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The global robotic process automation (RPA) market size was USD 1.29 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with robotic process automation witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 21.3% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 1.61 billion in 2021 to USD 7.64 billion in 2028 at a CAGR of 25.0% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
RPA is emerging as a disrupting technology across industries and geographies with the capabilities of performing immense amounts of operations in desktop and cloud environments. It further unlocks greater return on investment by enabling incremental revenue opportunities, easing digital transformation, and freeing resources to emphasize process improvements. Advancements in artificial intelligence (AI) and machine learning (ML) have enabled automation to witness a surge in its growth and application. For instance, in November 2018, Kryon Systems collaborated with the Institute for RPA and Artificial Intelligence (IRPA AI), to offer consulting services on assembling the technologies together for corporate executives.
Deploying RPA to Reduce COVID-19 Impact on Businesses to Propel Demand
The widespread lockdown is impacting businesses as physical stores and branches are shutting down. To continue the business, companies are greatly relying on the digital medium to automate both back-end and front-end processes. The demand for advanced software for automating the process is growing to transform their engagements with employees, suppliers, customers, and other stakeholders. The adoption of this automation software is expected to mitigate the impact of the pandemic across businesses. As this type of process automation allows quick automation of processes in less time, it is considered as one of the finest software to boost work from home and remote location productivity.
Certain sectors such as retail, hospitality, and manufacturing are the hardest hit by the pandemic. These sectors are seeking new technologies to understand customer behavior and are also looking for new models for engaging them. For instance, the UiPath and Automation Anywhere witnessed a massive rise in the demand for RPA solutions during the pandemic from various industries. Companies also observed new automation use cases across industries. For instance, wide-scale cross and inter-country flight cancellation demanded more automation solutions for assisting customer support services. In August 2020, Air Asia airlines deployed RPA to review and manage the workflow and process amid the COVID-19 pandemic. The software benefits are expected to improve business situations and help companies to overcome the economic recession.
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Rising Number of COVID-19 Cases to Increase the Demand for RPA in Healthcare Sector
To tackle the rapidly growing COVID-19 cases, the need for more testing and registration has surged. As the human handling of the registration process is time-consuming and more prone to errors, hospitals have started deploying robotic process automation for front desk operations such as registering cases, tracking health records, and maintaining the status of the treatment, among others. As per the ‘Annals of Internal Medicine 2020’ report, in the United States, 32% of healthcare providers are spending on advanced solutions to manage administrative services and costs.
RPA bots automatically schedule the patients’ requests for appointments, thereby offering a 24/7 booking service for patients. These bots further assist in handling the increased volume of medical supplies while avoiding delays or stock-outs in critical supplies and easing the strain on procurement teams. For instance,
Thus, the RPA industry is expected to experience positive growth in the forthcoming years.
Increasing Adoption of Advanced Technologies to Surge Demand for RPA Solutions
Robotic process automation is in demand by organizations to handle complex unstructured information and automate any business functionality from end-to-end. Companies are combining artificial intelligence as well as cognitive technologies with RPA to extend the horizons of business process automation. These tools automatically observe work activities, recognize optimal workflows, and suggest an automation path to businesses. For instance, in May 2020, AntWork launched ANTstein, an AI, RPA, and machine learning integrated platform. This intelligent automation offers maximum bot utilization, insights into all types of data, data curation, and building.
Robotic process automation combined with artificial intelligence can provide access to unstructured information such as audio, video, and human chat conversation to make end-to-end automation possible. Furthermore, the rising deployment of PaaS, IaaS, and SaaS offerings for cloud computing, customer relationship management, cooperative robot learning, resource management, and network connectivity, among others, is expected to boost this market.
Infrastructure and Customization Issues Associated with RPA to Impede Market Growth
With the deployment of an RPA solution, a company needs to invest in reliable infrastructure and a professional team to look after all the processes. Setting up infrastructure, hiring professionals or training existing employees, and installing thousands of bots is difficult, complex, and expensive.
The platform on which robotic process automation bots often work changes, and the required flexibility isn’t always configured into bots. As per the 2017 PWC report, only 15% of businesses considered themselves mature enough to use RPA. Therefore, many organizations avoid deploying this technology for their businesses. Additionally, it is a tool that requires a unique identity and the latest technology. Hence, it is difficult to implement customization as per the company’s constantly changing requirements. This is expected to hinder the growth of the global market during the forecast period.
Lower Deployment and Operational Cost to Boost Growth of Cloud-based Segment
The deployment criterion is categorized into on-premises and cloud. The on-premises segment is expected to lead the market owing to its in-house ownership. However, the cloud segment is expected to be the fastest-growing segment in the forthcoming years owing to benefits such as lower infrastructure cost, ease of deployment, and minimum upgrade, along with reduced operational cost. Organizations are inclining towards cloud-based solutions to gain flexibility in scaling the business operations. For instance, in May 2020, Automation Anywhere launched Robotic process automation SaaS for its web-based and cloud-based workforce platform. This platform offers flexibility in adopting a return-to-office or remote work environment.
Ability to Perform Repetitive Task without Human Intervention to Drive Rule-based Segment
The operation criterion is bifurcated into rule-based and knowledge-based. The rule-based segment held the largest market share as it efficiently performs repetitive tasks within the workflow and process-related applications with less or no human resources intervention. For instance, to date, UiPath has completed the automation process for 65% of the Fortune 500 for millions of repetitive tasks. The knowledge-based segment is anticipated to grow with the highest CAGR during the forecast period. Currently, the adoption of this operation is low compared to rule-based. However, it is likely to experience a high adoption after the integration of this type of automation with cognitive technologies.
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Capability to Automate Administration and Finance Department Work to Boost Administration and Reporting Segment
The application criterion is segmented into administration and reporting, customer support, data migration & capture extraction, analysis, and others. The administration and reporting segment captured the maximum share as the RPA software can quickly and efficiently automate most of the work of the administration and finance department. Hence, it is capable of freeing up the team to focus on adding value and support business growth. At the same time, the analysis segment is expected to exhibit the highest CAGR during the forecast period as it helps companies to analyze operations, namely, service trends, invoices, reports, and other day-to-day work.
Businesses are adopting RPA for customer support applications such as updating client profiles, resolving customer disputes, sending shipping, and other related notifications. Likewise, in data migration & capture extraction, it fulfills the demand from customers for instant and fast solutions to their queries. It extracts the essential data that is required for handling queries from the database with less time. This reduces the time required to solve customer queries that create a good impression on them.
BFSI Segment to Show Highest Share Owing to Rising Use of RPA for Regulatory Reporting and Balance Sheet Reconciliation
The industry criterion is categorized into retail, manufacturing and logistics industry, BFSI, healthcare, IT and telecom, hospitality, and others. The BFSI segment holds the largest market share as RPA is deployed by banking and insurance companies for regulatory reporting and balance sheet reconciliation. This tool also helps financial services companies to monitor and control various interfaces and ensures seamless execution of transactions. For instance, in April 2020, the Banks of the United States deployed the UiPath software robot to deal with loan applications from small and medium businesses (SMB) across the country.
The healthcare segment is anticipated to showcase the highest CAGR in the forthcoming years. This is ascribable to factors such as the rising focus of healthcare departments on utilizing this tool to implement accurate and fast automation processes, such as clinical data interoperability, admissions and discharge, and health plans. Similarly, the growing digital transformation in the IT and telecom industry is likely to drive the demand for the software during the forecast period. Also, the manufacturing and logistic industry are set to grow in the near future owing to the rising data complexity.
North America Robotic Process Automation Market Size, 2020 (USD Million)
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Geographically, the market is fragmented into five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.
North America accounts for the major robotic process automation market share owing to the growing adoption of automation and process management solutions by large as well as small and medium enterprises. Additionally, the U.S. government encourages all the other agencies to deploy automation solutions to smoothen their work processes. This is expected to foster the growth of the global market in the region.
Asia Pacific is anticipated to be the fastest-growing region during the robotic process automation market forecast period. This is attributable to the rising demand for automation from every industry present in the region. Furthermore, the surging adoption of Industry 4.0 in industrial applications is anticipated to bolster the market growth in the region. China and Japan are expected to dominate with the maximum market share, whereas India is likely to exhibit rapid growth in the upcoming years. The growing digital transformation across industries in India is driving the demand for this software solution. For instance, India’s leading bank, ICICI, is one of the early adopters of RPA solutions for automating customer email response, IT support, and portability of accounts.
The demand for these tools from European countries such as the U.K. and Germany is high. Manufacturing companies in these countries have been quick to adopt these solutions as they enable them to implement automation with small-scale projects and then gradually scale up through their operations. Similarly, with the growing adoption of advanced technologies, the industries in South America are focusing on automating their business processes.
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The Middle East and African countries are slow in the adoption of RPA, compared to other regions, mainly due to limited industrial investments. However, according to the Middle Eastern RPA and Automation Forum, industries in this region are planning to invest in automation technology to attain cost reductions and enhance the efficiency of processes. Considering the growing demand, various prominent companies are entering into the MEA robotic process automation industry. For instance, in May 2019, UiPath announced the strategic partnership with Qatar’s Mannai Trading Co. WLL to drive the adoption of these solutions.
Key Companies Are Collaborating with Cognitive Technology Providers to Offer Advanced Automation Solutions
The global market is highly competitive and is characterized by the presence of a large number of small and big vendors. The main aim of these companies is to provide diverse solutions catering to the needs of each client. Key players are further expanding their operations by collaborating with cognitive technology providers and offering new solutions and services to their customers.
November 2020 – Pegasystems, Inc. announced the launch of Pega RPA Auto-balancing for empowering digital transformation. The new solution uses artificial intelligence (AI) for optimizing the bot’s workload management without human intervention.
December 2019 – Kryon Systems collaborated with Naviant, a content service company, to offer intelligent RPA. The company’s software manages and automates Naviant’s partner Hyland solutions to offer enhanced customer services.
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The market research report offers qualitative and quantitative insights on this market and a detailed analysis of the size & growth rate for all possible segments in the market. Along with this, it provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape. Key insights offered in the report are the adoption of automation by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.
Value (USD billion)
Deployment; Operation; Application; Industry; and Geography
As per Fortune Business Insights, the global market is predicted to reach USD 7.64 billion by 2028.
In 2020, the market value stood at USD 1.29 billion.
The market is projected to grow at a CAGR of 25.0% during the forecast period (2021-2028).
By application, the analysis segment is expected to show the highest CAGR during the forecast period.
North America dominated the market in terms of share owing to the growing adoption of automation and process management solutions by large, small, and medium enterprises.
By industry, the BFSI segment leads the market owing to the rising use of RPA for regulatory reporting and balance sheet reconciliation.
Infrastructure and customization issue associated with RPA is restraining the growth of the market.
The increasing adoption of advanced technologies is the key factor driving the growth of the market.
Some of the top players in the market are Uipath SRL, Blue Prism PLC, Automation Anywhere, Nice Systems Ltd., and Kofax, Inc.
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