Network Automation Market

Market Overview:

The global network automation market size reached US$ 20.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 90.3 Billion by 2032, exhibiting a growth rate (CAGR) of 17.6% during 2024-2032. The increasing network complexity, rapid digital transformation, integration of artificial intelligence (AI) and machine learning (ML) technologies, rising adoption of smart connected devices, and exponential growth in data usage are some of the major factors propelling the market.

Network automation refers to the process of executing network operations automatically through pre-determined instructions, reducing the necessity for human intervention. It is comprised of several components, including configuration tools, application programming interfaces (APIs), testing, and analytics tools. Network automation is widely used in automated device discovery, network mapping, policy enforcement, event-driven automation, continuous compliance, performance management, security management, automated provisioning, disaster recovery, and traffic analysis. It improves network agility, reduces human errors, enhances network control, and improves the accuracy of network tasks. Network automation also aids in saving costs, increasing network security, and enabling faster resolution of network issues.

The exponential growth in data usage due to video streaming, online gaming, and cloud services is facilitating the demand for network automation to optimize traffic and ensure smooth data flow. Furthermore, the increasing process adoption to reduce human errors, enforce consistent security policies, and detect and respond to threats promptly is propelling the market growth. Additionally, the escalating awareness among the users regarding various process benefits, such as reducing operational expenses, increasing productivity, and minimizing manual tasks, is contributing to the market growth. Moreover, the growing process demand owing to the escalating integration of the Internet of Things (IoT) technology, which requires an effective network management strategy, is positively influencing the market growth. Other factors, including increasing numbers of cyberattacks, extensive research and development (R&D) activities, and rapid proliferation of smart devices, are anticipated to drive the market growth.

Network Automation Market Trends/Drivers:

The increasing network complexity

The ongoing growth and expansion of organizations in a dynamic business landscape necessitate a correspondingly complex network infrastructure. This complexity stems from the sheer volume of data generated, increasing network traffic, and the rising number of network endpoints due to the proliferation of smart devices. Further, as organizations adopt hybrid and multi-cloud strategies, managing interconnections between diverse systems and applications becomes challenging. This increasing complexity necessitates network automation. It enables information technology (IT) teams to manage complicated tasks more efficiently by providing capabilities such as automated configuration, troubleshooting, and optimization. As a result, businesses are investing heavily in network automation tools, leading to substantial market growth. By implementing automation, organizations can navigate through the labyrinth of modern network architectures, improve system interoperability, and maintain seamless data flow, all of which are crucial to business operations.

The rapid digital transformation

The digital transformation has become imperative for businesses worldwide as companies are increasingly shifting their operations to digital platforms and cloud environments, requiring efficient and reliable network infrastructures, which in turn is providing an impetus to the market growth. In line with this, network automation ensures the availability, reliability, and security of networks, critical elements in the success of any digital transformation initiative. Furthermore, network automation tools enable organizations to adapt to rapidly changing business environments, launch new services promptly, and provide a better user experience, thus enhancing their competitive position in the market. With digital transformation trends expected to persist, the role of network automation in ensuring operational efficiency, service quality, and innovation will continue to drive the market growth.

Increasing utilization of AI and ML

The escalating adoption of machine learning (ML) and artificial intelligence (AI) in network automation is revolutionizing the field. AI and ML enable intelligent automation by learning from historical network data, identifying patterns, and making informed predictions. This intelligence can be applied to automate complex tasks, perform proactive maintenance, and ensure rapid response to network anomalies. AI-powered network automation can significantly improve the efficiency and effectiveness of network operations, leading to enhanced network performance, security, and reliability. As a result, businesses across the globe are focusing on integrating AI and ML with their network automation strategies, thus propelling market growth. This fusion enables a shift from reactive to proactive network management and allows organizations to leverage predictive analytics, driving strategic business decisions and future-proofing their network infrastructure.

Network Automation Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global network automation market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on component, deployment mode, organization size, network type and end use industry.

Breakup by Component:

• Solution
  • Network Automation Tools
  • SD-WAN and Network
  • Virtualization
  • Internet-Based Networking
• Services
  • Professional Service
  • Managed Service
     

Solution dominates the market

The report has provided a detailed breakup and analysis of the network automation market based on the component. This includes solution (network automation tools, SD-WAN and network, virtualization, and internet-based networking) and services (professional service and managed service). According to the report, solution represented the largest market segment.

The solution component is dominating the market as it is the primary factor that allows the implementation of automation within a network infrastructure. It encompasses a wide array of applications, including network configuration, performance management, fault management, and security management, all of which are integral to efficient network operations. The solution directly contributes to enhanced network performance, reliability, and security, thus being pivotal for organizations to gain the full spectrum of benefits that network automation offers. Furthermore, the solution facilitates operational efficiency by automating routine, repetitive tasks and reducing the scope for manual errors.

Breakup by Deployment Mode:

• On-premises
• Cloud-based
   

On-premises dominates the market

The report has provided a detailed breakup and analysis of the network automation market based on the deployment mode. This includes on-premises and cloud-based. According to the report, on-premises represented the largest market segment.

On-premises deployment provides a higher level of data security and privacy, crucial in sectors such as finance, healthcare, and government, where sensitive data is handled. It assists in retaining data in-house, which minimizes the risk of data breaches and helps businesses maintain complete control over their information. Furthermore, on-premises network automation offers greater flexibility for customization to suit unique business requirements and tailor network automation solutions according to specific needs, helping them optimize network performance and management efficiency. Additionally, on-premises solutions provide organizations with full control over their infrastructure. This control extends to system configuration, data management, and upgrade schedules, which can be important for companies with complex network infrastructures. Moreover, on-premises deployment makes it easier for businesses to comply with regulations, as they retain full control over where and how their data is stored and accessed, which is acting a growth-inducing factor.

Breakup by Organization Size:

• Large Enterprises
• Small and Medium-size Enterprises
   

Large enterprises dominate the market

The report has provided a detailed breakup and analysis of the network automation market based on organization size. This includes large enterprises and small and medium-size enterprises. According to the report, large enterprises represented the largest market segment.

Large enterprises are dominating the market as they have more complex and extensive network infrastructures to support operations, often spread across multiple locations or even countries. Network automation is crucial in effectively managing this complexity, prompting a higher adoption rate. Furthermore, large enterprises are better equipped to invest in network automation technologies. The initial investment for setting up network automation, including costs associated with technology procurement, integration, and personnel training, can be substantial. Additionally, automating tasks in large enterprises helps to improve operational efficiency, reduce human errors, and enable IT staff to focus on strategy due to the increasing volume of network-related tasks.

Breakup by Network Type:

• Physical
• Virtual
• Hybrid
   

Physical dominate the market

The report has provided a detailed breakup and analysis of the network automation market based on network type. This includes physical, virtual, and hybrid. According to the report, physical represented the largest market segment.

Physical networks are dominating the market as they remain prevalent in many businesses that have been slower to transition to virtual or cloud-based infrastructures. Thus, the demand for network automation for these physical networks remains high. Furthermore, physical networks offer a higher level of control over the network infrastructure, as the hardware is directly accessible and manageable. This leads to increased perceived security, as data is confined to the physical network and not transmitted through potentially vulnerable internet connections. Additionally, they offer greater performance in terms of speed and reliability, primarily because they don't rely on internet connections.

Breakup by End Use Industry:

• IT and Telecom
• Manufacturing
• Energy and Utility
• Banking and Financial Services
• Education
• Others
   

IT and telecom dominate the market

The report has provided a detailed breakup and analysis of the network automation market based on end use industry. This includes IT and telecom, manufacturing, energy and utility, banking and financial services, education, and others. According to the report, IT and telecom represented the largest market segment.

IT and telecom are dominating the market as they manage complex networks with a myriad of interconnected systems, devices, and services. Network automation helps handle this complexity, making it an essential tool for these sectors. Furthermore, the widespread process adoption in IT and telecom sectors as they deal with massive volumes of data traffic and the need to deliver services rapidly and reliably is boosting the market growth. Additionally, as primary handlers of sensitive information, IT and telecom industries face significant cybersecurity threats. Network automation can enhance network security by reducing human errors, implementing consistent security policies, and enabling rapid detection and response to threats. Moreover, the adoption of 5G and the Internet of Things (IoT) devices in IT and telecom necessitates advanced network management capabilities.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market, accounting for the largest network automation market share

The report has also provided a comprehensive analysis of all the major regional markets, which includes North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America is dominating the market due to the region's advanced technological landscape, robust digital infrastructure, and high adoption of emerging technologies. Furthermore, the widespread presence of large enterprises that have complex network systems and the resources to invest in network automation solutions is boosting the market growth. Additionally, the region has a strong presence of several leading technology and network solution providers. This fosters a conducive environment for technological advancement and innovation in the field of network automation, further bolstering the market growth. Moreover, the increasing emphasis on cybersecurity in North America is facilitating the demand for network automation, which aids in safeguarding against cyber threats by providing capabilities such as automated threat detection and response.

Competitive Landscape:

The top companies are investing heavily in research and development (R&D) to bring forward advanced network automation solutions. They are increasingly incorporating cutting-edge technologies such as AI and ML, which automate decision-making and enhance the effectiveness of network automation solutions. Furthermore, several key players are focusing on user experience, creating intuitive, easy-to-use interfaces, and offering training and support to help customers seamlessly transition to automated networks. Furthermore, leading companies are expanding their product portfolios to cover a wide array of network types and industries, such as telecom, IT, healthcare, energy, and banking. They are tailoring solutions to cater to specific industry needs and regulatory requirements, thereby broadening their market reach. Moreover, key players are forming strategic partnerships and collaborations, enabling them to leverage complementary strengths and offer comprehensive solutions.

The report has provided a comprehensive analysis of the competitive landscape in the global network automation market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AppViewX Inc.
• BMC Software Inc.
• Cisco Systems Inc.
• Extreme Networks Inc.
• Fujitsu Limited
• Hewlett Packard Enterprise Development LP
• International Business Machines Corporation
• Juniper Networks Inc.
• Micro Focus International PLC
• Netbrain Technologies Inc.
• Solarwinds Corporation
• Vmware Inc.

Recent Developments:

• In September 2022, AppViewX Inc. joined the F5’s technology alliance program to enhance orchestration, automation, self-service, and centralized control capabilities for customers across on-premises, cloud, and edge locations.
• In April 2023, Extreme Networks announced that it would streamline store operations for Kroger by deploying its cloud management and Wi-Fi 6E access point, making it easy to manage, automate and understand ongoing performance and operations
• In February 2023, Cisco Systems Inc. announced that it is expanding its collaboration with NEC Corporation to bring 5G connectivity and automation to networks worldwide.

Network Automation Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the network automation market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global network automation market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the network automation industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.