The data center automation market size is expected to grow from US$ 7.53 billion in 2022 to US$ 28.79 billion by 2030; it is estimated to grow at a CAGR of 18.3% from 2022 to 2030.
Data Center Automation Market Analyst Perspective:
Data center automation is expected to witness significant growth in the forecasted period as analytics, social networking, cloud computing, and mobile computing are growing continuously. Around 80% of the data produced worldwide is unstructured, which includes unprocessed audio, video, and text from different sources, such as blogs and social networking sites. This continuous production of data is raising the need for more data centers worldwide. However, manually handling of this enormous amount of data may lead to a high probability of error. Thus, to handle this large amount of data, the need for automation in data centers is increasing, driving the growth of the data center automation market during the forecast period.
Data Center Automation Market Overview:
Data center automation is the process through which routine workflows and processes of a data center, which includes scheduling, monitoring, maintenance, application delivery, and others, are managed and executed without human administration. Data center automation helps to increase agility and operational efficiency, further raising its demand in the market. In addition, it also helps to reduce the time IT needs to perform routine tasks, further enabling them to deliver services on demand in a repeatable, automated manner. Furthermore, it also helps to deliver insight into server nodes and configurations, automates routine procedures such as patching, updating, and reporting, produces and programs all data center scheduling and monitoring tasks, and enforces data center processes and controls according to government standards and policies.
Strategic Insights
Data Center Automation Market Driver:
Growing Cloud Computing is Fueling the Growth of Data Center Automation Market
The pandemic led to a huge cloud computing growth spurt, because of which the cloud has become the foundation for all emerging technology. According to IBM, around 2.5 quintillion bytes of data are created every day. In addition, approximately 90% of the data in the world today has been created in the last two years. Due to this regular increase in the amount of data generated, companies are moving to cloud storage to secure and utilize this data. Also, the massive data generation is raising the demand for low-cost data storage solutions across enterprises, which is expected to create a significant opportunity for the growth of the data center automation market during the forecast period.
Moreover, the growing digitization worldwide is leading to an increase in the volume and speed of data generation. This is further increasing the adoption of cloud across both large and small businesses due to the increasing need for agility and flexibility for accelerating innovation and disruptions from competitors. In addition, the continuous increase in data traffic is further raising the demand for cloud data storage, fueling the growth of the data center automation market. According to Ericsson, the mobile data traffic is expected to grow strongly in the coming years, particularly due to the growing adoption of 5G. At the end of 2022, the 5G’s share of mobile data traffic was 15%, which was an increase from 9% at the end of 2021. This share is further expected to grow to 66% in 2028.
Furthermore, large enterprises continue to invest their resources in IoT, as they are increasingly utilizing the technology as part of their business plans by rapidly revamping their IoT plans and executing long-term IoT deals. With this technology as part of their business plans by rapidly revamping their IoT plans and executing long-term IoT deals. With this continuous increase in the adoption of IoT worldwide, there will be an accumulation of vast piles of data, raising the demand for cloud data storage. Thus, all the above factors are leading to the production of large amounts of data, raising the demand for cloud computing, further propelling the growth of the data center automation market.
Data Center Automation Market Segmental Analysis:
Based on application, the data center automation market is segmented into IT and telecom, government, manufacturing, healthcare, energy and utilities, retail, and others. The IT and telecom segment held the largest data center automation market share in 2022 and is anticipated to register the highest CAGR during the forecast period. Telecommunications has become a universal and indispensable part of daily life, connecting people and businesses across the world. With the consequent increase in data consumption and innovative technologies, the IT & telecom industry demands an effective and efficient data storage and processing approach. Thus, the increasing amount of data is raising the demand for data centers worldwide, fueling the growth of the data center automation market. In addition, the IT industry is constantly developing new data center automation software to enable businesses to adopt digital solutions for seamless operations. Also, telecommunication service providers are experiencing a huge amount of data generation due to the rise in internet access, which is fueling the need to adopt data center automation software for data management and storage. Thus, the continuous production of large amounts of data in data center automation software is fueling the growth of the data center automation market.
Data Center Automation Market Regional Analysis:
North America is expected to witness significant growth in the data center automation market in the forecasted period. This is due to the growing technological advancements and continuous production of large amounts of data, which is raising the need for more data centers in the region. The US has over 5x more data centers than any other country. It has around 2,701 data centers, which is continuously growing due to the construction of new data centers. In Q1 of 2023, the construction of the Elk Grove Village Data Center Campus project started in Illinois, US. The aim of the project is to become a worldwide destination for high-tech companies and manufacturers. The project is expected to be completed in Q3 of 2026. Similarly, the construction of the Atlanta Data Centre project has started in Q1 of 2023 in Georgia, US. It is expected to finish in Q1 2024. Thus, such a growing number of data centers in the region is expected to propel the growth of the data center automation market in the forecasted period.
Furthermore, the availability of high-speed connectivity, an increase in cloud adoption, and a surge in connected devices are driving the growth of IoT in the region. Also, the rapidly emerging 5G technology is raising the demand for edge computing in North America. According to the IoT—Spring 2022 report, released in May 2022, the market for the Internet of Things is expected to grow by 18% to reach 14.4 billion active connections. Further, the number of connected IoT devices is expected to reach 27 billion by 2025. With more IoT devices connected, the adoption of edge computing solutions will also grow in North America in the coming years, which will further propel the growth of the North American data center automation market.
Data Center Automation Market Key Player Analysis:
ABB, BMC Software, Inc., Cisco Systems, Inc., Dell Inc., FUJITSU, Hewlett Packard Enterprise Development LP, Juniper Networks, Inc., Microsoft, Micro Focus, and VMware, Inc. are among the key data center automation market players. This data center automation market is focused on continuous product development and innovation.
Data Center Automation Market Recent Developments:
Inorganic and organic strategies such as product launches, partnerships, collaboration, and mergers and acquisitions are highly adopted by companies in the data center automation market. A few recent key market developments by these data automation companies are listed below:
- In August 2022, ABB announced that they had signed a Memorandum of Understanding (MoU) agreement with ATS Global to extend the reach of their ABB Ability Data Center Automation (DCA) business. Under this agreement, ATS will work with ABB to combine expertise and resources, testing the advantages and effectiveness of potential collaborations for data center customers and growing their respective businesses. This will also help the companies to strengthen their distribution channels, improve industry knowledge and increase lead generation.
- In October 2022, Augtera Networks announced that they are collaborating with AMD Pensando DPUs to bring purpose-built Network AI to next generation data centers. This collaboration will further help the company to expand its market reach.
- In January 2023, Micro Focus announced the opening of a new data center in the UK. With this, the UK customers will be able to access IT Operations Management (ITOM) software as a service (SaaS) solutions from their local data center, which complies with local data residency regulations, including data security, privacy, storage and transfer.
- In May 2023, NVIDIA announced its collaboration with SoftBank Corp. to power SoftBank’s Next-Gen Data Centers using Grace Hopper Superchip for Generative AI and 5G/6G. Thus, with this collaboration, SoftBank plans to roll out new, distributed AI data centers across Japan.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Have a question?
Naveen
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Solution, Deployment Type, Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The List of Companies
1. ABB Ltd.
2. Apstra
3. BMC Software, Inc.
4. Cisco Inc.
5. Chef
6. Dell Inc.
7. Fujitsu limited
8. Microsoft Corporation
9. Puppet
10. VMware, Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to Data Center Automation Market
Apr 2024
Engineering Professional Services Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Consulting, Non-Consulting), Service Type (Designing and Construction, ESG, Program Management, Others), Sector (Private, Public), Vertical (Advanced Manufacturing, Infrastructure, Energy and Utilities, Environmental, Transportation, Others), Advanced Manufacturing (Data Center, Life Sciences, Electronics, and Semiconductor, EV and EV Battery, Others), Infrastructure (Buildings and Cities, Health Infrastructure, Telecommunication Infrastructure, Others), Energy And Utilities (Renewables, Energy Storage, Transmission and Distribution), Transportation (Aviation, Highways and Bridges, Ports and Maritime, Rail and Transit), Water (Water, Wastewater), and Geography (Americas, Europe, Asia Pacific and Middle East and Africa)
Apr 2024
Virtual Reality Puzzle Games Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Age (18 to 34 Years, Above 35 Years, 13 to 17 Years, and Upto 12 Years), Player Type (Single Player and Multi Player), and End Users (Individuals and Professionals)
Apr 2024
Inspection Software for Government Services Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Services (Implementation and Deployment, Support and Maintenance, Training, and Consulting), Deployment (Cloud and On-premises), Application (Permitting and Licensing Management, Inspection and Scheduling Management, Contract Management, and Others), and End User (Local Government, State Government, and Federal Government)
Apr 2024
Spend Analytics for Electronics and Semiconductor Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis By Component (Software and Service), Type (Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics), Deployment (On-premise and Cloud), and Application (Financial Management, Risk Management, Governance and Compliance Management, Supplier Sourcing and Performance Management, Demand and Supply Forecasting, and Others)
Apr 2024
Photonic Design Automation Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Component (Solution and Service), Deployment (On-Premise and Cloud), Organization Size (SMEs and Large Enterprises), and Application (Academic Research and Industrial Research & Manufacturing)
Apr 2024
Voice-based Payments Market
Size and Forecast (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Hardware and Software), By Enterprise Size (Large Enterprises and Small and Medium-Sized Enterprises), By Industry (BFSI, Automotive, Healthcare, Retail, Government, and Others), and by Geography
Apr 2024
Private 5G Network Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Component (Hardware, Software, and Services); Frequency (Sub-6 GHz and mmWave), End User (Manufacturing, Energy and Utilities, Automotive, Military and Defense, Government and Public Safety, and Others)
Apr 2024
Unified Threat Management Market
Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Component (Solution and Services); Deployment (Cloud and On-Premise); Enterprise Size (Large Enterprises and SMEs); and End Users (BFSI, Manufacturing, Healthcare, Retail, Government, IT & Telecom, and Others)