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The Global Network Automation market forecast accounted $22 billion in 2020 and is anticipated to witness significant market growth with CAGR of 21.5% during the forecast period 2021- 2026. Network devices today are meant to be managed using a command-line interface (CLI). A number of extra control lays must be introduced to the application programming interface (API) to translate CLI to automate these devices. Network automation uses programmable logic to manage network resources and services. Increasing use of smart and integrated devices, increased use of automation technologies such as artificial intelligence (AI) and machine learning, which enables companies to increase network problems by means of real-time data monitoring, are important factors that drive the development in the network automation market. Moreover, network automation solutions for cloud native applications enable to configure networks quickly and securely by utilizing cloud computing capabilities due to which there is a rise in market demand. Furthermore, the growing requirement to detect and identify outdated hardware, application programming interfaces compliance concerns, and storage difficulties, as well as the growing need for zero-touch provisioning and unified network visibility, are also the major drivers driving the network automation market’s growth. Hence, these factors will drive Network Automation market size in the forecast period 2021-2026.
Network Automation Market Segment Analysis – By Solution Type
SD-WAN and Network Virtualization segment is anticipated to witness significant market growth during the forecast period 2021-2026. Networking and virtualization functions abstract the implementation and disconnects new network capabilities from the hardware infrastructure and related topological limitations to enable the programming leading to flexible and agile communication networks. Furthermore, SD-WAN 2.0 allows the firm to transfer connections and securely plan the consumption of virtualized services across the network from a single IT governance platform. By using a software-definable wide-ranging network (SD-WAN), organizations are accommodating virtualization in order to overcome the IT expenses of computing systems, such as the consumption of hardware and maintenance. Companies such as Dell EMC have worked with Vmware in August 2019 to reveal new developments in software defined networking so that clients may simplify and reduce network costs now. Dell EMC SD-WAN Edge is a built-in platform that allows customers to improve their experience by bünding VMware SD-WAN into a subscription to the Dell EMC hardware from VeloCloud software.
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Network Automation Market Segment Analysis – By Deployment Type
By Deployment type, Network Automation market is segmented into on-premises, Cloud. Cloud deployment type is estimated to witness significant market growth during the forecast period 2021-2026. Automation of the Cloud Network makes rapid and safe network setup possible using cloud computing. In addition, the cloud deployment model measures the capability of a system to handle huge network application traffic. By adopting these technologies, small businesses may gather and analyze data and improve customer service. Current requirements are rising over their on-site equivalents for cloud based network automatic solutions due to the many advantages that cloud deployment offers. The usage of cloud computing is becoming more common among SMEs. Several companies are progressively shifting towards a cloud architecture projected to expand in the years to come. The benefits of cloud infrastructure, which are easy to use, low need for in-house infrastructure, scalability and easy network automation systems facilitate the quick expansion of this market.
Network Automation Market Segment Analysis – Geography
North America held the highest Network Automation market revenue in 2020 with market share of around 34%. The main reason behind the region’s predominance is that there are prominent vendors of networking solutions, such as Cisco, IBM, SolarWinds, VMWare, Extreme Networks, Juneiper Networks, and so on. Furthermore, the region’s domination of internet penetration and acceptance of technology is a key motivator for network automation solutions. The Cisco Annual Internet Report (2018-2023) indicates that roughly 92% of the population in the area will use the internet by 2023. The rise in demand for improved network services in connected and mobile devices is driving substantial expansion. As North America has always been a leader in technological adoption, the area has been seen as many linked gadgets as possible. In addition, the rising number of connected and mobile devices creates many end points with the requirement for a trustworthy network design that relies upon people, devices and applications for vital connection. Therefore, organisations increasingly integrate sophisticated management technologies such as artificial intelligence to build self-driven or autonomous networks. The adoption of technology developments such as IoT, multi-cloud or AI enables network design to become more complicated. The use of these technologies thereby increases the requirements for adaptive and flexible network designs. Thus, above mentioned factors are analyzed to drive the market in the forecast period 2021-2026.
Network Automation market trends/drivers
Growing telecom and IT infrastructure is anticipated to benefit the market growth.
The telecom and information technology industry has been growing at a rapid pace, owing to the increasing commercial deployment of base station in countries such as South Korea, U.S., and China. Moreover, growth of IT and Telecom industries in developing regions also drives the market growth. According to IBEF, India’s 5G subscriptions to have 350 million by 2026 accounting for 27 % of all mobile subscriptions. Moreover, the union cabinet approved a $ 1.65 billion production-linked incentive scheme for telecom and networking products under the department of telecom. Thus, the adoption of 5G is anticipated to increase further in next 3-5 years, thereby paving way for the development of Network Automation market growth.
Rising network automation market research and development activities and emerging automation solutions is anticipated to boost the market growth.
As per Cisco, around 95% of network related task are performed manually causing operational cost of around 2-3 times more than the cost of network. Thus, centrally and remotely managed IT automation is a must for companies to keep pace in the digital world. Network businesses spend substantially in R&D networking solutions with an emphasis on creating long-term value. Basing on variations in the short-term business performance and financial outcomes, the investment in innovation to test network automation technologies has not been lowered by top network businesses. Intent based Networking Solutions are developed, for instance, by networking businesses such as Forward Network. Networking on intent takes corporate policy as its input, translates the requirements into a network setup and produces network structures.
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Network Automation Market Challenges
Rising security issues act as hindering factor for the market growth
The contemporary world of digital technology with worldwide links requires corporate applications, databases and services from everywhere to be available, which implies that networks must cover a variety of hosting environments, fixed and mobile devices and other types of IT. As networks are nonetheless a major facilitator to the company, they also constitute a source of increased risk. Critical information is continuously being compromised, stealed or destroyed by the hackers and cyber criminalists, and companies are being disrupted for themselves.
Network Automation Market Landscape
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Network Automation market. In 2020, the market of Network Automation market outlook has been fragmented by several companies. Network Automation top 10 companies include:
Cisco
Juniper Networks
IBM
Micro Focus
NetBrain
Forward Networks
SolarWinds
VMware
BMC Software
Anuta Networks
Apstra
BlueCat, among others.
Acquisitions/Technology Launches/Partnerships
In June 2020, Anuta Networks announced its partnership with Juniper Networks to integrate its advanced ATOM platform into Juniper’s existing network automation portfolio. The partnership is anticipated to cement their position in the market and further aid in catering to the increasing demand for innovative network automation services.
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Key Takeaways
Key companies present in the market are seeking collaboration with companies that are active in R&D of Network Automation.
Increasing deployments of network automation solutions for data centres is set to boost the market growth.
North America dominated held the major market share in 2020. This is mainly attributed to the early adoption of new technologies, government regulations and others.
Relevant Report Titles:
Automation Market – Forecast(2021 – 2026)
Report Code: ESR 0199
Network Management Market – Forecast(2021 – 2026)
Report Code: EDU 0008
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