NETWORK AUTOMATION MARKET ANALYSIS

Network Automation Market Size and Trends

The network automation market is estimated to be valued at USD 14.27 Billion in 2024 and is expected to reach USD 68.02 Billion by 2031, growing at a compound annual growth rate (CAGR) of 25% from 2024 to 2031.

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The growing complexity of modern networks is driving the increased demand for network automation solutions. With rise in the remote work culture and digital transformation of enterprises, there is a need to streamline network operations and ensure optimum performance. Additionally, the shortage of networking skills is compelling organizations to adopt advanced automation tools that can simplify and optimize routine network tasks. The growing adoption of cloud, IoT, and 5G technologies is also creating the need for highly scalable and self-driving networks. This is expected to further fuel the adoption of network automation platforms and solutions in the coming years.

Drivers of the Market:

Growing Complexity of Network Infrastructure

With the rapid growth of digital technologies and connectivity, network infrastructures have become massively large, complex, and diverse in today's world. Almost everything and everyone is now connected over various types of networks and this trend of hyperconnectivity is expected to accelerate further with emerging technologies like IoT, 5G, and edge computing. However, scaling and managing these exponentially growing networks has become a herculean task for organizations. Traditional manual methods of network administration are unable to handle configurations, updates, and changes across thousands of devices and locations in real-time. Even small human errors can cause major disruptions. Moreover, as networking environments incorporate multiple hybrid cloud platforms, diverse operating systems, and a plethora of new devices, the complexity is rising manifold. This complexity reduces visibility, impacts compliance and security, and increases the risk of outages. Network automation solutions are helping organizations overcome these challenges by enabling centralized, programmable, and intelligent management of infrastructure at a large scale. Through continuous monitoring, auto-remediation of failures and standardized configurations, these solutions are improving reliability, agility and efficiency of networks while reducing manual intervention and costs. As networks continue expanding in size, diversity and business criticality, automated management will become an inevitable requirement for enterprises to stay ahead of this growing complexity.

For instance, in February 2023, Tech Mahindra utilized the netOps.ai network automation platform to enhance network operations efficiency for Telefónica Germany. Additionally, by updating Telefonica's Operations Support Systems (OSS) stack, Tech Mahindra assisted Telefonica in accelerating its transition to autonomous networks. The adoption of netOps.ai technology, automating the end-to-end Network Lifecycle, marked a significant improvement in operational KPIs through its "Continuous Insights & Intelligence (CI2F)" methodology.

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With cyber threats and attacks rising exponentially, security has become a top priority and boardroom agenda for companies across all industries. Both compliance to regulations and risk mitigation have assumed critical importance. However, keeping networks secure at such massive scale with distributed devices and users remains a daunting task. Traditional security measures involving manual processes are unable to prevent, detect and respond to threats in real-time across hybrid IT environments spanning physical, virtual and cloud platforms. Network automation is enabling round-the-clock security through application of consistent configurations, control of access policies, automated vulnerability assessment, continuous monitoring of threats and auto-remediation of anomalies before they cause damage. It is helping improve change management for faster rollout of security updates. Analytics over telemetry data is further enhancing visibility and risk assessments. By reducing the attack surface and implementing predictive strategies, network automation is lowering security risks and assisting compliance audits. As regulations tighten and stakes rise with every breach, automation driven proactive security will see heightened focus and investment from enterprises and governments alike to strengthen resilience against cybercrimes.

For instance, the increasing network data traffic is evident in the May 2022 report by GSMA Association, stating a 21% hike in GSMA's network data traffic in 2021. Moreover, according to a 2022 report by Ericsson, the global mobile data traffic reached around 90 EB per month by the end of 2022, with projections of a fourfold increase to 325 EB per month by 2028. The surge in data traffic underscores the necessity for heightened utilization of network automation.