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Robotic Process Automation Market Overview
The global robotic process automation (RPA) market generated revenue of $1,195.9 million in 2017 and is projected to advance at a CAGR of 36.2% during 2018–2023. The major factors contributing in the market growth are the rising demand for virtual workforce, increasing focus on the ease of doing business, and declining cost of automation software and services.
Based on vertical, the robotic process automation market is categorized into banking, financial services, insurance, telecom & IT, retail & consumer goods, manufacturing, healthcare & pharmaceuticals, and others. Among these, the IT & telecom category held the largest share in the market in 2017. This is mainly because the number of people turning to telecom companies to connect them with global networks is rising day by day. Telecom providers are burdened with large amounts of work, such as controlling cost and business efficiency, managing data, increasing the business agility, acquiring and retaining talent, and developing new services. In such a scenario, telecom companies are competing to provide fast, affordable, and cutting-edge offerings to their customers. RPA enables telecom companies to manage their back-office tasks easily and deal with huge numbers of repetitive and rule-based operational processes.
GLOBAL ROBOTIC PROCESS AUTOMATION MARKET, BY OPERATION, $M (2013 - 2023)
However, the financial services vertical is expected to witness the fastest growth in the RPA market during the forecast period owing to the complex financial markets, requiring robust speed, accuracy, and cost efficiency beyond the human workforce, to transform businesses. Organizations in the financial services domain are increasingly adopting RPA and artificial intelligence (AI)-driven cognitive automation to drive accuracy and cost efficiency in their business processes.
On the basis of process, the robotic process automation market has been classified into automated solution, decision support & management, and interaction solution. Of these, automated solution held the largest revenue share in the market in 2017. This can be attributed to the growth of the BFSI industry, which has been increasingly adopting robotic process automation to improve efficiency and reduce cost.
In terms of offering, the robotic process automation market has been bifurcated into software and service, where the service category held the larger revenue share in the market in 2017. The factors responsible for the dominance of the automation as a service niche are the increasing adoption of automation services across business processes and the utilization of the cloud technology within organizations to enhance the growth trajectory.
North America, being one of the earliest adopters of robotic process automation, is expected to lead the RPA market throughout the forecast period. Rapid developments in the IT and banking sectors, along with the increasing use of robotic process automation in the manufacturing industry, is driving the market in the North American region. Another major factor is the presence of developed countries in the region, which provide a competitive advantage in the adoption of newer technologies, as compared to the Asia-Pacific (APAC) and Middle East and Africa (MEA) regions.
Robotic Process Automation Market Dynamics
Robotic process automation is gaining popularity in organizations, as it can mimic human behavior and perform complex tasks with utmost simplicity. The automation of processes enables businesses to gain operational and strategic advantages through cost benefits, which are essentially required to take the business to the next level. Business process outsourcing (BPO) and financial service providers are keen on implementing robotic process automation in their systems, as it allows them to perform repetitive and mundane tasks with improved efficiency, thereby becoming a trend in the robotic process automation market.
With evolution in technology across domains such as manufacturing and IT, the existing workforce faces difficulty in understanding the outcomes of process automation, which often acts as one of the major restraints for the robotic process automation market growth. The human workforce requires training to interact with robotic process automation systems, which involves significant cost and time. Also, it is difficult for technical workforce to interpret voluminous data from automated systems for strategic developments in organizations.
The increasing integration of AI in robotic process automation is creating ample opportunities for the RPA market players. AI enables systems to process unstructured information into structured output, which is then analyzed by RPA to deduce information for the decision making process. RPA, on integration with AI, can mimic human activities through speech recognition and pattern detection capabilities and handle structured, as well as unstructured data. This can help robots learn how to process the information and, in turn, improve with time.
Robotic Process Automation Market Competitive Landscape
There is moderate competition among the players in the global robotic process automation market. The market players are actively focusing on product launches and partnerships, in order to cater to the growing demand for advanced business automation solutions and enhance their offerings to capture a large customer base. For instance, in March 2018, Nice Actimize introduced ActOne, an artificial intelligence-enabled investigation management system, which provides a platform to manage alerts and cases from a wide ecosystem of financial crime solutions. With this product, any financial crime system can be transformed, with the application of AI-enabled robotics and automation in the systems.
Some of the other key players operating in the robotic process automation market are Pegasystems Inc., Automation Anywhere Inc., Blue Prism PLC, Ipsoft Inc., Celaton Ltd., Redwood International Business Group B.V., UiPath SRL, Verint System Inc., Xerox Corporation, and IBM Corporation.
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