The Global Network Automation Market was valued at USD 4,610.0 million in 2023 and is expected to experience significant growth, projected to reach USD 5,539.9 million in 2024. By 2031, the market is anticipated to soar to USD 23,878.0 million, reflecting a robust CAGR of 23.21% from 2024 to 2031. This impressive growth underscores the increasing demand for efficient network management solutions in a rapidly evolving digital landscape.

In recent years, the Network Automation Market has witnessed a significant transformation, driven by the rapid advancements in technology and the increasing demand for efficient network management. As organizations strive to enhance operational efficiency and reduce downtime, the adoption of network automation solutions has surged. According to King's Research, the global Network Automation Market is projected to grow at an impressive rate, reflecting a growing trend towards automation in networking technologies.

Trends and Demand

A notable trend in the Network Automation Market is the increasing deployment of software-defined networking (SDN) and network function virtualization (NFV). These technologies enable organizations to manage their networks more efficiently by decoupling hardware from software, allowing for greater flexibility and scalability. The demand for network automation solutions is further driven by the proliferation of IoT devices, which require seamless connectivity and management.

Moreover, the emergence of artificial intelligence (AI) and machine learning (ML) in network automation is transforming how networks are managed. AI-driven analytics provide organizations with real-time insights into network performance, enabling proactive issue resolution and optimizing resource allocation. As a result, businesses are increasingly investing in intelligent automation solutions to enhance their network management capabilities.

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Market Dynamics

Several dynamic factors are influencing the growth of the Network Automation Market. Firstly, the rise of remote work and digital transformation initiatives has led to an increased reliance on network connectivity. Organizations are now more dependent on their networks than ever before, necessitating efficient management solutions to ensure seamless operations.

Additionally, the growing need for enhanced security measures has prompted organizations to adopt network automation solutions. Automated network security protocols help identify vulnerabilities, mitigate risks, and respond to potential threats in real-time. As cyber threats continue to evolve, businesses are prioritizing network automation to bolster their security postures.

Market Segmentation

The Network Automation Market can be segmented based on component, deployment mode, organization size, and industry vertical. In terms of component, the market is divided into solutions and services. The solutions segment includes network automation software, orchestration tools, and analytics solutions, while the services segment encompasses consulting, implementation, and support services.

Regarding deployment mode, the market is categorized into cloud-based and on-premises solutions. Cloud-based network automation solutions are gaining traction due to their scalability and cost-effectiveness, making them a preferred choice for organizations of all sizes.

In terms of organization size, the market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. While large enterprises are early adopters of network automation solutions, SMEs are increasingly recognizing the benefits of automation, driving demand in this segment.

Furthermore, the Network Automation Market is segmented by industry verticals, including BFSI (banking, financial services, and insurance), IT and telecom, healthcare, retail, manufacturing, and others. The BFSI sector is anticipated to hold a significant share of the market due to its critical reliance on secure and efficient network operations.

Key Companies in Network Automation Market

• BMC Software, Inc.
• Cisco Systems, Inc.
• IBM Corporation
• Juniper Networks, Inc.
• Open Text
• SolarWinds Worldwide, LLC
• NetBrain Technologies Inc.
• VMware, Inc.
• FUJITSU
• Broadcom

Key Industry Developments

• June 2024 (Launch): Cisco unveiled a pioneering AI cluster solution developed in collaboration with NVIDIA for data centers. This innovation revolutionizes infrastructure and software management, offering customers advanced capabilities to build, manage, and optimize their operations more effectively.
• May 2024 (Launch): Samsung Electronics and O2 Telefónica launched their inaugural virtualized RAN (vRAN) and Open RAN commercial site in Germany. This marked the debut of Samsung’s 5G vRAN solution in the country's commercial network, offering robust and dependable 4G and 5G services to customers.
• March 2024 (Acquisition): IBM acquired Pliant, a premier provider of network and IT infrastructure automation solutions. This acquisition enhanced IBM's capabilities in automating network and IT tasks, abstracting these functions to the application layer, and allowing applications and developers to efficiently manage infrastructure directly within their applications.
• May 2023 (Collaboration): Juniper Networks and ServiceNow partnered to deliver comprehensive automation solutions for managed service providers (MSPs) and enterprises, enhancing network deployment and operational efficiency while reducing costs.
• April 2023 (Launch): BMC unveiled solutions designed to enable enterprise customers to utilize AI via its Helix Control-M platform, Control-M solution, AMI offerings, and Helix Operations Management platform. BMC Helix is available on Google Cloud Marketplace and ensures seamless data orchestration across mainframe and cloud systems, enhancing user experiences.
• February 2023 (Collaboration): Cisco partnered with NEC Corporation to strengthen their collaboration by integrating system solutions and exploring opportunities in 5G xHaul and private 5G. This strategic initiative aims to help customers modernize their infrastructure and enhance connectivity for a broader user base and diverse devices.
• February 2023 (Acquisition): IBM announced its plans to acquire NS1, a top provider of SaaS solutions for network automation. NS1’s advanced technology helps businesses streamline content, service, and application delivery, enhancing performance, security, reliability, and cost efficiency. This acquisition supported IBM’s strategic goal of delivering comprehensive digital-age solutions for businesses.

The global network automation market is segmented as:

By Component

• Solution
  • SD-WAN & Network Virtualization Solutions
  • Intent-Based Networking Platforms
  • Configuration Management Tools
  • Others
• Services
  • Managed Service
  • Professional Service

By Organization Size

• Small and Medium Enterprises
• Large Enterprises

By Deployment

• Cloud-based
• On-premises
• Hybrid

By Network Type

• Physical Network
• Virtual Network
• Hybrid Network

By Vertical

• BFSI
• IT & Telecommunications
• Manufacturing & Retail
• Healthcare
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Regional Analysis

The Network Automation Market exhibits a diverse regional landscape, with North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa contributing to its growth. North America is expected to dominate the market, owing to the presence of established technology firms and the early adoption of advanced networking solutions. The United States is a significant contributor to the market, driven by the increasing demand for automation in various sectors.

In Europe, the Network Automation Market is witnessing substantial growth due to the rising focus on digital transformation and the increasing adoption of cloud services. Countries such as Germany, the United Kingdom, and France are leading the way in embracing network automation technologies.

The Asia-Pacific region is also emerging as a key player in the Network Automation Market, driven by rapid urbanization, the expansion of IT infrastructure, and the growing adoption of IoT technologies. Countries like China, India, and Japan are witnessing significant investments in network automation solutions to support their evolving digital landscapes.