Network Automation Market Size & Share 2026-2035

Network Automation Market Size

The global network automation market was valued at USD 7.3 billion in 2025, and is estimated at USD 8.4 billion in 2026. It is projected to reach USD 29.6 billion by 2035, expanding at an approximately 15% CAGR between 2026 and 2035.

Network automation spans software and services used to configure, provision, monitor, secure, and remediate LAN, WAN, data center, cloud, and telecom networks with reduced manual intervention. Its commercial relevance has widened as enterprises combine legacy infrastructure with virtualized, cloud-hosted, and edge environments, while communications service providers move 5G functions toward cloud-native operating models. In this setting, automation is no longer limited to script-based configuration; it increasingly combines intent management, telemetry, assurance, orchestration, and policy validation.

Enterprise adoption is being pulled by both operating complexity and workforce constraints. In a 2024 survey, 64% of IT organizations reported adopting AI/ML-driven capabilities from network-management and infrastructure vendors, while 31.5% reported active interest . For CSPs, the gap between aspiration and operational maturity remains substantial: TM Forum found that only 4% of respondents had reached Level 4 autonomous-network maturity, although 85% identified Level 4 as a 2030 target . That gap creates a long implementation runway for platforms that can integrate multi-vendor telemetry, automate change management, and support closed-loop assurance. ^{[1]Enterprise Management Associates / BlueCat Networks, Network Management Megatrends 2024, bluecatnetworks.com}

Software accounted for USD 5 billion in 2025 and is projected to reach USD 19.9 billion by 2035, while services rise from USD 2.3 billion to USD 9.7 billion. Cloud deployment grows from USD 3.8 billion in 2025 to USD 20.13 billion in 2035 at an approximately 18.03% CAGR, compared with 11.68% for on-premises deployment. North America remains the largest market at USD 3.11 billion in 2025, representing approximately 42.4% of global revenue, whereas Asia Pacific records the fastest regional expansion at an estimated 17.90% CAGR.

The growth differential between cloud deployment and on-premises deployment also signals a commercial transition rather than a simple hosting preference. Cloud-managed control planes allow vendors to deliver frequent analytics and workflow updates, while buyers can avoid building and maintaining separate automation infrastructure. However, regulated and latency-sensitive environments retain a meaningful on-premises requirement. The market is therefore likely to reward vendors able to operate across both models rather than those treating cloud migration as a universal replacement for local control.

Key Drivers

Rising demand for network efficiency and cost optimization

Manual operations become progressively less viable as enterprises add cloud interconnects, segmented access policies, distributed users, and software-defined traffic paths. EMA found that 39.7% of surveyed organizations considered network automation a high-priority investment, while 60.8% said AI/ML adoption had enhanced or expanded their automation capabilities . The same survey identified greater efficiency among highly skilled personnel and greater ability for less-specialized staff to resolve technical issues as reported operational benefits .

The economic case becomes stronger where automation can reduce repetitive remediation and field work. Juniper stated that its AI-Native Networking Platform can reduce operational expenditure by up to 85%, trouble tickets by up to 90%, on-site IT visits by 85%, and incident-resolution time by up to 50% . Such vendor-reported metrics should not be treated as universal buyer outcomes, but they illustrate the procurement logic behind AIOps investments: reducing the number of incidents requiring scarce engineering attention can be as valuable as reducing direct network-management cost. ^{[2]Juniper Networks, Unveils AI-Native Networking Platform, January 29, 2024, businesswire.com}

Energy optimization provides a separate source of value for telecom operators. Nokia reported that its MantaRay Cognitive SON deployment at stc Group reduced energy consumption across 4G and 5G networks by 13% . In carrier networks, this connects automation spending with operating-cost control and energy-management priorities, broadening the budget pool from which projects can be funded. ^{[3]Nokia, Nokia and stc Group Optimize Network with AI-Powered MantaRay Cognitive SON Solution, July 2, 2024, nokia.com}

Growth of cloud computing and virtualization

Cloud-native applications and virtualized network functions change network state more frequently than conventional static architectures. Automation platforms are therefore needed to coordinate policy across private infrastructure, public-cloud resources, containers, and application-delivery layers. IBM reported 14.2% revenue growth for its automation business in 2024, driven in part by SaaS offerings in AIOps and management . Its OpenShift annual recurring revenue reached USD 1.4 billion at the end of 2024, growing approximately 25% . These results indicate that hybrid-cloud operating models are expanding the market for software that standardizes orchestration and observability across heterogeneous environments.

Cisco's introduction of Cisco Workflows in 2024 illustrates how vendors are moving orchestration toward low-code, multi-domain workflow execution. The service is designed to automate configuration tasks across branches, campuses, data centers, and cloud domains through integrations with Cisco controllers and management platforms . The commercial implication is that automation buyers increasingly evaluate how readily a platform can fit existing control planes rather than replace them outright.

Expansion of 5G and edge computing

5G standalone networks shift core functions toward cloud-native network functions that must be deployed, scaled, upgraded, and assured through automated processes. Nokia's deployment of a 5G standalone core for O2 Telefónica Germany on AWS used cloud-native packet-core capabilities intended to support automated workload movement and scaling . Comcast similarly announced the migration of its 5G core to AWS in December 2024, using telecom automation and CI/CD tooling for lifecycle management and feature deployment .

Private 5G extends the requirement into enterprise environments. HPE launched Aruba Networking Enterprise Private 5G in June 2024 with centralized capabilities for subscriber management, deployment, core monitoring, and radio monitoring . NEC and Cisco also introduced a joint private-5G solution in October 2024 combining Cisco's 5G standalone core with NEC radio and systems-integration capabilities . Distributed deployments in manufacturing, logistics, healthcare, and venues make zero-touch provisioning commercially important because sending specialist staff to each site does not scale economically.

Increasing network complexity and scale

The demand driver is not simply more network traffic; it is the rising interdependence among network, cloud, security, and application layers. TM Forum found that 17% of surveyed CSPs had reached Level 3 autonomous-network maturity, while the largest share remained at Level 1 or Level 2 . The difference between current maturity and 2030 targets indicates that many operators must automate foundational processes, including assurance, change validation, and service orchestration, before pursuing broader closed-loop operations.

Nokia's Element Declarative Automation platform, introduced for data center environments, uses a Kubernetes-native declarative model and digital-twin validation to manage intended network state . Huawei's Xinghe Intelligent Autonomous Driving Network, launched in September 2024, similarly combines intelligent network elements, digital twins, and an AI-driven control layer intended to support fault handling and change verification . These architectures address a core buyer concern: automation is more valuable when it validates that a change produced the intended network state rather than merely accelerating configuration delivery.

Key Restraints

High initial investment and integration complexity

Automation programs require more than a software subscription. Buyers must integrate platforms with established controllers, OSS/BSS systems, IT service-management tools, identity systems, security controls, and operational procedures. EMA found that 25% of respondents cited integration issues, 25% cited network complexity, and 24% cited legacy infrastructure as technical challenges in network automation initiatives . Budget constraints were also reported by 25% of respondents, while more than 31% cited difficulty obtaining IT leadership buy-in .

This creates a mismatch between implementation cost and the timing of benefits. Large operators may need multi-year work to normalize device inventories, APIs, data models, and change controls before closed-loop remediation can be deployed safely. Services providers can reduce initial capital intensity by spreading implementation and operating work across a contract term, but they do not eliminate the underlying integration challenge. Consequently, vendors with reusable adapters, validated workflows, and migration services are better positioned than those offering isolated automation features.

Skill gaps and workforce readiness

Network automation requires a different skill profile from traditional device administration. Teams need scripting, API integration, declarative configuration, cloud-platform, observability, and security capabilities in addition to conventional routing and switching expertise. EMA identified shortages of skilled personnel as the leading operational challenge, reported by 40.6% of respondents . It also found that 41% of organizations experienced difficulty finding, hiring, and retaining network-technology personnel in 2024, compared with 26% in 2022 .

The constraint increases demand for services but can delay buyer realization of software value. Organizations that cannot establish internal automation governance may accumulate scripts without creating a maintainable operating model. A more scalable approach combines platform adoption with standardized workflows, training, and a clear division of responsibility between internal teams and service partners.

The 40.6% rate of reported skilled-personnel shortages means that network-automation suppliers have a specific commercial opening to convert fragmented scripts and manual device procedures into governed, reusable workflows. The winning offer is not merely an AI feature set: it must provide device and controller adapters, versioned change validation, and operating support that lets constrained network teams move from ad hoc automation to auditable multi-domain execution without disrupting production services.

Network Automation Market Segment Analysis

By Component

Software is estimated at USD 5.1 billion in 2025 and is projected to reach USD 19.86 billion by 2035, growing at an approximately 14.78% CAGR. The segment includes intent-based networking, SD-WAN orchestration, network-management automation, observability, and AIOps platforms. Its scale reflects the need for a reusable control plane that can translate policy into configuration and evaluate whether operating conditions remain within defined thresholds.

Services are estimated at USD 2.31 billion in 2025 and are projected to reach USD 9.74 billion by 2035 at an approximately 15.54% CAGR. Managed services, professional services, and integration work are important where buyers need to connect automation platforms to multi-vendor estates. HCLTech's January 2025 deployment of HCL ANA for Vodafone Idea illustrates the role of a services provider in operating multi-vendor 4G and 5G environments through automation . ^{[4]HCL Technologies, Vodafone Idea Partners with HCLSoftware to Automate 4G and 5G Networks, January 14, 2025, hcltech.com}

By Network Type

LAN automation is estimated at USD 2.22 billion in 2025 and is projected to reach USD 8.024 billion by 2035, at an approximately 13.73% CAGR. Campus and branch networks benefit from centralized policy enforcement, automated provisioning, and issue identification because their operational burden is distributed across many sites.

WAN automation is estimated at USD 1.33 billion in 2025 and is projected to reach USD 5.033 billion by 2035, at an approximately 14.29% CAGR. SD-WAN adoption supports automated branch deployment, application-aware routing, and consistent security policy across hybrid WAN architectures.

Data center networks are estimated at USD 1.75 billion in 2025 and are projected to reach USD 7.52 billion by 2035, growing at an approximately 15.75% CAGR. AI infrastructure increases the importance of automated fabric configuration, telemetry correlation, and rapid validation of changes. Cisco introduced Smart Switches for AI workloads in February 2025, positioning embedded processing and telemetry capabilities closer to the data center fabric . ^{[5]Cisco Systems, Cisco Redefines Data Center Architecture with New Smart Switches, February 11, 2025, newsroom.cisco.com}

Cloud networks are estimated at USD 2.03 billion in 2025 and are projected to reach USD 9.03 billion by 2035, making them the fastest-growing network-type segment at an approximately 16.12% CAGR. Demand is tied to multi-cloud connectivity, virtual networking, and automated management of cloud-native network functions.

By Network Infrastructure

Physical infrastructure is estimated at USD 1.61 billion in 2025 and is projected to reach USD 7.13 billion by 2035 at an approximately 17.94% CAGR. The segment's growth is linked to automated provisioning, firmware management, and telemetry for switches, routers, and access equipment deployed in expanding data center environments.

Virtual infrastructure is estimated at USD 2.66 billion in 2025 and is projected to reach USD 12.05 billion by 2035, expanding at an approximately 16.30% CAGR. Network-function virtualization, software-defined overlays, and containerized functions need orchestration that can coordinate compute, network, and security policy without manual reconfiguration.

Hybrid infrastructure is estimated at USD 3.05 billion in 2025 and is projected to reach USD 10.42 billion by 2035 at an approximately 14.64% CAGR. Its larger revenue base reflects the reality that most enterprises and operators must automate across both legacy physical equipment and virtual or cloud-hosted layers. HPE expanded Aruba Networking Central capabilities in 2024 to include third-party device monitoring and end-user-experience functionality, illustrating the importance of managing mixed estates .

By Deployment

On-premises deployment is estimated at USD 3.50 billion in 2025 and is projected to reach USD 9.47 billion by 2035, at an approximately 11.68% CAGR. It remains relevant in sectors with sovereignty, security, or deterministic-control requirements.

Cloud deployment is estimated at USD 3.82 billion in 2025 and is projected to reach USD 20.13 billion by 2035, at an approximately 18.03% CAGR. Its advantage lies in centralized updates, elastic analytics capacity, and simpler access to distributed sites. The growth rate also reflects buyer willingness to place management and analytics functions in cloud environments even when portions of the underlying network remain local.

By Application

IT & telecom is estimated at USD 2.27 billion in 2025 and is projected to reach USD 10.09 billion by 2035 at an approximately 16.12% CAGR. CSPs require automation to manage 5G lifecycle operations, network slicing, assurance, and increasingly multi-vendor RAN environments. Ericsson launched Service Orchestration and Assurance in February 2024 to support lifecycle automation for 5G network slicing .

BFSI is estimated at USD 1.62 billion in 2025 and is projected to reach USD 6.75 billion by 2035 at an approximately 15.36% CAGR. Financial institutions require controlled configuration processes, visibility, and resilience across distributed branch and data center networks. Cisco's deployment at Intesa Sanpaolo automated network operations across 2,500 branches through an AI-powered framework .

Healthcare is estimated at USD 802.0 million in 2025 and is projected to reach USD 4.05 billion by 2035 at an approximately 17.63% CAGR. The high growth rate reflects the operational importance of reliable connectivity in clinical systems, connected devices, and multi-site healthcare networks.

Manufacturing is estimated at USD 758.9 million in 2025 and is projected to reach USD 2.63 billion by 2035, at an approximately 13.29% CAGR. Private cellular, industrial edge systems, and segmented IT/OT networks create a need for centrally managed policies and automated deployment.

Energy & utilities is estimated at USD 607.7 million in 2025 and is projected to reach USD 1.92 billion by 2035, at an approximately 12.24% CAGR. The application focus is typically on controlled change management, asset visibility, and policy enforcement across critical infrastructure environments.

Retail is estimated at USD 516.6 million in 2025 and is projected to reach USD 1.95 billion by 2035, growing at an approximately 14.27% CAGR. Centralized provisioning can reduce the operational burden of maintaining connectivity and security policy across widely distributed stores.

Others, including government, education, transportation, and hospitality, are estimated at USD 751.4 million in 2025 and are projected to reach USD 2.19 billion by 2035, at an approximately 11.24% CAGR.

The segment pattern directs product investment toward assured automation at the points where network changes have the largest blast radius. Cloud control planes need consistent policies across virtual networks and cloud-native functions; AI data center fabrics need rapid, validated configuration changes; and healthcare environments require resilience across distributed clinical sites. Vendors that can connect these requirements to the same telemetry, intent, and validation layer can extend beyond task automation into the operational control plane, while offerings limited to isolated configuration workflows face a narrower role.

Network Automation Market Regional Analysis

North America

North America is estimated at USD 3.10 billion in 2025 and is projected to reach USD 12.28 billion by 2035, at an approximately 14.78% CAGR. The region accounts for approximately 42.4% of global revenue in 2025. The U.S. is estimated at USD 2.67 billion in 2025 and grows at an approximately 15.01% CAGR, while Canada is estimated at USD 430.7 million and grows at approximately 13.22%.

Demand is supported by large enterprise IT estates, cloud-service ecosystems, and investment in AI-oriented data center infrastructure. The U.S. Federal Communications Commission adopted updated data-breach notification requirements in 2024 for telecommunications carriers, reinforcing the need for systems that can monitor and document network-security events . TM Forum found that 89% of North American CSP respondents followed a gradual approach to autonomous-network development, suggesting a market characterized by staged modernization rather than uniform architectural replacement . ^{[6]Federal Communications Commission, Data Breach Notification Rules, February 12, 2024, govinfo.gov}

Europe

Europe is estimated at USD 1.76 billion in 2025 and is projected to reach USD 6.69 billion by 2035, at an approximately 14.36% CAGR. Germany is estimated at USD 473.7 million and grows at an approximately 17.07% CAGR, while the Rest of Europe is estimated at USD 1.28 billion and grows at approximately 13.18%.

Regulation creates an important adoption channel in the region. European Commission Implementing Regulation (EU) 2024/2690 sets cybersecurity risk-management requirements for designated entities under the NIS2 framework . For network operators and enterprises within scope, automated configuration control, evidence collection, and security monitoring can support compliance processes, though automation does not itself guarantee compliance. Nokia's cloud-hosted 5G core deployment with O2 Telefónica Germany further demonstrates the region's movement toward cloud-native telecom operations . ^{[7]European Commission, Commission Implementing Regulation (EU) 2024/2690, October 17, 2024, eur-lex.europa.eu}

Asia Pacific

Asia Pacific is estimated at USD 1.45 billion in 2025 and is projected to reach USD 7.43 billion by 2035, making it the fastest-growing region at an approximately 17.90% CAGR. China is estimated at USD 556.8 million and grows at an approximately 18.85% CAGR, while the Rest of Asia Pacific is estimated at USD 893.5 million and grows at approximately 17.26%.

The region has a comparatively aggressive autonomous-network agenda. TM Forum found that 26% of Asia Pacific respondents had reached Level 3 maturity and 36% targeted Level 4 by 2026 . China Mobile Henan reported that its digital-twin platform validated configuration changes up to 20 times faster than traditional lab-based approaches and increased operational efficiency by 94% . These reported deployment outcomes indicate why Asian operators are positioning digital twins and AI-assisted assurance as core elements of network modernization.

India's large-scale 5G buildout and established IT-services ecosystem support services-led adoption. HCLTech's work with Vodafone Idea demonstrates deployment of automation in a multi-vendor 4G and 5G environment . NEC's private-5G collaboration with Cisco also positions the company to address industrial and enterprise deployments in Japan and other Asian markets .

Latin America

Latin America is estimated at USD 405.5 million in 2025 and is projected to reach USD 1.39 billion by 2035, at an approximately 13.26% CAGR. Brazil is estimated at USD 167.9 million and grows at an approximately 14.18% CAGR, while the Rest of Latin America is estimated at USD 237.6 million and grows at approximately 12.56%.

CSP modernization and enterprise digital transformation are the main demand sources. TM Forum reported that all surveyed Caribbean and Latin American respondents were pursuing a gradual approach to autonomous-network development . This pattern favors phased deployments that prioritize operational improvements in specific network domains before broader automation programs. Managed services are especially relevant where buyers face skills constraints and must modernize multi-vendor infrastructure without expanding internal network-operations teams proportionately.

Middle East & Africa

Middle East & Africa is estimated at USD 604.9 million in 2025 and is projected to reach USD 1.80 billion by 2035, at an approximately 11.00% CAGR. The UAE is estimated at USD 286.0 million and grows at an approximately 11.88% CAGR, while the Rest of the region is estimated at USD 419.8 million and grows at approximately 10.37%.

Operator investment is concentrated in markets pursuing 5G, digital infrastructure, and national AI programs. Nokia's MantaRay Cognitive SON deployment at stc Group managed network optimization during the 2024 Hajj season, when traffic rose by 40%, and reported a 13% reduction in network energy consumption . Ericsson also extended its managed-services relationship with Mobily to use AI and machine learning in network operations . TM Forum found that 35% of Middle East respondents had reached Level 3 autonomous-network maturity and 56% were following bold or transformative approaches . The regional opportunity is consequently weighted toward telecom automation and managed operational transformation, although adoption varies materially across individual markets.

The Middle East offers concentrated operator-led opportunities where ambitious modernization programs can support larger transformation projects, whereas Latin America's more gradual profile favors modular deployment and managed delivery. A uniform regional go-to-market model would therefore be inefficient: platform-led selling is more applicable in mature enterprise markets, while implementation capacity and service partnerships are especially important where operating-model change is the principal buyer challenge.

Network Automation Market Share & Competitive Landscape

Competition spans network-equipment providers, cloud and enterprise-software vendors, telecom specialists, systems integrators, and focused automation providers. The principal strategic contest concerns control of the operating layer that connects topology, telemetry, policy, assurance, and workflow orchestration.

Cisco Systems combines enterprise networking infrastructure with Catalyst Center, Catalyst SD-WAN, Cisco Networking Cloud, and automation workflows. Cisco reported FY2025 revenue of USD 56.7 billion, including USD 28.3 billion in networking product revenue . Its scale and installed base support integration-led selling, while its cloud-hosted automation initiatives aim to make workflows reusable across enterprise domains. ^{[8]Cisco Systems, FY2025 Full Annual Report, cisco.com}

Juniper Networks, now within Hewlett Packard Enterprise following HPE's July 2025 acquisition close, contributes the Mist AI and Marvis platform as well as Apstra data center automation capabilities . HPE's strategy combines Juniper's AI-native networking assets with Aruba Networking Central and broader hybrid-cloud operations. Apstra remains an important authorized disruptor brand because its intent-based, vendor-agnostic data center automation capabilities address mixed-fabric environments. ^{[9]HPE, Hewlett Packard Enterprise Closes Acquisition of Juniper Networks, July 2, 2025, hpe.com}

Huawei Technologies competes primarily in carrier and enterprise automation through its autonomous-driving network architecture and iMaster NCE platform. Its Xinghe offering emphasizes digital twins and AI-assisted risk identification and remediation in enterprise and telecom environments . Nokia and Ericsson focus on CSP automation, including service orchestration, RAN optimization, 5G core operations, network APIs, and assurance. Nokia's NSP is used by more than 1,000 operators for IP network automation , while Ericsson's Intelligent Automation Platform supports an ecosystem of rApps for multi-vendor network operations .

IBM participates through AIOps, automation, observability, and Red Hat platforms. Red Hat is material to cloud-native network automation because Ansible and OpenShift support infrastructure-as-code and deployment automation across enterprise and telecom environments. VMware remains relevant through network virtualization and programmable overlay networking within private-cloud estates. F5 Networks addresses multi-cloud application delivery, network connectivity, and security automation. Arista Networks competes in data center, cloud, and AI-networking environments through CloudVision, network-data-lake capabilities, and AI-assisted observability .

NEC Corporation participates in enterprise private-5G and systems integration, while Tata Consultancy Services, Infosys, Wipro, HCL Technologies, and Micro Focus address consulting, implementation, network operations, configuration management, and managed-services demand. HCL Technologies is differentiated by HCL ANA, deployed by Vodafone Idea for multi-vendor network automation .

NetBrain Technologies focuses on map-based network automation and diagnosis. BlueCat Networks specializes in DNS, DHCP, and IP address management automation and network intelligence. SolarWinds provides network monitoring and configuration-management capabilities for mid-market and enterprise users. Forward Networks focuses on network digital twins and formal verification of network intent. Itential provides workflow orchestration across existing automation tools, while Alkira offers a cloud networking-as-a-service model that abstracts multi-cloud connectivity management. These providers can gain traction where buyers seek focused functionality or a lower-disruption entry point into automation.

Recent Industry Developments

 In July 2025, bringing Juniper's Mist AI, Marvis, Apstra data center automation, and AI-native networking assets into HPE's Aruba Networking and hybrid-cloud portfolio . The transaction combines two major enterprise-networking platforms under HPE, creating a broader installed base for integrated campus, branch, data center, and cloud management. Its strategic significance lies in intensifying competition for the network control plane, particularly where buyers seek a single supplier for AI-assisted operations across heterogeneous enterprise environments.

 In February 2025, positioning embedded data-processing and telemetry capability within the data center network fabric . The launch focused on architectures intended to support AI-oriented data center traffic and reduce the distance between network telemetry collection and policy response. For automation buyers, this development reinforces the shift toward infrastructure that is designed to expose operational data and support machine-speed management rather than relying solely on external controllers.

 In January 2025 that Vodafone Idea deployed HCL ANA for automation of Ericsson and Samsung multi-vendor 4G and 5G networks . The deployment combines HCLTech's automation platform with a heterogeneous operator environment and an SMO-ready Open RAN architecture. It demonstrates the growing role of systems integrators and managed-service providers in automating networks where no single equipment vendor controls the full infrastructure estate.