Data Center Automation Market - By Component (Solution, Service), By Deployment Mode (On-Premises, Cloud), By Organization Size (SME, Large Enterprises), By End-Use (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom) & Forecast 2023 – 2032

Data Center Automation Market Size

Data Center Automation Market size was valued at USD 7.5 billion in 2022 and is projected to grow at a CAGR of over 13% between 2023 and 2032. Data center automation significantly reduces operational costs by minimizing the need for manual intervention in routine tasks such as server provisioning, maintenance & resource allocation. Automated processes optimize hardware utilization, leading to lower energy consumption and reduced overhead. Additionally, automation reduces the risk of costly human errors, further contributing to cost savings, making it an attractive solution for organizations striving to maximize the efficiency of their data center operations.
 

Automation streamlines data center operations, enhancing efficiency through rapid task execution and resource allocation. It eliminates time-consuming and error-prone manual workflows, resulting in reduced downtime and faster response times to changing business needs. This increased efficiency translates into improved service delivery, reduced operational bottlenecks, and ultimately, a more agile & competitive organization in today's fast-paced digital landscape.

Integrating automation into existing data center infrastructures can be a complex endeavor. Data centers often comprise a mix of hardware, software, and processes that have evolved over time. Implementing automation may require significant modifications to accommodate various systems and technologies. Additionally, defining and configuring automated workflows & scripts to align with the intricacies of the data center's unique setup can be challenging. Ensuring seamless integration without disrupting the ongoing operations is a key hurdle that organizations must overcome in their automation process.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of data center automation. With the shift to remote work and increased reliance on digital services, organizations sought to enhance data center efficiency and reliability. Automation played a crucial role in managing remote operations, optimizing resources, and ensuring business continuity. The pandemic underscored the importance of automation in responding to unforeseen disruptions and is likely to have a lasting impact, driving investment in data center automation solutions.
 

Data Center Automation Market Trends

Remote monitoring through robots is emerging as a trend in the data center automation industry. Robots equipped with sensors & cameras can navigate data centers, inspect equipment, and collect real-time data without human intervention. For instance, in December 2022, NTT Data carried out a reportedly successful trial involving a robot within a data center and planned to implement it across its 15 facilities in Japan while also preparing to bring the service to the commercial market. The organization introduced a robot designed with a wheeled torso, complete with arms and basic grippers, along with a range of sensors for tasks related to remote monitoring & inspection. These robots provide proactive maintenance and can respond to incidents promptly, ensuring data center uptime & optimizing operational costs, making them a promising solution in the industry.
 

Data Center Automation Market Analysis

Based on component, the data center automation market is divided into solution and service. The solution segment is further bifurcated into server automation, network automation, storage automation, security automation, and others. The server automation segment is expected to grow at a CAGR of around 13.5% during the forecast period. Partnerships between car manufacturers and server automation service providers are driving innovation in the data center automation industry. Car manufacturers, with their growing reliance on data-intensive technologies, seek efficient server management solutions. Collaborations enable them to leverage the expertise of automation service providers in optimizing server resources, ensuring scalability, and enhancing security. For instance, in April 2023, Lotus IT Infrastructure, a prominent data center service & IT solution provider, launched a significant collaboration with BMW India. As part of this partnership, Lotus will deliver server management services to BMW India, encompassing tasks including server installation, setup, and the ongoing upkeep of crucial IT infrastructure elements such as servers, storage, networking & IT security.
 

Based on deployment model, the data center automation market is categorized into on-premises and cloud. The cloud segment was valued at over USD 4 billion in 2022. Organizations are increasingly adopting multi-cloud strategies, leveraging multiple cloud providers for various services. This trend drives the need for automation to manage workloads, data, and applications seamlessly across different cloud environments. Cloud providers are integrating Artificial Intelligence (AI) and Machine Learning (ML) capabilities into their services. Automation is used to enhance resource optimization, predictive analytics, and intelligent workload management.
 

North America held a dominant market share of over 40% in 2022. Robust technological advancements and the integration of artificial intelligence are driving significant growth in the North America data center automation market. AI-powered automation enhances predictive maintenance, resource optimization, and security measures. In an increasingly digitalized landscape, North American enterprises are turning to advanced automation to improve operational efficiency and agility. This trend, combined with ongoing technological innovations, positions North America as a key driver in the global data center automation industry.
 

Data Center Automation Market Share

Major players operating in the data center automation market are :

• Cisco Systems Inc.
• Microsoft Corporation
• BM Corporation
• Oracle Corporation
• Dell Technologies Inc.
• ABB Limited
• Hewlett Packard Enterprise Company
   

Data Center Automation Industry News

• In March 2023, Digital Realty introduced a robotic canine for routine inspections. The company reported that this machine conducts approximately nine inspection missions each day, following a schedule managed through the Anymal API. During its two-hour mission, it monitors around 70 elements, capturing visual, thermal & acoustic data. After completing a mission cycle, the robot autonomously returns to its docking station for recharging.
   

The data center automation market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Component

• Solution
  • Server automation
  • Network automation
  • Storage automation
  • Security automation
  • Others
• Service

By Deployment Mode

• On-Premises
• Cloud

By Organization Size

• Small/Medium Enterprises
• Large Enterprises

By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & Telecom
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
  • South Korea 
• South America
  • Brazil
  • Argentina
  • Chile
  • Colombia
• MEA
  • UAE
  • South Africa
  • Saudi Arabia