Data Center Automation Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The data center automation market size has grown rapidly in recent years. It will grow from $10.7 billion in 2024 to $12.5 billion in 2025 at a compound annual growth rate (CAGR) of 16.9%. The growth in the historic period can be attributed to rising digital transformation initiatives, cost reduction through automation in data centers, allows scalability, automation of data center enhances efficiency and supports in cost reduction, growing internet penetration generate huge volumes of data per second.

The data center automation market size is expected to see rapid growth in the next few years. It will grow to $23.6 billion in 2029 at a compound annual growth rate (CAGR) of 17.2%. The growth in the forecast period can be attributed to increase in the volume and speed of data generation, growth in cloud computing and online applications, energy and cost efficiency concerns, the growing digitization worldwide, the rise in the adoption of the internet of things (IoT) devices, social media, and smartphones. Major trends in the forecast period include technological advancements, digitization significantly increased the volume and speed of data generation, increase in IoT adoption worldwide, rapidly emerging 5g technology, increasing data traffic worldwide.

The increase in the volume and speed of data generation is expected to propel the growth of the data center automation market going forward. Data generation refers to creating or producing data through various sources and activities. It is increasing due to the widespread adoption of digital technologies, such as smartphones, IoT devices, social media platforms, and online transactions, continuously generating vast amounts of data from various sources and interactions. Data center automation helps data generation by providing the infrastructure and tools necessary to manage and process the increasing volume of data generated efficiently. For instance, in December 2022, according to Sky's The Limit (STL) report, a US-based optical and digital solutions company, the global data generated in 2021 was estimated at 79 zettabytes. By 2025, it is anticipated that around 150 zettabytes of data will be generated, which is double the expected amount for 2022. Therefore, the increase in the volume and speed of data generation is driving the growth of the data center automation market.

Major companies operating in the data center automation market are developing innovative products, such as Anymal, to reduce operational costs. Anymal is a quadrupedal robot designed for versatile mobility and autonomous operation in challenging environments, such as industrial sites, construction sites, and outdoor terrain. For instance, in March 2023, Anybotics AG, a Switzerland-based robotics company, launched Anymal, a line of advanced-legged robots designed for autonomous inspection and data collection in complex and demanding environments. The robots are built for safety, with features such as emergency stops, warning lights, safety handles, and compliance with international standards. They are also ruggedized, impact-protected, and dust- and waterproof, making them suitable for all-weather operation and use in explosive atmospheres. The deployment of ANYmal robots, including ANYmal X, aims to improve worker safety, increase productivity, and support sustainable industrial facilities.

In March 2022, SS&C Technologies Holdings Inc., a US-based holding company, acquired Blue Prism Group Plc for $1.6 billion. This acquisition aimed to enhance SS&C's position as a leading provider of software and services to the financial services and healthcare industries, with deep expertise in intelligent automation and robotic process automation (RPA). Blue Prism Group plc is a UK-based software company specializing in automated processes related to data center management.

Major companies operating in the data center automation market are Microsoft Corporation, Dell Technologies Inc., Siemens AG, Intel Corporation, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Fujitsu Ltd., ABB Limited, Hewlett Packard Enterprise Development LP, Broadcom, VMware, Inc., Service Now Inc., Arista Networks, Inc., Citrix Systems Inc., EntIT Software LLC, BMC Software Inc., Veristor Systems Inc., Chef Software Inc., Puppet, HashRoot Ltd., Micro Focus International plc, Brocade Communications Systems, CA Technologies, Riverturn Inc.

North America was the largest region in the data center automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data center automation market consists of revenues earned by entities by providing services such as server automation, network automation, storage automation, security automation. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center automation market also includes sales of servers, storage systems, routers, switches, and networking devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Data center automation involves using software, hardware, and procedures to automate data center infrastructure and operations management, provisioning, monitoring, and upkeep. Data center automation aims to streamline IT service delivery, boost efficiency, minimize errors, and improve scalability and agility within the data center environment.

The main components of data center automation are solution and services. A data center automation solution refers to a set of software tools, technologies, and processes designed to automate and streamline various aspects of data center management and operations. They are deployed based on on-premise and cloud modes by large size enterprises, and small and medium sized enterprises (SMEs) of manufacturing, banking, financial services and insurance (BFSI), healthcare, retail, information technology (IT) and telecommunication, and other end-users.

The main components of data center automation are solution and services. A data center automation solution refers to a set of software tools, technologies, and processes designed to automate and streamline various aspects of data center management and operations. They are deployed based on on-premise and cloud modes by large size enterprises, and small and medium sized enterprises (SMEs) of manufacturing, banking, financial services and insurance (BFSI), healthcare, retail, information technology (IT) and telecommunication, and other end-users.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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