Business Process Management (BPM) Market Size, Share & COVID-19 Impact Analysis, By Component (Solution/Tools/Platform, Services), By Deployment (On-Premise, Cloud), By Organization Size (Large Enterprises, Small and Medium Sized Enterprises), By Functionality (Accounting & Finance, Sales & Marketing, Human Resource, Supply Chain Management), By Industry (BFSI, IT & Telecommunication, Healthcare) and Regional Forecast, 2021-2028

The global business process management market size was USD 10.64 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with business process management solutions/services witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 11.2% in 2020 as compared to year-on-year growth during 2017-2019. The market is projected to grow from USD 11.84 billion in 2021 to USD 26.18 billion in 2028 at a CAGR of 12.0% during the 2021-2028 period. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The market is booming with the growing necessity among enterprises to digitize the business processes to achieve business goals, customer satisfaction, improved scalability, and productivity in various industry verticals. This surging demand for process automation is expected to boost the BPM during the forecast period. Furthermore, the rising adoption of cloud-based process automation tools is expected to contribute to the growth of the market. For instance, in 2019, Signavio reported a 70.0% growth in its revenue in the last twelve months as customers prefer cloud-based subscription model of process management over the on-premise deployment.

COVID-19 Impact

Spread of COVID-19 Will Boost the Market Growth in Longer Term as Businesses are Opting BPM Services to Focus on Operational Excellence

As the global macroeconomic situation changes dramatically, businesses continue to adopt digital technologies to sustain the market changes. Given the current technological disruptions and their role in both facilitating business processes and shaping newer business modes, the importance of business process management as a key driver for digital transformation is increasing. Enterprises and businesses are seeing bpm solutions as key initiators of digital growth and hence the market is expected to witness strong growth amid the complex environment of COVID-19. According to a survey by Accenture Technology conducted in 2020, 76% of companies and executives believe that organizations need to reorganize the technology and business processes that bring people and technology in a human-centric manner.

The increasing shift towards BPM platforms has several benefits, including less manual work and more computerized ways of working, which leads to increased effectiveness and efficiencies of business processes and customer care services. BPM providers are increasingly dealing with more complex projects and service providers will be expected to deliver business value as a result. Thus, the market is expected to witness an upward shift during the pandemic.

LATEST TRENDS

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AI-based BPM Solutions Will Emerge as Significant Trend

AI is gaining popularity across the corporate world resulting in innovative business models and business process advancement. BPM tools assist companies in mobilizing resources, automating repetitive manual activities, and allowing self-service in areas inaccessible previously. Businesses are opting for more efficient BPM tools as they aid in better visibility into business operation models. Integrating artificial intelligence (AI) technology to existing BPM software (commonly referred to as iBPMS) tools allows businesses to eliminate human errors from processes while providing a better service to the consumers.

The amount of data generated by BPM platforms is staggering. Organizations have enormous data sets, which they use to monitor employee behavior, collect customer data, and analyze how customers communicate with different services. AI-based BPM solutions address this issue head-on by enabling real-time data collection and shortening the time between insight and action. Moreover, it can be used in BPM in a non-intrusive way to provide visibility, analysis, and a deeper understanding of business operating models through real-time data on current results and indicators for future improvements.

Key players operating in the market are offering efficient AI-enabled BPM solutions to get a better experience and understanding of business models. For instance,

• In July 2018, BP Logix, Inc., a no-code/low-code BPM solution provider, launched Process Director 5.0, an AI-enabled, low-code/no-code development platform that empowers business users to quickly build, deploy, and improve critical digital applications.

Such initiatives by market players backed by the constant demand for advanced business process management solutions will be a key trend in the global market.

DRIVING FACTORS

Increasing Focus on Digitization of Business Processes to Aid BPM Market Growth

BPM is being extensively adopted to achieve desired business goals and optimizing operations. Industries are focusing on automating business processes to increase efficiency while keeping time constraints to a minimum. The BPM Industry is being boosted by mature approaches of organizations toward digitization to improve performance, flexibility, and customer satisfaction. Furthermore, business process automation helps to eliminate manual errors and build personalized systems.

Several BPM solutions enable end-users to change business rules in the first place, allowing them to directly optimize operations without making any changes in business infrastructure and IT models. This is achieved by limiting power users to a library of pre-authorized and pre-tested rules. It is a simple matter of updating the initial process model to incorporate enhanced features or functionality as new opportunities for process optimization arise. Thus, the market is expected to experience a boost with the rise in business management strategies.

RESTRAINING FACTORS

Limited Awareness Amongst Enterprises to Hinder Growth

As many of the industry verticals are unable to understand the exact concept of process management, they remain unaware of the necessities and benefits offered by the system. Key players are trying to clarify the compensations and needs of the BPM system to the customers through marketing and advertising. Kissflow, Inc. published an article in January 2019 about the advantageous features of the process management systems, where the company mentioned unawareness of industries towards process management.

SEGMENTATION

By Component Analysis

Services Segment is Estimated to Hold High Market Share

Based on component, the business process management (BPM) market is segmented into a solution/platform and services.

BMP solution/platform segment captured the largest market share. With the implementation of BPM solutions, processes that previously needed human intervention in business processing have now streamlined, allowing workers to rely on their key tasks. This has resulted in efficient and optimized resource utilization and maintains a balance between usable resources and the needs of firms in order to meet desired business objectives. Furthermore, BPM software equips experts with powerful tools for designing company rules that are customized to the needs of individual projects.

The software-as-a-service (SaaS) model of BPM for dispensing applications has been in place for the last three decades, according to an article published by Kissflow, Inc. Most of the market players such as Appian, IBM Corporation, Accenture Plc, and Infosys Ltd are offering cloud infrastructure, which itself contains a service-based architecture. They are being adopted to generate maximum revenue with process management services. Subsequently, the rising demand for business process management services is anticipated to supplement the market growth.

By Deployment Analysis

 Cloud-based Solution to Experience High Growth

Based on deployment, the market is segregated into on-premise & cloud BPM.

Minimal impact on internal resources, low monthly subscription cost, reduced overhead investment, and many more advantageous factors of cloud-based BPM solutions are projected to drive the market growth.

Sometimes, organizations conduct their development and testing procedures on the public cloud whereas, due to security concerns, enterprises are often more inclined towards the on-premise deployment of BPM software. Due to this, the on-premise process management model is expected to be adopted moderately by enterprises.

By Organization Size Analysis

SMEs are Expected to Showcase Strong Improvement in the BPM Solution Adoption

Based on organization size, the market is segmented into large enterprises and small & medium-sized enterprises (SME’s).

Most of the large organizations have already embraced the business process management solution as it became a necessity to manage large amounts of organizational data and processes. This is expected to bode well for the segmental growth in the forthcoming years.

The maturing approach of small and medium-sized enterprises to automate the business procedure and improve productivity is estimated to enhance the adoption of the BPM suite and solutions. The growing demand for flexibility in times of emergencies and an increased response time is enabling the SMEs towards the implementation of process management tools.

By Functionality Analysis

Accounting & Finance Segment to be the Largest Shareholder

Based on functionality, the market is categorized into accounting & finance, sales & marketing, operation & support, human resource, supply chain management, and others.

The capability to enhance the speed of supply chain networks by providing intelligent automation solutions encourages consumers to adopt the BPM system for supply chain management purposes. 

Business process management is also showing healthy adoption to improve HR operations by centralizing human resources solutions that deliver a self-service portal for employee requests. This also provides a unified view of each employee and control for all aspects of the HR processes.

The BPM software automates advertising and marketing processes to augment sales, which is again becoming a major adoption factor.

Capabilities of the BPM system to expand operational agility, improve worker efficiency & satisfaction, and optimize critical business processes is expected to lead to the increasing adoption of process management for the operation & support functionality.

By Industry Analysis

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 Healthcare Industry is Projected to Experience a Healthy Growth Rate

Based on industry, the business process management market is categorized into BFSI, IT & telecommunication, healthcare, manufacturing, and others.

Healthcare organizations are progressively implementing process management not only as a solution specific to immediate process improvement objectives but also as a platform that gives them the ability to challenge diverse process improvement factors. Some of these factors include increased quality of service delivery, improved revenue cycle management, the extended value of core healthcare systems, among others. It is estimated to enhance BPM adoption in the healthcare industry.

The banking and financial sector is seeing the acceptance of the business process management tools to support emerging developments such as mobile banking, checkbook, internet banking, and more. The BPM platform is used by banking industries to manage and support three main processes, such as procurement, contracting, and filing lawsuits. Banks and financial services use analytics on the credit histories of small businesses and their owners, which further supports the adoption of BPM suites.

In the case of the IT and telecom industry, the adoption of this software is primarily associated with the growing emphasis on better customer service, operational excellence, and business visibility. The manufacturing and processing plants initiate the implementation of process management systems to manage assets, projects, permits, field services, and for turnaround planning and execution.

Other industries such as retail, public, and many more are also directed towards the digital transformation era with the adoption of business process management platforms.

REGIONAL INSIGHTS

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The global business process management market in North America is expected to remain dominant due to the high penetration of advanced technologies among business operations. As business process automation software adoption is increasing in the U.S., it is creating a positive impact on the market. Moreover, the presence of market leaders in the region is contributing to the significant development of the process modeling platforms.

Asia-Pacific is expected to showcase considerable growth during the business process management market’s forecast period as mostly process management outsourcing services are operated within this region. India is one of the leading countries in the region, offering IT-BPM outsourcing services. China and India are the significantly emerging countries of the Asian economy, which are projected to supplement the market growth during the forecast period.

Due to an increase in demand for BPM software and services, Europe is projected to rise at a considerable CAGR during the forecast period. BPM software allows companies operating in the region to streamline their business processes so that they can adapt to shifting market conditions. During the forecast era, the Europe area is projected to have a lot of growth opportunities. In the business process management (BPM) Industry, Germany and the United Kingdom have emerged as undisputed leaders.

Strong initiatives for business digitalization across GCC countries are expected to lead to the growth of the market in the region. Additionally, strategic mergers and acquisitions done by the market players are expected to expand the market in the Middle East & Africa.

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The increasing investments in the field of digital transformation in Brazil is expected to boost the growth of the market in Latin America. Overall, the growing necessity to digitize the business processes to achieve business alertness is anticipated to boost the adoption of the BPM platforms across the globe.

KEY INDUSTRY PLAYERS

Emphasis of Key Players Toward Developing Advanced BPM Solutions to Strengthen Competition

Companies operating in the market such as Appian Corporation, IBM Corporation, Kissflow, Laserfiche, Logix, Inc., and Fujitsu Ltd. are integrating BPM solutions with advanced technologies such as AI, ML, and others. ML-based tools enable organizations to smoothen business processes and make smarter business decisions. Also, the high competition in the market is forcing service providers to focus on acquisition strategies for strengthening their positions.

• January 2020 - Appian Corporation and Celonis collaborated to integrate process mining technology of Celonis’ product Intelligent Business Cloud (IBC) with Appian’s low-code automation platform. The collaboration is expected to accelerate digital BPM by offering constant process improvement for joint customers.

LIST OF KEY COMPANIES PROFILED:

• Appian Corporation (Virginia, United States)


• IBM Corporation (New York, United States)


• Kissflow (Chennai, India)


• Laserfiche (California, United States)


• Pegasystems, Inc. (Massachusetts, United States)


• BP Logix, Inc. (California, United States)


• Fujitsu Ltd. (Tokyo, Japan)


• Opentext, Inc. (Waterloo, Canada)


• Infosys Ltd. (Bengaluru, India)


• SourceCode Technology Holdings, Inc. (Washington, United States)


• Nintex Platform (Washington, United States)


• Oracle Corporation (Texas, United States)


• ProcessMaker. (North Carolina, United States)


• Quick Base (Massachusetts, United States)


• Red Hat, Inc. (North Carolina, United States)

KEY INDUSTRY DEVELOPMENTS:

• June 2020 - Pegasystems Inc., a leading business management solution provider, launched Pega Process Fabric, new cloud-based software to drive the work processes across distributed enterprise technologies. With less deployment hassle, the newly launched solution helps enterprises to improve the user experience for customers and partners.


• January 2020 – ProcessMaker, a leading BPM solution provider, launched workflow and BPM solutions for enterprises and businesses. The new solution is a low-code business process management (iBPMs) system that allows developers and IT teams to create workflows that solve complex problems with less technical knowledge.


• December 2019 – Appien, a low code business transformation solution provider, launched low-code application development platform. Appian's new platform version combines advanced AI technologies with a connected systems architecture and DevOps to make developing, deploying, managing, and modifying Appian business management and automation applications easier.

REPORT COVERAGE

An Infographic Representation of Business Process Management (BPM) Market

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The market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, the product Industry, and leading product applications. Besides this, the report offers insights into the key market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the market's growth over recent years

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