The global network automation market value is assessed to be USD 4.4 billion for 2023. Based on the predictions, the overall valuation is poised to progress at a CAGR of 23% during the forecast period. Witnessing such an impressive growth rate, the net valuation is estimated to reach USD 34.8 billion by 2033.
The demand for network automation is expanding with the growing need for big data analytics and deep learning techniques as this enables remote telecom equipment control. Telecom companies and organizations are also modernizing their outdated fiber network. To take advantage of cloud deployment services, network virtualization technologies, and sophisticated IT technology. BFSI service providers are also implementing network automation to eliminate mistakes and the complexity of growing network traffic.
Network automation helps to increase network uptime, prevents service-level agreement (SLA) breaches, and shortens the mean time to repair (MTTR). Such advantages drive communication service providers to engage in research and innovation. Moreover, providing affordable and efficient network automation solutions opens new attractive market prospects.
The demand for network automation fuels the cloud deployment mode's ability. To manage huge network traffic while enabling simple and reliable configuration. Unfortunately, the proliferation of cloud technology in this sector has decreased the level of customization of network automation solutions.
| Attributes | Details |
|---|---|
| Network Automation Market Share (2022) | USD 3.6 billion |
| Network Automation Market Size Value (2023) | USD 4.4 billion |
| Network Automation Market Size Value (2033) | USD 34.8 billion |
| Network Automation Market Growth Rate (2023 to 2033) | 23% |
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Historically, the information and technology vertical segment has remained the dominant end user of network automation services. Traditionally, it has contributed to more than 50% of the global revenue generated by the market. However, the growing trend of digitization and automation in the finance, education, and entertainment industry is poised to limit its participation in market advancement.
According to different components of network automation, the solution segment held a commanding market share of nearly 70% in 2022. The use of network automation solutions to hasten the delivery of their apps by CSPs is responsible for its dominance. Based on the FMI analysis, this solution segment is anticipated to grow at an average rate of 21% from 2023 to 2033.
The services market segment is expected to have a higher growth rate of 25.5% during the next ten years. All services guarantee efficient network operations, which is essential for the success of network automation businesses in the long run. During the time frame, the training services sub-segment leads the market, followed by the deployment & integration services.
By contributing a revenue of more than 55% in 2022, the on-premises category leads the market based on deployment mode. Notable advantages of on-premises automation solutions provide a one-time licensing price, an annual service agreement, and customization based on business objectives. However, after the advent of cloud mode of network automation, this segment is estimated to register a CAGR of 21% through 2033.
The cloud deployment category is expected to develop at a year-on-year growth rate of 25% during the forecast years. The increased adoption of reliable cloud-based network automation solutions and services by SMEs is responsible for the segment's growth. The cloud network automation segment is highly affordable because there is no longer a requirement for internal equipment or complicated maintenance.
During the projection period, the hybrid network is expected to record a CAGR of 23.5%, making it a lucrative market segment. It enables the control and oversight of the entire network infrastructure through public and private clouds and data centers.
The virtual network automation market segment, on the other hand, is expected to witness a higher CAGR of 24% during the forecast period. This segment is growing fast as virtualization enables users to host a network architecture that seamlessly links their servers, devices, data centers, and computers.
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Until 2022, the United States held the top spot with a revenue contribution of 30% in the global market. The presence of leading players like Cisco Systems Inc. and IBM Corporation is regarded to have developed such a huge market.
Leading businesses are making significant investments in data center research and development. Besides, communications infrastructure could be the primary driver of further growth. In addition, a quick uptake of network automation services and solutions is ascribed to the rapid market growth.
Asia Pacific is predicted to expand at a noteworthy CAGR of 25.2% throughout the projection period. This rapid expansion is attributable to the rising start-up scene in emerging countries and the increased adoption of network automation solutions and services. Customers from China and India are widely dispersed, which opens up new geographical potential for new regional market players.
India is experiencing an increase in the presence of multinational corporations. This has led to a massive consumer base and several internet users. As per FMI, it may record a higher growth rate in adopting network automation and attractive business prospects over the forecast years.
The consolidation of the market and the strong presence of multiple competitors may create cutthroat competition in the market. Many network automation service providers are implementing several essential tactics and partnerships to claim a sizable market position. For example, VMware, Inc. and Vodafone Group announced in November 2021 to supply orchestration and automation services together. Now, the service is provided via a unified platform on their respective core networks throughout the European continent.
The regional markets for network automation are expanding due to rising communication bandwidth demand and the proliferation of wireless networks. In addition, players in this sector are launching cutting-edge algorithms and customized network automation solutions to satisfy end customers' needs.
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FastTrack Communications is a supplier of commercial communications services. It improves its fiber-optic infrastructure using Fujitsu Network Communications' modular 1FINITY optical networking technology. According to an announcement by the company in August 2021, Fujitsu is helping FastTrack to construct a disaggregated architecture based on the new 1FINITY platform. Reports further reveal that LightRiver's network agility, scalability, and capacity contribute to this project.
NetBrain network automation and Cisco ACI signed a partnership in May 2018. To improve end-to-end transparency and orchestration of application-centric networks. This solution improves processes for troubleshooting, protection, and process improvement inside and across hybrid cloud environments. Furthermore, it gives corporate information technology and telecommunication teams continuous visibility across different ACI and conventional systems.
Cisco Company bought Fluidmesh Networks in July 2020, a pioneer in robust wireless backhaul technologies. Cisco's expertise is expected to assist it in advancing its industrial loT business by allowing wireless deployments in industrial environments. It is projected to be developed with Fluidmesh's solution-based products and connections to systems integrators.
Juniper Networks revealed in January 2022 that their SSR technology could be completely deployed, set up, and run using the Mist cloud. Also, Juniper has improved its IDS or IPS and URL filtering features for the Juniper Session Smart Router (SSR) range. To further expand its strong security capabilities, it has simplified the setup process for SSR using new cloud-ready devices by Zero Touch Provisioning.
The emerging trends in the network automation market are primarily brought on by expanding demands for regional CAPEX reduction and improved internet infrastructure. Also, the room for the development of technology is creating new investment possibilities. This development includes improved network automation using big data, ML, and AI.
The market is valued at USD 4.4 billion in 2023.
The market recorded a CAGR of 21% from 2017 to 2022. The global market size to reach USD 123 by 2033.
The global market size is estimated to reach USD 34.8 billion by 2033.
The United States is likely to register a 22% CAGR until 2033.
Growing demand from new commercial domains is likely to boost market growth.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Components 5.1. Solutions 5.1.1. Tools 5.1.2. Intent-based Networking 5.2. Services 5.2.1. Professional Services 5.2.2. Advisory and Consulting 5.2.3. Training and Support 5.2.4. Deployment and Integration 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Network Type 6.1. Physical Network 6.2. Virtual Network 6.3. Hybrid Network 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Deployment Mode 7.1. On-premises 7.2. Cloud 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Organization Size 8.1. Small and Medium Sized Enterprises 8.2. Large Enterprises 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vertical 9.1. Information Technology 9.2. Banking, Financial Services, and Insurance 9.3. Manufacturing 9.4. Healthcare 9.5. Energy and Utilities 9.6. Education 9.7. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. South Asia 10.5. East Asia 10.6. Oceania 10.7. MEA 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Cisco Systems Inc. 20.2. Juniper Networks Inc. 20.3. IBM Corporation 20.4. Hewlett Packard Enterprise Development 20.5. Fujitsu Limited 20.6. Red Hat, Inc. 20.7. BMC Software, Inc 20.8. Itential 20.9. NetYCE 20.10. Nokia Corporation 20.11. NVIDIA Corporation 21. Assumptions & Acronyms Used 22. Research Methodology
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Network Automation Market
