Network Automation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019-2029

The Network Automation Market size is estimated at USD 25.16 billion in 2024, and is expected to reach USD 60.59 billion by 2029, growing at a CAGR of 19.22% during the forecast period (2024-2029).

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.

Key Highlights

• 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.
• Moreover, The COVID-19 pandemic has had a significant impact on various industries, including the network automation market. The pandemic accelerated the adoption of digital transformation initiatives as businesses had to quickly adapt to remote work and changes in consumer behavior. Network automation became crucial in enabling scalable and efficient digital infrastructures.

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. According to SurfShark, In 2023, India's virtual private network (VPN) market exceeded 16.6 billion U.S. dollars. India is one of the leaders of the top three largest VPN markets by country, alongside China and Indonesia.
• 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.

Europe is Expected to Hold 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.
• In February 2023, Vodafone and Samsung Electronics announced their plans to expand 5G Open RAN across Europe. They began open network initiatives in Spain and Germany while enhancing Vodafone’s 5G network in the United Kingdom. The two companies’ initial network partnership, including Vodafone U.K.’s successful launch of the first 5G Open RAN site in Bath, U.K.
• Furthermore, in October 2023, Edzcom, one of the European leaders in Private 4G/5G Networks, joined OMRON in accelerating industry digitalization through automation and reliable connectivity. The collaboration is a part of OMRON’s Innovation Network, which is dedicated to developing comprehensive solutions that fulfill all customer technological requirements.

Network Automation Industry Overview

The network automation market is highly fragmented with the presence of major players like Cisco Systems Inc., Juniper Networks Inc., IBM Corporation, Hewlett Packard Enterprise, Development LP, and SolarWinds Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

• December 2023 - Juniper Networks Inc. has announced that DNA, part of Telenor Group and one of Finland’s leading mobile and fixed communications service providers, has deployed an intent-based networking data center fabric based on Juniper’s innovative automation software plus high-performance hardware and utilizing NEC’s advanced systems integration expertise. DNA’s new data center infrastructure provides a unified platform for both its business-to-business customer services and internal IT services.
• August 2023 - Hewlett Packard Enterprise announced that it has established an automated network architecture, including intelligent wireless LAN infrastructure from HPE Aruba Networking, to create a logistics system for Korea's retail technology company, Kurly, for simpler, highly automated, and more reliable operations and logistics.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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