According to recent ARC research, industrial automation in data centers is experiencing steady growth, largely driven by the increasing demand for cloud services and increase in AI workloads. Historically, data centers were managed using systems that controlled fundamental functions such as cooling, security, and ventilation, typically provided by building management suppliers. However, this approach is evolving. Data centers are now regarded as critical infrastructure requiring uninterrupted operation. Consequently, operators are prioritizing system reliability, equipment availability, and continuous monitoring. This shift has resulted in greater utilization of industrial automation tools, including advanced control systems and monitoring software, to ensure smooth operations and minimize downtime as data centers expand and grow more complex.
"The demand for data centers is expected to rise as AI technologies become more prevalent in data processing, and more businesses transition to cloud-based platforms for storage and application hosting. This shift allows organizations to reduce capital spending by outsourcing infrastructure needs and paying for services based on usage. Recent data indicates that AI-driven cooling management can lower energy use by up to 40 percent, primarily using real-time sensor data and machine learning for more efficient equipment control. This not only reduces operational costs but also helps achieve sustainability objectives. The adoption of hybrid and remote work models has maintained the demand for virtualization and cloud services, especially in IT, finance, and other data-intensive sectors. Consequently, major technology companies continue to invest in both hyperscale and edge data centers, emphasizing uninterrupted power supply and energy-efficient infrastructure,” according to David Humphrey, Research Director and key author of ARC's Industrial Automation 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:
- Surge in E-commerce Activities
- Increased Investment in building Data Centers
- Migration from Building to Industrial Automation
- Need for Tier-4 Data Centers
- Adoption of Hybrid Cloud and Multi-cloud Architecture
- Emphasis on Software Advancements to Increase CPU Cycles
- VRLA to Lithium-ion Batteries
- Tailored Edge Infrastructure
- Liquid Cooling Options for High-Density IT Loads
- 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
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, Rockwell Automation, 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, five-year market forecasts and two years of historical analysis. The research segmentation includes World Region, Revenue Category, Hardware Type, Customer Type, Sales Channel.
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