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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 2022 and 2027. 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 rapidly evolving to streamline operations in the telecommunication sector and data centers, leveraging technologies such as virtual private network (VPN) and switches and routers. Automation ensures adherence to service level agreement (SLA) and optimizes internet traffic management. By orchestrating both virtual and physical devices, organizations enhance information technology (IT) efficiency. This market evolution addresses the growing complexity of networks, enabling seamless automation across diverse infrastructure elements for improved reliability and scalability.
This market report extensively covers market segmentation by component (solutions and services), deployment (on-premise and cloud), and geography (North America, Europe, APAC, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market forecasting report includes historic market data from 2017 to 2021.
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 2017. 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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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 expected to drive market growth 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.
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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2017 - 2027.
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.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.95% |
Market growth 2023-2027 |
USD 29.02 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.87 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Canada, China, 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, Open Text Corp., Palo Alto Networks Inc., SolarWinds Corp., Versa Networks Inc., and VMware Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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