Data Center Automation Market Size to Hit $33.83 billion by 2031, at a CAGR of 18.5%, says Coherent Market Insights

The data center automation market is estimated to be valued at US$ 10.29 Bn in 2024 and is expected to exhibit a CAGR of 18.5% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights

Burlingame, July 05, 2024 (GLOBE NEWSWIRE) — The global Data Center Automation Market, size is projected to grow from USD 10.29 billion in 2024 to USD 33.83 billion by 2031, at a CAGR of 18.5%, as per a recent report by Coherent Market Insights. Increasing demand for data center automation to improve operational efficiency, there is immense pressure on organizations to efficiently manage their data centers. Data center automation helps organizations streamline operations, reduce costs and improve the overall data center management experience. By automating routine tasks like server provisioning, patch management, backup administration and performance monitoring, organizations can free up IT staff to focus on more strategic tasks. This improves operational efficiency significantly.

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Market Dynamics:

The growing adoption of cloud computing across various industries is a major driver boosting the growth of the data center automation market. Cloud computing offers on-demand access to shared pools of resources like networking, software, storage, analytics and more which can be rapidly deployed with minimal management effort. Cloud services allow businesses to scale resources up or down depending on changing needs. This has increased the demand for new data centers with advanced automation solutions which can manage complex tasks of provisioning, monitoring and recovery efficiently in cloud environments. Another driver is the rising need to optimize operations and reduce costs. Automation streamlines processes, minimizes errors and downtime thus helping data center operators improve operational efficiency and lower maintenance costs significantly.

Data Center Automation Market Report Coverage

Report Coverage Details
Market Revenue in 2024 $10.29 billion
Estimated Value by 2031 $33.83 billion
Growth Rate Poised to grow at a CAGR of 18.5%
Historical Data 2019–2023
Forecast Period 2024–2031
Forecast Units Value (USD Million/Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered By Deployment, By Component, By Enterprise, By Application
Geographies Covered North America, Europe, Asia Pacific, and Rest of World
Growth Drivers • Growing Need for Cost Optimization and Improved Efficiencies

• Growing Threat of Cyber Attacks and Need for Security Compliance

Restraints & Challenges • Integration Hurdles in the Data Center Automation Market

• Lack of Skilled Expertise

Market Trends:

Increasing investments in green data centers is a prominent trend in the market. Green data centers leverage eco-friendly designs, renewable energy sources and energy efficient cooling systems & equipment to reduce carbon footprint. Automation plays a vital role in enabling green initiatives by allowing centralized remote monitoring of environmental conditions, power usage levels and automatic shutdown of non-essential components during low usage periods. Growing adoption of AI and machine learning technologies is another key trend. Advanced analytics is being used to develop smart automation solutions like predictive failure analysis, fault detection and proactive maintenance which can optimize performance of data centers. This improves uptime, helps avoid unplanned outages and reduces overall operating costs.

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Market Key Points:

The network automation segment is expected to hold the largest share of the data center automation market during the forecast period. Network automation solutions help automate and manage complex network infrastructures with minimal human intervention. They provide insights and automatically resolve issues to improve network performance and security. With growing network complexity in data centers, there is increasing demand for network automation solutions to simplify operations and reduce costs.

The consulting services segment dominated the data center automation market in 2024 with a share of over 35%, as organizations increasingly rely on consultants for advice on automation strategies, solution selection, and implementation. Consulting services help organizations understand their current infrastructure and processes, identify areas that could benefit from automation, and guide them through the entire automation process. They play a crucial role in successful automation deployments and ongoing support.

Key Market Takeaways

The global data center automation market is anticipated to witness a CAGR of 18.5% during the forecast period 2024-2031, driven by the need to optimize operations, reduce costs, enhance security and efficiency of data centers.

On the basis of solution, the network automation segment is expected to hold a dominant position owing to the increasing complexities in network infrastructures that require automation for seamless operations.

In terms of service, consulting service segment dominated the market in 2024 due to organizations relying on third-party consultants for strategic guidance on automation.

On the basis of deployment, the on-premises segment captured a major share due to data security and compliance concerns that discourage cloud migrations.

Large enterprises emerged as the leading segment by enterprise size as they operate sizeable data center facilities and can benefit significantly from automation.

Regionally, North America dominated others primarily due to heavy investments in data center automation by leading colocation providers and cloud players in the region.

Some of the leading players operating in the data center automation market include Cisco Systems Inc., ABB Limited, Oracle Corporation, Schneider Electric, Dell EMC, Broadcom, Microsoft Corporation, IBM Corporation, Hewlett Packard Enterprise Development LP, and BMC Software. The market is witnessing increased partnerships and mergers & acquisitions among these players.

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Recent Developments:

In Oct 2022, Cisco invested in a dedicated India Webex infrastructure to accelerate Webex adoption, which included a new data center and the necessary regulatory licenses.

In 2022, ABB collaborated with ATS Global, a provider of smart digital transformation solutions, to expand its reach in the data center automation market. Both companies will collaborate to combine resources, test the effectiveness and benefits of potential collaborations for ABB Ability data center customers, and grow their respective businesses.

Market Segmentation

By Deployment:

  • On-Premises
  • Cloud

 By Component:

  • Solution
  • Services

By Enterprise:

  • Large Size Enterprises
  • Small and Medium Sized Enterprises (SMEs)

 By Application:

  • BFSI
  • Colocation
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & Telecom
  • Others

By Regional:

North America:

  • U.S.
  • Canada

Latin America:

  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America


  • Germany
  • U.K.
  • Spain
  • France
  • Italy
  • Russia
  • Rest of Europe

Asia Pacific:

  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific

Middle East:

  • GCC Countries
  • Israel
  • Rest of Middle East


  • South Africa
  • North Africa
  • Central Africa

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About Us:

Coherent Market Insights is a global market intelligence and consulting organization that provides syndicated research reports, customized research reports, and consulting services. We are known for our actionable insights and authentic reports in various domains including aerospace and defense, agriculture, food and beverages, automotive, chemicals and materials, and virtually all domains and an exhaustive list of sub-domains under the sun. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.

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CONTACT: Mr. Shah Senior Client Partner – Business Development Coherent Market Insights Phone: US: +1-206-701-6702 UK: +44-020-8133-4027 Japan: +81-050-5539-1737 India: +91-848-285-0837 Email: Website:

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