Product Code: 60376
The global network automation market was valued at USD 8.24 billion in 2018 and is expected to reach USD 21.59 billion by 2024, and is projected to register a CAGR of 19.8%, during the forecast period (2019 - 2024). The adoption of network automation solutions have enabled SDN and virtualized network functions (VNF) services to optimize the network and security architecture, by seamlessly integrating cloud and CPE-based solutions easily.
- Data centers are undergoing a significant transition with the growing amount of traffic and cloud infrastructure driven by the strong adoption of cloud computing and advanced applications, by which it drives the growth for the network automation market.
- The emerging applications and business models, coupled with the falling device costs, have been instrumental in driving the adoption of IoT. Consequently, there is also a rise in the number of connected devices which is a key driver in the growth of the market.
- As the security threat landscape evolves, network engineers may not be fully prepared to defend their networks against an attack, which can restrain the growth of the market.
Scope of the Report
Network automation is the process of automating the configuration, management, and operations of a computer network. With a major of applications relying on data centers, supporting them through increased virtualization, standardization, and automation have become key factors for better performance as well as higher capacity and throughput. By combining computer hardware and software-based solutions, large enterprises, service provider, and organizations can implement electronic network automation to restraint and manage repetitive processes.
Key Market Trends
SD - WAN to Gain a Huge Market Share
- The rapid emergence and widespread adoption of mobile technology, cloud computing, big data analytics, and social media by both enterprises and consumers have resulted in shifts in bandwidth, network infrastructure requirements, by which the requirement of SD - WAN is growing.
- SD-WAN solutions help in connecting users and devices from multiple locations directly to the cloud data centers and ensure the connection are optimized and secured.
- As data center traffics are increasing, so with the rise of the cloud in IT and telecom, the cloud is predicated on the idea of on-demand capacity and self-service, which SDN can dynamically deliver based on demand and availability of resources within the data center. This will help in supporting data center traffics.
- Managing traffic to many IP addresses and virtual machines is a very tedious task, but by using SDN, devices can be more easily added to the network, lowering the risk of service interruption. At the same time, SDN better fits the parallel processing and overall design of virtualized networks.
- With these benefits in mind, it makes sense that SDN in the data center is gaining traction and will help in growing the market of network automation.
Asia Pacific to Account for a Significant Market Growth
- Asia-Pacific is anticipated to witness the highest growth rate over the forecast period. The increase in 5G investments in Japan, China, and India, by key players, and the growth in the disposable incomes of the populations in developing countries, is expected to contribute to the automation market demand.
- The interest shown by SMBs in cloud adoption is further fuelling the growth of the market. Increase in demand of data center network is fueling the growth of the market. In India, trends in data centers include virtualization, consolidation, and green computing.
- Siemens opened a factory in Goa, India, to produce network automation components. This factory in India is equipped with state-of-the-art production facilities, and also has an infrastructure with lean processes, which will grow the market in the future.
- Asia-Pacific's manufacturing companies are championing the digitization and integration of their operations, introducing digital products and services, and connecting new technologies across their organizations, at a much faster rate than their peers in the Americas and EMEA. The rapid adoption of network automation solutions across manufacturing sectors is expected to contribute positively to the growth of the market.
The network automation market is slowly moving towards the fragmented market and it is expected to witness a robust increase in the near future with 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 -
- April 2019 - Bharti Airtel is investing heavily in the area of automation and orchestration and is also working with a lot of partners. The real aim is to make a self-healing network, which means it should be able to predict a fault and should be able to fix it before it starts to impact customer experience.
- November 2018 - HPE subsidiary Aruba launched Aruba 510 802.11ax access points, 2930M 802.11ax-optimized switches, and NetInsight AI performance monitoring system for edge business operations. As an enterprise switch, it has features, like multi-level traffic priority, AirWave, and ClearPass policy manager integration, and is cloud manageable through Aruba Central.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Demand for Data Centre Network Due to Increasing Traffic
- 4.3.2 Rising Trend of Connected Devices
- 4.4 Market Restraints
- 4.4.1 Lack of Skilled Professional Across Industries
- 4.5 Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Technology Snapshot
5 MARKET SEGMENTATION
- 5.1 By Network Type
- 5.1.1 Physical
- 5.1.2 Virtual
- 5.1.3 Hybrid
- 5.2 By Solution Type
- 5.2.1 Network Automation Tools
- 5.2.2 SD-WAN and Network Virtualization
- 5.2.3 Intent-based Networking
- 5.3 By Service Type
- 5.3.1 Managed
- 5.3.2 Professional
- 5.4 By Deployment
- 5.4.1 Cloud
- 5.4.2 On-premise
- 5.4.3 Hybrid
- 5.5 By End-user Industry
- 5.5.1 IT and Telecom
- 5.5.2 Manufacturing
- 5.5.3 Energy and Utility
- 5.5.4 Banking and Financial Services
- 5.5.5 Education
- 5.5.6 Other End-user Industries
- 5.6 Geography
- 5.6.1 North America
- 5.6.2 Europe
- 5.6.3 Asia-Pacific
- 5.6.4 Latin America
- 5.6.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Cisco Systems, Inc
- 6.1.2 Juniper Networks, Inc.
- 6.1.3 IBM Corporation
- 6.1.4 Hewlett Packard Enterprise Development LP
- 6.1.5 SolarWinds Inc.
- 6.1.6 Network Automation, Inc.
- 6.1.7 Micro Focus International plc
- 6.1.8 NetBrain Technologies, Inc.
- 6.1.9 Apstra Inc.
- 6.1.10 Arista Networks Inc.
- 6.1.11 Extreme Networks Inc.
- 6.1.12 BMC Software, Inc.
- 6.1.13 Veriflow Systems, Inc.
- 6.1.14 VMware, Inc.
- 6.1.15 Nokia Networks (Nuage Networks)
- 6.1.16 Red Hat, Inc. (Ansible Inc.)
- 6.1.17 Forward Networks, Inc.
- 6.1.18 AppViewX, Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS