Network Automation Market Analysis

Network Automation Market Overview

Network Automation Market Size was valued at USD 55.0 billion in 2022. The network automation market industry is projected to grow from USD 60.7 Billion in 2023 to USD 106.97 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.05% during the forecast period (2022 - 2030).

Its widespread popularity is due in part to cost savings and a decrease in human error. Increased availability of cloud-based storage is the key market drivers enhancing the market growth.

Figure 1: Network Automation Market Size, 2022-2030 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Latest Industry Updates of Network Automation Market

May 2023:

With the introduction of AVA Fixed Network Insights, Nokia announced the expansion of its Fixed Network solutions portfolio, which is now available via a Software-as-a-experience (SaaS) delivery model and will allow operators to improve their customer experience while cutting costs. AVA Fixed Network Insights provides business and customer support teams with automated recommendations that proactively detect and remotely resolve issues in both the home and access domains before they lead to network service problems, to cut down on call handling times, and to improve first call resolution across DSL, fiber, and fixed wireless access networks using AI/ML insights powered by Bell Labs algorithms.

May 2023:

In order to provide end-to-end automation for Managed Service Providers and Enterprises, Juniper Networks, a pioneer in secure, AI-driven networks, and ServiceNow, the industry leader in digital workflows making the world operate better for everyone, today announced their alliance. Joint clients may eliminate multi-layer, multivendor solutions with the help of this recently formed collaboration, which leverages Juniper Mist Cloud and ServiceNow Telecom Service Management and Order Management for Telecom. As a result, network deployment and operational efficiencies are increased while costs are decreased.

February 2023:

Using the cutting-edge network automation platform netOps.ai, Tech Mahindra assists Telefónica Germany in improving network operations efficiency. Additionally, by updating Telefonica's Operations Support Systems (OSS) stack, Tech Mahindra is assisting Telefonica in accelerating its transition to autonomous networks. Telefónica Germany and Tech Mahindra have adopted the netOps.ai technology, which automates the e2e Network Lifecycle, as a first step toward realizing this objective. By automating NOC Operations, netOps.ai's "Continuous Insights & Intelligence (CI2F)" methodology has ensured a considerable improvement in operational KPIs.

Network Automation Market Trends

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  Growing Demand for IT Automation in Businesses to Support Market Growth

  
  

The Network Automation market CAGR is primarily driven by the rising cost of network operations is one of the most critical concerns facing network manager’s today. The growth of devices and data is exceeding IT skills, making it tough for the network team to handle operations manually. According to Cisco, over 95 percent of network-related jobs are performed manually, resulting in operational costs that are 2 to 3 times the cost of the network.

Centrally and remotely managed IT automation is essential for businesses to keep up with the digital world. Network automation tools are available from companies such as Cisco Systems, Inc., Juniper Networks, Inc., and BlueCat Network, Inc., among others, to flawlessly move data and apps between on-premises and cloud-based data centres. For instance, Cisco DNA, an intent-based digital network, aids in the transformation of manual configuration, provisioning, onboarding, and software management processes to simplify and scale network operations, reducing configuration errors significantly.

Additionally, the population is growing more slowly than connected devices do. According to Cisco's Annual Internet Report, by 2023 there will be about 29.3 billion networked devices, up from 18.4 billion in 2022, which will be three times more than the world's population. The exponential increase in network devices necessitates a new strategy built on automation and self-servicing capabilities to control and manage the intricate network operations and data centres. Thus, driving the network automation market revenue.

Network Automation Market Segment Insights

Network Automation Component Insights

The Network Automation Market segmentation, based on Component includes solution and services. In 2021, the solution category dominated with the most revenue share and is predicted to grow at a CAGR throughout the forecast period. SD-WAN and network virtualization tools, intent-based networking solutions/platforms, configuration management tools, and other network automation tools comprise the solution category. The adoption of network automation solutions by communication service providers (CSPs) to accelerate the delivery of these software and apps can be attributed to the rise of the solution category.

Network Automation Network Infrastructure Insights

The Network Automation Market segmentation, based on Network Infrastructure, includes physical network configuration, virtual network configuration and hybrid network configuration. The hybrid infrastructure segment is expected to grow at a CAGR of 23.4% over the forecast period. An IT infrastructure ecosystem is comprised of hybrid infrastructure. It is a hybrid of public and private clouds, as well as data centers, that allows for the monitoring and management of whole infrastructure services. It aids in the administration and evaluation of physical and cloud-based infrastructure, allowing for performance optimization. IT operations automation, IT service support automation, and provisioning and release automation are all included in hybrid infrastructure service automation.

Network Automation Deployment Insights

The Network Automation Market data is divided into deployment segments, on-cloud and on-premise. In 2021, the on-premises sector dominated with a revenue share of more than 55% and is predicted to grow at a CAGR of 21.4% over the forecast period. Due to the deployment of equipment within the organization, on-premises automation solutions provide a one-time license price, an annual service agreement, and a large scope of customizing network automation based on business demands.

Network Automation Organization Size Insights                   

The Organization Size sector comprises the global network automation industry, into small &medium enterprises and large enterprises. In 2021, the large enterprises segment held the majority revenue share with more than 63%. Over the forecast period, it is anticipated to expand at a CAGR of 21.4%. The increasing use of network automation, virtualization services, and solutions by major businesses is anticipated to fuel the segment's expansion. Moreover, the need for network automation solutions and services is being driven by major companies, which are the early adopters of cutting-edge technologies like virtualization and automation.

Figure 2: Network Automation Market, by Organization Size, 2022 & 2030 (USD billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Network Automation Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America controls the majority of the market and is expected to maintain its dominance throughout the forecast period. Some of the factors driving market growth in the region include an increasing number of data centres, a rapid shift of SMEs towards digitalization, and increased investment in 5G projects. Several businesses in the United States intend to deploy highly efficient wireless communication solutions to increase network capacity. This would aid in increasing the productivity of employees who use digital data and cutting-edge software.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: NETWORK AUTOMATION MARKET SHARE BY REGION 2022 (%)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe network automation market accounts for the second-largest market share due to the majority of the demand is explained by higher literacy rates and the existence of numerous prominent R&D facilities. Further, the German network automation market held the largest market share, and the UK network automation market was the fastest-growing market in the European region

The Asia-Pacific Network Automation Market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to rapidly expanding presence of IT enterprises, as well as the increasing prevalence of the internet, are both contributing to market growth. Also, favorable government regulations and significant investment in the construction of IT infrastructure will fuel market expansion in this region. Moreover, China’s network automation market held the largest market share, and the Indian network automation market was the fastest-growing market in the Asia-Pacific region.

Network Automation Key Market Players & Competitive Insights

Leading market players are extensively spending in R&D to increase their product lines, which would help the network automation market grow even more. Important market developments include new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other firms. To grow and thrive in a more competitive and increasing market environment, the network automation industry must provide cost-effective products.

Producing locally to reduce operational costs is one of the primary business strategies utilized by manufacturers in the global network automation industry to serve customers and expand the market sector. The network automation industry has recently provided medicine with some of its most important benefits. Major players in the network automation market, such as Cisco Systems Inc. (U.S.), Juniper Networks Inc. (U.S.), IBM Corporation (U.S.), Micro Focus International plc (U.K.), NetBrain Technologies Inc. (U.S.), and others, are anticipated to experience a significant increase in the near future, which will be primarily driven by cloud trends and rising network traffic across a variety of end-user industries.

Cisco Systems, Inc., abbreviated as Cisco, is an American multinational digital communications technology conglomerate headquartered in San Jose, California. Cisco develops, manufactures, and distributes networking hardware, software, telecommunications equipment, and other high-tech services and products. In June 2020, Intent-based networking solutions were introduced by Cisco in order to optimise business and network operations. While delivering improved security and insights to promote better digital experiences, this solution would give end users more control over operations.

VMware, Inc., headquartered in Palo Alto, California, is a cloud computing and virtualization technology business. VMware was the first commercially successful business to commercially successful virtualize the x86 architecture. [Source self-published. VMware's desktop software is compatible with Microsoft Windows, Linux, and macOS. VMware ESXi, its enterprise software hypervisor, is a server-based operating system. In November 2021, VMware, Inc. established a partnership with Vodafone Group to supply orchestration and automation services on its core networks across Europe via a single platform.

Key Companies in the network automation market include

• Cisco Systems Inc. (U.S.)


• Juniper Networks Inc. (U.S.


• IBM Corporation (U.S.)


• Micro Focus International plc (U.K)


• NetBrain Technologies Inc. (U.S.)


• SolarWinds Inc. (U.S.)


• Riverbed Technology Inc. (U.S.)


• BMC Software (U.S.)


• Apstra (U.S.)


• BlueCat (Canada)

Network Automation Industry Developments

In February 2024, Dell Technologies introduced a suite of offerings aimed at helping communication service providers (CSPs) streamline the transformation of their network cloud and operations. Telecom solutions are being developed by Dell based on its extensive experience in digital transformation and strong industry alliances to help CSPs minimize risks. These solutions facilitate deployment simplification, operational automation as well as support and lifecycle management for disaggregated network-cloud infrastructures.

Tata Communications is one of the major players in the global communications technology sector, and it launched Tata Communications CloudLyte in May 2024. This advanced platform is fully automated and focuses on edge computing, enabling enterprises to thrive in an increasingly data-driven era. The concept of edge computing is unique to Tata Communications CloudLyte, which provides a flexible architecture agnostic to access methods, cloud providers or infrastructure, making it suitable for any enterprise globally.

IBM announced its acquisition of Pliant, which is a leading provider of network and IT infrastructure automation products, in March 2024. Pliant’s abilities are critical when it comes to automating networking and IT infrastructure tasks as well as abstracting these functions up into the application layer. This offers simplified provisioning & infrastructure management via applications with applications having maximum control over them.

Juniper Networks unveiled AI-native networking platform for the first time in January 2024. It is designed specifically around AI, ensuring that operators and end-users receive optimal experiences. Juniper’s platform was developed from seven years’ worth insights combined with data science hence; it was meticulously built for reliability, measurability, security across all connections be it device-to-device one user-to-user etc.

VMware, Inc. announced a collaboration with Vodafone Group on orchestration and automation services through a single platform across its core networks covering the Europe region during November 2021.

In July 2020, Micro Focus extended Al support to the Unified Functional Testing (UFT) portfolio, a unified set of solutions intended to simplify the overall automation of functional testing processes.

Juniper Networks and Anuta Networks joined forces in June 2020 to provide advanced network automation. Junos Telemetry, Juniper HealthBot and Juniper NorthStar products will all be part of Juniper’s existing network automation product range which includes Anuta ATOM platform.

Network Automation Market Segmentation

Network Automation By Component Outlook

• Solution


• Services

Network Automation By Network Infrastructure Outlook

• Physical network configuration


• Virtual network configuration


• Hybrid network configuration

Network Automation Market By Deployment Outlook

• On-Cloud


• On-Premise

Network Automation Market By Organization Size Outlook

• Small and Medium Enterprises


• Large Enterprises

Network Automation Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America