Data Center Automation Market Overview
As per MRFR analysis, the Data Center Automation Market Size was estimated at 17.14 (USD Billion) in 2022.
The Data Center Automation Market Industry is expected to grow from 19.27(USD Billion) in 2023 to 55.29 (USD Billion) by 2032. The Data Center Automation Market CAGR (growth rate) is expected to be around 12.43% during the forecast period (2024 - 2032).
Key Data Center Automation Market Trends Highlighted
The Data Center Automation market is experiencing a surge in demand driven by the proliferation of cloud computing, virtualization, and increasing data volumes. Enterprises are increasingly adopting data center automation solutions to streamline operations, reduce costs, and improve efficiency. Artificial intelligence (AI) and machine learning (ML) are emerging as key market trends, enabling automation of complex tasks and predictive analytics for proactive management.
Additionally, the need for greater visibility and control over data center infrastructure is fueling the adoption of data center infrastructure management (DCIM) tools. Expansion of edge computing and the Internet of Things (IoT) is also creating opportunities for data center automation solutions that can manage the complexities and remote locations of these distributed environments.
Figure1: Data Center Automation Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Automation Market Drivers
Expanding Cloud Adoption
The increasing adoption of cloud computing services is a major driver for the growth of the Data Center Automation Market Industry. As businesses move their applications and data to the cloud, they require automated solutions to manage their data center infrastructure. Data center automation tools help businesses to automate tasks such as provisioning, configuration, and management of their cloud resources, which can lead to significant cost savings and improved efficiency.Additionally, the adoption of cloud computing is leading to the growth of hyperscale data centers, which require sophisticated automation solutions to manage their complex infrastructure.
Increasing Complexity of Data Center Infrastructure
The complexity of data center infrastructure is increasing as businesses adopt new technologies such as artificial intelligence, machine learning, and big data analytics. These technologies require specialized hardware and software, which can be difficult to manage manually. Data center automation tools can help businesses to automate the management of these complex systems, which can lead to improved performance and reliability. Additionally, the increasing use of virtualization and containerization technologies is adding to the complexity of data center infrastructure, making automation essential for efficient management.
Growing Need for Data Security and Compliance
The growing need for data security and compliance is another key driver for the growth of the Data Center Automation Market Industry. As businesses collect and store more sensitive data, they need to implement automated solutions to protect their data from unauthorized access and breaches. Data center automation tools can help businesses to automate security tasks such as access control, data encryption, and intrusion detection, which can help to reduce the risk of data breaches and improve compliance with data protection regulations.
Data Center Automation Market Segment Insights
Data Center Automation Market Type of Automation Insights
The Data Center Automation Market is segmented into various types of automation, each catering to specific aspects of data center operations. These segments include Infrastructure Automation, Application Automation, Management Automation, Storage Automation, Network Automation, and Security Automation. Infrastructure Automation automates the provisioning, management, and lifecycle management of data center infrastructure components, such as servers, storage, and network devices. This segment is expected to grow significantly due to the increasing adoption of cloud computing and the need for efficient infrastructure management.Application Automation automates the deployment, management, and scaling of applications in the data center. This segment is driven by the growing demand for agile and DevOps practices, which require faster and more efficient application delivery. Management Automation automates the monitoring, management, and optimization of data center operations. This segment is expected to grow due to the increasing complexity of data center environments and the need for centralized management tools. Storage Automation automates the provisioning, management, and lifecycle management of storage systems in the data center.This segment is expected to grow due to the increasing demand for data storage and the need for efficient storage management solutions. Network Automation automates the provisioning, management, and optimization of network infrastructure in the data center. This segment is expected to grow due to the increasing adoption of software-defined networking (SDN) and the need for agile and efficient network management. Security Automation automates the monitoring, detection, and response to security threats in the data center. This segment is expected to grow due to the increasing sophistication of cyber threats and the need for proactive security measures.The Data Center Automation Market is expected to grow significantly in the coming years, driven by the increasing adoption of cloud computing, the growing demand for agile and efficient data center operations, and the need for improved security measures.
Figure2: Data Center Automation Market, By Type Of Automation, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Automation Market Scale of Deployment Insights
The Data Center Automation Market segmentation by Scale of Deployment into 'Enterprise' and 'Small and Medium-sized Businesses (SMBs)' provides valuable insights into the industry's dynamics. In 2023, the Enterprise segment held a dominant market share of around 65%, driven by the increasing adoption of data center automation solutions by large enterprises to improve operational efficiency and reduce costs. The SMBs segment is anticipated to grow at a faster rate during the forecast period, owing to the rising awareness of the benefits of data center automation among small and medium-sized businesses.As per market estimations, the SMBs segment is projected to reach a market value of USD 12.3 billion by 2032, exhibiting a CAGR of 14.2% from 2023 to 2032.
Data Center Automation Market Deployment Model Insights
The Data Center Automation Market is segmented by deployment model into on-premises, cloud-based, and hybrid. Among these, the cloud-based segment is projected to witness the highest growth over the forecast period. The increasing adoption of cloud computing and the growing need for data center automation to manage and optimize cloud infrastructure are driving the growth of the cloud-based deployment model. The on-premises segment is expected to hold a significant market share during the forecast period due to the large number of existing on-premises data centers.The hybrid deployment model is gaining traction as it offers the benefits of both on-premises and cloud-based deployment models.
Data Center Automation Market Industry Vertical Insights
The Data Center Automation Market segmentation by Industry Vertical comprises IT and Telecom, Manufacturing, Financial Services, Healthcare, Government, Retail, Education, and Other. The IT and Telecom segment held the largest market share in 2023, and is projected to continue dominating the market throughout the forecast period. This growth is attributed to the increasing adoption of cloud computing, big data, and the Internet of Things (IoT), which are driving the need for automated data center operations. The Manufacturing segment is expected to witness significant growth over the forecast period, due to the rising need for automation in production processes and the increasing adoption of Industry 4.0 technologies.The Financial Services segment is also expected to grow at a steady pace, driven by the need for regulatory compliance and the increasing adoption of digital banking services.
Data Center Automation Market Regional Insights
The Data Center Automation Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, due to the presence of major data center operators and cloud service providers. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness the highest growth rate during the forecast period, due to the increasing adoption of cloud computing and the growing number of data centers in the region. South America and MEA are expected to be the smallest markets, but they are expected to witness significant growth during the forecast period.
Figure2: Data Center Automation Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Automation Market Key Players And Competitive Insights
Major players in Data Center Automation Market industry are constantly trying to gain a competitive edge over their rivals by investing heavily in research and development. They are also forming strategic partnerships and collaborations to expand their market reach and improve their product offerings. In addition, Leading Data Center Automation Market players are focusing on developing innovative solutions that can address the evolving needs of their customers. This Data Center Automation Market development is expected to intensify in the coming years, as the demand for data center automation solutions continues to grow. The Data Center Automation Market Competitive Landscape is highly fragmented, with numerous players competing for market share. However, a few key players have emerged as leaders in the market. These players have a strong track record of innovation and customer satisfaction, and they offer a comprehensive suite of data center automation solutions.VMware is a leading provider of data center automation solutions. The company's vRealize Automation suite provides a comprehensive set of tools for automating the provisioning, management, and optimization of data center resources. VMware's solutions are used by a wide range of organizations, including large enterprises, small businesses, and government agencies. VMware has a strong partner ecosystem, and its solutions are integrated with a wide range of third-party products and services.Nutanix is another leading provider of data center automation solutions. The company's Enterprise Cloud Platform provides a complete software-defined infrastructure stack that includes compute, storage, networking, and virtualization. Nutanix's solutions are designed to be simple to deploy and manage, and they can be used to automate a wide range of data center tasks. Nutanix has a strong customer base, and its solutions are used by a wide range of organizations, including large enterprises, small businesses, and government agencies.
Key Companies in the Data Center Automation Market Include
Data Center Automation Market Industry Developments
The data center automation market is projected to grow from USD 19.27 billion in 2023 to USD 55.29 billion by 2032, exhibiting a CAGR of 12.43% during the forecast period. This growth can be attributed to the increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT), which are driving the demand for automated data center management solutions.Recent news developments in the market include the acquisition of Cloudscaling by VMware in January 2023, which strengthens VMware's position in the data center automation market. Additionally, Google Cloud launched Anthos Multi-Cloud in November 2022, which provides a consistent platform for managing and automating workloads across multiple clouds. These developments indicate the growing importance of data center automation in the industry.
Data Center Automation Market Segmentation Insights
Data Center Automation Market Type of Automation Outlook
- Infrastructure Automation
- Application Automation
- Management Automation
- Storage Automation
- Network Automation
- Security Automation
Data Center Automation Market Scale of Deployment Outlook
- Enterprise
- Small and Medium-sized Businesses (SMBs)
Data Center Automation Market Deployment Model Outlook
- On-Premises
- Cloud-Based
- Hybrid
Data Center Automation Market Industry Vertical Outlook
- IT and Telecom
- Manufacturing
- Financial Services
- Healthcare
- Government
- Retail
- Education
- Other
Data Center Automation Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.14(USD Billion) |
| Market Size 2023 |
19.27(USD Billion) |
| Market Size 2032 |
55.29(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.43% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Red Hat, VMware, Commvault, Saltstack, IBM, Puppet, Hitachi Vantara, Cisco, Amazon Web Services, Ansible by Red Hat, Carbonite, Google Cloud, Chef, Microsoft, Hewlett Packard Enterprise |
| Segments Covered |
Type of Automation, Scale of Deployment, Deployment Model, Industry Vertical, Regional |
| Key Market Opportunities |
Vertical Expansion Cloud Adoption Data Security AIenabled Automation 5G and Edge Computing |
| Key Market Dynamics |
Rising demand for cloud and virtualization increasing data volume adoption of hybrid infrastructure |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Data Center Automation market is projected to reach USD 55.29 billion by 2032, exhibiting a CAGR of 12.43% during the forecast period (2023-2032).
North America is anticipated to dominate the Data Center Automation market throughout the forecast period, owing to the presence of major technology hubs and early adoption of advanced technologies.
Rising demand for efficient and automated data center operations, increasing adoption of cloud computing and virtualization, and growing need for improved operational efficiency are the primary growth drivers of the Data Center Automation market.
The IT Infrastructure Automation segment is projected to expand at the fastest CAGR during the forecast period, driven by the increasing adoption of automation tools for managing IT infrastructure and reducing operational costs.
VMware, Inc., Microsoft Corporation, Cisco Systems, Inc., IBM Corporation, and Hewlett Packard Enterprise Company are among the leading players in the Data Center Automation market.
AI is anticipated to play a transformative role in the Data Center Automation market, enabling the development of more intelligent and autonomous data center management systems.
The growing adoption of edge computing is driving demand for automated solutions to manage and optimize edge data centers, thereby contributing to the growth of the Data Center Automation market.
Security concerns, lack of skilled professionals, and integration challenges are some of the key challenges faced by the Data Center Automation market.
Software-defined data centers (SDDCs), hyper-converged infrastructure (HCI), and the adoption of cloud-based automation platforms are among the emerging trends in the Data Center Automation market.
The increasing demand for data analytics is driving the need for automated data center management solutions to handle large volumes of data and derive insights from them.
