The Network Automation Market is estimated to be valued at US$ 22.17 Bn in 2023 and is expected to exhibit a CAGR of 23.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Network automation involves the use of software and technologies to automate various tasks in computer networks. It helps in configuring, monitoring, securing and managing network devices with the help of software tools. Network automation reduces human errors, improves network security and reliability while optimizing operational costs for organizations.
Market key trends:
One of the major trends driving the growth of network automation market is the increasing adoption of artificial intelligence and machine learning technologies. AI and ML is allowing analysis of large volumes of network data to identify patterns and predict anomalies. It enables network automation solutions to self-configure, self-optimize and self-heal networks in real-time. For instance, advanced ML algorithms can monitor network traffic patterns and automatically throttle malicious traffic. They can also detect inefficiencies in traffic flows and suggest changes in routing policies to optimize performance. The integration of AI/ML is helping network administrators to easily manage complex networks and improve operational efficiency.
Threat of new entrants: The network automation market requires substantial infrastructure and investments which raises entry barriers for new players. However, the risk is moderate due to low brand loyalty of customers.
Bargaining power of buyers: Large network operators have significant bargaining power due to their bulk purchasing ability. However, differentiated solutions limit switching costs.
Bargaining power of suppliers: A few dominant solution providers exertspricing pressure but diversified alternative solutions keep supplier power in check.
Threat of new substitutes: Potential threat from open-source automation platforms is evaluated as software-defined networking and hybrid cloud solutions emerge as substitutes.
Competitive rivalry: Intense competition exists among automation vendors to gain market share through product innovations and partnerships.
Strength: Network Automation solutions help reduce IT costs and improve infrastructure management. It offers scalability, reliability and security of networks.
Weakness: Lack of skilled professionals remains a challenge for successful implementation of automation solutions. High initial investment and maintenance costs also restricts market growth.
Opportunity: Growing demand for cloud-based services and SDN among industries offers lucrative growth prospects. Increasing focus on digital transformation activities too supports market opportunities.
Threats: Data security threats pose significant challenges. Economic slowdowns impact technology upgrades and hence, affect market demand.
The Global Network Automation Market Size is expected to witness high growth, exhibiting CAGR of 23.4% over the forecast period, due to increasing need for agile and scalable networks. North America dominates the market currently due to rapid adoption of advanced technologies among communication service providers and data center operators in the region. The network automation market in Asia Pacific is anticipated to grow at the fastest rate owing to rising investments in digitization and increasing demand for smooth connectivity.
Key players operating in the Network Automation market are Cisco Systems Inc., Extreme Networks Inc., Juniper Networks Inc., VMware Inc., SaltStack Inc., BMC Software Inc., Hewlett Packard Enterprise Development LP, Nuage Networks, IBM Corporation, NetBrain Technologies Inc., AppViewX Inc., Micro Focus International PLC, Fujitsu Limited, Arista Network Inc., SolarWinds Inc., Forward Networks Inc. and Network Automation Inc. Players adopt strategies such as mergers, partnerships and product innovations to expand their market share.