The Global Network Automation Market size is expected to reach $18.12 billion by 2031, rising at a market growth of 22.3% CAGR during the forecast period.
The rise of Industry 4.0 and smart manufacturing has driven manufacturers to adopt network automation solutions to enhance production efficiency, reduce downtime, and improve supply chain management. Automated networks enable seamless communication between machines, sensors, and control systems, facilitating real-time monitoring and predictive maintenance. Hence, the manufacturing segment acquired 10% revenue share in the market in 2023. The integration of network automation in manufacturing processes ensures higher productivity, lower operational costs, and improved product quality, contributing to this segment's substantial revenue share.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2024, Check Point Software Technologies Ltd. introduced the Quantum Firewall Software R82 and innovations for its Infinity Platform, addressing a 75% rise in cyber-attacks. R82 features AI-powered engines for preventing zero-day threats like phishing and malware, with improvements to enhance DevOps agility, security, and operational simplicity. Additionally, In November, 2024, Open Text Corporation unveiled OpenText Partner Network, granting access to its entire portfolio of solutions, including Content Services, Experience Management, and Security, along with cloud, AI, automation, and analytics.
With increased data traffic, businesses must also efficiently manage large, distributed networks. Automation streamlines managing these extensive networks by automating the deployment of updates, patches, and configurations. This is crucial for organizations managing vast amounts of data across multiple locations and ensuring consistent and reliable network performance without manual intervention. In conclusion, the growth of data traffic and the need for scalable network management drive the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
The Network Automation market is highly competitive, driven by the rising adoption of AI, machine learning, and software-defined networking technologies. Participants focus on automating network management, provisioning, and optimization to improve operational efficiency and reduce downtime. The growing demand for zero-touch provisioning, enhanced security, and scalable networks intensifies competition. Industries like telecommunications, IT, and cloud services are key adopters, seeking solutions for dynamic, high-performance networks. Strategic collaborations and innovation in automation tools shape the market landscape, addressing evolving enterprise and carrier needs.
The rise of Industry 4.0 and smart manufacturing has driven manufacturers to adopt network automation solutions to enhance production efficiency, reduce downtime, and improve supply chain management. Automated networks enable seamless communication between machines, sensors, and control systems, facilitating real-time monitoring and predictive maintenance. Hence, the manufacturing segment acquired 10% revenue share in the market in 2023. The integration of network automation in manufacturing processes ensures higher productivity, lower operational costs, and improved product quality, contributing to this segment's substantial revenue share.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2024, Check Point Software Technologies Ltd. introduced the Quantum Firewall Software R82 and innovations for its Infinity Platform, addressing a 75% rise in cyber-attacks. R82 features AI-powered engines for preventing zero-day threats like phishing and malware, with improvements to enhance DevOps agility, security, and operational simplicity. Additionally, In November, 2024, Open Text Corporation unveiled OpenText Partner Network, granting access to its entire portfolio of solutions, including Content Services, Experience Management, and Security, along with cloud, AI, automation, and analytics.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal Matrix; Cisco Systems, Inc., VMware, Inc., and IBM Corporation are the forerunners in the Network Automation Market. In October, 2024, VMware, Inc. unveiled Private AI Foundation with NVIDIA (PAIF-N) streamlines AI infrastructure deployment via enhancements in VMware Cloud Foundation 5.2.1. The Private AI Automation Services Quickstart Wizard enables efficient setup of AI Workstations and Kubernetes Clusters, offering version-controlled templates, GPU configuration guidance, and improved governance for AI/ML workloads within a secure, high-performance platform. Companies such as BMC Software, Inc., Fortinet, Inc., and Check Point Software Technologies Ltd. are some of the key innovators in Network Automation Market.
Market Growth Factors
Automation tools also allow organizations to manage complex cloud deployments by automatically scaling resources up or down based on demand. Network automation tools provide real-time monitoring of cloud resources, adjusting the network to accommodate growing data traffic while optimizing bandwidth use. These capabilities are essential in hybrid IT environments, where demand fluctuations can affect network performance. Hence, the rising adoption of cloud technologies and hybrid IT environments drives the market's growth.With increased data traffic, businesses must also efficiently manage large, distributed networks. Automation streamlines managing these extensive networks by automating the deployment of updates, patches, and configurations. This is crucial for organizations managing vast amounts of data across multiple locations and ensuring consistent and reliable network performance without manual intervention. In conclusion, the growth of data traffic and the need for scalable network management drive the market's growth.
Market Restraining Factors
Despite the long-term benefits of network automation, many companies are hesitant to incur these substantial upfront costs. This delay in adoption is particularly evident in industries where profit margins are thin or in businesses that already have existing systems in place that are working sufficiently well. The challenge for vendors is demonstrating the return on investment (ROI) to encourage wider adoption among cost-sensitive enterprises. Hence, high initial investment and implementation costs hinder the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Driving and Restraining Factors
Drivers- Increasing Demand for Network Efficiency and Performance Optimization
- Rising Adoption of Cloud Technologies and Hybrid IT Environments
- Growth of Data Traffic and Need for Scalable Network Management
- High Initial Investment and Implementation Costs
- Complexity in Integrating Legacy Systems with New Automation Solutions
- Increasing Cybersecurity Threats and Need for Automated Threat Detection
- Evolution of 5G Networks and the Need for Autonomous Network Management
- Shortage of Skilled Workforce and Expertise in Network Automation
- Performance Issues with Automation Tools in Real-Time Network Environments
Component Outlook
Based on component, the market is divided into solution and services. In 2023, the services segment procured 35% revenue share in the market. This significant contribution is driven by the increasing demand for professional services that support the implementation and optimization of network automation solutions. Organizations seek expert guidance to navigate the complexities of integrating new automation technologies into their network infrastructures. Services such as consulting, system integration, training, and ongoing support are essential for ensuring the successful deployment and operation of network automation solutions.
Solution Outlook
The solution segment is further subdivided into SD-wan and network virtualization tools, intent-based networking solutions/platforms, configuration management tools, and others. In 2023, the SD-wan and network virtualization tools segment attained 35% revenue share in the market. This dominance can be attributed to the widespread adoption of SD-WAN (Software-Defined Wide Area Network) solutions and network virtualization tools, which provide greater flexibility, efficiency, and cost savings.Services Outlook
The services segment is further subdivided into advisory, analytics & automation services, deployment & integration services, and training services. In 2023, the advisory, analytics & automation services segment registered 44% revenue share in the market. This can be attributed to the growing need for expert guidance and strategic planning in the increasingly complex field of network automation. Advisory services help organizations assess their current network infrastructure, identify opportunities for automation, and develop comprehensive strategies for implementation.Deployment Outlook
On the basis of deployment, the market is segmented into on-premises and cloud. In 2023, the cloud segment attained 46% revenue share in the market. The growing adoption of cloud computing and the increasing reliance on cloud-based services have significantly influenced the network automation market. Cloud deployment offers numerous benefits, including reduced upfront costs, scalability, and the ability to access and manage network resources from anywhere with an internet connection. These advantages appeal to small and medium-sized enterprises (SMEs) and organizations with distributed operations.Infrastructure Outlook
Based on infrastructure, the market is categorized into physical, virtual, and hybrid. The virtual segment witnessed 43% revenue share in the market in 2023. This segment's growth is driven by the increasing adoption of software-defined networking (SDN) and network functions virtualization (NFV) technologies. Virtual infrastructure offers greater flexibility, scalability, and efficiency. It allows for dynamic allocation of network resources, automated management, and rapid deployment of new services.Enterprise Size Outlook
By enterprise size, the market is divided into large enterprises and SMEs. In 2023, the large enterprises segment registered 61% revenue share in the market. This can be attributed to several factors. Large enterprises typically have extensive and complex network infrastructures that require advanced automation solutions to manage efficiently. The scale of operations in large enterprises demands robust, scalable, and secure network automation tools to ensure optimal performance, minimize downtime, and reduce operational costs. Large enterprises often have greater financial resources to invest in cutting-edge technologies and comprehensive network automation solutions.Vertical Outlook
Based on vertical, the market is divided into BFSI, retail, IT & telecommunications, manufacturing, media & entertainment, education, healthcare, government, and others. In 2023, the IT & telecommunications segment procured 21% revenue share in the market. The IT & telecommunications industry is at the forefront of adopting cutting-edge technologies to manage and optimize extensive and complex network infrastructures. Network automation solutions help telecom operators and IT companies enhance network performance, reduce operational costs, and swiftly deploy new services. The growing demand for high-speed internet, the proliferation of IoT devices, and the shift towards 5G networks have further accelerated the adoption of network automation in this sector. As the industry continues to expand and innovate, the IT & telecommunications segment remains a significant contributor to the market’s revenue.Market Competition and Attributes
The Network Automation market is highly competitive, driven by the rising adoption of AI, machine learning, and software-defined networking technologies. Participants focus on automating network management, provisioning, and optimization to improve operational efficiency and reduce downtime. The growing demand for zero-touch provisioning, enhanced security, and scalable networks intensifies competition. Industries like telecommunications, IT, and cloud services are key adopters, seeking solutions for dynamic, high-performance networks. Strategic collaborations and innovation in automation tools shape the market landscape, addressing evolving enterprise and carrier needs.
By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 37% revenue share in the market in 2023. This dominance can be attributed to several factors, including the presence of leading technology companies, extensive investment in research and development, and early adoption of advanced network technologies. North American enterprises, particularly in the United States and Canada, have been at the forefront of adopting network automation to enhance operational efficiency, reduce costs, and improve network security.Recent Strategies Deployed in the Market
- Oct-2024: Fortinet, Inc. teamed up with CrowdStrike to integrate AI-powered CrowdStrike Falcon endpoint security with Fortinet’s FortiGate next-generation firewalls. This collaboration enhances visibility, accelerates threat detection and response, and unifies operations. Together, they provide real-time protection and context-rich insights, empowering organizations to mitigate risks across networks, applications, and endpoints with a flexible, scalable solution.
- Aug-2024: Fortinet, Inc. announced the acquisition of Lacework, a cloud security leader, enhancing its AI-driven Fortinet Security Fabric. This integration strengthens Fortinet’s full-stack cloud-native protection.
- Jul-2024: Cisco Systems, Inc. announced a partnership with Rockwell Automation to drive digital transformation in the Asia Pacific, Japan, and Greater China region. This partnership aims to deliver secure connectivity and advanced automation solutions, enhancing productivity and operational efficiency for industrial enterprises while addressing unique manufacturing challenges and fostering innovation through shared expertise.
- May-2024: Cisco Systems, Inc. partnered with Lenovo, a technology company, to provide integrated infrastructure and networking solutions. The partnership would accelerate digital transformation with AI-powered, edge-to-cloud solutions.
- May-2024: Palo Alto Networks, Inc. unveiled Precision AI, a groundbreaking AI-driven innovation blending machine learning, deep learning, and generative AI to counter AI-generated threats proactively. Integrated into Strata, Prisma, and Cortex, Precision AI powers advanced security services to combat sophisticated web threats, zero-day attacks, and DNS hijacking, enabling enterprises to stay ahead of adversaries.
List of Key Companies Profiled
- Cisco Systems, Inc.
- VMware, Inc. (Broadcom Inc.)
- Fortinet, Inc.
- Palo Alto Networks, Inc.
- Juniper Networks, Inc.
- Check Point Software Technologies Ltd.
- IBM Corporation
- Anuta Networks International LLC
- BMC Software, Inc. (KKR & Co., Inc.)
- Open Text Corporation
Market Report Segmentation
By Enterprise Size- Large Enterprises
- SMEs
- Solution
- SD-Wan and Network Virtualization Tools
- Intent-Based Networking Solutions/Platforms
- Configuration Management Tools
- Other Solution Type
- Services
- Advisory, Analytics & Automation Services
- Deployment & Integration Services
- Training Services
- Physical
- Virtual
- Hybrid
- On-Premises
- Cloud
- IT & Telecommunications
- BFSI
- Retail
- Healthcare
- Manufacturing
- Government
- Media & Entertainment
- Education
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Network Automation Market by Enterprise Size
Chapter 6. Global Network Automation Market by Component
Chapter 7. Global Network Automation Market by Infrastructure
Chapter 8. Global Network Automation Market by Deployment
Chapter 9. Global Network Automation Market by Vertical
Chapter 10. Global Network Automation Market by Region
Chapter 11. Company Profiles
Companies Mentioned
- Cisco Systems, Inc.
- VMware, Inc. (Broadcom Inc.)
- Fortinet, Inc.
- Palo Alto Networks, Inc.
- Juniper Networks, Inc.
- Check Point Software Technologies Ltd.
- IBM Corporation
- Anuta Networks International LLC
- BMC Software, Inc. (KKR & Co., Inc.)
- Open Text Corporation
Methodology
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