Robotic Process Automation Market Research Report: By Process (Automated Solution, Decision Support and Management, Interaction Solution), Operation (Rule-Based, Knowledge-Based), Offering (Service, Software), Organization (Large Enterprises, SMEs), Vertical (BFSI, Telecom and IT, Retail and Consumer Goods, Manufacturing, Healthcare and Pharmaceuticals) - Global Industry Analysis and Growth Forecast to 2030

Robotic Process Automation Market Overview

The global robotic process automation market size was valued $1.6 billion in 2019, and it is projected to grow with a CAGR of 36.3% during the forecast period (2020–2030). Some of the major factors driving the growth of the industry include the surge in the demand for virtual workforce, increased efficiency and enhanced customer experience provided by robotic process automation (RPA) solutions.

Segmentation Analysis

Automated Solution Category Held Largest Market Share in 2019

The automated solution category dominated the robotic process automation market, on the basis of process, in 2019. This can be attributed to the growing efforts by businesses to automate their basic operations and processes, such as handling customer queries, data entry, uploading scanned documents, and verifying information for automatic approvals or rejections. Furthermore, RPA solutions enable businesses to reduce their operating costs, by executing high-volume repetitive tasks with a zero error rate.

Knowledge-Based Operation Category Is Projected to Attain Faster Growth

During the forecast period, the knowledge-based bifurcation is projected to attain faster growth, on the basis of operation, in the robotic process automation market. In knowledge-based RPA, the machine takes care of operations that require human judgment or expertise. It utilizes advanced technologies, such as artificial intelligence (AI), deep learning, cognitive computing, big data, and natural-user interfaces, combined with higher computing power and stronger connectivity. The enhanced capabilities of knowledge-based robotic process automation solutions of operating in unregulated domains and processing unstructured data will result in the growth of the category.

Service Bifurcation Dominated Market during Historical Period

The service bifurcation dominated the robotic process automation market during the historical period (2014–2019), on the basis of offering. The market is experiencing intense competition, as it is in its growing phase. Owing to this, service providers are continuously improving their consulting and advisory services, which is resulting in reducing costs and increasing scalability for end users.

The category is further categorized into professional, implementation, and training services. Among these, professional services held the largest robotic process automation market share in 2019. Service providers such as Deloitte Touche Tohmatsu Limited, Accenture PLC, and Capgemini SE offer RPA-related professional services, such as robotic process automation strategy, including operating model, roadmap, and business case; opportunity identification, vendor selection, pilot advisory, and robotic process automation execution support.

SMEs Are Expected to be Fastest-Growing Category during Forecast Period

Small and medium-sized enterprises (SMEs) are expected to be the fastest-growing category in the robotic process automation market during the forecast period, on the basis of organization. RPA solutions can help SMEs remain relevant and compete against better-resourced and larger organizations, by enabling them to be more efficient and process more data with lesser workforce. Owing to advantages such as improved operational effectiveness and lower operational costs, the adoption of RPA solutions in SMEs is becoming more mainstream, which would result in the faster growth of this bifurcation in the market.

BFSI Vertical Generated Highest Revenue in 2019

The highest revenue had been generated by the banking, financial services, and insurance (BFSI) vertical till 2019, in the robotic process automation market. Several industry challenges, such as complex middle- and back-office processes, as well as expansive and fragmented IT environments, drive BFSI companies to deploy automation solutions. These days, robotic process automation solutions are performing common banking tasks, such as filling forms, copying and pasting data, opening emails and attachments, merging data from multiple places, as well as gathering and reformatting data into reports.

Geographical Outlook

North America – Largest Regional Market in Industry

North America was the largest market for RPA solutions in 2019, majorly due to the high penetration of process management and automation solutions across the two countries in the region. Furthermore, the presence of a large number of companies that offer offshore customer services, coupled with the availability of major robotic process automation solution vendors, results in the dominating share of the region in the global industry. Also, the region is experiencing an increasing demand for cloud robotics, which is further resulting in the robotic process automation market growth.

Asia-Pacific (APAC) – Most Expeditious Regional Market

During the forecast period, Asia-Pacific (APAC) is projected to attain the fastest growth in the robotic process automation market. The rise in the gross domestic product (GDP) of major developing countries, such as China and India, coupled with the increasing awareness about automation in the region, will boost the industry’s growth. Companies in the region are experiencing three significant benefits — better-quality processes, increased productivity, and a stronger market position — post robotic process automation implementation. Such factors are resulting in the increasing adoption of RPA solutions in the region.

COVID-19 Impact

The robotic process automation market growth rate has shown a surge in 2020, owing to the increasing adoption of RPA solutions, due to the global lockdown scenario because of the coronavirus pandemic (COVID-19). Several organizations are upgrading their business models, with plans on leveraging automation solutions and bots. Additionally, many solution vendors are offering robotic process automation solutions, in order to help organizations, overcome the work loss due to the crisis. Due to the COVID-19 pandemic, companies are laying-off the staff, in order to minimize the loss incurred. This, in turn, is impelling companies to opt for RPA solutions that can provide more efficient work, in comparatively lesser time, and maintain smooth operations.

Trends & Drivers

Integration of AI in Robotic Process Automation is Major Market Trend

The increasing integration of AI in RPA solutions is a prominent trend being observed in the global robotic process automation market. AI enables systems to process unstructured information into structured output, which is then analyzed by robotic process automation solutions to deduce information that is required to support 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 data, through a set of algorithms and machine learning capabilities, which improves with time, to deliver better-quality work.

Surge in Demand for Virtual Workforce Is Boosting Growth of Market

Robotic process automation enables enterprises to form a virtual workforce, capable of working on routine and mundane tasks with high efficiency, thus eliminating the need for human intervention. It offers scalability, besides reducing the operational cost by as much as 50%, as virtual workforces have the capability to work round the clock. Unlike humans, who can only work for limited hours, with a fixed number of leaves on an annual basis, RPA systems work continuously, thus resulting in a lower overall production cost and higher customer satisfaction. Thus, the growing demand for virtual workforce, to automate mundane and repetitive tasks, would drive the robotic process automation market growth.

Increased Efficiency of RPA-Handled Tasks To Drive Market Growth

One of the advantages of robotic process automation software is that it can run in the background 24*7, which helps mechanize back-end processes. This, in turn, enables human employees to involve themselves in more-important tasks, where they are more needed, such as client handling or product development. For instance, in 2017, IBM Corporation partnered with Automation Anywhere Inc., in order to help businesses digitize their operations and boost the efficiency across business processes, by providing a set of tools that simplify and automate data-intensive tasks, within processes managed by IBM Corporation’s process management software. Such factors are driving the robotic process automation market across the globe.

Enhanced Customer Experience Offered by Robotic Process Automation Is Propelling Market Growth

Today, the demands of a customer dictate the business requirements, speed of action, and offerings that a company must have in its portfolio. This is mainly evident within the finance sector, which is adopting digital technologies. The robotic process automation technology takes over tasks such as generating statements, thereby allowing banks to send computerized reminders to customers, along with handling the transactions that they make, in real time. Owing to such benefits, many industry players are offering industry-related RPA solutions, in order to help BFSI companies boost their efficiency and enhance the consumer experience.

For instance, in April 2020, Automation Anywhere Inc. released new AI-powered bots, in order to help banks by automating the process of lending thousands of loans to small businesses, under the $2.2 trillion U.S. COVID stimulus package. By integrating the robotic process automation technology, businesses can achieve productivity gains across numerous transactions, eliminate errors, increase efficiency, and improve customer service.

Market Players Launching New Products to Gain Competitive Edge

The global robotic process automation market is fragmented in nature, with the presence of industry players such as UiPath Inc., Automation Anywhere Inc., Blue Prism Limited, NICE Ltd., Pegasystems Inc., and Kofax Inc. In recent years, players in the industry have launched a number of new and advanced products, in order to stay ahead of their competitors. For instance:

• In April 2020, Automation Anywhere Inc. announced the launch of a new AI-powered bot for hotels and airlines, to speed up the processing of a large number of customer booking cancellations due to the COVID-19 pandemic. The airline call center bot has been developed to ease the process of canceling flights, so that passengers seeking refunds or credits can be quickly catered to and the prolonged hold times for customer service can be reduced.
• In February 2020, Pegasystems Inc. announced that the company has launched the Crisis Small Business Lending reference application that will help financial institutions manage a number of emergency loan applications from small companies that are seeking COVID-19 financial relief.
• In February 2020, NICE Ltd. announced the launch of NICE Employee Virtual Attendant (NEVA) Unlimited, an all-inclusive automation package, which is built to drive successful automation implementation. NEVA Unlimited includes NICE Ltd.’s complete range of modules, such as Automation Studio, advanced design tool, optical character recognition (OCR), and automation finder, to boost automation deployment success.

Some of the key players covered in the robotic process automation market report are mentioned below:

Robotic Process Automation Market Size Breakdown by Segment

The robotic process automation market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Process

• Automated Solution
• Decision Support and Management
• Interaction Solution

Based on Operation

• Rule-Based
• Knowledge-Based

Based on Offering

• Service
  • Professional
  • Implementation
  • Training
• Software

Based on Organization

• Large Enterprises
• Small- and Medium-Sized Enterprises (SMEs)

Based on Vertical

• Banking, Financial Services, and Insurance (BFSI)
• Telecom and IT
• Retail and Consumer Goods
• Manufacturing
• Healthcare and Pharmaceuticals

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • U.A.E.
  • Saudi Arabia