Network Automation Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Network Automation Market Analysis
The Network Automation Market size is expected to grow from USD 21.10 billion in 2023 to USD 50.82 billion by 2028, at a CAGR of 19.22% during the forecast period (2023-2028).
Public and private companies and government entities are requiring employees to work from home (WFH), putting an unforeseen strain on networking technologies and causing bandwidth and security concerns because of increased internet traffic, which is driving the Network Automation Market across the globe.
- Enterprise networks are under pressure, with more users, devices, and applications relying on the network for essential connectivity to a broad range of endpoints. Organizations are increasingly interested in new network architectures and advanced management tools that leverage machine learning and artificial intelligence to create self-driving or autonomous networks. These advancements are also significantly changing the way enterprises rely on services from their partners and vendors.
- One of the most significant benefits of network automation is a lower operational expense. By eliminating tedious and manual processes through automated and orchestrated infrastructures, one not only extends the network's capabilities but also achieves a faster ROI.
- Automation also reduces errors and builds resiliency. In addition to automating manual tasks to minimize network errors, many solutions automatically respond to network errors without intervention, enhancing business resiliency and ensuring employees have access to the applications and data they need whenever they need it. Increased network automation levels help reduce complexity and are essential for businesses to keep up in the digital world.
- One of the main factors constraining the market's growth is certain firms' concern that automated solutions can overlook security issues or impose many network restrictions. Additionally, implementing automated systems or solutions forces an organization to hire professionals or train its current network teams, ultimately raising costs for the business.
- Automation plays an essential role in maintaining IT operations during the COVID-19 pandemic. According to the Verizon Network Report, April 22, the overall data volume across its networks increased by 19% compared to pre-COVID levels. While data usage remains elevated, the changes in how people use the network have stabilized. Verizon expects the user to continue at sustained higher levels in the future.
Network Automation Industry Segmentation
Network automation is the process of automating the configuration, management, and operations of a computer network. With most applications relying on data centers, supporting them through increased virtualization, standardization, and automation has become a key factor for better performance and higher capacity and throughput. The solution type considered under the scope includes network automation tools, SD-WAN and network virtualization, and intent-based networking. The end-user industries as part of the study include IT and telecom, manufacturing, energy and utility, banking, and financial services, education, and other end-user industries.
The Network Automation Market is segmented by Network Type (Physical, Virtual, and Hybrid), Solution Type (Network Automation Tools, SD-WAN and Network Virtualization, and Intent-based Networking), Service Type (Managed Service and Professional Service), Deployment (Cloud, On-premise, and Hybrid), End-user Industry (IT and Telecom, Manufacturing, Energy and Utility, Banking and Financial Services, Education, and Other End-user Industries), and Geography.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|Network Automation Tools|
|SD-WAN and Network Virtualization|
|IT and Telecom|
|Energy and Utility|
|Banking and Financial Services|
|Other End-user Industries|
|Middle-East and Africa|
Network Automation Market Trends
The Virtual Network Segment is Expected to Hold a Major Market Share
- Network functions virtualization (NFV) and Software-defined networking (SDN) abstract the implementation of new network functions and decouple them from the hardware infrastructure and associated topological constraints, thus, making communications networks programmable and, as a result, much more flexible and agile.
- SDN and NFV are together seen as key technologies enabling the transformation of communication service providers to provide a lower-cost means to address market demands. The primary end users driving this market are telecom operators who need to achieve CAPEX reduction, improve efficiency, and offer new services. NFV has constantly been complementing SDN by virtualizing network services that run in dedicated appliances, such as deep packet inspection (DPI), firewalls, load balancers, and session border controllers (SBCs), so that these services can run on a single pool of computer hardware, yielding CAPEX and OPEX savings.
- Network virtualization and automation are beneficial for environments that experience unexpected usage surges. The automated network can accommodate these surges by automatically redirecting network traffic to servers in less impacted areas of the network.
- Companies are resuming to scale their virtualized environments past simple virtual server deployment. They are now deploying virtual disaster recovery and virtual support for dynamic workloads and private cloud infrastructure. In doing so, they encounter unprecedented rates of change and growing complexity in the physical and logical network.
- Several open-source projects are dedicated to establishing network automation standards through virtualization. For instance, the European Telecommunications Standards Institute (ETSI) Industry Specification Group (ISG) for NFV Management and Orchestration (MANO) is focused on the management and orchestration of network resources in cloud-based data centers. These standards will enable better and more efficient communication between SDN and NFV platforms.
- Microsoft's Azure Virtual Network (VNet) is the fundamental building block for Azure's private network. VNet permits many types of Azure resources, such as Azure Virtual Machines (VM), to interact with each other securely, the internet, and on-premises networks. VNet is comparable to a traditional network that would work in the data center but brings additional benefits to Azure's infrastructure, such as scale, availability, and isolation.
To understand key trends, Download Sample Report
Europe to Account for a Significant Market Share
- The European region holds a significant share in network automation due to the rapid expansion of the area and the presence of market players such as Microfocus International PLC, Nokia Communications, Ericsson, and Entuity Network Management.
- In Europe, the adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies is increasing daily. These factors rapidly change how large enterprises build their wide area networks to meet these growing network requirements. Also, deploying several technologies in organizations is increasing the complexity of the IT infrastructure in these organizations, further increasing the demand for network automation solutions.
- 5G technology adds layers of technical and network architecture complexities. CSPs increasingly demand intelligent management systems to deal with the fast-increasing number of physical and virtual network events that may place heavy workloads on network operation centers. Cisco collaborated with Telefonica to implement network automation to simplify the service provider's operations in Spain in preparation for the 5G era. With this newly automated network powered by Cisco's Crosswork Network Automation suite, Telefonica may be able to provide improved operational insight and network health.
- In addition, Samsung Electronics and Vodafone UK announced the launch of the UK's first 5G Open RAN site, which is now handling active customer traffic. In Bath, the UK, this site is the first of Vodafone's scalable Open RAN network design in Europe, with over 2,500 more locations. The firms completed a 5G live video conversation utilizing Samsung's 5G virtualized Radio Access Network (vRAN) to commemorate the deployment of their first site, which was the UK's first call on a commercial 5G Open RAN in January 2022.
To understand geography trends, Download Sample Report
Network Automation Industry Overview
The network automation market is slowly turning into a fragmented market. It is expected to witness a robust increase shortly, strongly driven by cloud trends and growing network traffic across various end-user industries. To maintain their foothold in the network automation landscape, the competitive strategy has been quite strong from the current market leaders, mainly driven by their acquisitions of various startups and solution vendors. Key players in the market are Cisco System Inc., Juniper Networks Inc., and IBM Corporation.
In December 2022, T-Mobile and Cisco announced introducing the highly flexible and distributed global cloud-native converged core gateway. The Un-carrier migrated all of its 5G and 4G traffic to the newly cloud-native core gateway, which immediately improved customer performance by more than 10% in both bandwidth and latency. T-Mobile can dramatically decrease operational life cycle management by using a fully automated convergent core gateway to streamline network tasks throughout the cloud, edge, and data centers.
In January 2022, Hewlett Packard Enterprise partnered with OPTAGE, a Japanese telecommunications provider that selected HPE 5G Core Stack for its testbed Local 5G network. OPTAGE has tested the viability of Local 5G networks to meet the business customer demands of various end-users.
Network Automation Market Leaders
Cisco Systems Inc.
Juniper Networks Inc.
Hewlett Packard Enterprise Development LP
*Disclaimer: Major Players sorted in no particular order
Network Automation Market News
- October 2022: IBM announced the IBM Cloud Pak for Network Automation Version 2.4. This emphasizes new automation and orchestration features to help Communication Service Providers (CSPs) and Managed Service Providers (MSPs) minimize OPEX. This update includes three major new features: multi-cloud SD-WAN automation, multi-tenancy mode, and a new Designer tool for defining network functions and services.
- January 2022: Juniper Networks announced that customers and partners could fully deploy, configure and operate the company’s Session Smart Router (SSR) technology via the Mist cloud and AI engine. In addition, Juniper has expanded its robust security capabilities of the Juniper SSR portfolio with enhanced IDS/IPS and URL filtering capabilities. It has made it easier to get SSR up and running with new cloud-ready appliances with Zero Touch Provisioning.
Network Automation Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Technology Snapshot
4.5 Assessment of the Impact of COVID-19 on the Market
4.6 Market Drivers
4.6.1 Increasing Demand for Data Center Network
4.6.2 Rising Trend of Connected Devices
4.7 Market Restraints
4.7.1 Lack of Skilled Professional Across Industries
5. MARKET SEGMENTATION
5.1 Network Type
5.2 Solution Type
5.2.1 Network Automation Tools
5.2.2 SD-WAN and Network Virtualization
5.2.3 Intent-based Networking
5.3 Service Type
5.3.1 Managed Service
5.3.2 Professional Service
5.5 End-user Industry
5.5.1 IT and Telecom
5.5.3 Energy and Utility
5.5.4 Banking and Financial Services
5.5.6 Other End-user Industries
5.6.1 North America
5.6.4 Latin America
5.6.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Juniper Networks Inc.
6.1.3 IBM Corporation
6.1.4 Hewlett Packard Enterprise Development LP
6.1.5 SolarWinds Inc.
6.1.6 Network Automation Inc.
6.1.7 Micro Focus International PLC
6.1.8 NetBrain Technologies Inc.
6.1.9 Arista Networks Inc.
6.1.10 Extreme Networks Inc.
6.1.11 BMC Software Inc.
6.1.12 Fujitsu Limited
6.1.13 VMware Inc. + Saltstack
6.1.14 Nuage Networks (NOKIA CORPORATION)
6.1.15 Forward Networks Inc.
6.1.16 AppViewX Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Network Automation Market Research FAQs
What is the study period of this market?
The Network Automation Market is studied from 2018 - 2028.
What is the growth rate of Network Automation Market?
The Network Automation Market is growing at a CAGR of 19.22% over the next 5 years.
What is Network Automation Market size?
The Network Automation Market is expected to reach USD 21.10 billion in 2023 and grow at a CAGR of 19.22% to reach USD 50.82 billion by 2028.
Which region has highest growth rate in Network Automation Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Network Automation Market?
North America holds highest share in 2022.
Who are the key players in Network Automation Market?
Cisco Systems Inc., Juniper Networks Inc., IBM Corporation, Hewlett Packard Enterprise Development LP, Fujitsu Limited are the major companies operating in Network Automation Market.
Network Automation Industry Report
Statistics for the 2023 Network Automation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Network Automation analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.