by The data center automation market comprises of software platforms that automate various tasks such as configuration, management, backup and software deployment of servers in data centers. Automation helps in reducing downtime and lowering capital expenditure along with increasing productivity. The software improves operational efficiency through faster provisioning and uniform application of policies and facilitates rapid response to demand fluctuations through scaling.
The Global Data Center Automation Market is estimated to be valued at US$ 33.83 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the data center automation are Cisco Systems Inc., ABB Limited, Oracle Corporation, Microsoft Corporation, BMC Software, ServiceNow, Citrix Systems, Inc, Hewlett Packard Enterprise Development LP, FUJITSU, VMWare. The increasing need to optimize costs for data center operations presents a key opportunity in the market. Data Center Automation Market Growth helps in reducing cooling costs, power consumption and staffing costs significantly. North America captured the largest share in 2023 owing to rapid technological adoption. However, Asia Pacific is expected to provide lucrative growth opportunities with increasing investments in digital transformation across industries in emerging countries.
Market Drivers
The rising demand for efficiency across data centers driven by increasing data volumes is a key driver accelerating adoption of automation. Automation aids in improving efficiency holistically through consolidation of servers enabled by virtualization. It further helps to utilize infrastructure better through optimal sizing enabled by dynamic resource allocation. This significantly enhances efficiency of power, cooling and space utilization thereby optimizing costs through workload optimization.
PEST Analysis
Political: Regulations governing data protection and privacy has increased across various regions. Different countries have formulated their own set of laws to safeguard citizen’s data, propelling demand for data center automation solutions that ensure compliance.
Economic: Growing digitalization and cloud migration trends have resulted in massive data generation. This has compelled organizations to enhance their data center infrastructure to handle large volumes of data in a cost-effective manner, thereby augmenting adoption of automation.
Social: Rising mobile internet penetration and proliferation of social media/OTT platforms have increased data usage. People’s higher dependence on digital services for communication, education and entertainment is necessitating enterprises to automate their data center processes for seamless service delivery.
Technological: Advanced technologies around artificial intelligence, machine learning and analytics are enabling automated management of complex data center tasks like server provisioning, capacity management and anomaly detection. Robotic process automation is further streamlining workflows to enhance efficiency.
In terms of value, North America holds the largest share in the data center automation market currently owing to significant technology adoption by leading companies. Asia Pacific is anticipated to witness the fastest growth during the forecast period 2024-2031. Countries like China, India and Japan are major contributors with burgeoning digital infrastructure and growing reliance on cloud-based applications.
The European region also captures sizable revenue, benefiting from stringent data protection laws and initiatives around sustainable IT by the European Commission. Other emerging regions including Middle East & Africa and Latin America are gradually embracing data center automation solutions to digitally transform their operations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
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