Data Center Automation Market (By Component; By Solution: Storage, Server, Network; By Deployment; By Enterprise; By End-Use) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global data center automation market was surpassed at USD 7.72 billion in 2022 and is expected to hit around USD 27.49 billion by 2032, growing at a CAGR of 13.54% from 2023 to 2032.

Key Pointers

• The solution segment accounted for the largest revenue share of 58.76% in 2022.
• The services segment is expected to witness the highest growth rate of 15.15% during the forecast period. 
• The server segment accounted for the largest revenue share of 51.6% in 2022.
• The network segment is expected to grow at a CAGR of 12.74% respectively during the forecast period.
• The cloud segment held the largest revenue share of 51.22% in 2022. 
• The on-premise segment is expected to grow at a CAGR of 13.63% during the forecast period. 
• The large-size enterprise segment held the largest revenue share of 69.57% in 2022. 
• The SMEs segment is expected to grow at a CAGR of 14.49% respectively during the forecast period.
• The IT & telecommunication segment held the largest revenue share of 23.61% in 2022.
• The BFSI segment is expected to grow at a CAGR of 14.75% during the forecast period. 
• North America dominated the market with a revenue share of 47.83% in 2022. 
• Asia Pacific is expected to grow at the highest CAGR of 15.95% during the forecast period.

Report Scope of the Data Center Automation Market

The growth of the market is driven by the increasing deployment of 5G networking technologies and the popularity of hybrid cloud architectures. As businesses spend more money on establishing a reliable data center infrastructure, the demand for data center automation is rising. The unexpected COVID-19 outbreak presented substantial growth potential for the market for data centers. Although the lockout initially halted the market, the surge in cloud computing use, mainly due to the developing work-from-home culture and rising popularity of mobile streaming apps, is expected to create lucrative development possibilities for the market during the forecast period.

The pandemic significantly impacted the desire for automated solutions. Due to the pandemic and other health and safety issues, companies have adopted data automation for production. People became more concerned about their privacy and security, which led to a surge in the automation industry. The digitization of healthcare data, for instance, has significantly expanded its volume and portability. The growing use of digital Electronic Health Records (EHRs) and online prescriptions tend to increase storage demands among healthcare providers, prompting them to invest in data centers. In November 2022, Hartford HealthCare collaborated with Google Cloud to expedite the health system's digital transformation, data analytics, and patient access. The two organizations would collaborate to unlock the potential of Hartford HealthCare's patient data, which is often hard to acquire and utilize as it is unorganized or difficult to locate in ever-more-complex EHRs.

Regional Insights

North America dominated the market with a revenue share of 47.83% in 2022. Numerous organizations increasing the adoption of cloud computing solutions is driving the market for data center automation. Consequently, numerous market participants in the region are increasing their investments in cloud computing services. Even more, companies are dedicated to providing data center automation services.

Asia Pacific is expected to grow at the highest CAGR of 15.95% during the forecast period. Countries such as Japan, China, and India, among others, are spending heavily on the IT infrastructure and development of new data centers to maintain the ever-increasing data volume in their respective regions. In addition, a large number of small and medium-sized businesses and their increasing adoption of cloud computing create lucrative growth potential for the Asia-Pacific data center automation market.

Key Companies & Market Share Insights

The market's competitive landscape is fragmented due to the presence of numerous global and regional market players. In order to survive in a highly competitive industry and expand their business footprints, market leaders are implementing strategies such as partnerships, collaborations, and product launches. In November 2021, Microsoft launched its sustainable data center zone in Sweden, generating new potential for a cloud-first Sweden. The new data center region offers the company’s sustainability investment, powering the center with 100 percent carbon-free energy. It supports zero-waste operations emphasizing Microsoft's ongoing investment to help in creating long-term opportunities in Sweden's public and commercial sectors. Some of the prominent players operating in the global data center automation market include:

• Cisco Systems, Inc.
• ABB
• Oracle
• VMWare
• Hewlett Packard Enterprise Development LP
• BMC Software, Inc.
• Microsoft
• Citrix Systems, Inc.
• ServiceNow
• FUJITSU

Data Center Automation Market Segmentations: