Network Automation Market Size By Component (Software [Intent-based Networking, SD-WAN, Network Automation Tools], Service [Professional Service, Managed Service]), By Type (Local Area Network (LAN), Wide Area Network (WAN), Data Center Networks, Cloud Networks, Wireless Networks), By Network Infrastructure (Physical Network, Virtual Network, Hybrid Network), By Deployment Type (On-premise, Cloud), By Application (Manufacturing, Telecom & IT, Healthcare, Energy & Utilities, BFSI), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028
The network automation market is speculated to exhibit robust progress by 2028 owing to widespread adoption of cloud-based services across key regions.
The COVID-19 pandemic has significantly impacted the industry landscape with the advent of completely automated remote offices, increasing emphasis on cloud strategies, and the necessity to develop new communications software tools. This has led to an influx of investment from network automation solution vendors, which has accelerated market growth in recent years.
The network automation market has been segmented based on application, component, deployment model, type, network infrastructure, and region.
In terms of component, the market has further been classified into service and software. Under services, the market has been divided into managed and professional.
The professional segment accounted for a substantial market share of around 70% in 2021 and is slated to grow at a sturdy pace through the analysis period. Professional services enable enterprises to invest their critical resources in their core areas that directly generate revenue, which is set to boost segmental growth over the assessment timeline.
The managed segment is expected to witness staggering expansion, progressing at a CAGR of approximately 40% over the forecast timeframe. This is due to the increasing number of SMEs offering innovative solutions at affordable prices.
With respect to the type, the network automation market has been categorized into wireless networks, local area network, cloud networks, wide area network, and data center networks. The wide area network (WAN) sub-segment is speculated to grow at a 20% CAGR through the estimated period. WAN provides the most extensive geographical coverage to deploy the latest technologies in existing networks, which is likely to fuel product adoption.
The data center networks sub-segment is foreseen to reach a significant valuation by 2028, registering a CAGR of more than 35% through the review timeframe. This growth is attributed to the prevalent adoption of centralized network provisioning and integrated enterprise management.
Based on application, the market has been bifurcated into retail, manufacturing, BFSI, telecom & IT, energy & utilities, healthcare, and others.
In 2021, the healthcare sub-segment held a market share of nearly 10% with projections anticipating it to showcase a solid growth trajectory through 2022-2028. Increasing adoption of the Internet of Medical Things (IoMT) is slated to bolster segmental expansion.
The network automation market from the energy & utilities sub-segment is anticipated to grow at a 30% CAGR over the stipulated period on account of mounting demand for digitalization and adoption of the smart grid technology.
The retail sub-segment is slated to expand at a CAGR of around 30% over the study timeline. Network automation allows retailers to optimize their business processes and decision-making, which is likely to support market development in next few years.
On the regional front, the LATAM network automation market is poised to gain notable traction, developing at a CAGR of more than 30% through the assessment period. Proliferation of data center networks across the region is expected to foster market expansion.
The MEA network automation market is set to amass considerable gains by 2028, expanding at over 30% CAGR through the estimated period. Favorable government policies promoting automation in the region are likely to propel industry uptake over the forthcoming years.
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