Network Automation Market (By Components: Solutions, Services; By Network Type: Physical Network, Virtual Network, Hybrid Network; By Deployment Mode: On-premises, Cloud; By End-User: Enterprise Vertical, Service Providers; By Organization Size: Small and Medium Sized Enterprises, Large Enterprises; By Vertical: Information Technology, Banking, Financial Services, and Insurance, Manufacturing, Healthcare) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global network automation market size was exhibited at USD 3.65 billion in 2022 and is projected to hit around USD 29.28 billion by 2032, growing at a CAGR of 23.15% during the forecast period 2023 to 2032.

Key Pointers:

• North America generated for a significant market share of around 41% and is expected to expand at the fastest CAGR between 2023 and 2032.
• By Components, the solutions segment contributed to the maximum market share in 2022.
• By Deployment Mode, the cloud segment recorded the largest market share in 2022. 
• By Organization Size, the small and medium-sized enterprises (SMEs) segment generated the maximum market share in 2022.
• By Vertical, the information technology segment captured 25% of revenue share in 2022.

The market value was USD 2.9 billion in 2021. There has been an increasing adoption of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML), Software-defined Wide Area Network (SD-WAN), 5G and Wi-Fi 6, and edge computing that help in improving the efficiency of networks and solving network issues (at times, even before they occur). Network automation is an essential step for enterprises to implement a networking solution that grows smarter, responsive, and constantly adopts and protects the network.

Network Automation Market Report Scope

COVID-19 impact

Due to work from home facilities being used by many people as a consequence of lockdown measures in several countries, the Internet traffic has risen significantly, and is generally 25–30% higher than usual (Source:  The New Stack). Therefore, there is an increase in the need for network automation solutions to manage the rising network traffic. Moreover, during the pandemic, IoT products have showcased the potential to play a vital role in limiting the spread of the virus and assisting in the treatment of infected individuals. This has also increased the demand for network automation solutions to manage networks and data traffic. Further, there is an increased need for high bandwidth networks during the pandemic. Thus, the adoption of virtual and software-defined networking has increased across many verticals. This growing adoption has direct consequences on network automation in terms of analyzing and managing the network traffic, network configuration, deployment of policies, and network bandwidth to streamline the business continuity.

Network Automation Market Dynamics

Driver: Increasing network traffic and cloud infrastructure leading to a significant transition in data centers

In the new cloud-based world, the network is more important than ever to IT operations. Moreover, with critical servers and data hosted in the cloud, network traffic is increasing, as users access the data and computing resources from both remote locations and corporate headquarters. The proliferation of cloud services that complement traditional enterprise data centers has increased the complexity of network traffic flow patterns. Many organizations are looking for ways to optimize their networks to work with cloud platforms. The increased network traffic is giving rise to the need for network automation solutions that enhance the management of network traffic with complete network visibility across all environments.

Restraint: Availability of open-source automation tools

Several open-source technology developers have developed effective open-source network monitoring solutions, which are considered better than their more expensive commercial counterparts. The presence of such open-source and economic solutions in the market is restraining the market of commercial network automation solutions, majorly because SMEs have budget constraints and opt for open-source network automation solutions. However, some vendors are trying to take advantage of open-source solutions by releasing commercial enhancements of these products. The commercial enhancements include paid versions of tools, which have enhanced capabilities like the automated download of software patches, support, and maintenance.

Opportunity: Rising investments in R&D and emerging automation solutions

Networking companies are heavily investing in the R&D of networking solutions, with a focus on long-term value creation. Based on the fluctuations in short-term business performance and financial results, leading networking companies have not reduced their investment for the innovation and testing of network automation solutions. For instance, networking companies, such as Forward Networks, have come up with Intent-based Networking Solutions. Intent-based Networking takes business policy as its input, converts the requirement to a network configuration, and generates network designs.

Challenge:  Rising security threats

 The modern and globally connected digital world demands business applications, data, and services to be constantly available from any location, which means networks must span multiple hosting environments, fixed and mobile devices, and other forms of IT infrastructure. However, just as networks are a key enabler for the enterprise, they are also a source of extended risk. Hackers and cybercriminals are constantly spawning new network attacks to compromise, steal, or destroy critical information and disrupt organizations for their own benefits. Distributed denial of service (DDoS), phishing, ransomware, worms, and other types of malware attacks can hit over the network.

North America to lead the network automation market in 2022

North America is estimated to hold the largest share of the global network automation market in 2020. In the region, enterprises and service providers are continuously changing their network infrastructure to cope with advanced technologies. North America is home to many technological innovators. Most of the leading market players, such as Cisco, IBM, Juniper Networks, and NetBrain, have their headquarters in this region. These players provide effective network automation solutions worldwide and possess a huge customer base.

Some of the prominent players in the Network Automation Market include:

• Cisco Systems Inc.
• Juniper Networks Inc.
• IBM Corporation
• Hewlett Packard Enterprise Development LP
• Fujitsu Limited
• Red Hat, Inc.
• BMC Software, Inc
• Itential
• NetYCE 
• Nokia Corporation
• NVIDIA Corporation

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Network Automation market.

By Components

• Solutions
• Network Automation Tools
• Intent-based Networking
• Services
• Professional Services
• Advisory and Consulting
• Training and Support
• Deployment and Integration

By Network Type

• Physical Network
• Virtual Network
• Hybrid Network

By Deployment Mode

• On-premises
• Cloud

By End-User

• Enterprise Vertical
• Service Providers

By Organization Size

• Small and Medium Sized Enterprises (SMEs)
• Large Enterprises

By Vertical

• Information Technology
• Banking, Financial Services, and Insurance (BFSI)
• Manufacturing
• Healthcare
• Energy and Utilities
• Education
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)