Global Data Center Robotics Market Size, Share & Industry Trends Analysis Report By Enterprise Size, By Component (Hardware, Software, and Services), By Robot Type, By Vertical, By Regional Outlook and Forecast, 2023 - 2030

Global Data Center Robotics Market Size, Share & Industry Trends Analysis Report By Enterprise Size, By Component (Hardware, Software, and Services), By Robot Type, By Vertical, By Regional Outlook and Forecast, 2023 - 2030

The Global Data Center Robotics Market size is expected to reach $39.7 billion by 2030, rising at a market growth of 22.3% CAGR during the forecast period.

Government data centers store sensitive information, and security is paramount. Robotics can enhance security by patrolling the premises, monitoring for unauthorized access, and responding to security breaches. Consequently, the government segment would generate approximately 10.57% share of the market by 2030. This helps in safeguarding classified data and maintaining data center security protocols. Using this technology in the government sector can enhance security, efficiency, and resilience while reducing operational costs. It's essential for government agencies to carefully plan and implement robotics solutions, considering the public sector's specific needs and regulatory requirements.

The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2023, Rockwell Automation, Inc. came into partnership with Autonox Robotics. Through this partnership, Rockwell would aim to empower businesses in North America, Europe, the Middle East, and Africa to unlock fresh manufacturing opportunities with comprehensive robot control solutions. In April, 2023, Siemens AG came to partnership with IBM, to create an integrated software solution that combines their capabilities in systems engineering, service lifecycle management, and asset management.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunner in the Data Center Robotics Market. Companies such as Cisco Systems, Inc., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Siemens AG are some of the key innovators in Data Center Robotics Market. In October 2022, Huawei Digital Power Thailand collaborated with Planet Communications Asia Plc, to enter the Thai data center sector by introducing the Prefabricated AIO Data Center FusionModule DC 1000A. The partnership aimed to raise awareness about prefabricated data center modules in Thailand's markets and was committed to aligning with the country's demand for reliable data centers and the growing zero-carbon trends.

Market Growth Factors

Advancement of smart data centers through integration of RPAssss

Robotics process automation (RPA) and automation technologies have significantly enhanced the efficiency, scalability, and sustainability of data center operations. RPA in data centers automates routine and repetitive tasks, such as server provisioning, resource allocation, and software updates. This automation reduces manual intervention, saving costs and improving operational efficiency. RPA enables data centers to allocate resources dynamically based on workload demands. This leads to more efficient resource utilization, reducing over-provisioning and under-utilizing hardware resources. This trend has boosted the growth of the market.

Growing data center expansion

The need for data centers is driven by factors such as exponential data growth, cloud computing, remote work, IoT, e-commerce, data security, edge computing, 5G, AI, video streaming, business continuity, environmental concerns, and the expansion of online services. Cloud computing has revolutionized the way individuals and businesses access and store data. Cloud services have become integral to modern computing, and data centers are fundamental to these services. As more organizations migrate to the cloud, data center expansion is inevitable to support cloud computing requirements. The aforementioned factors will expand market growth.

Market Restraining Factors

Lack of technical proficiency and awareness

However, deploying and maintaining data center robotics often requires specialized technical skills. Many organizations may lack in-house expertise to manage and troubleshoot robotics systems, leading to challenges in implementing and maintaining such systems. Training personnel to operate and manage data center robotics can be time-consuming and costly. Organizations may hesitate to invest in training programs due to budget constraints or lack of awareness of the benefits. Integrating data center robotics with existing systems and processes can be complex. Organizations may be reluctant to adopt robotics solutions without the technical proficiency to handle these integrations. The rising security privacy concerns will hinder market growth.

Enterprise Size Outlook

On the basis of enterprise size, the market is divided into large enterprises and small & medium enterprises (SMEs). The small & medium enterprises (SMEs) segment recorded a remarkable revenue share in the market in 2022. The fast growth of the SME segment in this market is driven by the convergence of affordability, operational efficiency, scalability, remote management capabilities, competitive advantages, and the alignment of robotics with the specific needs of smaller businesses. As robotics evolve and adapt, SMEs are well-positioned to leverage these technologies to enhance their data center operations and navigate the dynamic business landscape.

Component Outlook

On the basis of components, the market is segmented into hardware, software, and services. In 2022, the hardware segment dominated the market with the maximum revenue share. Robotic arms are data center robotics’ most visible and essential hardware components. They are responsible for performing physical tasks such as server installation, maintenance, and component replacement. These arms often have various end-effectors (tools or grippers) to perform specific tasks. Moreover, high-performance computing hardware is essential for processing data, making real-time decisions, and controlling the robotic system. This includes CPUs, GPUs, FPGAs, and embedded systems. Hardware components for safety include emergency stop buttons, collision detection systems, and safety barriers to protect robots and human operators.

Robot Type Outlook

By robot type, the market is categorized into collaborative robots, industrial robots, and service robots. The collaborative robots segment covered a considerable revenue share in the market in 2022. The collective robotic growth is attributed to its diverse IT expertise. The growing diversity has prompted knowledge sharing and fostered collaboration and innovation in a business setup. The collaborative robotic data center prioritizes investing in sustainability and energy-efficient technologies. Moreover, collaborative robotic data centers facilitate manufacturing and production-related tasks such as material handling, machine tending, and product quality control.

Vertical Outlook

Based on vertical, the market is classified into BFSI, healthcare, education, IT & telecom, government, retail & e-commerce, and others. In 2022, the IT & telecom segment generated the highest revenue share in the market. This is due to the wide acceptance of enhanced technologies like IoT, cloud computing, and AI, which generate vast amounts of data. The impact of emerging trends like AI, IoT, and cloud computing on the data center industry is unquestionable, including increased performance demands, potential security risks, and the need for more efficient and flexible data center infrastructure.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region garnered a significant revenue share in the market in 2022. The Asia Pacific region is undergoing a rapid digital transition, with rising usage of big data, cloud, artificial intelligence, and the Internet of Things (IoT). Data centers must become more scalable, efficient, and capable of managing complex workloads as data volumes increase. Robotics can assist in meeting these demands. Many APAC countries face skilled labor shortages, specifically in technical and engineering positions. Robotic solutions could relieve these shortages by automating routine operations and freeing trained workers for higher-value work. The competitive nature of the APAC technology sector leads companies to seek creative methods to distinguish themselves. Robotic data centers can be a unique selling factor and assist in developing a company's reputation.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include ABB Group, Amazon Web Services, Inc (Amazon.com, Inc.), Microsoft Corporation, Equinix, Inc., Cisco Systems, Inc., Siemens AG, BMC Software, Inc. (KKR & Co., Inc.), Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Hewlett Packard enterprise Company, and Rockwell Automation, Inc.

Recent Strategies Deployed in Data Center Robotics Market

Mergers & Acquisition:

Jan-2023: Microsoft Corporation acquired Fungible Inc., a US-based software development and technology company. Through this acquisition, Microsoft would aim to diverse array of technological solutions and services by bolstering offloading capabilities, reducing latency, boosting data center server capacity, enhancing energy efficiency, and cutting operational expenses.

Dec-2022: Rockwell Automation, Inc, acquired CUBIC, IT Services and IT Consulting in the United Kingdom. Through this acquisition, Rockwell would be able to enhance the collection of cutting-edge technologies for intelligent motor control.

Sep-2021: Equinix Inc. acquired GPX Global Systems, Inc., an IT Services and IT Consulting company. Through this acquisition, Equinix would aim to play a prominent role and serve as a driving catalyst in India's digital transformation, enabling businesses to make significant advancements both within the country and on the global stage.

Jul-2020: Cisco Systems, Inc. acquired Fluidmesh Networks, a hardware and software manufacturer of wireless point-to-point networks. Through this acquisition, Cisco would focus on diversifying industrial wireless solutions, particularly for industries with mobile assets and critical applications were ensuring zero data loss is essential for maintaining operational uptime and business resilience.

Product Launches:

Jun-2023: Amazon Web Services, Inc. unveiled the AWS Generative AI Innovation Center, a fresh initiative aimed at aiding customers in the effective development and implementation of generative artificial intelligence (AI) solutions.

Partnerships, Collaborations & Agreements:

May-2023: Rockwell Automation, Inc. came into partnership with Autonox Robotics, a German Based Automation Machinery Manufacturing company. Through this partnership, Rockwell would aim to empower businesses in North America, Europe, the Middle East, and Africa to unlock fresh manufacturing opportunities with comprehensive robot control solutions.

Apr-2023: Siemens AG came to partnership with IBM, a US-based multinational technology corporation. Through this partnership, Siemens would aim to create an integrated software solution that combines their capabilities in systems engineering, service lifecycle management, and asset management.

Oct-2022: Huawei Digital Power Thailand collaborated with Planet Communications Asia Plc, a Digital Technology Provider. Through this collaboration aims to enter the Thai data center sector by introducing the Prefabricated AIO Data Center FusionModule DC 1000A. The partnership aimed to raise awareness about prefabricated data center modules in Thailand's markets and was committed to aligning with the country's demand for reliable data centers and the growing zero-carbon trends.

Oct-2022: Rockwell Automation, Inc. came to a partnership with Cognite, a Software Development company in Norway. Through this partnership, Rockwell would aim to manufacture a data hub prepared for seamless expansion across the entire enterprise.

Feb-2022: ABB Group came into partnership with Covariant, a US-based AI Robotics company. Through this partnership, ABB would be able to expand its portfolio into new growing sectors such as distribution and e-commerce. Moreover, by integrating artificial intelligence into robotic systems, both companies are paving the way for a multitude of fresh prospects and applications across diverse industries.

Feb-2022: Hewlett Packard Enterprise collaborated with Ayar Labs, a leader in chip-to-chip optical connectivity. Following this collaboration, both companies would innovate data centers by developing silicon photos.

Aug-2021: ABB Group joined hands with ST Telemedia Global Data Centers, the fastest-growing global data center operator. Under this collaboration, the companies aimed to conduct an Artificial Intelligence energy optimization pilot across Singapore to leverage Machine Learning and AI technology along with advanced analytics to optimize energy use within a data center.

Mar-2019: BMC Software, Inc. came into partnership with Automation Anywhere, an America-based global software company. Through this partnership, BMC Software would focus on enhancing BMC Helix Cognitive Automation's functionalities, incorporating Robotic Process Automation (RPA) into service desk operations.

Scope of the Study

Market Segments covered in the Report:

By Enterprise Size

• Large Enterprises
• Small & Service Robots Enterprises (SMEs)

By Component

• Hardware
• Software
• Services

By Robot Type

• Industrial Robots
• Service Robots
• Collaborative Robots

By Vertical

• IT & Telecom
• Healthcare
• BFSI
• Retail & E-commerce
• Government
• Education
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• ABB Group
• Amazon Web Services, Inc (Amazon.com, Inc.)
• Microsoft Corporation
• Equinix, Inc.
• Cisco Systems, Inc.
• Siemens AG
• BMC Software, Inc. (KKR & Co., Inc.)
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Hewlett Packard enterprise Company
• Rockwell Automation, Inc.

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