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The Network Automation Market size is forecast to increase by USD 29.02 billion at a CAGR of 16.95% between 2023 and 2028. Market expansion hinges on multiple factors, notably the surging demand for network automation across diverse industries. This trend stems from the need for streamlined operations and enhanced efficiency. Additionally, the widespread adoption of social, mobile, analytical, and cloud (SMAC) technologies contributes to market growth by providing advanced tools for data management and analysis. Furthermore, there is an increased emphasis on delivering superior customer digital experiences, prompting organizations to invest in solutions that optimize customer interactions and satisfaction levels. As businesses strive to stay competitive in a rapidly evolving digital landscape, the market is poised for significant expansion. The convergence of these factors underscores the importance of technological innovation and the integration of automation solutions to meet the evolving needs of modern enterprises across various sectors.
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The market is witnessing significant growth driven by the increasing complexity of data center infrastructure and the rising demand for network virtualization solutions. With the proliferation of virtual private networks (VPNs) and network function virtualization (NFV) technologies, businesses in sectors like banking and financial services and energy and utilities are optimizing their IT operations. Artificial Intelligence (AI) and Machine Learning (ML) are revolutionizing management and security, while edge computing addresses business demands for faster processing. Despite challenges such as lockdown measures, the market is propelled by innovations in IoT products and bandwidth networks, ensuring efficient data center operations.
One of the key factors driving market growth is the increasing demand for network automation in various industries. Demand for business automation and digital transformation has grown significantly across all industries, including automotive, healthcare, and oil and gas. One of the main reasons is that many companies are increasingly looking for ways to simplify and improve their operations.
Further, the main application of network automation in enterprises is the automation of repetitive tasks, reducing manual errors and freeing up valuable human resources so that they focus on more strategic and value-added activities. Some of the key industries implementing workforce management solutions to automate their internal and external network, such as customers, partners, or suppliers, and self-service applications. include BFSI, retail, and manufacturing. Hence, such applications are expected to drive the market growth during the forecast period.
A key factor shaping market growth is the use of AI with network automation. There is increasing adoption of real-time solutions across several industries, such as BFSI, IT, and manufacturing, to gain a competitive advantage in the market. Additionally, modern businesses have a proven need for advanced business intelligence (BI). Artificial intelligence has enabled marketing with significant technological advances. These advances include virtual agents and chatbots, targeted advertising, suggestive web searches, voice and speech recognition, pattern recognition, machine translation, facial recognition, automatic planning, and autonomous driving. Artificial intelligence provides a centralized view of everything that business enterprises are doing and related information.
Moreover, some of the advances in AI-based marketing technologies include virtual agents and chatbots, targeted advertising, suggestive web searches, voice and speech recognition, pattern recognition, machine translation, face recognition, automatic scheduling, and autonomous driving. Hence, such advancements in technology are increaseing the market growth and trends during the forecast period.
Increased risk related to data security and privacy is one of the key challenges hindering market growth. Even though cloud-based solutions offer many advantages, such as a convenient and cost-effective solution to manage marketing operations such as content creation, which includes creating and maintaining copy, videos, images, and other assets across various platforms, the data is prone to data leaks as they are widely available to the public.
Furthermore, enterprises do not have much control over their own data and are highly dependent on these cloud-based solutions. Hence, data is more vulnerable to cyber security threats which can lead to manipulation of data. Additionally, these kinds of data breaches can lead to several consequences and legal concerns such as access control, risk management, auditing and logging, and regulatory and legislative compliance. Hence, such factors are expected to hinder market growth during the forecast period.
The solutions segment is estimated to witness significant growth during the forecast period. Some of the main network automation solutions include command line automation (CLI) and automation software. The automated components basically work with standard CLI commands and arguments. For instance, Linux operating system administrators utilize bash operators to chain events based on the success or failure of a previous command.
The solutions segment was the largest segment and was valued at USD 6.55 billion in 2018. One of the most important features of automation software is that it integrates network tasks into ready-made programs that can be selected, scheduled, and executed from the front end of your application. For instance, Red Hat Ansible Automation Platform is a type of network automation solution where it allows users to package application programming interfaces (APIs), plugins, inventories, and modules into playbooks to browse, select, and run to automate network configuration. Hence, such applications are expected to drive the growth of this segment, which in turn will drive market growth during the forecast period.
Several benefits of the on-premise segment are expected to drive market growth during the forecast period. Some of the key benefits of the on-premises network automation segment are workflow streamlining, budgeting, and reporting. There is increasing adoption of the on-premise segment across enterprises as it helps to assist in aligning and executing network automation objectives across business units, functions, and product lines. One of the main advantages of the on-premise segment is that it offers control over the company's critical data, but the deployment cost is quite high. Hence, such factors are expected to drive the growth of this segment, which in turn will drive market growth during the forecast period.
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North America is estimated to contribute 39% to the growth by 2028.The network automation market in North America is growing at a significant rate because of the high rate of internet penetration and the increasing use of online search engines. Almost all businesses are adopting digital media and are moving their operations online. The high rate of advanced technology adoption and mobile penetration among the masses will lead to the growth of the market in focus. With more than two-thirds of the population actively using the Internet, the region is the major revenue driver for the market. Spending by advertisers to expand their customer base and increasing penetration of smartphones and smartphone-based video and music streaming services are also driving the adoption of network automation by several industries such as BFSI, IT, manufacturing, and several others.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
1. Industrial Wireless Automation Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
2. Smart Home Automation Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
3. Industrial Wireline Networking Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast
The market is witnessing rapid growth driven by the adoption of software defined networking (SDN) and SD WAN solutions, particularly among large enterprises and SMEs. This market leverages configuration management tools and open source automation tools and open source projects to streamline network operations. Networking companies are investing heavily in cloud-based solutions to address security concerns and enhance network architectures via the cloud segment. With the emergence of network functions virtualization and 5G technology, CSPs are increasingly focusing on standardization and performance optimization. Management tools such as Entuity Network Management play a crucial role in ensuring capacity and performance management in enterprise networks. Overall, the network automation market is driven by the need for efficiency, agility, and scalability in modern networking technologies. In the realm of information technology (IT), virtual private networks (VPN) secure internet traffic across virtual and physical devices using switches and routers. They are pivotal in the telecommunication sector, ensuring data integrity and confidentiality within data centers and beyond.
Industry Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2028-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.48% |
Market growth 2024-2028 |
USD 46.61 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.41 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Canada, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anuta Networks International LLC, AppViewX Inc., Arista Networks Inc., Backbox Software Ltd., BlueAlly, BlueCat Networks Inc., BMC Software Inc., Cisco Systems Inc., HCL Technologies Ltd., International Business Machines Corp., Itential Inc., Juniper Networks Inc., Kentik Inc., NetBrain Technologies Inc., NetYCE BV, OpenText Corp., Palo Alto Networks Inc., SolarWinds Corp., Versa Networks Inc., and VMware Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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