January 7, 2024 | Posted in News
Robotic process automation provides its users with the ability to in-source and offshore robotic process automation-managed services, which further enables them to regain governance over the process without any surplus cost. The cost incurred might even be lesser than the offshore process without robotic process automation. Furthermore, buyers are attracted to the robust return on investments offered through robotic process automation deployments.
The implementation of robotic process automation has proven to provide its buyers with enhanced predictability of costs and refine overall management of cost, subsequently allowing them to recognize the opportunity to deploy the staff on higher and strategic value roles. Further, as robotic process automation gradually shifts to the mainstream, several client organizations globally are expected to find it more comfortable transitioning from traditional incumbent service providers to modern robotic process automation capabilities.
Another factor influencing buyers to invest in robotic process automation-driven deals is the rising pressure on them to sustain profitability, regulatory issues, and management of the increasing cost of offshoring. Thus, all the above cost benefits of robotic process automation are fueling the robotic process automation market growth.
The global robotic process automation market is undergoing substantial growth and is estimated to continue expanding in the coming years. The expanding demand for automation of enterprise processes is one of the major factors driving the adoption of robotic process automation technology. Companies opt for robotic process automation solutions with advanced features integrated with technologies such as artificial intelligence (AI). Collaboration among companies in the robotic process automation market has led to the development of enhanced robotic process automation solutions. For instance, in June 2023, partnerships between Google and Automation Anywhere resulted in the availability of better robotic process automation solutions in the market. The ability of robotic process automation solutions to enhance the efficiency and productivity of business operations is driving the robotic process automation market. However, security concerns, high maintenance costs, and integration challenges with existing systems are some of the restraints faced by the market.
The robotic process automation market is moderately fragmented. Market players are expanding their business by employing various methods, such as product portfolio expansion, service expansion, mergers & acquisitions (M&A), and collaborations. In June 2023, Automation Anywhere, a leading provider of cloud-native automation solutions, announced a strategic alliance with Amazon Web Services (AWS) to enable enterprises to harness the combined power of intelligent automation and generative AI. This partnership involves Automation Anywhere leveraging Amazon SageMaker JumpStart and Amazon Bedrock, equipping their broad customer base with advanced generative AI functionalities.
Using software bots, robotic process automation helps perform all the mundane, labor-intensive, repetitive tasks across the banking sector. By implementing pre-programmed rules, software bots can automate high-volume business processes, which can help improve operational accuracy, optimize costs, and ensure improved talent management. Also, as robotic process automation can smartly mimic all human actions at the primary user interface level, its demand in the banking industry is increasing tremendously. In addition, robotic process automation can also help accelerate process efficiency in the banking industry and build a better workplace experience for employees. It can help perform various tasks, such as account approvals, receivables, collection, accounting origination, underwriting, general ledger, and account closure.
Furthermore, banking organizations can use advanced technologies such as AI and ML to make robotic process automation automate complex processes, which can help in decision-making. This can further enable employees with smart AI agent assistance, thus quickly resolving customer queries and enabling smart conversations with instant resolution. Thus, robotic process automation provides effective cost management and resource utilization for customer and employee satisfaction, increasing its demand in modern digital banks.
The robotic process automation market is categorized based on component, organization size, deployment mode, and end-user industry. Based on component, the robotic process automation market is bifurcated into solution and service. The service segment is further segmented into consulting, integration & development, support & maintenance, and training. Based on deployment mode, the market is bifurcated into on-premise and cloud. Based on organization size, the market is bifurcated into small and medium enterprises (SMEs) and large enterprises. In terms of end-user industry, the market is segmented into BFSI, e-commerce & retail, healthcare, IT & telecom, manufacturing, and others. By geography, the robotic process automation market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
Robotic process automation service providers offer a range of services, including consultation, implementation, training, and support. Consultation services involve evaluating an organization’s processes and identifying opportunities for automation to achieve optimal efficiency and cost-effectiveness. Implementation services focus on deploying robotic process automation solutions and integrating them seamlessly with existing systems and workflows. Training services aim to educate employees on effectively utilizing robotic process automation tools and harnessing automation capabilities. Support services provide ongoing assistance and maintenance to ensure the uninterrupted operation of robotic process automation systems.
Leading companies such as UiPath, Automation Anywhere, and Blue Prism provide comprehensive services to assist organizations in adopting and optimizing robotic process automation solutions. These services empower businesses to navigate the intricacies of robotic process automation implementation, address specific automation requirements, and maximize the advantages of automation in their operations.
The APAC robotic process automation market size was valued at US$ 0.72 billion in 2022 and is projected to reach US$ 1.55 billion by 2030; it is expected to record a CAGR of 10.1% from 2022 to 2030. The APAC robotic process automation market is segmented into Australia, India, Japan, China, South Korea, and the Rest of APAC. Vast industrialization, low labor costs, positive economic developments, favorable economic policies, and an increase in foreign institutional investments (FIIs) and foreign direct investments (FDIs) make APAC a significant contributor to the growth of various industries, such as manufacturing, retail, and logistics. Further, the governments of developing countries have been establishing initiatives, such as Made in China 2025 and Make in India, to promote the establishment of manufacturing plants and make the respective countries self-sufficient and capable of exporting surplus goods.
According to the International Air Transport Association (IATA), APAC leads the growth of the e-commerce market globally, with China accounting for a significant percentage of the growth. As per the International Trade Administration, the e-commerce market of China is the largest in the world and generates almost 50% of the world’s transactions. Similarly, the e-commerce market in other countries in APAC is also witnessing significant growth. As per the International Trade Administration, Australia — the eleventh-largest e-commerce market in the world — is expected to reach US$ 32.3 billion by 2024. Moreover, the increasing competitive landscape, growing middle-class population, and rising penetration of digital technology and smartphones are anticipated to bolster the growth of online retail in the coming years. Thus, the growth of the e-commerce market in the region propels the demand for robotic process automation solutions as it helps monitor the sales of products through real-time analysis.
Appian Corp, Automation Anywhere Inc, Blue Prism Ltd, Cyclone Robotics, Datamatics Global Services Ltd, International Business Machines Corp, Microsoft Corp, NICE Ltd, Pegasystems Inc, Salesforce Inc, SAP SE, and UiPath Inc are among the key robotic process automation market players operating in the market. Several other major companies have been analyzed during this research study to get a holistic view of the robotic process automation market ecosystem.
The robotic process automation market players highly adopt inorganic and organic strategies. Following are a few major robotic process automation market developments: