Data Center Automation Software and Services Global Market Report 2024

The data center automation software and services market size has grown exponentially in recent years. It will grow from $13.32 billion in 2023 to $16.02 billion in 2024 at a compound annual growth rate (CAGR) of 20.3%. The growth observed in the historic period can be attributed to several key factors. These include the increasing adoption of server virtualization, the escalating complexity of data centers, the need to meet compliance requirements, the pressures to reduce costs, and the early adoption of cloud technologies.

The data center automation software and services market size is expected to see rapid growth in the next few years. It will grow to $32.89 billion in 2028 at a compound annual growth rate (CAGR) of 19.7%. The anticipated growth in the forecast period can be attributed to several key factors. These include the exponential growth of data and Internet of Things (IoT) devices, the integration of artificial intelligence and machine learning (AI/ML), the transition towards hybrid and multi-cloud environments, an increased emphasis on security automation, and the evolving regulatory landscape. Major trends expected during this period encompass the adoption of Cloud As-a-Service (aaS) models, a heightened focus on user experience, the prominence of hyper-automation, the standardization of Automation as Code (AaC), and a growing focus on sustainability within data center automation practices.

The upward trajectory of cloud computing is anticipated to be a driving force behind the expansion of the data center automation software and services market. Cloud computing, which entails delivering computing services via the Internet, offers access to a wide array of resources. Its increasing adoption is fueled by its cost efficiency, scalability, and adaptability in catering to diverse computing requirements. Cloud computing streamlines the integration and scalability of data center automation software and services, thereby enhancing the efficiency of resource management and deployment. Notably, in 2023, the European Union witnessed a 4.2% surge in cloud computing adoption compared to 2021, with 45.2% of enterprises procuring cloud services. This growth, as highlighted by the European Commission, particularly resonated within the information and communication sector, with 79% adoption, and among large enterprises, where 77.6% embraced cloud solutions, marking significant increases from 2021.

Prominent players in the data center automation software and services arena are actively pursuing innovative technologies, such as unified API (application programming interface) platforms, to bolster their competitiveness and profitability. A unified API platform encompasses a comprehensive suite of tools, protocols, and interfaces enabling developers to efficiently create, manage, and utilize APIs in a cohesive manner. An exemplar of such innovation is Qarbon Technologies, a Singapore-based IT firm, which unveiled the LATTICE platform in December 2023. This cutting-edge solution seamlessly integrates various data center systems with popular SaaS (Software as a Service) platforms. Qarbon LATTICE addresses industry challenges, such as disparate data sources and labor-intensive manual workflows, by facilitating secure and automated connectivity, management, and reporting processes.

In April 2022, Advanced Micro Devices Inc., a leading information technology company headquartered in the United States, completed the acquisition of Pensando Systems Inc. for $1.9 billion. This strategic move is set to bolster Advanced Micro Devices Inc.'s capabilities in data center solutions and reinforce its enterprise and cloud portfolios. Pensando Systems Inc., based in the US, specializes in providing data center automation solutions within the realm of information technology service management.

Major companies operating in the data center automation software and services market are Microsoft Corporation, Dell Corporation, Amazon Web Services (AWS), International Business Machine (IBM) Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Fujitsu Limited, ABB Limited, Hewlett Packard Enterprise, VMware Inc., Alibaba Cloud, Equinix Inc., ServiceNow Inc., Bulk Infrastructure Holding AS, BMC Software Inc., CyrusOne, Citrix Systems Inc, Cyxtera Technologies, Chindata Group, Ark Data Centres, atNorth, AtlasEdge Data Centres, CDC Data Centers, Chayora, Riverturn Inc.

North America was the largest region in the data center automation software and services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center automation software and services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data center automation software and services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data center automation software and services encompass technologies and solutions that are specifically designed to streamline and optimize the management, operation, and maintenance of data centers. This strategic approach aims to enhance efficiency, reduce manual intervention, improve scalability, and ensure the seamless operation of data center infrastructure. By leveraging data center automation software and services, organizations can achieve greater operational efficiency, increased agility, enhanced reliability in data center management, cost reduction, and accelerated delivery of IT services to meet evolving business needs.

The primary components of data center automation are software and services. Software refers to a collection of instructions, data, or computer programs used to operate machines and perform specific activities, acting as a counterpart to hardware in computing. These solutions are applicable to organizations of various sizes, including small and medium enterprises (SMEs) and large enterprises, serving diverse end-users such as those in banking, financial services, and insurance (BFSI), government, telecommunications, manufacturing, healthcare, entertainment, and other sectors.

The data center automation software and services market research report is one of a series of new reports that provides data center automation software and services market statistics, including data center automation software and services industry global market size, regional shares, competitors with a data center automation software and services market share, detailed data center automation software and services market segments, market trends and opportunities, and any further data you may need to thrive in the data center automation software and services industry. This data center automation software and services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center automation software and services market includes revenues earned by entities by providing services such as configuration management, monitoring and management, virtualization management, backup, and disaster recovery. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center automation software and services market also includes sales of servers, automated storage, and automation platforms. 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).

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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