According to recent ARC research, the Industrial Automation Market within Data Centers is poised for significant growth, driven primarily by the increasing demand for cloud-based solutions. Historically, data centers have been managed using control and monitoring systems for functions such as HVAC, building security, and cooling, reflecting their role as infrastructure-focused facilities rather than production environments. As a result, they were traditionally served by building control suppliers. However, this landscape is evolving rapidly. Data centers are now regarded as mission-critical environments, with end users demanding higher levels of reliability, uptime, and equipment availability—akin to the stringent standards seen in critical process industries. This shift is elevating the importance of automation technologies in ensuring continuous, efficient operation, as data centers face mounting pressure to deliver uninterrupted service in increasingly complex and data-driven ecosystems.
"The demand for data centers is growing fast as AI continues to revolutionize data processing and more businesses turn to the cloud for the storage and hosting of data and applications. This transition to cloud also helped many businesses convert their CapEx to OpEx by renting, subscribing, or outsourcing all the required capacity from private data centers. Research shows that businesses can save up to 40 percent of the energy used for data center cooling by using AI appropriately. Reduced energy use for cooling results in lower energy costs and a smaller carbon footprint thanks to real-time control of cooling equipment using sensors and machine learning. A growing trend of remote working led to a transient surge for virtualization and cloud services in the IT and finance sectors. Heavy investments by IT firms will lead to the high growth of new hyperscale and edge data centers and the need for uninterruptible power supplies,”according to Hemanth Nirujogi Analyst and key author of ARC's Industrial Automation Systems in Data Centers Market Research.
Industrial Automation in Data Centers Market Trends
In addition to providing detailed competitive market share data, the research also addresses key market trends as follows:
- Need for Tier-4 Data Centers
- Data Center Automation
- Emphasis on Software Advancements to Increase CPU Cycles
- VRLA to Lithium-ion Batteries
- Tailored Edge Infrastructure
- Rear Door Cooling for High Density Racks
- Increase in Prefabrication and Modular Data Centers
- Multimode and Single-mode Fiber
- Adaption of High Fiber Counts
- Increasing Remote Operation and Digital Services
- Deployment of 5G Networks
- Surge in E-commerce Activities
- Increased Investment in Building Data Centers
- Migration from Building to Industrial Automation
Leading Suppliers to the Industrial Automation in Data Centers Market Identified
In addition to providing specific market data and industry trends, this ARC market research also identifies and positions the leading suppliers to this market and provides and summarizes their relevant offerings. An alphabetical list of key suppliers covered in this analysis includes: ABB, Danfoss, Johnson Controls, Schneider Electric, Siemens.
About the Industrial Automation in Data Centers Research
The Industrial Automation Systems in Data Centers research explores the current and future market performance and related technology and business trends and identifies leading technology suppliers. This new research is based on ARC’s industry-leading market research database, extensive primary and secondary research, and proprietary economic modelling techniques. The research includes competitive analysis, ive-year market forecasts, and one year of historical analysis. The research segmentation includes Customer Type, World Region, Sales Channel, Hardware by Type, Revenue Category, Overall Scope.
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