Infrastructure Automation Market Size, Share & Industry Analysis, By Component (Solutions and Services), By Enterprise Type (Large Enterprises and SMEs), By Automation Type (Network Automation, Server Automation, Database Automation, Cloud Infrastructure Automation, and Others), By End User (BFSI, IT & Telecom, Retail, Manufacturing, and Others), and Regional Forecast, 2026 – 2034

The global infrastructure automation market size was valued at USD 18.11 billion in 2025. The market is projected to grow from USD 20.25 billion in 2026 to USD 59.27 billion by 2034, exhibiting a CAGR of 14.4% during the forecast period.

Infrastructure automation consists of solutions and services used to automate the provisioning, configuration, orchestration, monitoring, compliance, and operations of IT infrastructure across cloud/on-premises/hybrid/network/server/database environments. The categories included are infrastructure as code (IAC), cloud automation, network automation, server automation, database automation, and automated IT operations management. The market growth is driven by the rapid adoption of hybrid and multi-cloud infrastructure, as businesses require such automation in order to lower manual configuration efforts and improve the speed of deployment. Other drivers include maintaining reliable systems and providing a more effective means of managing complex IT environments.

Furthermore, many key market players, such as HashiCorp, Inc., Red Hat, Inc., Broadcom Inc., Perforce Software, Inc., and Microsoft Corporation, operating in the market, are focusing on product innovation and platform integration. Therefore, vendors are expanding infrastructure-as-code, cloud automation, security automation, AIOps, and hybrid infrastructure management capabilities to strengthen enterprise adoption and improve competitive positioning.

IMPACT OF GENERATIVE AI

Rising Use of Generative AI is Enhancing Automation Efficiency across Hybrid Infrastructure

The market is being positively impacted by generative AI in many different ways. As, it has helped many IT teams turn their written prompts into automation scripts, playbooks, workflows, and a recommendation for infrastructure configuration. Also, by providing engineers with assistance on how to write, troubleshoot and optimize their automation content more quickly; it has helped bridge the gap between Infrastructure as Code (IaC) and Configuration Management (CM). Additionally, it has enhanced AIOps-led infrastructure automation by providing improved incident response capabilities, remediation recommendations, prediction of operational events, and policy-based automation throughout hybrid and multi-cloud environments. In the forecast period, vendors who incorporate GenAI into their automation platforms will see a much stronger level of adoption from companies seeking to streamline their manual operations and to enhance their deployment efficiencies. Thus, these factors fuel the market growth in the coming years.

• In May 2025, Red Hat previewed updates to Ansible Automation Platform, including support for Model Context Protocol within Ansible Lightspeed, enabling LLMs and AI agents to invoke Ansible Automation Platform to execute playbooks and automate IT tasks.

INFRASTRUCTURE AUTOMATION MARKET TRENDS

Increasing Integration of AI and AIOps Fuels Market Growth

The rapid growth of combining AI with AIOps drives growth in the industry as enterprises will have to detect, diagnose, and fix infrastructure problems much faster across their hybrid/multi-cloud environments. With AI-based automation, IT will be able to analyze logs, events, telemetry, and performance signals to proactively identify an incident prior to it impacting business operations. AI automation will also help support automated remediation through workflows, playbooks, and infrastructure changes with less manual intervention. This growth is especially critical in large enterprises, telecom companies, Banking Financial Services and Insurance (BFSI), and cloud-based companies that manage complex infrastructure on a large scale.

• In May 2025, ServiceNow launched the ServiceNow AI Platform, designed to bring AI, agents, models, data, and orchestration together across enterprise workflows. The launch supports infrastructure automation growth by enabling AI-driven workflow orchestration, IT operations automation.

MARKET DYNAMICS

MARKET DRIVERS

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Rising Adoption of Hybrid and Multi-cloud Infrastructure Drives Market Growth

The growing use of hybrid and multi-cloud infrastructures has been a key factor behind the market growth. Many businesses are now using various types of public cloud providers, private cloud providers, and traditional datacenter environments for their workloads in addition to Edge computing devices (edge clouds). As these workloads are running on multiple types of infrastructure, a new level of operational complexity is created that makes it challenging, if not impossible, for businesses to manage the deployment, configuration, monitoring, and compliance of workloads on this type of infrastructure as required.

Automating the provisioning process allows organizations to standardize their deployments, reduce configuration drift, improve resource utilization, and provide consistent governance over different types of infrastructure. Consequently, there is an increasing demand for automation platforms that enable users to take advantage of the capabilities offered by infrastructure such as code, cloud orchestration, policy-based provisioning, and unified hybrid cloud operations.

• In June 2025, Hewlett Packard Enterprise launched GreenLake Intelligence, an agentic AI framework for hybrid IT operations, along with new software capabilities for automation, orchestration, governance, data mobility, and data protection.

MARKET RESTRAINTS

High Implementation and Integration Complexity May Hinder Market Growth

The infrastructure automation market growth is constrained by a high level of implementation and integration complexity. Enterprises frequently have to deal with environments consisting of many types of systems, including legacy infrastructure, cloud computing, network environments, database management systems, security software, and IT service management workflows. In order to successfully implement automation throughout these disparate environments, enterprises must first perform a detailed assessment of their existing infrastructure and then redesign workflows using a common set of policies and governance controls. Furthermore, many organizations struggle to address configuration drift, ensure interoperability between automation tools, and maintain security while automating the provision of hardware or the remediation of issues. This contributes to the slow pace of large-scale adoption for enterprises with complicated hybrid infrastructures and limited internal expertise in automating processes.

MARKET OPPORTUNITIES

Rising Adoption of Edge Computing Creates New Opportunities for Market Growth

Edge computing is being adopted at an increasing rate, creating a significant growth opportunity for the market. As companies have an ever-increasing need to effectively manage distributed IT infrastructure located in factories, retail locations, telecom sites, hospitals, transportation hubs, and remote locations, centralized data centers are becoming essential. They enable organizations to properly provision, monitor, patch, enforce security, and manage the lifecycle of IT infrastructures at scale.

As edge environments tend to function outside of a centralized data center, they are often difficult to monitor, patch, secure, and manage the lifecycle, therefore there is a need for creating infrastructure automation solutions. It enables the consistent deployment of applications and allows for remote configuration, automated updates, real-time monitoring, and faster remediation across all distributed edge nodes. As more AI workloads are moved closer to the source where data is collected, the need for automated infrastructure control across edge-to-cloud environments will also increase.

• In November 2025, Cisco launched Cisco Unified Edge, an edge-optimized platform that integrates compute, networking, and storage to support real-time applications and AI inferencing where data is generated.

Segmentation Analysis

By Component

Rapid Expansion of Hybrid Cloud Automation is Fueling Demand for Infrastructure Automation Solutions

Based on component, the market is categorized into solutions and services.

The solutions segment accounted for the largest market share in 2025 and is expected to continue its dominance by growing at the highest CAGR of 15.1% during the forecast period. This is owing to organizations becoming increasingly reliant on infrastructure such as code, cloud provisioning, orchestration, configuration management, network automation, and automated monitoring solutions to support complex hybrid and multi-cloud environments. The segment further benefited from increasing demand for standardized, scalable, and policy-based automation tools that decreased manual effort required by users, provided faster deployment times, and improved infrastructure reliability.

The services segment is anticipated to grow at a moderate CAGR of 13.0% over the forecast period. This growth is driven by enterprises’ continued need for consulting, integration, deployment, training, and managed support for infrastructure automation. However, long-term growth is expected to remain slower than that of solutions due to the rising adoption of standardized, cloud-based, and self-service automation platforms.

By Enterprise Type

Rising Multi-cloud Complexity is Strengthening Infrastructure Management Adoption in Large Enterprises

Based on the enterprise type, the market is bifurcated into large enterprises and SMEs.

The large enterprises segment accounted for the largest market share in 2025. They are able to manage a lot of power from a hybrid infrastructure, from different sources of cloud applications, each with its own complete set of hardware, multiple networks, and complicated rules regarding compliance, all of which require a robust automation platform. Their IT budgets are generally larger than those of small and midsize businesses. Therefore, they are able to implement many of the developments in cloud computing, such as DevOps, Infrastructure as Code, AIOps, and managing their total infrastructure from one central location.

SMEs are anticipated to grow at the highest CAGR of 17.1% over the forecast period. This growth is driven by cloud-based, subscription-driven, and managed infrastructure automation platforms that reduce adoption barriers. Further, enabling small and medium-sized enterprises to automate provisioning, monitoring, configuration, and security operations without the need for large in-house IT teams.

By Automation Type

Enterprise Shift toward Centralized Cloud Operations Drives Cloud Infrastructure Automation Segment Leadership

Based on the automation type, the market is divided into network automation, server automation, database automation, cloud infrastructure automation, and others (security automation, application infrastructure automation, etc.).

Cloud infrastructure automation accounted for the largest market share in 2025 and is expected to continue its dominance by growing at the highest CAGR of 15.8% during the forecast period. This is owing to organizations’ continued use of automated provisioning, scaling, configuration, and governance to manage hybrid and multi-cloud environments more effectively. The rapid growth of infrastructure-as-code, cloud-based applications, DevOps workflows, and centralized operations platforms has contributed to this automation trend within large companies that have chosen a cloud-centric strategy.

The network automation segment is anticipated to grow at a moderate CAGR of 15.2% over the forecast period. This is owing to telecom operators, cloud providers, and large enterprises continuing to automate network provisioning, configuration, and monitoring. However, its growth remains slower than that of cloud infrastructure automation due to the broader enterprise shift toward cloud-native and multi-cloud automation platforms.

By End User

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Expansion of Cloud and Telecom Networks is Fueling IT & Telecom Automation Demand

Based on the end user, the market is classified into BFSI, IT & telecom, retail, manufacturing, and others (government, healthcare, etc.).

The IT & telecom sector witnessed a dominating market share in 2025. This is owing to the heavy dependency of telecom operators, cloud service providers, data centers, and technology companies on automatic provisioning, network configurations, cloud orchestration, and infrastructure monitoring. Additionally, the rapid increase in 5G deployment, the move toward hybrid clouds, the expansion of hyperscale data centers, and the need to manage large scale / distributed IT infrastructure with very little manual intervention contributed to the dominance of this segment.

The retail sector is anticipated to grow at the highest CAGR of 17.8% during the forecast period. This is owing to their increasing adoption of cloud-based infrastructure automation to support omnichannel commerce, automated scaling during peak traffic, digital payments, inventory platforms, and reliable customer-facing applications.

Infrastructure Automation Market Regional Outlook

By region, the market is categorized into North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America

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North America held the largest infrastructure automation market share in 2024, valuing at USD 6.37 billion, and also maintained the leading share in 2025, with USD 6.99 billion. The market in the region is expected to increase, owing to strong enterprise cloud maturity combined with a historical early adopter of infrastructure-as-code, as well as high DevOps penetration, and the presence of many leading automation vendors/hyperscalers/large technology companies located in the U.S. Additionally, North America also benefits from higher levels of IT automation spending in the BFSI, IT & telecom, healthcare, retail, and government sectors, with organizations utilizing automation to manage hybrid cloud infrastructure, reduce manual operations, and increase the reliability of their overall infrastructure.

• In September 2025, HashiCorp, an IBM company headquartered in the U.S., introduced Infrastructure and Security Lifecycle innovations and previewed Project infragraph, a strategic HCP investment aimed at enabling agentic infrastructure automation and intelligent hybrid operations.

U.S. Infrastructure Automation Market

Based on North America’s strong contribution and the U.S. dominance within the region, the U.S. market can be analytically approximated at around USD 6.25 billion in 2026, accounting for roughly 30.9% of global sales.

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Europe

Europe is projected to record a growth rate of 13.0% in the coming years, which is the fourth highest among all regions, and is estimated to reach a valuation of USD 5.46 billion by 2026. The market in Europe is experiencing growth, owing to the proliferation of hybrid cloud deployments, an increasing number of sovereign cloud mandates, and the need for improved compliance on the part of organizations in the BFSI, telecommunications, manufacturing, healthcare, and public-sector industries. As a result, there is a growing number of enterprises in Europe that are utilizing infrastructure automation as a mechanism for standardizing and scaling their provisioning and governance processes, automating manual IT operations, and providing a unified method for efficiently managing complex, multi-cloud, and on-premise infrastructures. 

• In October 2025, Park Place Technologies launched its first European channel partner program to expand adoption of Entuity Software, an IT infrastructure monitoring and management platform built for complex hybrid, multi-vendor, virtual, and multi-cloud environments.

U.K. Infrastructure Automation Market

The U.K. market size in 2026 is estimated at around USD 1.16 billion, representing roughly 5.7% of global revenues.

Germany Infrastructure Automation Market

Germany’s market is projected to reach approximately USD 1.01 billion in 2026, equivalent to around 5.0% of global sales.

Asia Pacific

The Asia Pacific region is estimated to reach USD 5.02 billion in 2026 and is expected to grow at the highest CAGR of 18.9% during the forecast period. The market growth is driven by accelerating cloud migrations, expanding hyperscale data centers, modernizing telecommunications, and increasing levels of enterprise digital transformation across the Asia Pacific countries of China, India, Japan, South Korea, ASEAN, and Australia. Companies are increasingly turning to automation for enhancing their ability to manage hybrid and multi-cloud infrastructures, decrease the number of manual IT operations, improve the scalability of their infrastructures, and build a platform to support an AI-ready workload. All these changes are taking place in an environment characterized by rapidly expanding digital economies.

• In March 2025, IBM completed its acquisition of HashiCorp, whose products automate and secure infrastructure for hybrid cloud applications and generative AI.

China Infrastructure Automation Market

China’s market is projected to be one of the largest worldwide, with 2026 revenues to be estimated at around USD 1.27 billion, representing roughly 6.3% of global sales. This is owing to rapid cloud infrastructure expansion, AI-led digital transformation, telecom modernization, and government-backed digital infrastructure initiatives, which are increasing enterprise demand for automated provisioning, configuration, monitoring, and hybrid cloud management.

Japan Infrastructure Automation Market

The Japan market value in 2026 is estimated at around USD 1.00 billion, accounting for roughly 4.9% of global revenues.

India Infrastructure Automation Market

The Indian market size in 2026 is estimated at around USD 0.63 billion, accounting for roughly 3.1% of global revenues.

South America

South America is expected to witness moderate growth in this market space during the forecast period. The region’s market is set to reach a valuation of USD 0.87 billion in 2026. This is owing to rising cloud migration, banking and telecom modernization, expanding managed IT services, and increasing adoption of automated infrastructure management among enterprises in Brazil, Argentina, Chile, Colombia, and other regional markets. In South America, Brazil is set to reach a value of USD 0.44 billion in 2026.

Middle East & Africa

The Middle East & Africa region is estimated to reach USD 1.20 billion in 2026 and is expected to grow at a prominent growth rate in the coming years. This is owing to the increasing usage of cloud technology, Smart City programs, modernization of telecommunications, and government-initiated digital transformation across the GCC, Israel, South Africa, as well as other major African countries. Enterprises throughout the region are implementing automation in order to effectively manage hybrid cloud infrastructures, enhance governance of their infrastructures, reduce operational complexity, and facilitate an AI-enabled digital infrastructure. In the Middle East & Africa region, the GCC market is set to reach a value of USD 0.47 billion in 2026.

• In September 2025, IBM expanded its Strategic Collaboration Agreement with AWS to accelerate secure cloud adoption and digital transformation across the Middle East, using IBM Consulting’s hybrid cloud and AI capabilities alongside AWS cloud services.

COMPETITIVE LANDSCAPE

Key Industry Players

Focus on Expanding Integrated Infrastructure Automation Capabilities by Key Players to Propel Market Growth

The global infrastructure automation market holds a semi-consolidated market structure, with prominent players such as HashiCorp, Inc., Red Hat, Inc., Broadcom Inc., Perforce Software, Inc., and Microsoft Corporation holding significant positions. These companies are investing in infrastructure automation platforms that support infrastructure-as-code, configuration management, cloud provisioning, orchestration, network automation, compliance automation, and automated IT operations. These investments help meet the rising demand from the BFSI, IT & telecom, retail, manufacturing, government, healthcare, and energy sectors.

Other notable players in the global market include Amazon Web Services, Inc., Alphabet, Inc. (Google LLC), Cisco Systems, Inc., ServiceNow, Inc., and BMC Software, Inc. These companies are also focusing on continuous product innovation, cloud-native automation capabilities, strategic partnerships with cloud service providers and system integrators, and managed automation services. They are further expanding AI-enabled infrastructure operations, which are expected to strengthen their market positioning over the forecast period.

LIST OF KEY INFRASTRUCTURE AUTOMATION COMPANIES PROFILED

• HashiCorp, Inc. (U.S.)
• Red Hat, Inc. (U.S.)
• Broadcom Inc. (U.S.)
• Perforce Software, Inc. (U.S.)
• Microsoft Corporation (U.S.)
• Amazon Web Services, Inc. (U.S.)
• Alphabet, Inc. (Google LLC) (U.S.)
• Cisco Systems, Inc. (U.S.)
• ServiceNow, Inc. (U.S.)
• BMC Software, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• June 2026: HashiCorp announced that HCP Terraform now supports project-level run tasks, enabling enterprises to apply security, compliance, and operational guardrails consistently across groups of workspaces while reducing manual overhead. This supports infrastructure automation by strengthening governance and standardization across large-scale Terraform deployments.
• December 2025: Google Cloud announced the general availability of Application Design Center, an AI-powered design tool that helps users create and modify deployable application infrastructure templates and export them as Terraform infrastructure-as-code.
• September 2025: Perforce released Puppet Edge, an extension designed to help enterprises manage and secure network and edge devices. This supports infrastructure automation by extending Puppet’s automation capabilities to distributed edge, network, and hybrid infrastructure environments.
• July 2025: AWS published an automation solution for installing the AWS Systems Manager agent on unmanaged Amazon EC2 nodes using AWS CloudFormation, AWS Organizations, and Systems Manager Automation runbooks. This supports infrastructure automation by helping enterprises automate fleet registration and centralized operations management at scale.
• June 2025: Broadcom announced VMware Cloud Foundation 9.0, which includes a unified interface for private cloud operations and a frictionless cloud consumption experience for platform and development teams. The launch is relevant to infrastructure automation as it simplifies provisioning, management, and operations across private cloud, edge, and service provider environments.
• February 2025: Cisco announced new capabilities for service provider networks, including Cisco Crosswork Network Automation and Provider Connectivity Assurance with predictive AI technology to support network capacity planning, resource allocation, and infrastructure visibility.
• October 2024: Red Hat introduced Ansible Automation Platform 2.5, adding a unified user interface, Ansible development tools, and new generative AI The update supports infrastructure automation by helping enterprises create, manage, and scale automation workflows more efficiently across hybrid IT environments.

REPORT COVERAGE

The global infrastructure automation market analysis includes a comprehensive study of the market size & forecast by all the market segments included in the report. It includes details on the market dynamics and market trends expected to drive the market over the forecast period. It provides information on key aspects, including an overview of technological advancements, pipeline candidates, the regulatory environment, and product launches. Additionally, it details partnerships, mergers & acquisitions, as well as key industry developments. The global market research report also provides a detailed competitive landscape with information on the market share and profiles of key operating players.

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