Robotic Process Automation Market

Market Overview

The global robotic process automation market size was valued at USD 2097 million in 2021 and is expected to grow at a CAGR of 33.15% from 2022 to 2030 and reach around USD 27585 million.

Data manipulation, the triggering of responses, and communication with other digital systems are examples of robotic process automation. Robotic process automation is the application of technology to configure computer software or a robot to capture and interpret existing applications for rule-based processing of transactions.

The application of intelligent software to carry out high-volume and repetitive tasks that typically take a lot of time for humans to accomplish and which are typically monotonous to perform is the focus of robotic process automation. This market sector deals with applying smart software to carry out these types of tasks. Outsourcing of business functions like contact centres, banking, financial services and insurance, business process outsourcing, procurement outsourcing, and human resource outsourcing are all seeing significant expansion.

Since it can perform various tasks, such as opening and closing accounts, completing requests for quotations and proposals, testing and monitoring IT systems, and handling queries in the billing and customer service departments, there is an enormous market potential for robotic process automation across various business verticals. Robotic process automation is highly beneficial in healthcare, business process outsourcing, banking, and insurance sectors because these sectors adhere to predefined, rule-based, and repetitive processes. The implementation of robotic process automation in a variety of business processes has led to the formation of additional strategic partnerships between vendors of robotic process automation market tools and BPO and other service providers.

Market Dynamics

Robotic Process Automation Market Drivers

The adoption of cognitive technologies within the sector will be the primary factor in market growth

Even though cognitive computing, also known as artificial intelligence (AI), has been around for quite some time, the recent level of interest in it has been astounding. Cognitive technologies present the opportunity for increased productivity, improved knowledge-based interactions with customers, and the capability of finding solutions to problems that are too complex for human brains to handle on their own. Even though there have been several "AI winters" and "AI springs" over the past fifty years, there is good reason to believe that the flowering of this AI spring is irreversibly changing the garden.

However, for organizations to derive value from this impressive collection of technologies, they need to move quickly from the interest stage to the adoption stage. In many instances, the technology is already ready for immediate use, and many well-established businesses are moving forward with production application development. The current term for artificial intelligence is "cognitive technology," which suggests an ability to perceive and learn that is comparable to humans and, in some cases, even exceeds it. Cognitive computing is probably the most exciting new technology to emerge in recent years on both the provider and the user sides of the information technology industry. It is well on its way to becoming the most influential piece of technology since the Internet experienced explosive growth around the turn of the previous century.

The assimilation of robotic process automation into more conventional business process industries will be the driving force behind the market expansion

The introduction of automation in today's businesses has resulted in significant changes. In addition, the possibility of implementing robotic automation in business processes has been gaining more attention due to the challenges that companies face in a digital world, which requires error-free operations. Businesses are automating knowledge-based, professional service processes that do not require the involvement of humans by utilizing a solution known as Robotic Process Automation. Concurrently, it performs the function of an essential activist to the conventional understanding of labour arbitrage. The RPA services offer data security, improved business efficiency and effectiveness across various business applications, and all of this is accomplished without modifying existing systems and infrastructure. Robotic process automation is a type of technology that has applications in various fields, including machine learning, automation engineering, and artificial intelligence. It is possible to think of this process as having a low risk because it involves performing business tasks in an automated manner rather than utilizing the most valuable human resources on repeated tasks over time.

Robotic Process Automation Market Restraints

Shortage of skilled workers

It is challenging to find qualified workers in the manufacturing, construction, and transportation industries, which is a problem that can prevent new growth and expose employers to greater risk.

The expansion of technological capabilities within traditionally employed sectors is one of the primary reasons for the skilled labour shortage. The machinery and different types of equipment used today are significantly more technologically advanced than in the past; however, the retraining of an ageing demographic of existing skilled trades employees has not kept pace with these technological advancements. A lack of skilled workers can have detrimental effects on businesses that are far-reaching and negative. A shortage of skilled workers can hamper the growth of an organization. When employees lack the necessary skills, the quality of their work can suffer. Because of this, the cost of redoing faulty workmanship or paying for damages to third parties due to negligence on the part of an employee who is not well-trained or skilled may increase.

Robotic Process Automation Market Opportunities

The shift from traditionally implemented solutions to cloud-based solutions will result in lucrative new opportunities in the market

It is anticipated that the trend of the shift toward cloud-based solutions and the increasing adoption of robot-based solutions across a wide range of end-user industries will create new opportunities for the establishment of robotic process automation market on a global scale. Implementing software robots for managing routine work carried out by temporary or seasonal staff or for staff bursts required by regulatory spikes, new product launches, or the introduction of some new operation is further creating possibilities in the market. These staff bursts may be required because of some new operations.

Regional Analysis

North America already accounts for the largest share and is expected to expand at a CAGR of 32.85% from 2022 to 2030 and reach around USD 9067 million. The high penetration rate of automation and process management solutions among government agencies and enterprises in the region lends credence to this estimate. The implementation of robotic process automation by small and medium-sized enterprises in North America as a result of rising awareness regarding the enhancement of various business functions, such as data entry, accounting and finance, procurement detail, record keeping, and several other HR-related functions, is contributing to the expansion of the market.

Europe has the second-highest market and is expected to expand at a CAGR of 32.05% from 2022 to 2030. Due to an increase in the number of businesses in the healthcare, pharmaceutical, information technology and telecommunications, manufacturing, and retail sectors adopting robotic process automation solutions and services.

APAC has been the fastest-growing region globally and is expected to expand at a CAGR of 32.85% from 2022 to 2030. Additionally, increasing automation demand in the Business Process Outsourcing sector and increasing knowledge of automation among various industries and SMEs are factors impacting the region's favorable market growth.

Segmental Analysis

The market for robotic process automation has been segmented into several submarkets based on type, service, deployment, organization, and application.

By Type

On that basis, the market is segmented into software and service. In this, the service segment is having highest share in the market. It is expected to expand at a CAGR of 32.05% from 2022 to 2030 and reach around USD 16,338 million due to the increasing demand for tool-based robotic process automation. This can be attributed to the structured data format that is utilized in a variety of organizations.

By Service

Currently, the market is segmented into consulting, implementing, and training. In this, the consulting segment is having highest share in the market. Because the records of the business processes are kept using these formats, they are easily recognizable by the market. This allows the market to develop suitable business processes while reducing the time and effort required by humans.

By Deployment

On that basis, the market is segmented into cloud and on-premise. In this, the on-premise segment has the highest market share and is expected to expand at a CAGR of 30.04% from 2022 to 2030. It has seen widespread deployment in various business settings due to the solution's high degree of flexibility and scalability, as well as the increased demand for data processing and workflow management. The presence of an automated solution suitable for massive data management implementation is one of the primary factors contributing to the expansion of the robotic process automation market.

By Organization

On that basis, the market is segmented into Large Enterprises, Small & Medium Enterprises. In this, the Large Enterprises segment has the highest share in the market and is expected to expand at a CAGR of 31.85% from 2022 to 2030. Because Large enterprises are multiplying in the market, requiring more workforce and technology. Their dependency is increasing on technical tools and machines. They are expanding their products and services, so they are rapidly adapting the (RPA) to enhance their industry performance.

By Application

On that basis, the market is segmented into BFSI, Pharma & Healthcare, Retail & Consumer Goods, Information Technology (IT) & Telecom, Communication and Media & Education, Manufacturing, Logistics and Energy & Utilities, and Others. In this, the BFSI segment has the highest share in the market and is expected to expand at a CAGR of 32.75% from 2022 to 2030 and reach around USD 7003 million. Because of the expansion of the banking, financial services, and insurance industry, the robotic process automation market for robotic process automation (RPA) held the largest market share.

This allows the market to develop suitable business processes while reducing the amount of time and effort required by humans. Interfaces are used to connect several different computer systems in the BFSI sector so that transaction-related data can flow more easily between them. These interfaces are controlled and monitored by robotic process automation, ensuring the execution of transactions seamlessly and filling data gaps.

Recent Developments

• In May 2022, Pega Paves Path to Seamless Self-Service Experiences with New Embedded Workflow Integrations.