Network automation involves automation tools and processes for managing and optimizing networks. It helps to increase efficiency, reduce costs, and improve agility. With the adoption of advanced technologies like IoT, cloud, and edge computing, network infrastructures are becoming more complex with multiple interfaces and endpoints. Managing these complex networks manually is difficult and error-prone. Network automation provides centralized control over networks through software-defined solutions. It automates the entire network life cycle including configuration, deployment, monitoring, and optimization of devices and applications. This removes human errors and reduces downtime.
Key players operating in the Network Automation are Pfizer Inc., AstraZeneca plc, F. Hoffmann-La Roche Ltd., Eli Lilly and Company, Boehringer Ingelheim GMBH, Novartis AG, Bristol-Myers Squibb Company, and Merck & Co., Inc. These companies are investing heavily in developing advanced network automation solutions. For instance, Cisco has introduced products like DNA Center for enterprise campus networks and Catalyst 9000 networking operating system.
There is a lot of potential for network automation vendors to tap into new opportunities emerging from various industries undergoing digital transformation. Technologies like cloud, IoT, and edge computing are driving the need for agile and scalable network operations. Network automation solutions help organizations to optimize their network resources and support new application workloads seamlessly.
Many network automation players have started expanding globally to strengthen their Global Network Automation Market Size presence. For example, in 2021, SolarWinds acquired Samanage to integrate its IT service management portfolio with network management capabilities. This helped the company to offer a more comprehensive network automation suite for global customers. With growing digitalization trends worldwide, the adoption of network automation is expected to rise across all regions in the coming years.
Market drivers
The primary driver for the network automation market is the rising network complexities due to growing digitalization of enterprises. Technologies like cloud, IoT, and edge computing are increasing pressure on traditional networking models and driving demand for centralized automation solutions. Network automation helps to optimize large, complex networks efficiently through improved control, visibility, and troubleshooting capabilities.
Market restraints
Lack of skilled professionals is a major challenge restraining the adoption of network automation. It requires network engineers to have expertise in both traditional and software-defined networking concepts. The shift from legacy to automated systems also needs training and new skill development. This adds to initial investments and slows down initial deployments of network automation platforms. Additionally, security risks associated with centralized network control through software also raise concerns among some organizations.
Segment Analysis
The network automation market can be segmented based on network type, and components. Based on network type, the SD-WAN (software-defined wide area network) segment is dominating as many organizations are adopting this technology to reduce Capital expenditure (CapEx) and Operational expenditure (OpEx) associated with traditional WAN infrastructure. SD-WAN provides a simple, agile, and cost-effective way to connect branch offices by using multiple broadband internet connections, instead of just private WAN links.
The network automation market can also be segmented based on components into network infrastructure, network security, and network services. Among these, the network infrastructure segment holds the largest market share as network automation helps in optimizing and augmenting physical network infrastructure using technologies such as SDN and NFV. Automation enables organizations to provision and manage their networks from a centralized software-controlled system and gain visibility across the network.
Global Analysis
In terms of regions, North America holds the largest share in the network automation market due to the early adoption of advanced network technologies such as SDN and NFV among communication service providers and adoption of cloud-based solutions. The network automation market in Asia-Pacific is expected to grow at the highest CAGR during the forecast period due to increasing investments by communication service providers for upgrading their network infrastructures to support emerging technologies such as 5G and IoT.
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