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Global Network Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Network Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • February 2022
  • 206 pages
  • ID: 6231643
  • Format: PDF
  • Mordor Intelligence LLP

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The Global Network Market was valued at USD 14.56 billion in 2021, and it is expected to reach a value of USD 48.39 billion by 2027, registering a CAGR of 22.49% during 2022 - 2027. As the COVID-19 outbreak spreads, public and private companies, as well as government entities, are requiring employees to work from home (WFH), putting an unforeseen strain on all manner of networking technologies and causing bandwidth and security concerns.

Key Highlights
Presently, enterprise networks are under pressure, with more users, devices, and applications relying on the network for essential connectivity to a wide range of endpoints. In response, organizations are increasingly interested in new network architectures and advanced management tools that leverage machine learning and artificial intelligence to create self-driving or autonomous networks. These advancements are also significantly changing the way enterprises rely on services from their partners and vendors.?
One of the biggest benefits of network automation is a lower operational expense. By eliminating tedious and manual processes through automated and orchestrated infrastructures, one not only extends the network’s capabilities but also achieves a faster ROI.
The automation of data center networks is beyond the virtualized environment, orchestration throughout the storage networks, IP telephony infrastructure, and even enterprise energy management systems. Big Data is a significant driver of traffic within the data center. While much of Big Data traffic is rack-local, enough traffic still exits the rack that Big Data is expected to be responsible for, i.e., 20% of all traffic within the data center in 2021.
Furthermore, several enterprises rely on virtual private cloud services on VPNs to achieve high performance and obtain critical communication. This is because VPN provides the benefits of a private network with the economics of a public network. VPN services create logical ‘private’ partitions within a public cloud environment, providing the benefits of a dedicated private cloud on a more cost-effective and flexible basis. Thus, augmenting the demand for virtual networking functionality.
Automation is playing an important role in maintaining IT operations during the COVID-19 pandemic. According to the Verizon Network Report, April 22, the overall data volume across its networks increased by 19% compared to pre-COVID levels. While data usage remains elevated, the changes in how people are using the network have stabilized. Verizon stated that it expects the user to continue at sustained higher levels in the future.

Key Market Trends

SD-WAN and Virtualization is Expected to Hold Major Market Share

Software-defined networking (SDN) and network functions virtualization (NFV) abstract the implementation of new network functions and decouple them from the hardware infrastructure and associated topological constraints, thus making communications networks programmable and, as a result, much more flexible and agile. ?

SDN and NFV are together seen as key technologies enabling the transformation of CSPs by providing a lower-cost means to address market demands. The major end-users driving this market are telecom operators who need to achieve CAPEX reduction, improve efficiency and offer new services. ?NFV has been a constantly complementing SDN by virtualizing network services that run in dedicated appliances, such as deep packet inspection (DPI), firewalls, load balancers, and session border controllers (SBCs), so that these services can run on a single pool of computer hardware, yielding CAPEX and OPEX savings.?
Moreover, SD-WAN 2.0 functionality allows the enterprise to transcend connectivity to securely program the consumption of virtualized services across the entire network spanning traditional branches, private data centers, and the leading public clouds, all from a single IT governance platform.
SD-competitive, service providers are increasingly offering SD-WAN services and creating an additional revenue stream. Aiding this trend, CenturyLink recently added an SD-WAN service to its portfolio in partnership with Cisco. The telecommunications provider announced the provision of its services as Managed Cisco SD-WAN, enabled by Cisco’s virtualized network platform and vEdge routers.
Moreover, SD-WAN 2.0 functionality allows the enterprise to transcend connectivity to securely program the consumption of virtualized services across the entire network spanning traditional branches, private data centers, and the leading public clouds, all from a single IT governance platform.
Modern SD-WAN offering includes advanced functionalities, such as centralized management, automation, advanced analytics, application visibility, orchestration, and security integration capabilities. The future of the market is expected to be maintained by several vendors who are looking at providing enhanced support for full-fledged IoT infrastructure and mobility by supporting future wireless technologies, 5G, and Gigabit LTE.

North America to Account for a Significant Market Share

The North American region dominates the network automation market, with the largest market share held by the United States. The primary reason for the region’s dominance is the presence of leading network automation solution providers, such as Cisco, IBM, SolarWinds, VMWare, Extreme Networks, Juniper Networks, and many more.?

The region’s dominance in internet penetration and technology adoption is expected to be a major catalyst for the adoption of network automation solutions. According to the Cisco Annual Internet Report (2018-2023), approximately 92% of the regional population will be using the internet by 2023.?
Substantial growth in connected and mobile devices is spurring the growth in demand for enhanced network services. Since North America has always remained at the forefront of technology adoption, the region witnessed the maximum adoption of connected devices.
Further, the increasing number of connected and mobile devices is giving rise to a wide range of endpoints. More users, devices, and applications rely on the network for essential connectivity, increasing the need for reliable network architecture. Hence, organizations are increasingly integrating advanced management tools, such as artificial intelligence, to create self-driving or autonomous networks.?
The deployment of technological advancements, such as IoT, multi-cloud environments, or AI increases the complexity of network architectures. Hence, the deployment of these technologies is increasing the demand for flexible and adaptable network architectures. ?
Also, the adoption and deployment of 5G technology are expected to increase at a rapid pace in the region. According to a study by Ericsson, the estimated number of mobile 5G subscriptions is expected to reach 325 million by 2025, from 3 million in 2019. The adoption of 5G technology is further expected to increase the demand for enhanced network services, which may increase the demand for network automation in the region.

Competitive Landscape

The Global Network Automation Market is slowly turning into a fragmented market. It is expected to witness a robust increase in the near future, strongly driven by the trends of cloud and growing network traffic across various end-user industries. In order to maintain their foothold in the network automation landscape, the competitive strategy has been quite strong from the current market leaders, mainly driven by their acquisitions of various startups and solution vendors in the market. Key players in the market are Cisco System Inc., Juniper Networks Inc., IBM Corporation, etc. Recent developments in the market are -

January 2021 - Juniper Networks Inc. is combining Apstra’s solution network automation—based on an open, multi-vendor architecture—with its data-center networking portfolio, which centers on Juniper’s JUNOS operating system. The combined platform would help public and private cloud partners optimize their operations as they work their way toward AI-driven autonomous networks.
June 2021- IBM announced the launch of new hybrid cloud AI-powered automation software for communications service providers (CSPs) to help deliver on the promise of 5G, including zero-touch operations, reduced costs, and the rapid delivery of innovative services to customers. In a wide range of environments, CSPs can use AI-powered automation to stand up and manage networks quickly and is engineered to scale new services in days rather than months.

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