Market Trends of Network Automation Industry
IT and Telecom End-user Industry is Expected to Hold Significant Market Share
- The surge in smartphone adoption and the expanding web-connected device count have strained existing telecom networks. Consequently, network operators grapple with bandwidth shortages and congestion, resulting in call drops and erratic network performance. It is when the demand for network automation comes into play.
- The growth of the market studied in the IT and telecom industry is driven by the increasing complexity of networks due to the proliferation of connected devices and services. The rollout of 5G networks demands scalable and flexible solutions, which automation provides.
- Automation improves network security by enabling rapid threat detection and response. It also enhances service quality by ensuring consistent network performance and reliability, improving user experiences and customer satisfaction.
- In February 2024, Dell Technologies unveiled a suite of solutions tailored to assist communications service providers (CSPs) in streamlining their network cloud and operational transformations. Leveraging its widespread experience in digital transformation and robust industry collaborations, Dell is crafting telecom solutions to mitigate risks for CSPs. These solutions are designed to streamline deployment, automate operations, and simplify support and lifecycle management for disaggregated network cloud infrastructures.
- In May 2024, Tata Communications, a prominent player in the global communication technology sector, introduced Tata Communications CloudLyte. This advanced platform is fully automated and focuses on edge computing, aiming to equip enterprises for success in an increasingly data-centric environment. Tata Communications CloudLyte stands out in edge computing, offering a versatile architecture that is agnostic to access methods, cloud providers, and infrastructure, making it a fitting choice for enterprises globally.
- GSMA estimates that the total number of IoT connections will double between 2021 and 2030, reaching 37.4 billion. The expanding IoT ecosystem assists it. Licensed cellular IoT connections in the focus regions will double between 2021 and 2030, reaching 156 million. Therefore, rather than being a technology by itself, IoT deployment integrates various technologies related to sensing, automation, software, and cloud computing.
- With businesses embracing hyperconnectivity and technologies such as 5G and IoT gaining momentum, the demand for real-time data processing, low-latency applications, and smart decision-making has become paramount, driving the market’s growth opportunities significantly.
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North America is Expected to Hold Significant Market Share
- With the most significant market share in North America, the United States is at the forefront of the network automation market. This is underpinned by the robust presence of major solution providers such as Cisco, IBM, SolarWinds, VMWare, Extreme Networks, and Juniper Networks.
- The region is poised for a swift surge in the adoption and implementation of 5G technology. As per Ericsson’s study, the total number of 5G subscriptions is projected to soar to an estimated 420 million by 2028, up from a mere 260 million in 2023. This rise in the adoption of 5G is set to fuel a greater need for advanced network services, subsequently spurring the need for increased network automation.
- The rise of various advanced technologies, such as SaaS-based applications, network analytics, DevOps, and virtualization, has spurred users and businesses in North America to adopt network automation solutions. These include intent-based networking, SD-WAN, and various network automation tools.
- By end-user industry, the IT and telecom industry is poised for the most significant growth in the North American network automation market. This surge is mainly driven by the growing demand for efficient network management, the rollout of 5G technology, and the expansion of cloud services. As data traffic and connected devices multiply, automated solutions become essential for handling complex network operations and ensuring cybersecurity.
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