Data Center Automation Market Size, Share & Trends Analysis Report By Component, By Solution (Storage, Server, Network), By Deployment, By Enterprise, By End-Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global data center automation market size was valued at USD 6.8 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 13.5% from 2022 to 2030. 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.

Component Insights

In terms of components, the market is segmented into solutions and services. The solution segment accounted for the largest revenue share of 58.7% in 2021. Due to the mobility, expandability, and adaptability of automation solutions, data centers operate efficiently, providing a robust control panel for completely automated, and remote data center management.

The services segment is expected to witness the highest growth rate of 15.1% during the forecast period. Data center services include hardware-controlled power delivery installation and maintenance. Resilient power systems, data archiving and backup, balanced load management, user authentication, and permission controls for managed communication with numerous firewalls and anti-virus software monitored are outsourced that aid in the day-to-day operations of the data center to keep it fully automated.

Solution Insights

In terms of solutions, the market is segmented into storage, server, and network. The server segment accounted for the largest revenue share of 51.6% in 2021. Server automation combines task and process automation to improve application deployment and administration across virtual and physical servers. It offers end-to-end management through automated workflows that reduce human errors.

The network segment is expected to grow at a CAGR of 12.7% respectively during the forecast period. Data centers can be improved by networking. It provides rapid provisioning of new resources, scalability, enhanced security, and traffic and monitoring analysis. Additionally, software networking employs open APIs, which promotes integration across data center software resources and provides universal user access.

Deployment Insights

Based on the deployment, the market is segmented into on-premise and cloud. The cloud segment held the largest revenue share of 51.2% in 2021. Cloud deployment allows businesses to provide features and functions with greater efficiency and flexibility. Increasing cloud adoption primarily reduces costs and maintenance requirements. Using cloud-based solutions, organizations can gain access to a large number of data centers and cloud platforms for conducting analysis and mapping.

The on-premise segment is expected to grow at a CAGR of 13.6% during the forecast period. Due to the increase in demand from small and medium-sized enterprises (SMEs), on-premise deployment would therefore hold a significant share. On-premises deployment is anticipated to experience rapid growth in the industry as it provides customers with complete access to their data, applications, and infrastructure while reducing operating costs and enhancing security.

Enterprise Insights

Based on the enterprise, the market is segmented into large-size enterprises and small and medium-sized enterprises (SMEs). The large-size enterprise segment held the largest revenue share of 69.5% in 2021. Due to the rise of complex business tools like data analytics and big data, companies need to store massive volumes of daily data. Multinational firms generally choose corporate data centers with superior data security, fueling segment development.

The SMEs segment is expected to grow at a CAGR of 14.4% respectively during the forecast period. Increasing demand for rapidly deployable and scalable data centers propels market growth among SMEs. In addition, several factors such as an increase in the adoption of cloud services by SMEs, an increase in the need for green data centers, and an increase in the demand for energy-efficient data centers significantly contribute to the market's growth.

End-use Insights

Based on the end-use, the market is segmented into manufacturing, BFSI, healthcare, retail, IT & telecommunication, and others. The IT & telecommunication segment held the largest revenue share of 23.6% in 2021. This is mostly attributable to the development of mobile technologies and the growing demand for high-speed data services. The expansion of the IT and telecommunications industries had a favorable effect on the economy, producing new jobs and business prospects. As a result of the increased competition among service providers, prices for consumers have decreased.

The BFSI segment is expected to grow at a CAGR of 14.7% during the forecast period. The reliance on internet banking is growing due to the increasing use of internet banking, online payment applications, and mobile wallets. In addition, the need for the BFSI sector to maintain operations 24x7 in order to maintain trade and economic activity is a major factor driving the expansion of the data center automation industry.

Regional Insights

North America dominated the market with a revenue share of 47.8% in 2021. 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 15.9% 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 Report Scope

Global Data Center Automation Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global data center automation market report based on component, solution, deployment, enterprise, end-use, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

  • Services

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Storage

  • Network

  • Server

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-Premise

  • Cloud

• Enterprise Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Size Enterprises

  • Small and Medium Sized Enterprises (SMEs)

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Manufacturing

  • BFSI

  • Healthcare

  • Retail

  • IT & telecommunication

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa