âHow Will the Network Automation Market Soar from USD 6 Billion in 2024 to USD 31.32 Billion by 2032?â
Introduction
In todayâs accelerated digital era, networks are no longer static pathways for bits and bytesâtheyâre dynamic, high-speed, global platforms underpinning everything from remote work to streaming entertainment, from IoT sensors to mission-critical enterprise systems. Itâs in this context that the concept of network automation, long a niche in large telco back-offices, has moved firmly into the mainstream. According to a report from Credence Research, the global network automation market was valued at approximately USD 6 billion in 2024, and is projected to reach USD 31.32 billion by 2032, representing a compound annual growth rate (CAGR) of around 22.95% over the forecast period (2024-2032).
But whatâs driving this dramatic expansion? What challenges might slow it? And how will enterprises, service providers, and regions capitalise on or be transformed by this shift? In this article we explore how and why the network automation market is set to skyrocket, the major forces at play, the segmentation and regional dynamics, the obstacles to growth, and how this transformation will impact the broader digital infrastructure landscape.
What is Network Automation?
Before delving into the market numbers, letâs clarify what we mean by ânetwork automationâ. According to IBM, network automation involves automating the configuration, management, testing, deployment and operation of both physical and virtual network devices.IBM More specifically, as described by Ericsson, ânetwork automation is the process of using software and artificial intelligence (AI) to plan, deploy, configure, orchestrate, analyse and assure mobile networks and services.âericsson.com
In simpler terms:
Manual, repetitive network tasks (device configuration, provisioning, policy enforcement, monitoring) are time-consuming and error-prone.
Automation uses software, APIs, orchestration tools, analytics and increasingly AI/ML to perform those tasks with consistency, speed, and at scale.
The result: faster roll-out of services, reduced errors, better resource utilisation, more agility, lower operational cost and stronger security posture.
As networks become more complex with the proliferation of cloud, edge, hybrid architectures, IoT, 5G and beyond, manual methods are simply inadequate. Automation becomes not optionalâbut essential.
Market Snapshot & Growth Trajectory
Here are the key figures to anchor our discussion:
Market size in 2024: USD 6 billion (per Credence Research)
Forecast for 2032: USD 31.32 billion
Implied CAGR (2024-2032): ~22.95%
These numbers suggest an almost 5-times growth in eight yearsâa very strong pace for a technology market. They align with other industry researchâeven if there are variations in base years or forecasts. For example:
A report from Grand View Research estimated a 2021 base of ~USD 2.58 billion and projected USD 15.6 billion by 2030 at ~22.9% CAGR.Grand View Research
A report by IMARC Group suggested the market reached USD 24.1 billion in 2024 and may hit USD 103.6 billion by 2033 (CAGR ~16.7%).IMARC Group
Despite differences in horizon or scope, the consensus is clear: network automation is accelerating rapidly.
Why is this happening? What are the forces propelling growth?
Key Growth Drivers
Here are the major drivers fueling the rise of network automation:
1. Rising Network Complexity & Scale
Modern networks are massively more complex than ever. Think: multi-cloud and hybrid cloud environments; IoT devices proliferating; edge computing nodes; 5G and beyond; software-defined networking (SDN) and network functions virtualization (NFV). Managing all of this manually is unsustainable. For example, IMARC points to rising network complexity due to huge data, increased traffic, and smart device adoption as a key driver.IMARC Group
Automation helps by offering consistency, scalability, faster provisioning, fewer manual errors and better visibility across hybrid/distributed architectures.
2. Cloud, Edge & Hybrid IT Adoption
As organisations migrate to cloud services, implement edge computing and adopt hybrid IT architectures (on-premise + public/private cloud), the network becomes the connective tissue supporting everything. The ability to rapidly configure, orchestrate and monitor network infrastructure across distributed environments becomes critical. The Technavio report highlights that network automation is driven by network virtualization, SDN, intent-based networking in cloud/hybrid contexts.Technavio
3. Digital Transformation & Enterprise Demand
Enterprises across sectors (IT/telecom, manufacturing, healthcare, BFSI, retail) are pushing digital transformation initiatives requiring agile, reliable network infrastructures. Automation enables faster service introduction, improved uptime, better performance and cost savings. Grand View Research notes that increasing adoption of connected devices and hybrid workplaces are driving the market.Grand View Research
4. Emergence of 5G, IoT & Edge Use Cases
The rollout of 5G networks, combined with IoT and edge computing use cases (smart cities, autonomous vehicles, industrial automation) places demanding requirements on networks: high bandwidth, low latency, distributed nodes, dynamic provisioning. Automation becomes crucial in this environment. For example, Ericsson emphasises how mobile networks have become much more sophisticated and demand increased automation to satisfy cost, performance and scalability requirements.ericsson.com
5. AI/ML, Intent-Based Networking & Zero-Touch Operations
The next wave of automation involves smarter operations. AI and ML are being integrated into network automation tools to predict issues, perform self-healing, adapt policy dynamically. Intent-based networking (IBN) and zero-touch provisioning (ZTP) allow high-level business policies to be translated automatically into network behaviours. Technavio and other sources detail these trends.Technavio+1
6. Cost-Efficiency & Operational Agility
Manual network operations are labour-intensive, error-prone and slow. Automation reduces operational expenditure (OpEx), shortens time-to-market for services, and provides improved operational agility. IBM states that automation helps organisations âimplement quicker service upgrades and deploymentsâ and âminimise personnel demandsâ.IBM
Market Segmentation
To better understand where growth is coming from and where companies should focus, letâs unpack key segmentation dimensions:
Component (Solutions vs Services)
Solutions: include the software, tools, platforms for network automation (e.g., configuration management, orchestration, SD-WAN, intent-based networking)
Services: professional services, deployment/integration, managed services, training
Research indicates that the solutions segment currently holds the larger share, but services are also growing rapidly as automation becomes more widely deployed.Grand View Research+1
Deployment Mode (On-Premise vs Cloud vs Hybrid)
Many organisations still operate on-premise network environments, particularly regulated industries.
But the cloud-based deployment model is growing faster, driven by remote work, distributed operations, and demands for scalability.Grand View Research+1
Enterprise Size (Large Enterprises vs SMEs)
Large enterprises have been early adopters given their resources and complexity of networks.
SMEs are beginning to adopt as well, especially via cloud-based or managed automation solutions, as they too seek agility and cost-efficiency.Grand View Research
Vertical / End-Use Industry
Major verticals include: IT & telecommunications, BFSI (banking/finance), manufacturing, healthcare, retail, government, energy & utilities. Each vertical has its own drivers (compliance, IoT adoption, 5G, remote operations). For example, the manufacturing vertical is anticipated to witness strong growth as smart-factory initiatives expand.Grand View Research
Geography / Regional Dynamics
Regionally, growth rates and market share vary:
North America: often leads in adoption thanks to mature infrastructure and early digital transformation efforts.
Asia-Pacific: often shows the highest growth due to fast urbanisation, roll-out of 5G, cloud adoption, digital transformation in emerging economies.MarketsandMarkets
Europe, Latin America, Middle East & Africa each offer opportunities but may face constraints such as regulation, infrastructure maturity.
Why the Forecast Is So Strong (and What Could Affect It)
The projection from USD 6 billion to USD 31.32 billion by 2032 is ambitiousâbut justified, considering the drivers above. Letâs highlight the supporting factors, and then look at risks or constraints.
Supporting Factors
The sheer scale of network and IT transformation: networks are now mission-critical to business and society (remote work, streaming, cloud, IoT, etc.).
The increasing acceptance of automation in general IT operations; network automation is now catching up.
Vendor innovation: software-defined networks, intent-based networking, orchestration tools, AI/ML analytics â all enabling more capable automation solutions.
Cost pressures: organisations facing increased OpEx and looking for efficiencies will turn to automation.
Service-provider demands: telcos and communications providers under pressure to monetise 5G/edge, reduce costs, and deliver differentiated servicesâautomation helps.
Risks, Constraints & Challenges
However, growth may be constrained or slowed by a number of factors:
Legacy Infrastructure & Integration Complexity: Many organisations have legacy hardware or fragmented network environments. Integrating automation may be complex and costly. Technavio highlights this.Technavio
Implementation Costs & Skills Gap: Automation might require investment in new tools, infrastructure changes, and skilled staff. Reports mention the scarcity of professionals proficient in both networking and automation/DevOps.Market Data Forecast
Security & Compliance Concerns: Automation can introduce new attack surfaces; ensuring that automated workflows remain secure and compliant is essential.Market Data Forecast
Multi-Vendor, Multi-Domain Complexity: Networks today often span many vendors, technologies and domains (on-premises, cloud, edge). Achieving seamless automation across all this is challenging.
Cost-Benefit Uncertainty: For some SMEs or sectors, the ROI from network automation may take time to realise; the upfront cost may deter adoption.
Changing Regulatory or Market Conditions: For example, data sovereignty laws might affect how networks are managed; supply-chain issues might slow hardware or software deployments.
If the industry navigates these challenges well, growth will accelerate; if not, growth may be slower than forecast.
Regional Spotlight & Growth Opportunities
Letâs consider how regional dynamics could play out in the automation market.
North America
The region is often the front-runner in network automation adoption, thanks to advanced IT infrastructure, early adoption of cloud/edge and 5G, and high digital transformation budgets. Vendors are concentrated here; regulatory push (e.g., zero-trust networking) also drives demand. For companies operating here, the focus will be on high-value services, large enterprise deployments and service provider engagements.
Asia-Pacific
Asia-Pacific stands out for high growth potential. Countries like China, India, Japan, South Korea are heavily investing in digital infrastructure, 5G networks, smart cities and cloud services. For example, markets in China and India are emerging as fast-growth zones. The large base of enterprises and telcos in Asia makes this region critical. The faster growth here will help drive the global CAGR. For Indian and other regional companies, this means large opportunity to implement automation in enterprise networks, telcos, government projects.
Europe, Latin America, Middle East & Africa
Europe: mature but also highly regulated; automation will need to align with data privacy, security and compliance frameworks.
Latin America: some countries are leap-frogging, but infrastructure maturity and investment levels vary; opportunities especially in telecom and banking sectors.
Middle East & Africa: Several smart-city, infrastructure modernisation and telecom roll-out initiatives in GCC countries (e.g., UAE, Saudi Arabia) mean growing opportunities.
Each region will have its own growth curve, but globally they all contribute to the rising tide.
Market Implications & Use Cases
What does the growth of network automation imply in practical terms? Here are some use-cases, impacts and strategic implications.
Use Cases
Zero-touch provisioning and self-service network nodes: With the proliferation of distributed edge nodes, IoT endpoints and branch offices, automated provisioning enables rapid deployment without manual configuration.
Intent-based networking (IBN): Business policies defined in high-level terms (e.g., âAll traffic for video streaming must have <10 ms latency and high priorityâ) are automatically translated into network behaviour.
Closed-loop, self-healing networks: Using AI/ML, the network detects anomalies, triggers corrective actions, reconfigures itself and optimises performance without human intervention.
Multi-cloud/hybrid network orchestration: As enterprises use a mix of on-premises, public cloud and private cloud, automation orchestrates and manages connectivity, security policies and performance across them.
Network security automation: Automated policy enforcement, configuration drift detection, compliance monitoring, and threat-response workflows are applied to network infrastructure.
Edge & 5G network management: Telcos and service providers deploy automation to manage thousands of distributed base-stations, network slices, et cetera.
Strategic Implications for Businesses
Enterprises that adopt network automation gain agility: faster time to market, better user experience, lower operational cost, better uptime. That can translate to competitive advantage.
For service providers, automation may be a key enabler of new service models (e.g., network-as-a-service, slice-based networks, on-demand connectivity) and cost reduction.
Vendors in the networking and automation ecosystem must evolve: traditional network hardware vendors must add automation capabilities; software vendors must integrate AI/ML, orchestration and multi-domain support.
IT organisations must rethink staffing and skills: network engineers need to become automation-savvy, learn scripting, orchestration, analytics and cloud/edge networks.
Security and compliance must be built in from day one: as networks become more automated, ensuring governance, auditability, and security is essential.
How to Approach Network Automation: Practical Guidance
For organisations considering or already implementing network automation, here are some key steps and best-practices:
1. Start with a clear vision & use-cases
Define what you want to achieve with automation: faster provisioning? fewer outages? cost reduction? improved security? Choose high-visibility use-cases that deliver quick ROI to build momentum.
2. Assess network and infrastructure readiness
Inventory your network: existing devices, cloud/hybrid mix, vendor diversity, management tools, configuration management, telemetry. Identify where manual processes are most burdensome or error-prone.
3. Choose the right architecture & tooling
Select automation platforms/tools that integrate with your environment: support API-driven configuration, orchestration, telemetry, closed-loop feedback. Consider vendors offering intent-based networking, zero-touch provisioning and AI/ML capabilities.
4. Plan for integration & change management
Automation doesnât happen overnight. Legacy gear, staff skills, organisational culture all need to be addressed. Ensure you have change management, training and incremental rollout plans.
5. Monitor, measure and iterate
Define key metrics (MTTR â mean time to repair, provisioning time, cost per change, configuration drift incidents, network performance). Use these metrics to track improvements and build the business case for further expansion of automation.
6. Prioritise security & governance
Automation introduces new risks if not properly governed. Establish role-based access, audit logs, automated compliance checks, monitoring of automated workflows. Ensure security is built into the automation layer.
7. Scale and evolve
Once initial use-cases are successful, expand automation across more network domains (edge, multi-cloud, SD-WAN, IoT). Evolve towards more advanced use-cases: intent-based networking, self-healing networks, autonomous operations.
Challenges & What Might Slow the Market
As mentioned earlier, several obstacles may affect the pace of adoption and growth of network automation:
High upfront investment: Some organisations hesitate because initial cost (tooling, infrastructure upgrade, training) is significant.
Complex legacy environments: Integration with older hardware or fragmented networks can slow rollout.
Skills shortage: Finding engineers who understand both network operations and automation/orchestration/DevOps can be hard.
Security and trust concerns: Fully automated workflows can create new risksâorganisations may be cautious.
Vendor lock-in and interoperability issues: Multi-vendor, multi-domain environments may resist standardisation; proprietary solutions may hinder automation across the stack.
Unclear ROI: For some smaller organisations, the benefits may not yet be sufficiently clear or fast enough to justify investment.
Organisational/operational inertia: Network teams used to manual operations may resist change; governance structures may lag.
These constraints donât make automation impossibleâthey simply mean that the growth trajectory may vary by sector, region and organisation.
The Outlook to 2032: What to Expect
Given the strong growth drivers and increasing urgency for network automation, what can we expect looking ahead to the 2032 horizon (and beyond)?
Broad Expansion & Mainstreaming
Network automation will move from early-adopter enterprises and service providers into the mainstream. Organisations of all sizes will increasingly adopt automation for network operations and management. The forecast of USD 31.32 billion by 2032 reflects this broadening base.
Shift to Autonomous & Cognitive Networks
The automation story wonât stop at scripting and orchestration: the next phase will include cognitive, self-learning networks. AI/ML will drive predictive maintenance, self-optimisation, dynamic policy enforcement, self-healing networks. Research on âzero-touchâ networks is already underway.arXiv
Edge, IoT & 5G/6G Will Explode Demand
As 5G deployment continues, and as we look toward 6G, and the proliferation of distributed edge computing and IoT ecosystems, the demand for network automation will accelerate. These environments require automated, distributed, low-latency, high-availability networksâand canât be managed manually at scale.
More as a Service Models
Service providers and vendors will increasingly offer network automation as a managed serviceâenabling smaller organisations to benefit without heavy upfront investment. This will further expand the addressable market.
Regional Growth Divergence
Emerging markets (Asia-Pacific, Latin America, Middle East & Africa) will grow faster than mature markets, albeit from lower base. Regions with major digital infrastructure programmes (smart cities, 5G roll-out, cloud expansion) will be hotspots. The regional mix of demand will shift globally.
Consolidation & Competition
The vendor landscape will continue to evolve: software companies, cloud providers, network hardware vendors will compete and partner. M&A activity, strategic alliances (e.g., between telecoms and automation software vendors) will increase. Organisations will look for integrated automation platforms rather than point solutions.
Focus on Governance, Security & Standards
As networks become more automated and autonomous, governance, auditability, security and standards will become non-negotiable. Expect regulatory focus, standardisation efforts (e.g., open-source initiatives, open networking) and tighter alignment with cybersecurity protocols.
Why the $31.32 Billion Figure Makes Sense
Turning back to the forecast figure of USD 31.32 billion by 2032, this seems plausible when one considers:
The CAGR of ~22.95% over eight years is high but consistent with many technologyâadoption curves, particularly where there is strong tailwind demand (cloud, edge, IoT, 5G).
The universe of organisations and network environments is largeâvirtually every enterprise, service provider, cloud operator, telco and large institution needs more agile network infrastructure.
With automation adoption rising, the addressable market expands: more solutions, more services, more verticals, more regions.
Strategic priorities (cost reduction, agility, time-to-market) are pushing automation from ânice to haveâ to âmust haveâ.
The momentum of digital transformation, cloud migration, remote/hybrid work, edge computingâall align with network automation.
Of course, actual growth may vary depending on macroeconomic factors, technology disruptions, regulatory changes and how well organisations implement automationâbut the long-term direction is clearly upward.
Implications for India / Emerging Markets
Given your location in Belagavi, Karnataka (India), how might this global trend manifest locally and regionally?
India is a key growth market: large enterprise base, rapidly expanding cloud services, aggressive 5G roll-out, strong government initiatives (e.g., Digital India, smart cities) and high demand for digital infrastructure. This makes India a fertile ground for network automation solutions.
For Indian IT services companies, network operators and system integrators, there is opportunity in offering automation solutions (deployment, integration, managed services) to both domestic enterprises and global clients.
SMEs in India may increasingly adopt cloud-based, managed automation solutions rather than big on-premise deployments, enabling broader market penetration.
Skills development will be crucial: network engineers in India may pivot toward automation, orchestration, AI/ML roles in network operations.
Regional telecom operators, data centre operators, digital service providers will likely invest in network automation to remain competitive and efficient.
Cost-sensitivity in Indian market demands solutions that deliver clear ROI, are scalable, and are easy to adopt (cloud-native, managed, pay-as-you-go).
Thus, the global market expansion has strong parallels in India and other emerging marketsâand organisations that position themselves now may capture significant value.
Conclusion
To circle back to the initial question: How will the network automation market soar from USD 6 billion in 2024 to USD 31.32 billion by 2032? The answer lies in the convergence of massive demand (driven by cloud, 5G, IoT, edge), technological maturity (automation tools, AI/ML, orchestration frameworks), economic imperatives (cost reduction, agility), and global digital transformation trends. While obstacles (legacy systems, skills gaps, security concerns) exist, the momentum is strong.
For enterprises, service providers, vendors and integrators, network automation is no longer just a technology projectâitâs a strategic imperative. Those who adopt early and effectively will gain the agility, cost-efficiency and competitive edge needed in an increasingly connected world. Over the next eight years, the network automation market will not just growâit will transform how networks are built, managed and monetised.
As the forecasts suggest, USD 31.32 billion by 2032 is not just a numberâitâs a signal that network automation will be central to the infrastructure underpinning the digital economy of the coming decade.
Source-https://www.credenceresearch.com/report/network-automation-market
