Data Center Automation Market Is Anticipated To Witness High Growth Owing To Increased Need For Improved Efficiency And Agility
The data center automation market includes software and tools that enable the automation of physical and virtual IT infrastructure in data centers. Data center automation helps improve the efficiency of operations through centralized management and control over physical and virtual components. It enables organizations to optimize data center resources, reduce costs, ensure compliance and security, and deliver applications faster. The growing need among enterprises to improve operational efficiency while reducing costs is a key factor driving increased adoption of data center automation solutions.
The Global Data Center Automation Market is estimated to be valued at US$ 10.29 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Increased spending on Data Center Automation Market Growth infrastructure by enterprises across industries to support their digital transformation initiatives and the need for improved efficiency and agility are the primary factors propelling market revenue growth.
Key Takeaways
Key players operating in the data center automation market are Cisco Systems Inc., ABB Limited, Oracle Corporation, Microsoft Corporation, BMC Software, ServiceNow, Citrix Systems, Inc, Hewlett Packard Enterprise Development LP, FUJITSU, VMWare. These players are focusing on developing advanced solutions through partnerships, mergers, and acquisitions to strengthen their market position.
The growing demand for cloud-based solutions across industries is expected to create significant opportunities for market players. Convergence of technologies such as AI, big data and IoT is also enabling innovative data center automation solutions. Data center operators are expanding their global footprint to cater to the increasing computing needs of global enterprises, presenting prospects for international market expansion.
Market Drivers
One of the key drivers for the data center automation market is the increased need for improved efficiency and agility. Data center automation allows enterprises to optimize the use of physical infrastructure, cooling and power resources. It enhances workload scheduling and streamlines IT operations to improve productivity.
Market Restrains
Lack of awareness among small and medium enterprises about the benefits of data center automation is a major challenge. High upfront costs required for switching from legacy systems to advanced automated solutions also restrain the adoption rates to some extent. Ensuring reliability during the integration of new automated systems with existing infrastructure is another key concern for many organizations.
Segment Analysis
The data center automation market is dominated by hardware segment as it accounts for more than 30% share owing to the need for installation of various hardware components like computing systems, storage, networking devices and others in a data center infrastructure. The recurring maintenance and upgradation needs further drive the demand for servers, storage arrays and networking switches in a data center.
The network automation sub-segment holds significant share under the software type as efficient network management is critical for seamless data center operations. Centralized network automation solutions help in easy configuration, monitoring and maintenance of entire network infrastructure through a single platform. This eases the workload of IT administrators and reduces human errors.
Global Analysis
North America dominates the global data center automation market with over 35% share owing to heavy investments by leading technology companies in building automated and AI-driven data center facilities. Rapid digitalization and growing volume of data processed in various industries have created the need for scalable and efficient data centers in the region. Asia Pacific exhibits fastest growth led by China, India and Japan. The growth in APAC region can be attributed to ongoing infrastructure development projects, smart city initiatives and rising adoption of cloud-based services. European market is fueled by high demand for automation from major colocation service providers and cloud players operating in the region.
Get more insights on Data Center Automation Market