Market Perspective

The global Network Automation Market was valued at USD 4.55 billion in 2022 and is projected to reach USD 34.43 billion by 2030, growing at a CAGR of 33.50% from 2023 to 2030.

Automation in network management not only minimizes errors but also strengthens business resilience. By automating manual tasks and implementing solutions that automatically respond to network errors, businesses can ensure uninterrupted access to critical applications and data. Increasing levels of network automation are crucial for businesses to navigate the complexities of the digital era and stay competitive in the ever-evolving landscape. Moreover, the implementation of automated systems necessitates the hiring or training of specialized personnel, leading to increased costs for the organization. These concerns surrounding security and costs can impede the adoption of automated solutions in the business environment.

Analyst’s Review on Network Automation Market

One major trend in the industry is the increasing adoption of 5G technology, which is driving the need for more advanced network automation solutions. As networks undergo a major transformation to support 5G capabilities, automation plays a crucial role in simplifying and scaling network operations. Another key trend is the integration of artificial intelligence (AI) and machine learning (ML) in network automation. AI and ML technologies enable intelligent network management, predictive analytics, and automated decision-making, resulting in more efficient and optimized network operations.

Market Definition

Network automation refers to the implementation of automated processes and technologies to manage and control network operations and tasks. It empowers businesses to streamline their network management, reduce manual intervention, and enhance overall efficiency. Network automation can be applied to various types of networks, including local area networks (LANs), wide area networks (WANs), and data center networks. It involves deploying software-defined networking (SDN) solutions and programmable network devices that can be centrally managed and configured.

In terms of deployment, network automation can be achieved through the use of specialized network automation tools and platforms. These tools enable businesses to automate tasks such as network configuration, provisioning, monitoring, and troubleshooting. They provide a centralized interface for network administrators to manage and control network devices, policies, and workflows, thereby simplifying network management processes.

The applications of network automation in business are vast and diverse. One of the primary benefits is the ability to improve operational efficiency by reducing human errors and manual intervention. By automating routine network tasks, businesses can save time, resources, and costs while ensuring consistent and reliable network performance.

Network automation also enhances network security by enabling rapid threat detection and response. Automated security policies and configurations can be implemented to protect against potential vulnerabilities and attacks, bolstering overall network resilience.

Additionally, network automation enables businesses to scale their networks more efficiently. With automation, network administrators can quickly deploy new network devices, configure network settings, and provision network services, ensuring smooth expansion and growth without delays or disruptions. Moreover, network automation plays a crucial role in facilitating the adoption of emerging technologies such as cloud computing and the Internet of Things (IoT). It enables seamless integration and management of diverse network environments, allowing businesses to leverage these technologies to their full potential.

Market Dynamics

Network automation is a rapidly growing field that is being driven by various factors, including the growing emphasis on the usage of network virtualization. Network virtualization involves creating multiple virtual networks on a single physical network enabling more efficient resource utilization and flexibility in network management. Moreover, the increasing adoption of network virtualization is anticipated to boost the growth of the network automation market. As organizations strive to optimize their network operations and improve overall efficiency, network virtualization provides a scalable and agile solution that aligns with the requirements.

One major obstacle to market growth is the concern among some companies that automated systems may overlook security threats or impose excessive constraints on the network. Moreover, the implementation of automated solutions requires hiring professionals or training existing network teams, leading to increased expenses for the company. Additionally, the absence of established automation regulations or standards further complicates the adoption process.

Segmentation Analysis

The global network automation market is segmented based on component, network type, deployment, vertical, and geography.

Based on component, the market is bifurcated into solution and services. The solution segment held the largest market revenue in 2022 owing to expedite the deployment of software and applications. Moreover, market leaders are introducing cutting-edge solutions to meet the specific needs of end-users. The rising adoption of connected devices and the escalating demand for network bandwidth are driving the expansion of this market. For instance, in December 2022, Cisco announced significant advancements in its plan for the Cisco Security Cloud, an integrated, AI-powered security platform that spans multiple domains. The introduction of Cisco's XDR solution and the addition of advanced features to Duo MFA will enhance the organization's ability to protect the overall integrity of its IT infrastructure.

Based on the network type, the market is divided into physical, virtual, and hybrid. The virtual segment held the largest market share in 2022 owing to numerous benefits, including flexibility, backup and recovery capabilities, scalability, load balancing, and cost savings. Several cloud service providers and financial organizations are experiencing a growing uptake of virtual automation services. Industry leaders such as NTT, eBay, PayPal, and AT&T have successfully implemented network virtualization, enabling them to host a flexible software-based environment that connects servers, data centers, devices, and virtual machines.

By deployment, the market is divided into cloud-based, on-premises and hybrid. The cloud-based segment accumulated the largest market share in 2022 owing to the increasing demand from small and medium enterprises for powerful cloud-based solutions and services that enhance productivity. The adoption of cloud deployment mode allows for easy and secure network configuration, as well as the efficient handling of large volumes of network application traffic, which drives the growth of this segment. By eliminating the need for in-house infrastructure and complex maintenance, cloud network automation services prove to be cost-effective for businesses.

Geographical Analysis

Based on region, the global network automation market is classified into North America, Europe, Asia Pacific, MEA and Latin America.

North America dominated the market share in 2022 driven by the swift adoption of network automation solutions and services. A key driver of regional growth is the presence of major players like Cisco Systems Inc. and IBM Corporation, whose investments in research and development of data centers and network infrastructure have propelled market growth. Furthermore, the increasing demand for machine learning, big data, and deep learning algorithms, which enable remote control of network equipment, is fueling the expansion of the network automation market.

Competitive Landscape

The global network automation industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolios and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives. Industry players are investing in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the market are

• BMC Software, Inc.
• Cisco Systems, Inc.
• IBM Corporation
• Juniper Networks, Inc.
• Open Text
• SolarWinds Worldwide, LLC
• NetBrain Technologies Inc.
• VMware, Inc.
• FUJITSU

Key Developments

• May 2023 (Collaboration): Juniper Networks and ServiceNow joined forces to provide comprehensive automation solutions for Managed Service Providers (MSPs) and enterprises to enable organizations for enhanced network deployment and operational efficiency while driving down costs.
• April 2023 (Launch): BMC introduced a range of solutions that allow enterprise customers to leverage artificial intelligence (AI) capabilities through its Helix Control-M platform, Control-M solution, AMI offerings, and Helix Operations Management platform. Furthermore, BMC Helix's availability in the Google Cloud Marketplace enables seamless connectivity and orchestration of data across mainframe and cloud systems, ultimately enhancing the experiences of customers, partners, and employees.
• February 2023 (Collaboration): Cisco collaborated with NEC Corporation to enhance their collaborative endeavors by incorporating system integration solutions and exploring potential prospects in 5G xHaul and private 5G. This strategic move aims to assist customers in modernizing their infrastructure and facilitating connectivity for a larger user base and a wider range of devices.
• February 2023 (Acquisition): IBM announced their plans to acquire NS1, an industry-leading provider of network automation software-as-a-service (SaaS) solutions. NS1's cutting-edge technology empowers businesses to efficiently deliver content, services, and applications to a broad user base, while simultaneously enhancing performance, security, reliability, and cost optimization. This acquisition aligns with IBM's strategic objective of providing comprehensive solutions for businesses in the digital age.

The global Network Automation Market is segmented as:

By Component

• Solution
• Services

By Network Type

• Physical
• Virtual
• Hybrid

By Deployment

• Cloud-based
• On-premises
• Hybrid

By Vertical

• IT & Telecommunications
• Manufacturing
• Healthcare
• Energy and Utility
• BFSI
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America