Intelligent Process Automation Market Size, Share & Trends Analysis Report By Technology (Computer vision, Machine learning, Natural language processing, Virtual agents, Others), By Applications (Security, IT operation, Application management, Business process automation, Others), By Component (Platform, Solution, Services), By Deployment Mode (On-premise, Cloud), By Vertical (Manufacturing, Retail, BFSI, IT & Telecom, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global intelligent process automation market size was valued at USD 14.4 billion in 2023. It is estimated to reach USD 42.12 billion by 2032, growing at a CAGR of 12.6% during the forecast period (2024–2032). IPA solutions provide businesses with the flexibility to scale operations quickly without the need for significant additional resources. This scalability is crucial for companies aiming to expand their operations efficiently.

Intelligent Process Automation (IPA) represents the integration of artificial intelligence and emerging technologies with robotic process automation. By leveraging advanced technologies such as computer vision, cognitive automation, and machine learning, IPA enables organizations to elevate their processes. This sophisticated approach empowers businesses to make smarter, faster decisions by providing access to a broad range of cutting-edge tools and adaptable procedures.

IPA offers numerous benefits, including enhanced process efficiency, improved customer experiences, optimized back-office operations, increased workforce productivity, reduced costs and risks, innovative product and service development, and effective monitoring and detection of fraudulent activities. This transformative technology is reshaping how businesses operate, driving efficiency and fostering innovation.

Highlights

• Machine Learning dominates the technology segment.
• Business Process Automation dominates the application segment
• Solution dominates the component segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Intelligent Process Automation Market Drivers

Increasing Utilization of RPA

Robotic Process Automation (RPA) technology streamlines enterprise tasks such as data extraction and cleaning by interacting with existing user interfaces, thus minimizing the need for human intervention. RPA boosts efficiency and speed by automating repetitive tasks, such as reentering data between systems, which traditionally require significant manual effort. This sets the stage for Intelligent Process Automation (IPA), which combines RPA with advanced technologies like machine learning, artificial intelligence (AI), and cognitive learning to create a more intelligent and adaptable system.

AI elevates automation by employing neural networks and self-learning algorithms to analyze data, identify patterns, and make informed decisions based on past data models. For example, AI can predict customer behavior by analyzing historical data, which helps in personalizing marketing strategies and improving customer service. As RPA technology scales, the demand for IPA increases due to its ability to integrate these advanced AI capabilities, leading to superior decision-making and automation efficiency.

The IPA workflow encompasses machine learning, cognitive learning, and RPA, providing a comprehensive solution that enhances operational efficiency. By reducing the need for manual data entry, document sorting, and information validation, IPA minimizes the time spent on tasks such as underwriting processes. This results in faster, more accurate outcomes and significant cost savings. For instance, in financial services, IPA can accelerate loan processing by automating data validation and risk assessment, allowing for quicker approvals and reduced operational overhead.

Global Intelligent Process Automation Market Restraint

Lack of Skilled Professional

To effectively implement and manage a recently automated business model, acquiring skilled labor is crucial. Organizations need individuals who possess expertise in Robotic Process Automation (RPA) and artificial intelligence (AI). This includes not only technical skills but also a deep understanding of the organization's operational processes and the management acumen needed to guide the business toward future advancements.

A significant challenge facing the global Intelligent Process Automation (IPA) market is the shortage of qualified professionals. Skilled individuals who can handle the complexities of RPA and AI are in high demand but still less. For example, the integration of AI-driven analytics into business operations requires professionals who can not only manage the technical aspects but also interpret and leverage the data for strategic decision-making.

Global Intelligent Process Automation Market Opportunities

Technological Advancements

The integration of artificial intelligence (AI) into Intelligent Process Automation (IPA) represents a key opportunity for driving market growth. Suppliers are focused on leveraging AI to create digital transformation programs that enhance automation. By incorporating advanced AI-driven decision-making capabilities, learning from historical data, and employing sophisticated analytical techniques, organizations can significantly improve their operational efficiency and strategic planning.

For example, in the European market, the landscape of intelligent automation products and platforms is rapidly evolving. Providers and enterprises are embracing increasingly complex technologies and exploring a diverse array of use cases. One notable advancement is in conversational AI, which has the potential to transform customer and employee interactions. Recent developments in this field promise more lifelike conversational experiences, with virtual bots able to assess and respond to customer sentiment in real-time. This capability not only enhances customer service but also boosts employee productivity by streamlining routine interactions.

Moreover, AI advancements enable predictive analytics that can forecast future trends and scenarios, allowing businesses to proactively address challenges and seize opportunities. For instance, AI-powered tools can analyze vast amounts of data to identify emerging market trends or operational inefficiencies, enabling companies to adapt their strategies and improve their competitive edge.

As technology continues to advance, the global IPA market is expected to grow as businesses increasingly adopt these innovations to drive digital transformation. The ability to leverage AI for more intelligent decision-making, enhanced customer interactions, and predictive insights presents a compelling opportunity for market expansion and competitive advantage.

Regional Analysis

North America Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America holds the largest share of the global Intelligent Process Automation (IPA) market and is expected to experience substantial growth during the forecast period. In the United States, the adoption of process control and automation solutions by corporate entities is driving regional expansion. Key factors contributing to this growth include the widespread adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) across businesses.

Moreover, increased spending on optimizing business operations and the presence of major vendors in the region further stimulate growth. For example, many U.S. corporations, such as IBM and Microsoft, are at the forefront of integrating IPA solutions to enhance their operational efficiency and customer service capabilities. This trend underscores the region's leadership in leveraging cutting-edge technologies for business transformation.

The Asia Pacific region is the fastest-growing IPA market during the forecast period. This rapid growth is driven by several factors, including the increasing adoption of machine learning and advanced analytics, which enable faster decision-making across organizations. Moreover, the rising demand for automated solutions for business continuity planning highlights the region's growing market potential.

For instance, countries like China and India are experiencing a surge in IPA adoption due to their large-scale digital transformation initiatives and a robust push toward automating business processes. China's tech giants, such as Alibaba and Tencent, are heavily investing in IPA technologies to streamline operations and maintain their competitive edge.

Moreover, the Asia Pacific region's significant market potential is evident in its rapid growth rate. The region is recognized as a key player in the international IPA market, with countries such as China expected to demonstrate high market shares. This reflects the region's increasing significance in the global IPA landscape and its ability to attract substantial investments in automation technologies.

Segmental Analysis

The global market is bifurcated into technology, applications, components, deployment modes, and verticals.

Based on technology, the market is segmented into computer vision, machine learning, natural language processing, virtual agents, and others.

Machine learning is a key driver in the technology segment, particularly within Intelligent Process Automation (IPA). Its algorithms excel at processing vast amounts of data, uncovering valuable insights, and automating decision-making processes. This capability allows organizations to boost operational efficiency, refine business processes, and foster innovation. What sets machine learning apart is its ability to continuously evolve and adapt to new data, making it a powerful tool for enhancing automation and streamlining workflows.

Moreover, its dominance in the IPA market is due to its versatility and effectiveness in tackling complex business challenges. From predictive analytics to natural language processing, machine learning can handle a broad array of tasks, enabling businesses to automate diverse processes with improved accuracy, speed, and scalability. This adaptability and range are key to achieving more efficient and impactful automation solutions.

Based on application, the market is segmented into security, IT operation, application management, business process automation, and others.

Business Process Automation (BPA) dominates the application segment of Intelligent Process Automation (IPA). BPA involves automating complex business processes that encompass multiple tasks, systems, and stakeholders. This form of automation is crucial for businesses as it enhances efficiency, reduces costs, and streamlines operations. The dominance of BPA in the IPA market is driven by the widespread adoption of automation technologies across various industries, the integration of advanced artificial intelligence and machine learning algorithms, and the significant benefits these solutions offer organizations.

As industries increasingly recognize the value of automation, the demand for BPA solutions is expected to surge, propelling significant growth in this segment over the next few years. This growth will be fueled by the ongoing need for businesses to optimize operations and maintain competitive advantage through advanced automation capabilities.

Based on components, the market is segmented into platforms, solutions, and services.

Solutions dominate the component segment of Intelligent Process Automation (IPA). Organizations across various industries are increasingly adopting IPA solutions to enhance operational efficiency and minimize human labor. IPA leverages artificial intelligence and emerging technologies like robotic process automation, computer vision, cognitive automation, and machine learning. These solutions incorporate cognitive capabilities that enable systems to learn, interpret, and respond effectively.

IPA solutions provide users with advanced technologies and agile processes, facilitating faster and more informed decision-making. They offer two significant advantages: enhanced cost efficiency and an improved customer experience. According to a survey, many companies experimenting with IPA have achieved remarkable results, automating 50-70% of tasks, leading to 20-35% annual run-rate cost savings. This substantial impact underscores the growing importance and effectiveness of IPA solutions in driving business performance and efficiency.

Based on deployment mode, the market is segmented into on-premises and cloud.

On-premise deployment dominates the deployment mode segment of Intelligent Process Automation (IPA). This approach involves installing hardware and software directly on the client's premises, which, while more expensive than cloud-based models, offers distinct advantages. Traditionally, businesses have implemented IPA solutions through on-premise deployment. Moreover, the on-premise model provides businesses with complete control over their applications, platforms, data, and systems, all managed by internal IT professionals. This control is particularly crucial for businesses requiring stringent user credential management. Governments and industries such as banking, financial services, and insurance (BFSI) prefer on-premise IPA solutions due to the sensitive and confidential nature of the data they handle, which is related to national security and financial operations.

Based on vertical, the market is bifurcated into manufacturing, retail, BFSI, IT and telecom, healthcare, and others.

The BFSI (Banking, Financial Services, and Insurance) vertical dominates the application segment of Intelligent Process Automation (IPA). In this sector, recurring tasks such as data input, compliance policy adherence, installation, and formulation are increasingly automated, leading to faster and more efficient execution. IPA solutions enhance regulatory and compatibility reporting by aggregating data from multiple systems, thereby improving the efficiency and accuracy of various processes.

This consolidated data is then used to perform validation checks and generate detailed analyses. Automation across all banking functions boosts employee productivity, freeing them to focus on higher-value projects and assignments. Banks are leveraging back-office automation to mitigate risks during customer-facing process trials, allowing them to concentrate on specific areas while developing a comprehensive roadmap for IPA implementation.

Impact of covid-19

The impact of COVID-19 has had a devastating effect on all industry verticals globally. However, the growth of cloud storage has slightly increased amidst the pandemic due to lockdown imposed by the governments and work-from-home implemented by corporates. This has resulted in the adoption of cloud storage to store large documents and share files, among others. Furthermore, the high-security offering of cloud services is also one of the factors leading to the adoption of cloud storage amidst the pandemic.   

Recent Developments

• June 2024 - Leading provider of process intelligence and automation, Nintex, unveiled new AI-driven enhancements to the Nintex Process Platform that drastically cut down on the time needed for business process management, automation, and documentation. The additional features enhance the Nintex Process Platform's expanding spectrum of AI capabilities.