Data Center Automation market size was valued at $6.59 billion in 2019, and it is estimated to grow at a CAGR of 12.65% during 2020-2025. The growth is mainly attributed to the increasing adoption of IoT and automation technologies in industries is set to drive the market growth. Data centers are the centralized sources that are used for storage, management and categorizing the data or information pertaining to particular business or organization. It automates the workflow and processes of a data center facility and helps in reducing the human efforts for managing and controlling the data center. This is poised to propel the market growth.
Solution Type – Segment Analysis
Network Automation held the major share of 42.96% in 2019. Adoption of network automation solution type drives the market growth owing to its speed and increased efficiency. Network automation helps in eliminating manual network tasks, such as provisioning, scripting, implementing change requests, and identifying causes of slowdowns and outages. Furthermore, increased network complexity drives the need for automation, thereby driving data center automation market.
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Industry Vertical – Segment Analysis
Healthcare is the fastest growing segment in Data Center Automation market and estimated to grow at a CAGR of 12.96% during forecast period 2020-2025. In healthcare, there has been increasing digitization which set to drive the market growth. Additionally, growing trend for online Electronic Health Records (EHRs) and e-prescriptions is further propelling the data center automation market. Moreover, the regulatory compliances such as HIPPA, and other data privacy acts fuel the market growth.
Geography- Segment Analysis
North America dominated the Data Center Automation market in 2019 with a market share of 34.18%, followed by Europe and APAC owing to the presence of large number of players. In addition to these, early adoption of advanced technologies in industries which set to drive the market growth. The expansion of mobile broadband and increasing adoption of big data analytics and cloud computing are driving the demand for new data center infrastructures. This further increase the demand for data center automation market in this region.
Drivers –Data Center Automation Market
Adoption of artificial intelligence (AI) in data centers
Adoption of artificial intelligence in data centers has been significantly increasing in order to improve the energy efficiency of data centers. Adoption of AI in the data center helps in automating various tasks such as temperature management, floor security, equipment status monitoring, and others. With the AI technology, organizations can reduce staffing shortages and thereby helps in facilitating energy efficient operations. AI can also offer administrators with advanced analytics and predictive analytics in order to enhance the automation process and this is set to drive the market growth.
Increase in implementation of advanced technologies
In data centers, there has been increasing implementation of IoT and this set to drive the market growth. IoT helps in optimizing client data flow, security, storage requirements and access capabilities. In future, IoT could give the data center more flexibility to pass along to the client, and even handing off server management to the customers themselves. IoT also allow data center operators in order to manage servers without using an excess amount of energy. In addition to these, usage of various tools such as Ansible, Puppet, Chef, OpenStack for data center automation is set to drive the market growth.
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Challenges – Data Center Automation Market
Privacy and Security of data hampers the market growth
Data center workforce often oversee an increasingly complex environment containing a heterogeneous mix of applications, databases and competing platforms. Managing this environment through scripting and platform/application-specific scheduling tools can be inefficient and time-consuming, which leads to workload management challenges. These uncoordinated tools require continuous updating in the face of change, increasing operational costs and reducing staff productivity. Additionally, there is data security concern which hampers the market growth.
Technology launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Data Center Automation market. Data Center Automation top 10 companies include BMC Software Inc, Brocade Communications Systems, CA Technologies Inc, Cisco, Dell Inc, Fujitsu, Hewlett-Packard, IBM, Microsoft Corporation, Oracle, VMware Inc and others.
In November 2019, Dell had launched Dell EMC PowerOne, an autonomous infrastructure solution which helps in automating management and maintenance of Dell EMC hardware in data centers. Introduction of advanced solutions increase the Company’s data center automation market share.
In June 2020, Oracle had launched its second data center in Hyderabad, India, whereas earlier it had opened its first data center in Mumbai, India. Launching of new data centers provide opportunities for the market growth.
North America dominated the Data Center Automation market in term of revenue in 2019 owing to the presence of major number of players and high adoption of advanced technologies.
Adoption of advanced technologies such as IoT, AI technologies in industries and stringent regulations to use advanced equipment is poised to propel the market growth.
Increasing adoption of automation technology in healthcare industry is set to provide opportunities for the market growth.
Data security is the major challenge that hampers the market growth.
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