July 13, 2024
Data Center Automation Market

Data Center Automation Market Is Transforming IT Operations Efficiency

The increasing adoption of cloud solutions and technologies such as AI, IoT and Big Data is driving automation in data centers to optimize operations and reduce costs. Data centers are increasingly becoming software-defined to support next-generation technologies and workloads. Data center automation involves using software and technology to streamline operations in data centers, including monitoring servers and infrastructure, automating everyday tasks, managing power usage, and optimizing network and server resources. Data center automation offers several advantages like improved efficiency, reduced costs, enhanced reliability and scalability. It allows IT teams to automate routine tasks, remove human errors and optimize performance.

The Global Data Center Automation Market is estimated to be valued at US$ 10.29 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 growing adoption of cloud-based services across industries is fueling the demand for Data Center Automation Market Growth solutions to manage hybrid infrastructure. Various organizations are automating data centers to improve operational efficiency, reduce costs and support business growth.
Global data center growth and expansion is driving the need for automation solutions to centrally manage infrastructure across geographies. Cloud providers and colocation providers are deploying automation at scale to reduce complexities in distributed, hyper-scale environments.

Market Key Trends

Server automation and virtualization are key trends in the data center automation market. Server automation automates repetitive tasks on physical and virtual servers to maximize uptime and resource utilization. Virtualization allows dynamic allocation of computing resources and improves agility. Major cloud providers are leveraging server automation and virtualization technologies to optimize their infrastructure.

Porter’s Analysis

Threat of new entrants: The high set up costs and stringent regulatory requirements pose threat to new players entering the data center automation market.

Bargaining power of buyers: Large enterprises have strong bargaining power over solution vendors due to their high purchase volumes.

Bargaining power of suppliers: The presence of a large number of players offering data center automation solutions gives buyers more options, reducing suppliers’ bargaining power.

Threat of new substitutes: There are limited substitutes to data center automation as it helps optimize data center operations and infrastructure management.

Competitive rivalry: Major players focus on partnerships, innovations and service expansions to gain higher market shares.

Geographical Regions

North America currently holds the largest share of the data center automation market in terms of value owing to heavy investments in data center construction and strong presence of leading vendors in the region. The Asia Pacific region is anticipated to register the fastest growth during the forecast period driven by growing data traffic, increasing adoption of cloud services and rapid digitalization across industries in emerging economies like China and India.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.