Network Automation Market Size, Share, and Trends 2025-2034

Market Overview

The network automation market size was valued at USD 5.91 billion in 2024. The market is further projected to grow at a CAGR of 24% between 2025 and 2034, reaching a value of USD 41.07 billion by 2034. The increasing demand for automated solutions to improve network efficiency, scalability, and security is a significant driver for this growth. Organizations across various industries are adopting automation to minimize human intervention, reduce operational costs, and enhance overall network performance. The rise of AI-driven networking solutions, 5G expansion, and cloud adoption are expected to fuel the demand for network automation solutions during the forecast period. Additionally, advancements in machine learning algorithms and their integration with network automation tools are expected to revolutionize how networks are managed and optimized, leading to greater efficiency and reliability.

Market Trends

The network automation market is witnessing a surge in AI and machine learning-powered automation, allowing for predictive analytics and self-healing networks. AI-driven automation helps organizations identify potential network issues before they escalate, improving overall operational efficiency. Additionally, the shift toward intent-based networking (IBN) is a significant trend, enabling networks to dynamically adjust and optimize based on business requirements. The adoption of software-defined wide-area networks (SD-WAN) is also increasing as businesses seek to simplify network management and enhance security. Another trend is the growing preference for low-code and no-code automation solutions, enabling businesses with limited technical expertise to leverage automation tools effectively.

The rise of cloud computing and hybrid network models is another critical trend. Enterprises are increasingly leveraging cloud-based automation solutions to improve agility and reduce infrastructure costs. Edge computing is also playing a crucial role in enabling real-time data processing, enhancing network efficiency for industries requiring low-latency operations, such as healthcare and manufacturing. Furthermore, regulatory compliance and cybersecurity concerns are driving investments in automation solutions that provide robust security frameworks and automated threat detection mechanisms. Organizations are also prioritizing the adoption of Zero Trust Network Architecture (ZTNA), ensuring security across distributed networks while automating policy enforcement.

Market Growth

The rapid expansion of the telecommunications sector and increasing data traffic are major contributors to the network automation market growth. Service providers are adopting automation tools to manage complex network architectures, improve service delivery, and reduce downtime. Additionally, the demand for high-speed internet connectivity, particularly with the proliferation of IoT devices, is pushing enterprises to adopt automated network solutions to handle growing data volumes efficiently. The increasing adoption of 5G networks and fiber-optic broadband infrastructure is also driving the need for automated network monitoring and maintenance solutions.

The shift toward remote work and digital transformation across industries is further driving market growth. Businesses are investing in automation to streamline network operations, enhance cybersecurity measures, and ensure seamless connectivity. Government initiatives supporting smart city development and 5G network deployment are also playing a crucial role in market expansion. The increasing need for network automation in sectors such as BFSI, healthcare, and IT services highlights its importance in maintaining operational efficiency, security, and compliance. Furthermore, the rising number of cyber threats and data breaches has led enterprises to deploy automation-driven security solutions that provide real-time threat detection and mitigation, ensuring the protection of critical business assets.

Market Segmentation

By Solution Type

Network Automation Tools: Includes scripting, AI-driven solutions, and policy-based automation to enhance network performance and reduce manual intervention. These tools help enterprises automate repetitive tasks such as configuration management, monitoring, and troubleshooting, improving overall efficiency.
SD-WAN and Network Virtualization: Provides cloud-based networking solutions for improved scalability and security, helping enterprises manage distributed networks efficiently. These solutions offer centralized management, automated policy enforcement, and dynamic traffic routing, ensuring optimal network performance.
Intent-Based Networking (IBN): Enables AI-driven, self-operating networks that automatically adjust configurations based on predefined business goals. This technology enhances network agility by continuously analyzing real-time data and making automated adjustments to optimize performance.

By Network Type

Physical Networks: Traditional on-premises networking infrastructure requiring manual and automated configurations. Physical networks include routers, switches, and on-site data centers, which often require automation to enhance operational efficiency.
Virtual Networks: Software-defined network architectures that optimize resource utilization and enhance network efficiency. Virtual networks allow businesses to create scalable, flexible environments without the limitations of physical infrastructure.
Hybrid Networks: A combination of physical and virtual networking components, providing flexibility and scalability for enterprises. Hybrid networks allow seamless integration between cloud-based solutions and traditional network infrastructure, improving overall performance and reliability.

By Service Type

Managed Services: Outsourced network automation services, including monitoring, maintenance, and security management, allowing businesses to focus on core operations. Managed services providers (MSPs) offer expert support and proactive management, reducing operational complexities for enterprises.

By Deployment

On-Premises: Network automation solutions deployed within an organization’s IT infrastructure for greater control and security. This deployment model is preferred by businesses that require strict compliance and data protection.
Cloud-Based: Automation solutions hosted in the cloud, providing scalability, accessibility, and cost savings for businesses. Cloud-based deployment is ideal for organizations seeking flexibility and remote network management capabilities.
Hybrid Deployment: A combination of on-premises and cloud-based solutions for optimized performance and security. Hybrid deployment models enable businesses to balance security, control, and scalability while leveraging cloud innovations.

By End Use

IT and Telecom: Enabling automation in IT and telecommunications for efficient network management, reduced downtime, and improved service delivery.
Manufacturing: Supporting industrial automation and IoT-driven operations for increased productivity and real-time monitoring.
Energy and Utility: Ensuring reliable connectivity and automated monitoring for smart grids and power distribution networks.
Banking and Financial Services: Enhancing security, fraud detection, and compliance with automated transaction processing and risk management.
Education: Supporting e-learning and digital infrastructure with automated network solutions for uninterrupted connectivity.
Others: Includes healthcare, government, retail, and logistics, where automation improves operational efficiency and security.