous monitoring of security protocols, identifying vulnerabilities, and responding to threats in real-time without human intervention.

Besides this, automated compliance checks help ensure that systems adhere to industry standards and regulations, reducing the risk of costly penalties for non-compliance. Moreover, automation tools provide detailed audit trails and reports, simplifying the compliance process for businesses. Furthermore, the ability of data center automation to enforce consistent security policies across all data center operations, regardless of scale, is driving the market growth.

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Data Center Automation Market Report Segmentation:

Breakup By Type:

  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

Based on type, the market has been categorized into tier 1, tier 2, tier 3, and tier 4.



Breakup By Solution:

  • Server
  • Database
  • Network
  • Others

Server dominates the market as they form the backbone of data center operations, and their automation is critical for managing large-scale workloads efficiently.

Breakup By Deployment Mode:

  • Cloud-based
  • On-premises

On the basis of the deployment mode, the market has been classified into cloud-based, on-premises.

Breakup By End User:

  • Enterprises
  • Cloud Services Providers
  • Colocation Service Providers

Based on the end user, the market has been segmented into enterprises, cloud services providers, and colocation service providers.

Breakup By Industry Vertical:

  • BFSI
  • IT and Telecom
  • Public Sector and Utilities
  • Energy
  • Manufacturing
  • Healthcare
  • Others

BFSI exhibits a clear dominance as they deal with massive volumes of sensitive data that require secure, reliable, and scalable solutions.

Breakup By Region:

  • North America
  • Asia-Pacific
  • Europe
  • Latin America
  • Middle East and Africa

North America holds the leading position owing to a large market for data center automation driven by the strong focus on adopting advanced technologies, coupled with high cloud adoption rates.

Top Data Center Automation Market Leaders: The data center automation market research report outlines a detailed analysis of the competitive landscape, offering in-depth profiles of major companies.

Some of the key players in the market are:

  • ABB Limited
  • BMC Software Inc.
  • Cisco Systems Inc.
  • Citrix Systems Inc.
  • Dell Technologies Inc.
  • Fujitsu limited (Furukawa Group)
  • HashRoot Ltd.
  • Hewlett Packard Enterprise Development LP
  • Intel Corporation
  • Micro Focus International plc
  • Oracle Corporation
  • Riverturn Inc.
  • Siemens AG
  • Veristor Systems Inc.


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