Product Code: 54894
The data center automation market was worth USD 7.34 billion in 2019 and is expected to reach USD 19.65 billion by 2025, with a CAGR of 17.83% during the forecast period (2020-2025). The data center team receives extra support from the opportunities generated by the data center automation, which is the current stage of a deployment strategy for the data center automation in the market.
- The boom in social networking, analytics, cloud computing, and mobile computing is projected to positively impact the need for automation in data centers. Approximately 80% of the data generated is unstructured, containing raw audio, file, or text from various sources, such as blogs and social media platforms.
- This is Big Data, which needs to be concise to be analyzed, however, manually handling an enormous amount of data, would lead to a high probability of error. Thus, automation plays a vital role in data centers by performing looked-for tasks, which is expected to drive the market growth during the forecast period.
- The market has several opportunities as the company that owns and operates a data center, hires third-parties to take over data center management, while they keep as many processes in-house as possible. As an alternative to managed services, automation can eliminate errors, save time, and optimize the processes for better cost-savings
- Several end-user industries have to comply with multiple regulations, such as Sarbanes-Oxley Act, Payment Card Industry Data Security Standard, the Healthcare Insurance Portability and Accountability Act, and other industry standards. These often need automated tools to avoid costly consequences. One data breach or negative audit can cost an organization millions of dollars in remediation and motivates the data center operators to opt for automation.
Scope of the Report
Data center automation is the process of managing and automating the workflow and processes of a data center facility. It enables automating the bulk of the data center operations, management, monitoring and maintenance tasks that otherwise are performed manually by human operators.
Key Market Trends
Healthcare Industry to Account for a Major Share in the Market
- Digitization has significantly increased the volume and speed of healthcare data generation. As much as 80% of data generated by the healthcare industry is likely to be in the cloud by 2020. According to Oxford Economics, the healthcare organizations are expected to invest in Big Data and analytics (76%), cloud technology (65%), mobile (50%), and security (48%) in the next two years. As digital transformation becomes a mainstream technology in the healthcare sector, the scope for automation is expected to increase substantially.
- The increasing use of online Electronic Health Records (EHRs) and e-prescriptions is further increasing the storage demands among healthcare providers, leading to investing in data centers. For instance, in June 2018, China's Guizhou province launched the first of the five healthcare data centers, with an aim to set up a national healthcare data network. Also, in the United States, the growth in e-prescriptions along with EHRs is contributing to the market growth.
- Moreover, the regulatory compliances, like HIPPA and European data privacy acts, make it even more complicated to handle, considering the increasing reliance on IT and storage hardware. With automation healthcare, IT teams can be compliant with network policies as the human errors that lead to compliance gap are avoided.
North America to Lead the Market
- The expansion of mobile broadband, as well as the increasing adoption of Big Data analytics and cloud computing are driving the demand for new data center infrastructures. North America, comprising of a considerable amount of data centers in 2017 (almost 600 data center operators) and a large number of enterprises switching from hardware to software-based services is estimated to be a significant market for data center automation.
- As of 2017, the United States accounted for almost 45% of the global cloud and internet data centers, according to CNNIC. The data centers in the region are highly being regulated by the government bodies.
- Initiatives, like the Data Center Optimization Initiative (DCOI) by the federal government, aim to encourage the data center operators to consolidate the inefficient infrastructure, optimize existing facilities, achieve cost savings, and transition to a more efficient infrastructure. The intention of the initiative is to reduce the costs of physical data centers by a minimum of 25% by the end of the fiscal year 2018.
- This is projected to fuel the utilization of data centers and the need for automation, thus, propelling the market growth in the region.
The data center automation market is highly fragmented due to the presence of a large number of players who offer the service. Some major players who offer cloud and AI service also offer data automation as a bundled service which is another reason for the fragmentation of the market. Some key companies in the firm include Oracle, Fujitsu, HP, Microsoft, among others. Some key recent developments in the market include:
- March 2018 - Du, a UAE-based telecom company cooperated with Cisco Systems Inc. to build a future proof network, which is supposed to enable the transformation of the telco as a digital service provider.
- February 2018 - Oracle Corporation invested in over 10 data centers across the globe, with an aim to expand its global footprint and gain a high market share.
- February 2018 - Dell EMC announced new servers to optimize software-defined environment and computing which is expected to increase the product portfolio.
Reasons to Purchase this report:
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Growth in Cloud Computing and Online Applications
- 4.3.2 Energy and Cost Efficiency Concerns
- 4.4 Market Restraints
- 4.4.1 Limitation in Storage to Challenge the Market Growth
- 4.5 Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Solution
- 5.1.1 Server
- 5.1.2 Database
- 5.1.3 Network
- 5.1.4 Other Solutions
- 5.2 By Data Center Type
- 5.2.1 Tier 1
- 5.2.2 Tier 2
- 5.2.3 Tier 3
- 5.2.4 Tier 4
- 5.3 By Deployment Mode
- 5.3.1 On-premise
- 5.3.2 Cloud
- 5.4 By End-user Vertical
- 5.4.1 BFSI
- 5.4.2 Healthcare
- 5.4.3 Retail
- 5.4.4 Manufacturing
- 5.4.5 IT and Telecom
- 5.4.6 Other End-user Verticals
- 5.5 Geography
- 5.5.1 North America
- 220.127.116.11 US
- 18.104.22.168 Canada
- 5.5.2 Europe
- 22.214.171.124 Germany
- 126.96.36.199 UK
- 188.8.131.52 France
- 184.108.40.206 Rest of Europe
- 5.5.3 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 Japan
- 22.214.171.124 India
- 126.96.36.199 Rest of Asia-Pacific
- 5.5.4 Latin America
- 5.5.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Cisco Systems Inc.
- 6.1.2 BMC Software Inc.
- 6.1.3 EntIT Software LLC
- 6.1.4 ABB Limited
- 6.1.5 Hewlett Packard Enterprise Company
- 6.1.6 Dell Inc.
- 6.1.7 Oracle Corporation
- 6.1.8 Fujitsu Ltd
- 6.1.9 Microsoft Corporation
- 6.1.10 VMware Inc.
- 6.1.11 Brocade Communications Systems
- 6.1.12 Citrix Systems Inc.
- 6.1.13 Service Now Inc.
- 6.1.14 Chef Software Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 INVESTMENT ANALYSIS