Data Center Automation Market to Exhibit Moderate Growth at a CAGR of 21.32% 2030

Data Center Automation refers to the use of software and technology to automate the management and operations of data centers, improving efficiency and reducing human intervention. It involves automating tasks such as provisioning, configuration management, monitoring, and load balancing to enhance performance, scalability, and security. By integrating automation tools, data centers can streamline operations, minimize errors, and optimize resource allocation, leading to cost savings and faster response times. The adoption of automation is becoming increasingly crucial as data centers grow in complexity due to the rising demand for cloud services and big data.

According to the report published by Allied Market Research, the global data centre automation market generated $4.8 billion in 2020, and is projected to reach $32.5 billion by 2030, growing at a CAGR of 21.32% from 2021 to 2030.The report provides an in-depth analysis of the top investment pockets, top winning strategies, drivers & opportunities, market size & estimations, competitive scenario, and wavering market trends.

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Significant surge in need for data centres from industries across all domains namely, IT & telecom, BFSI, public sector & utilities, healthcare, energy, manufacturing, retail, education, and others, extensive use of data automation by organizations to operate with maximum energy efficiency while minimizing their impact on the environment, and rise in the Internet penetration across the globe are expected to drive the growth of the global data centre automation market. On the other hand, lack of skilled professionals is expected to hinder the growth to some extent. However, remarkable upsurge in the popularity of cloud computing and online gaming are further predicted to create ample opportunities for the industry.

Asia-Pacific is expected to observe highest growth rate during the data center automation market forecast period. Increase in investments for data center automation solutions among countries such as China, Japan, Thailand, India, and Indonesia fuels growth of the market. Moreover, increase in adoption of data center automation solutions in applications in Asia-Pacific is encouraging players to invest in research & development to meet growing needs of customers. With increase in number of vendors offering reasonable, superior, and personalized solutions, there is massive competition in Asia-Pacific. High demand for automation and increasing Internet penetration, combined with good economic growth propels growth of data center automation in Asia-Pacific.

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COVID-19 Scenario

The outbreak of COVID-19 has had a positive impact on the growth of the global data centre automation market, owing to the occurrence of lockdowns in various countries across the globe. More and more people were stuck at home during lockdowns, and hence the internet penetrations across the globe surged exponentially during the pandemic.
Thus, data traffic surged exponentially during the spread of COVID-19, increasing data centre automation investments around the world.

The report offers a detailed segmentation of the global data centre automation market based on component, operating environment, end-user, and region.

Based on component, the solution segment held the largest market share in 2020, garnering more than three-fifths of the total market. The services segment, on the other hand, is predicted to cite the fastest CAGR of 22.58% during the forecast period.

Based on end-user, the BFSI segment held the majority market share in 2020, holding nearly one-fourth of the total data centre automation industry. The healthcare segment, on the other hand, is projected to exhibit the fastest CAGR of 25.2% during the forecast period.

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Based on region, the market across North America held the lion's share in 2020, garnering more than two-fifths of the total market. The Asia-Pacific region, on the other hand, is expected to cite the fastest CAGR of 24.06% during the forecast period.

The key player analyzed in the global data centre automation market report include VMware, Inc., BMC Software, Cisco Systems, Inc., IBM Corp., Hewlett Packard Enterprise, and Microsoft Corp.

Industry Developments

Acquisitions: TPG's acquisition of Miratech, a provider of noise and emission reduction equipment, underscores the growing demand for environmentally compliant solutions in data centers.

Infrastructure Expansion: Companies like Hanley Energy have significantly contributed to the global data center sector, highlighting the industry's expansion and the need for specialized automation solutions.

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