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Market to exceed 8 million - but what is data center automation?

26 Apr 2017

So it seems that the data center automation market is the market to be in. The data center automation market is expected to reach well over $8 million global by the year 2022, according to new research results by Allied Market Research.

But what is data center automation?

Well, defining what exactly a data center is would be a good start. In their own words, Allied Market Research defines a data center as a facility that consists of a network of computers and storage systems.

It is used to process, organize, store, and distribute large amounts of data for a business or an organization.

Data center automation offers faster and enhanced productivity, operational reliability, and consistency to its users, which results in its increased demand in various industry verticals.

The report, Data Center Automation Market - Global Opportunity and Forecast, 2014-2022, claims that the global data center automation market was valued at $2,483 million in 2015, and is projected to reach $8,619 million by 2022.

The market is growing at a CAGR of 19.6% from 2016 to 2022, according to the study. And the IT & telecom segment was the highest contributor in 2015, responsible for around 23% of the global market.

Allied Market Research says that the data center automation market is broken up into four segments: North America, Europe, Asia-Pacific, and LAMEA.  

For 2015, North America was the highest revenue contributor, accounting for around 60% share of the market size.

However, the study says that Asia-Pacific is projected to grow at the highest CAGR of 25.3%, owing to the adoption of data center automation techniques to achieve effective and efficient control over the ongoing processes and operations.

The findings suggest that manufacturing is expected to grow at the highest CAGR of 22.8% during the forecast period. In this industry, large amounts of data are analyzed so quality, accuracy and delivery time can be improved.

The automation of the data center means that the data can be accessed continuously for performing predictive analysis to identify relationships and patterns among various processes.

Ashvin Namde, research analyst, ICT at Allied Market Research, says that the rapid growth in the number of smartphone and tablet users and growth in dependency on IT have led to an increased demand for data center automation technology.

Namde comments, “in addition, continuous prevalence of cloud technology and the explosion of big data have increased the demand for larger storage capacity, thus raising the need for data center automation.”

“The wide-scale adoption of Internet-enabled devices, cloud-based applications, and the transformation from consumer-side computing to Software-as-a-Service (SaaS) drive the need for automation within the IT industry," Namde adds.

The key findings from the study show that the consulting services segment accounted for the highest share of the data center automation market in 2015, growing at a CAGR of 20.4% during the forecast period.

The study also shows that North America was the highest revenue-generating segment in 2015, with $1,558 million.

Asia-Pacific dominated the market in terms of growth in 2015, and is projected to continue its dominance in the future as well.

U.S. was the leading country, in terms of spending on data center automation market, in 2015.

Lastly, India, China, and other emerging markets are projected to provide significant opportunities for major players.

Overall, the study conducted by Allied Market Research, Data Center Automation Market - Global Opportunity and Forecast, 2014-2022, finds that the data center automation market is expected to exceed $8 million, globally, by 2022. 

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