Data Center Automation Market Report by Type (Tier 1, Tier 2, Tier 3, Tier 4), Solution (Server, Database, Network, and Others), Deployment Mode (Cloud-based, On-premises), End User (Enterprises, Cloud Services Providers, Colocation Service Providers), Industry Vertical (BFSI, IT and Telecom, Public Sector and Utilities, Energy, Manufacturing, Healthcare, and Others), and Region 2024-2032

Data Center Automation Market Report by Type (Tier 1, Tier 2, Tier 3, Tier 4), Solution (Server, Database, Network, and Others), Deployment Mode (Cloud-based, On-premises), End User (Enterprises, Cloud Services Providers, Colocation Service Providers), Industry Vertical (BFSI, IT and Telecom, Public Sector and Utilities, Energy, Manufacturing, Healthcare, and Others), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A4716
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Data Center Automation Market Size:

The global data center automation market size reached US$ 5.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 17.5 Billion by 2032, exhibiting a growth rate (CAGR) of 12.9% during 2024-2032. The global market is rapidly expanding, driven by the need for efficient IT infrastructure management, cost reduction through energy efficiency, and stringent compliance and security requirements, catering to diverse industries seeking enhanced operational efficiency and data security.

Report Attribute 
Key Statistics
Base Year
Forecast Years
Historical Years
Market Size in 2023
US$ 5.7 Billion
Market Forecast in 2032
US$ 17.5 Billion
Market Growth Rate 2024-2032 12.9%

Data Center Automation Market Analysis:

  • Market Growth and Size: The sector has witnessed significant expansion, attributed mainly to the escalating demand for efficient IT infrastructure management. It's characterized by rapid growth, with server automation as the largest segment, followed by database and network automation.
  • Major Market Drivers: Key factors propelling the sector include the need for cost reduction through energy-efficient solutions and stringent compliance and security requirements. Enterprises are increasingly adopting automation to streamline operations and enhance data security.
  • Technological Advancements: The integration of artificial intelligence and machine learning has revolutionized this market, leading to more predictive and adaptive solutions. Advanced technologies are enabling more efficient resource utilization and real-time decision-making.
  • Industry Applications: Automation is crucial across various industries, including healthcare, finance, and government, where reliability and compliance are paramount. Different tiers of data centers cater to diverse industry needs, from basic Tier 1 facilities to highly sophisticated Tier 4 centers.
  • Key Market Trends: There's a growing shift towards cloud-based automation solutions, offering scalability and flexibility. Enterprises are increasingly focusing on automating cloud infrastructures, reflecting a trend towards digital transformation.
  • Geographical Trends: North America and Europe are leading in adoption due to their advanced IT infrastructure and stringent regulatory standards. Asia-Pacific is rapidly catching up, driven by the increasing number of data centers and technological investments.
  • Competitive Landscape: The landscape is competitive, with key players like ABB Limited, Cisco Systems Inc., and Dell Technologies Inc. shaping the market. These companies are continually innovating and expanding their product portfolios to maintain market dominance.
  • Challenges and Opportunities: While the market offers significant opportunities, challenges include managing complex integrations and keeping up with rapidly changing technologies. However, the increasing demand for automated and efficient IT solutions presents vast opportunities for growth and innovation.

Data Center Automation Market Trends:

Increasing demand for efficient IT infrastructure management

The market is primarily driven by the growing need for efficient management of complex and vast IT infrastructures. With the exponential increase in data volumes, companies are seeking solutions that can automate routine tasks, thereby reducing the likelihood of human errors and enhancing overall operational efficiency. Automation in data centers enables organizations to streamline operations, including network management, server provisioning, and data storage optimization. This factor is crucial in an era where rapid technological advancements and digital transformations demand high-speed, reliable, and scalable IT environments. The integration of artificial intelligence and machine learning technologies further propels this demand, offering predictive analytics for maintenance and capacity planning, which significantly improves uptime and resource utilization.

Cost reduction and energy efficiency

Another significant driver for the market is the need to reduce operational costs and improve energy efficiency. Data centers consume a substantial amount of energy, and with rising electricity prices and environmental concerns, there is an increasing focus on optimizing energy usage. Automation enables more efficient use of resources, leading to lower power consumption and reduced operational expenses. Automated cooling systems, for instance, can adjust cooling as per the real-time needs of the servers, while smart power management systems ensure optimal power distribution. This not only contributes to cost savings but also aids in achieving sustainability goals, a growing concern for organizations globally. The ability to monitor and control energy usage through automation technologies is a key factor in the market's growth.

Compliance and security requirements

Another major factor driving the market is the stringent compliance and security requirements that organizations face. Data centers store and manage critical business data, making them a focal point for security and regulatory compliance. Automation tools can enhance security protocols by consistently applying security policies and ensuring that all systems are up to date with the latest security patches. This reduces the risk of data breaches and cyberattacks. Furthermore, automated systems can generate reports and audit trails, simplifying compliance with various regulatory standards such as GDPR, HIPAA, and others. This aspect of automation is particularly significant in industries like healthcare, finance, and government, where data security and compliance are paramount.



Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.

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Data Center Automation Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, solution, deployment mode, end user and industry vertical.

Breakup by Type:



Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.

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  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

The report has provided a detailed breakup and analysis of the market based on the type. This includes tier 1, tier 2, tier 3, and tier 4.

The Tier 1 segment in the market caters to small-scale data centers with basic infrastructure and minimal redundancy. These data centers typically support small businesses or individual departments within larger organizations. Automation in Tier 1 data centers focuses on streamlining simple, repetitive tasks to enhance efficiency and reduce human error. While these data centers lack the advanced features of higher-tier facilities, automation can significantly improve their operational effectiveness. This includes automating server management, basic network tasks, and rudimentary environmental controls. The main appeal for Tier 1 data center automation lies in its cost-effectiveness and simplicity, making it an accessible option for smaller entities with limited IT budgets.

On the contrary, tier 2 caters to facilities with improved redundancy over Tier 1, offering enhanced reliability. These data centers are often used by small to medium-sized enterprises. Automation in Tier 2 centers includes more advanced features compared to Tier 1, focusing on higher uptime and more efficient resource management. This includes automating backup power systems, more sophisticated network management, and better cooling system controls. While not as robust as higher-tier facilities, Tier 2 automation still provides a significant boost in reliability and efficiency, making it a valuable investment for organizations seeking a balance between cost and performance.

Besides this, tier 3 automation is designed for facilities with even higher levels of redundancy and availability. These data centers serve larger organizations requiring high uptime and more complex IT needs. Automation in Tier 3 centers encompasses a broad range of functions, including advanced server management, comprehensive network automation, and sophisticated environmental control systems. The key focus here is to minimize downtime and ensure continuous operation, even during maintenance or partial system failures. Automation plays a critical role in achieving these objectives, providing robust and reliable operations essential for businesses where even minimal downtime can have significant implications.

Furthermore, tier 4 automation represents the pinnacle of modern data center technology, aimed at facilities that require fault-tolerant infrastructure and 99.995% uptime. These data centers cater to large enterprises and critical services where any downtime is unacceptable. Automation in Tier 4 centers encompasses all aspects of the data center operations, including highly advanced server and network automation, real-time environmental monitoring, and automated failover systems. The emphasis is on creating an entirely resilient infrastructure where automated processes handle every aspect of operation, from routine maintenance to emergency response, ensuring uninterrupted service under all conditions.

Breakup by Solution:

  • Server
  • Database
  • Network
  • Others

Server holds the largest share in the industry

A detailed breakup and analysis of the market based on the solution have also been provided in the report. This includes server, database, network, and others. According to the report, server accounted for the largest market share.

Server automation, the largest segment in the market, represents a vital component of modern data center automation. This segment focuses on automating tasks related to server management, including software deployment, patching, configuration, and maintenance. The growing complexity and scale of server environments, especially with the rise of virtualization and cloud computing, have made automation not just beneficial but essential. Server automation tools help in reducing manual errors, improving operational efficiency, and ensuring compliance with IT standards. This segment is particularly significant for organizations with large-scale server infrastructures, as it allows for streamlined management, enhanced security, and better resource utilization, ultimately leading to cost savings and improved performance.

On the other hand, database automation is a crucial segment focusing on automating the management and maintenance of databases. This includes tasks like database installation, configuration, patching, backup, and recovery. Automation in this area is essential for ensuring data integrity, performance optimization, and minimizing downtime. With the increasing volume of data and the critical role of databases in decision-making, database automation tools are becoming increasingly important. They help in managing complex database ecosystems efficiently, reducing the risk of human error, and ensuring high availability of database services.

Furthermore, network automation, while a smaller segment, is nonetheless integral to the overall market. This segment deals with automating network-related tasks such as configuration, management, testing, and deployment of networking devices. As networks become more complex and critical to business operations, the need for network automation tools that can provide rapid, consistent, and error-free network provisioning and management is growing. These tools help in reducing operational costs, improving network security and compliance, and enhancing overall service quality.

Breakup by Deployment Mode:

  • Cloud-based
  • On-premises

The report has provided a detailed breakup and analysis of the market based on the deployment mode. This includes cloud-based, on-premises.

The cloud-based segment focuses on automating cloud infrastructure and services. This includes the automation of virtual servers, storage, and network resources, as well as the management of multi-cloud and hybrid cloud environments. Automation in cloud-based data centers is essential for scaling resources on-demand, optimizing workload distribution, and ensuring effective cost management. Tools in this segment provide capabilities like automatic scaling, resource allocation, and self-healing systems, enhancing the efficiency and agility of cloud services. This segment caters to organizations that leverage cloud computing for its flexibility, scalability, and reduced need for physical infrastructure management.

On the other hand, the on-premises segment involves automating the physical infrastructure and IT resources located within an organization's own facility. This includes server management, network configuration, storage allocation, and environmental controls. Automation in on-premises data centers is crucial for improving operational efficiency, enhancing security, and reducing the complexity of managing physical hardware. It allows organizations to maintain greater control over their IT environment while still benefiting from the efficiencies of automation. This segment is particularly relevant for businesses that require strict data sovereignty, have specific regulatory compliance needs, or prefer to maintain a physical presence of their critical IT assets.

Breakup by End User:

  • Enterprises
  • Cloud Services Providers
  • Colocation Service Providers

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes enterprises, cloud services providers, and  colocation service providers.

The enterprise segment caters to large organizations with extensive and complex IT infrastructures. Automation in this segment is focused on integrating and managing a diverse range of IT resources, including servers, databases, networks, and storage systems. The key objective is to streamline operations, enhance security, and improve service delivery across the enterprise. Automation tools for enterprises often include advanced features like AI-driven analytics, machine learning for predictive maintenance, and comprehensive security protocols. This segment is vital for large-scale organizations looking to optimize their IT operations, reduce costs, and stay competitive in a rapidly changing digital landscape.

On the contrary, for cloud services providers, the automation of data center is fundamental to delivering efficient, scalable, and reliable services to their customers. Automation in this segment encompasses managing large-scale, distributed cloud infrastructures, including automated resource provisioning, load balancing, and orchestration of cloud-native applications. The focus is on maximizing resource utilization, minimizing operational overhead, and providing seamless scalability. Automation tools for cloud service providers enable them to offer a wide range of services, from basic infrastructure as a service (IaaS) to complex platform as a service (PaaS) and software as a service (SaaS) offerings.

Moreover, in the colocation service provider segment, data center automation focuses on managing shared data center facilities where multiple organizations host their IT equipment. Automation in this segment includes streamlining the deployment and management of client infrastructure, efficient power and cooling management, and ensuring high levels of physical and network security. The objective is to provide clients with reliable and cost-effective hosting solutions, where automation plays a key role in optimizing space utilization, reducing energy consumption, and offering enhanced monitoring and management services.

Breakup by Industry Vertical:

  • BFSI
  • IT and Telecom
  • Public Sector and Utilities
  • Energy
  • Manufacturing
  • Healthcare
  • Others

BFSI dominates the market

The report has provided a detailed breakup and analysis of the market based on the industry vertical. This includes BFSI, IT and telecom, public sector and utilities, energy, manufacturing, healthcare, others. According to the report, BFSI represented the largest segment.

The BFSI sector represents the largest segment in the market. This prominence is attributed to the high volume of data transactions and the critical need for secure and efficient data management within the sector. Banks, financial institutions, and insurance companies are increasingly investing in data center automation to enhance operational efficiency, reduce downtime, and ensure compliance with stringent regulatory standards. Automation in data centers helps BFSI organizations in real-time data processing, risk management, and providing personalized customer services. The growing emphasis on digital banking and fintech innovations further fuels the demand for advanced data center automation solutions in this segment.

On the other hand, in the IT and Telecom sector, data center automation is pivotal for managing the vast amount of data generated and ensuring high network reliability and uptime. This sector relies heavily on data center automation for optimizing server utilization, network management, and ensuring uninterrupted service delivery. The rise in cloud services and the increasing adoption of IoT devices necessitate efficient data management solutions, driving the growth of automation in this sector.

Moreover, the public sector and utilities segment utilizes data center automation for managing large-scale data efficiently and securely. Automation plays a key role in ensuring compliance with government regulations, enhancing public service delivery, and maintaining critical infrastructure. This sector is increasingly adopting automation to improve operational efficiency and data security.

Besides this, in the energy sector, data center automation is crucial for managing the complex data involved in energy production and distribution. Automation aids in optimizing performance, predicting maintenance needs, and ensuring continuous operation, which is vital in this sector where uptime and efficiency are paramount.

Furthermore, the manufacturing sector employs data center automation to enhance operational efficiency, manage supply chain operations, and support the growing trend of Industry 4.0. Automation in data centers allows for real-time monitoring and control of manufacturing processes, improving productivity and reducing costs.

Apart from this, automation of data center in healthcare is essential for managing patient data, supporting telemedicine, and facilitating research. Automation ensures the confidentiality and accessibility of sensitive medical records, while also aiding in the analysis of large datasets for medical research and patient care.

Breakup by Region:



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  • North America
    • United States
    • Canada
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa

North America leads the market, accounting for the largest data center automation market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America holds the largest share in the market, primarily attributed to the region's advanced technological infrastructure and the presence of key industry players. This region demonstrates a high adoption rate of automation technologies in data centers due to the growing demand for cloud services, big data analytics, and the Internet of Things (IoT). The United States and Canada are at the forefront, investing significantly in research and development to further enhance automation solutions. This market dominance is also supported by the region's robust regulatory framework that emphasizes data security and energy efficiency, making it conducive for companies to invest in automated solutions.

In Europe, the market is characterized by a strong focus on energy efficiency and reducing carbon footprints, aligning with the region's stringent environmental regulations. Countries like Germany, the UK, and France are leading in adopting these technologies, driven by the need to manage growing data volumes and comply with the GDPR regulations. European companies are increasingly turning to automation to streamline operations and improve data management, with a keen interest in integrating sustainable practices within their data centers.

The Asia Pacific region shows significant growth potential, fueled by rapid digitalization and industrial growth, especially in emerging economies like China and India. This region is witnessing a growing demand for cloud computing services and a significant growth in data traffic, necessitating efficient data management solutions. Investments in infrastructure development and a growing emphasis on cloud-based solutions are key factors propelling the adoption of automation technologies in this region.

Latin America is experiencing gradual growth in this sector. Factors such as increasing digital transformation initiatives, especially in countries like Brazil and Mexico, contribute to this development. The region's market is characterized by a growing awareness of the benefits of automated data management systems, including enhanced operational efficiency and reduced costs, although it still faces challenges like limited technological infrastructure and investment.

In the Middle East and Africa, the market is emerging, with countries like the UAE and Saudi Arabia leading the adoption of automation technologies. The growth is attributed to increasing investments in IT infrastructure, coupled with a growing emphasis on diversifying economies away from oil dependency. This region shows potential due to its increasing adoption of cloud services and a focus on building smart cities, which require robust data management solutions.

Leading Key Players in the Data Center Automation Industry:

The leading players are actively engaging in innovative strategies to strengthen their market positions. These companies are heavily investing in research and development to introduce advanced automation solutions that integrate artificial intelligence and machine learning. This focus aims to enhance the efficiency, scalability, and security of data centers. They are also forming strategic partnerships and collaborations with technology firms to broaden their service offerings and tap into new market segments. Additionally, these industry leaders are expanding their global footprint by establishing data centers in emerging economies, catering to the growing demand for cloud services and data storage solutions. Emphasis on sustainability is another key aspect, with initiatives to develop energy-efficient and environmentally friendly data center solutions, aligning with global trends towards reducing carbon footprints.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • ABB Limited
  • BMC Software Inc.
  • Cisco Systems Inc.
  • Citrix Systems Inc.
  • Dell Technologies Inc.
  • Fujitsu limited (Furukawa Group)
  • HashRoot Ltd.
  • Hewlett Packard Enterprise Development LP
  • Intel Corporation
  • Micro Focus International plc
  • Oracle Corporation
  • Riverturn Inc.
  • Siemens AG
  • Veristor Systems Inc.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News: 

  • December 1, 2023: BMC Software Inc. added a BMC AMI DevX Code Insights tool that makes use of machine learning algorithms to break apart monolithic COBOL mainframe applications into subprograms that are easier to update and refactor. In addition, BMC is now making available BMC AMI zAdviser Enterprise, a commercial instance of a previously announced free tool that uses machine learning algorithms to collect telemetry data from mainframe applications.
  • December 21, 2023: Cisco today announced the intent to acquire Isovalent, a leader in open-source cloud native networking and security, to bolster its secure networking capabilities across public clouds. The acquisition of Isovalent will build on the Cisco Security Cloud vision, an AI-driven, cloud delivered, integrated security platform for organizations of any shape and size.
  • July 27, 2023: Citrix Systems Inc. today announced expanded capabilities for its cloud and on-premises solutions for the hybrid world. As part of this expansion, Desktop-as-a-Service (DaaS) and virtual desktop infrastructure (VDI) offerings are now combined in a Citrix Universal subscription.

Data Center Automation Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Type
  • Solution
  • Deployment mode
  • End user
  • Industry vertical
  • Region
Types Covered Tier 1, Tier 2, Tier 3, Tier 4
Solutions Covered Server, Database, Network, Others
Deployment Modes Covered Cloud-based, On-premises
End Users Covered Enterprises, Cloud Services Providers, Colocation Service Providers
Industry Verticals Covered BFSI, IT and Telecom, Public Sector and Utilities, Energy, Manufacturing, Healthcare, Others
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered ABB Limited, BMC Software Inc., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Fujitsu limited (Furukawa Group), HashRoot Ltd., Hewlett Packard Enterprise Development LP, Intel Corporation, Micro Focus International plc, Oracle Corporation, Riverturn Inc., Siemens AG, Veristor Systems Inc., etc.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

  • How has the global data center automation market performed so far, and how will it perform in the coming years?
  • What are the drivers, restraints, and opportunities in the global data center automation market?
  • What is the impact of each driver, restraint, and opportunity on the global data center automation market?
  • What are the key regional markets?
  • Which countries represent the most attractive data center automation market?
  • What is the breakup of the market based on the type?
  • Which is the most attractive type in the data center automation market?
  • What is the breakup of the market based on the solution?
  • Which is the most attractive solution in the data center automation market?
  • What is the breakup of the market based on the deployment mode?
  • Which is the most attractive deployment mode in the data center automation market?
  • What is the breakup of the market based on the end user?
  • Which is the most attractive end user in the data center automation market?
  • What is the breakup of the market based on the industry vertical?
  • Which is the most attractive industry vertical in the data center automation market?
  • What is the competitive structure of the market?
  • Who are the key players/companies in the global data center automation market?

Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the data center automation market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global data center automation market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the data center automation industry and its attractiveness.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.
Data Center Automation Market Report by Type (Tier 1, Tier 2, Tier 3, Tier 4), Solution (Server, Database, Network, and Others), Deployment Mode (Cloud-based, On-premises), End User (Enterprises, Cloud Services Providers, Colocation Service Providers), Industry Vertical (BFSI, IT and Telecom, Public Sector and Utilities, Energy, Manufacturing, Healthcare, and Others), and Region 2024-2032
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