Market Overview:
The network automation market size was valued at USD 6 billion in 2024 and is anticipated to reach USD 31.32 billion by 2032, at a CAGR of 22.95 % during the forecast period (2024-2032).
| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2020-2023 |
| Base Year |
2024 |
| Forecast Period |
2025-2032 |
| Network Automation Market Size 2024 |
USD 6 billion |
| Network Automation Market, CAGR |
22.95% |
| Network Automation Market Size 2032 |
USD 31.32 billion |
Key drivers for the market include the rising need for efficient management of hybrid networks, the surge in data traffic, and the growing reliance on IoT and AI-driven applications. Businesses are adopting network automation to improve security, ensure compliance, and minimize downtime through predictive monitoring and real-time analytics. The shift toward software-defined networking (SDN) and intent-based networking is further supporting widespread adoption across industries, including telecom, IT, banking, and manufacturing.
Regionally, North America leads the network automation market due to advanced IT infrastructure, strong presence of technology providers, and early adoption of SDN. Europe follows, supported by regulatory compliance needs and investments in digital transformation initiatives. Asia-Pacific is anticipated to grow at the fastest pace, driven by rapid expansion of cloud data centers, increasing enterprise digitalization, and government-led smart city projects. Emerging markets in Latin America and the Middle East & Africa are steadily adopting automation, fueled by growing investments in IT modernization.
Market Insights:
- The network automation market size was valued at USD 6 billion in 2024 and is projected to reach USD 31.32 billion by 2032 at a CAGR of 22.95%.
- Rising demand for efficient management of hybrid and multi-cloud networks drives strong adoption.
- Surging data traffic from IoT devices, cloud platforms, and digital applications fuels automation needs.
- Businesses adopt automation to enhance security, ensure compliance, and minimize downtime through predictive monitoring.
- The shift toward software-defined networking (SDN) and intent-based networking strengthens market growth across industries.
- North America held 42% share in 2024, supported by advanced IT infrastructure and early SDN adoption.
- Asia-Pacific captured 20% share and is expected to grow fastest, led by digitalization and smart city projects.
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Market Drivers:
Growing Complexity of IT Infrastructure and Rising Data Traffic:
The network automation market is expanding rapidly due to the growing complexity of IT environments. Enterprises operate hybrid and multi-cloud networks that require streamlined management and high reliability. Rising data traffic from digital platforms, IoT devices, and cloud-based applications drives demand for automation tools. It helps organizations improve visibility, optimize bandwidth usage, and prevent downtime in mission-critical systems.
- For instance, Arista’s CloudVision AGNI platform has enabled zero-touch provisioning and lifecycle management for up to 256 000 on-premises devices in a single cluster, reducing manual configuration effort and accelerating large-scale deployments by automating device onboarding and compliance checks.
Adoption of Software-Defined Networking and Intent-Based Networking:
The shift toward software-defined networking (SDN) and intent-based networking (IBN) is a major growth driver. Businesses need agile and programmable networks that can adapt quickly to changing workloads. Network automation provides scalable solutions that simplify configuration, policy enforcement, and monitoring. It enables enterprises to reduce manual errors and achieve consistent performance across diverse infrastructures.
Rising Security Concerns and Regulatory Compliance Requirements:
Cybersecurity threats and strict compliance regulations are pushing organizations to automate network operations. Manual processes leave gaps that increase vulnerability to breaches and data loss. The network automation market benefits from advanced features such as real-time monitoring, automated patch management, and threat detection. It allows enterprises to strengthen security frameworks while meeting industry-specific regulatory standards.
- For instance, Action1’s cloud-native automated patch system allowed a technology enterprise to deploy updates to 100 endpoints in under five minutes, maintaining SOC 2 and ISO 27001 security certifications with real-time vulnerability checks in 2025.
Cost Efficiency and Operational Productivity Gains:
Organizations are focusing on reducing operational expenses while improving network performance. Automation minimizes repetitive manual tasks, accelerates troubleshooting, and improves resource utilization. The network automation market addresses the need for higher productivity by enabling predictive maintenance and faster service delivery. It ensures businesses can achieve scalability without compromising efficiency or increasing workforce costs.
Market Trends:
Integration of Artificial Intelligence and Machine Learning in Network Operations:
The network automation market is witnessing strong adoption of artificial intelligence (AI) and machine learning (ML) technologies. Enterprises use AI-driven tools to predict network issues, automate root cause analysis, and optimize performance. It enables proactive maintenance, reducing downtime and improving overall service delivery. The rise of intent-based networking powered by AI is reshaping how organizations configure and secure networks. ML algorithms support continuous improvement by analyzing large data sets for traffic patterns and anomalies. Businesses adopt these technologies to manage increasingly complex network environments while maintaining agility and scalability.
- For Instance, Google Cloud’s Autonomous Network Operations framework ingests complex network data and deploys AI agents to automate tasks, predict failures, and optimize performance with proof-of-concept implementations achieving functional RAN agents in just 7 days.
Expansion of Cloud, IoT, and Edge Ecosystems Driving Automation Needs:
The expansion of cloud services, IoT deployments, and edge computing ecosystems fuels demand for automation. The network automation market benefits from enterprises seeking consistent and efficient management of distributed infrastructures. Automation supports real-time orchestration across hybrid and multi-cloud environments, ensuring faster service provisioning. It plays a vital role in enabling secure connectivity for billions of IoT devices and low-latency edge applications. Telecom operators are adopting automation to manage 5G networks that require high efficiency and minimal human intervention. Growing reliance on digital services across industries ensures that network automation continues to evolve as a core strategic priority.
- For instance, Cisco’s Application Centric Infrastructure (ACI) enables automated data center network management and has been deployed in over 6,000 enterprise environments globally as of early 2024, streamlining multi-cloud orchestration.
Market Challenges Analysis:
High Implementation Costs and Complexity of Integration:
The network automation market faces challenges related to high upfront investment and complex deployment processes. Organizations often struggle with integrating automation tools into legacy infrastructure that was not designed for digital transformation. It increases the time and cost required to achieve full-scale automation across networks. Small and medium enterprises hesitate to adopt due to budget constraints and lack of in-house expertise. Vendor dependency and the need for skilled professionals further limit adoption. Enterprises must carefully balance cost considerations with long-term efficiency gains when implementing automation solutions.
Security Risks and Lack of Skilled Workforce:
Automating network operations introduces new risks that require advanced security controls. The network automation market is exposed to vulnerabilities if systems are not properly configured or monitored. Cybercriminals may exploit automation flaws, creating significant threats for enterprises. It also suffers from a global shortage of skilled professionals with expertise in automation, cloud, and cybersecurity. Training staff and building awareness is essential to minimize risks and support smooth adoption. Without a strong talent base, organizations may face delays in implementing automation strategies effectively.
Market Opportunities:
Rising Adoption of 5G, IoT, and Edge Computing:
The network automation market presents strong opportunities through the rapid growth of 5G, IoT, and edge computing. Telecom operators require automation to manage complex 5G networks that demand ultra-low latency and high reliability. Enterprises deploying IoT devices and edge applications need automated orchestration for secure and scalable connectivity. It enables real-time monitoring and efficient traffic management across diverse infrastructures. Governments and industries are investing heavily in smart cities, digital healthcare, and connected mobility, creating demand for automated network solutions. This shift creates a favorable landscape for vendors offering AI-driven and cloud-native automation platforms.
Expanding Demand for Cloud-Based and Managed Services:
Growing reliance on hybrid and multi-cloud strategies drives opportunities for automation adoption across industries. The network automation market benefits from enterprises seeking seamless integration of applications and services across distributed environments. It allows organizations to improve agility, reduce downtime, and ensure consistent compliance. Managed service providers are investing in automation to deliver scalable, cost-effective solutions for businesses of all sizes. The rising preference for subscription-based and cloud-delivered models further supports market expansion. Vendors that offer flexible, customizable, and security-focused automation services are positioned to capture significant growth in the coming years.
Market Segmentation Analysis:
By Component:
The network automation market is segmented into solutions and services. Solutions include software platforms that manage configuration, orchestration, and security across networks. It also covers analytics tools powered by AI and ML to detect anomalies and optimize performance. Services such as consulting, integration, and managed offerings provide enterprises with expertise to deploy and operate automation effectively. Growing reliance on digital transformation fuels demand for both segments, with services ensuring smoother adoption across industries.
- For Instance, Cisco’s DNA Center Virtual Appliance can manage up to 5,000 devices when deployed in a cloud environment.
By Deployment:
Deployment models include on-premises and cloud-based solutions. On-premises deployment remains preferred by organizations with strict regulatory or security requirements. Cloud-based deployment is gaining traction due to scalability, flexibility, and cost efficiency. It supports hybrid and multi-cloud strategies that enterprises increasingly adopt. The rising focus on agile infrastructure makes cloud deployment the fastest-growing segment. Vendors are expanding offerings with cloud-native platforms tailored to diverse enterprise needs.
- For instance, Portworx Enterprise on-premises deployments have achieved recovery point objectives under one minute for mission-critical data services.
By Vertical:
The network automation market spans telecom, IT, BFSI, manufacturing, healthcare, and government sectors. Telecom operators deploy automation to manage 5G rollouts, high bandwidth demand, and low latency services. IT and BFSI sectors prioritize automation for compliance, security, and service reliability. Manufacturing and healthcare industries leverage automation to improve efficiency and support Industry 4.0 and digital healthcare initiatives. It is also adopted by governments for smart city and e-governance projects, creating wide-ranging opportunities across verticals.
Segmentations:
By Component:
By Deployment:
By Vertical:
- Telecom
- IT
- BFSI
- Manufacturing
- Healthcare
- Government
By Region:
- North America
- Europe
- UK
- France
- Germany
- Italy
- Spain
- Russia
- Belgium
- Netherlands
- Austria
- Sweden
- Poland
- Denmark
- Switzerland
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Thailand
- Indonesia
- Vietnam
- Malaysia
- Philippines
- Taiwan
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Peru
- Chile
- Colombia
- Rest of Latin America
- Middle East
- UAE
- KSA
- Israel
- Turkey
- Iran
- Rest of Middle East
- Africa
- Egypt
- Nigeria
- Algeria
- Morocco
- Rest of Africa
Regional Analysis:
North America:
North America held 42% market share in 2024, maintaining its leadership position in the network automation market. The region benefits from advanced IT infrastructure, widespread use of cloud computing, and early adoption of SDN technologies. It is home to major technology providers and enterprises that continuously invest in digital transformation. Strict regulatory frameworks push businesses to integrate automation for compliance and security management. Telecom operators deploy automation to support 5G rollout and growing data traffic. Strong collaboration between vendors and enterprises drives innovation, making North America a key hub for automation growth.
Europe:
Europe accounted for 28% market share in 2024, driven by strict data protection regulations and sustainability initiatives. The network automation market in this region benefits from GDPR compliance requirements that encourage adoption of secure and automated solutions. Enterprises in industries such as banking, manufacturing, and government adopt automation to ensure operational efficiency. Countries like Germany, France, and the UK lead investments in digital infrastructure and hybrid networks. It also benefits from EU-backed programs supporting innovation and cybersecurity advancements. Demand for eco-friendly and efficient network operations further fuels adoption across European enterprises.
Asia-Pacific:
Asia-Pacific captured 20% market share in 2024, with strong growth potential fueled by rapid digitalization. The network automation market is expanding due to large-scale investments in data centers, telecom, and smart city projects. Countries such as China, India, Japan, and South Korea lead with strong adoption of cloud and 5G technologies. Enterprises seek automation to manage complex infrastructures supporting high internet penetration and growing mobile usage. Government-backed initiatives focused on digital economies accelerate demand for advanced network solutions. It is expected to become the fastest-growing region, with vendors targeting opportunities across both developed and emerging markets.
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Key Player Analysis:
- Anuta Networks
- Apstra
- BlueCat
- BMC Software
- Cisco Systems Inc
- Entuity
- Forward Networks
- Fortinet, Inc
- IBM Corporation
- Juniper Networks
- Micro Focus
Competitive Analysis:
The network automation market is highly competitive, with global and regional players focusing on innovation, partnerships, and scalable solutions. Key participants include Anuta Networks, Apstra, BlueCat, BMC Software, Cisco Systems Inc., Entuity, Forward Networks, and Fortinet, Inc. It is defined by rapid technological advancements in AI, machine learning, and intent-based networking that improve efficiency and reduce manual intervention. Companies are prioritizing cloud-native platforms to address hybrid and multi-cloud environments. Leading vendors invest heavily in enhancing security features to meet rising compliance demands and combat evolving cyber threats. Strategic acquisitions and collaborations strengthen market presence while expanding product portfolios. Competition also intensifies as managed service providers adopt automation to deliver cost-effective and flexible offerings. The market favors players that combine strong technical capabilities with global reach and the ability to address complex enterprise requirements.
Recent Developments:
- In December 2023, Anuta Networks launched an AI-powered virtual assistant named ATOM AVA that enhances network management by streamlining onboarding, minimizing errors, proactively identifying issues, and simplifying troubleshooting.
- In August 2025, BlueCat Networks launched the BlueCatalyst Partner Program to boost partner profitability by integrating its DDI suite with LiveAction’s network observability and intelligence tools.
Report Coverage:
The research report offers an in-depth analysis based on Component, Deployment, Vertical, Region. It details leading Market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current Market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven Market expansion in recent years. The report also explores Market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on Market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the Market.
Future Outlook:
- The network automation market will see stronger adoption of AI-driven platforms to enable predictive maintenance and real-time analytics.
- Integration of machine learning and intent-based networking will streamline policy enforcement and reduce manual errors.
- Telecom operators will expand automation to manage complex 5G deployments and ultra-low latency requirements.
- Cloud-native automation tools will gain traction as enterprises accelerate hybrid and multi-cloud strategies.
- Vendors will focus on enhancing security features to address evolving cyber threats and compliance mandates.
- Managed service providers will leverage automation to deliver scalable and cost-effective solutions for diverse industries.
- IoT and edge computing growth will create demand for automated orchestration of distributed networks.
- Enterprises will invest in automation to optimize operational efficiency, reduce downtime, and improve agility.
- Collaborations between technology vendors and enterprises will drive innovation in AI-powered network management.
- The market will see wider adoption across small and medium enterprises as cost-effective cloud models mature.
