The «Global Network Automation Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)» report has been added to ResearchAndMarkets.com’s offering.
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.
- 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.
- 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.
- 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.
Market Dynamics
Market Drivers
- Increasing Demand for Data Center Network
- Rising Trend of Connected Devices
Market Restraints
- Lack of Skilled Professional across Industries
Companies Mentioned
- Cisco Systems Inc.
- Juniper Networks Inc.
- IBM Corporation
- Hewlett Packard Enterprise Development LP
- SolarWinds Inc.
- Network Automation Inc.
- Micro Focus International PLC
- NetBrain Technologies Inc.
- Arista Networks Inc.
- Extreme Networks Inc.
- BMC Software Inc.
- Fujitsu Limited
- VMware Inc. + Saltstack
- Nuage Networks (NOKIA CORPORATION)
- Forward Networks Inc.
- AppViewX Inc.
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