Service Delivery Automation Market Size, Share & Trends Analysis Report By Component (Software, Services), By Type (IT Process Automation, Business Process Automation), By User Type (Large Enterprises, Small and Medium Enterprises), By Industry Vertical (BFSI, Healthcare, Travel, Hospitality and Leisure, IT and Telecom, Manufacturing, Transport and Logistics, Retail, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global Service Delivery Automation Market size was valued at USD 6.43 Billion in 2022. It is estimated to reach USD 50.01 Billion by 2031, growing at a CAGR of 26.43% during the forecast period (2023–2031).The increased adoption of a digital workforce and the practical benefits of automation solutions for business process automation across various end-user sectors drive the service delivery automation market growth.

Service Delivery Automation (SDA) is a technology-driven methodology that automates various jobs and processes across several industries through Software and machine learning. Businesses may provide services more quickly with this strategy, increasing efficiency and lowering error rates.

The Service Delivery Automation Market share is expected to rise due to the increasing use of digital workforces and the growing functional benefits of automation services for business process automation across various end-user sectors. As new and improved technologies are incorporated into various service delivery automation categories, the market will grow due to artificial intelligence advancements. However, some small and medium-sized businesses cannot employ service delivery automation due to the high initial setup and integration costs.

Market Dynamics

Global service delivery automation market drivers:

Improved productivity and efficiency

SDA increases productivity by streamlining workflows and freeing staff members to concentrate on more strategic and value-added duties. Organizations widely use SDA to improve the efficiency of their IT helpdesk operations. Automating software installation, password reset, and user account provisioning is possible. Employee productivity increases, and problem-resolution times are shortened as a result. For example, with automation, a password reset that would have taken 20 minutes with human participation may be completed in seconds. A Deloitte analysis claims that productivity can rise by 20–25% when used by SDA and robotic process automation (RPA). Employees can concentrate on higher-value work since they can finish tasks faster.

On the other hand, SDA is utilized in the e-commerce industry to control the volume of incoming online orders. Order fulfillment times are shortened through automated order processing, inventory control, and shipping label creation. This increases productivity and enables e-commerce companies to handle larger order quantities, particularly during busy times of the year. The International Data Corporation (IDC) projects that worldwide expenditure on artificial intelligence (AI) in 2023 would amount to $154 billion, encompassing Software, hardware, and services for AI-centric systems 1. Compared to the amount spent in 2022, this indicates a 26.9% rise. The Service Delivery Automation Market trend is anticipated to have a favorable view as long as businesses are looking for ways to streamline their operations and use their resources more effectively.

Global service delivery automation market restraints:

High initial costs

SDA solution implementation can be costly, particularly in intricate and expansive settings. Businesses must invest in Software, hardware, and training, which can be prohibitive for smaller companies. Large companies can incur significant upfront expenditures when deploying SDA solutions across numerous departments and operations. For example, a multinational company wishing to automate finance, human resources, and customer service operations could have to spend money on physical infrastructure, software licenses, and thorough personnel training.

A Deloitte study found that although SDA can significantly reduce costs, many SMEs may find the initial outlay prohibitive. Before committing to SDA, these companies should carefully evaluate the return on investment (ROI). Furthermore, according to statistics from The International Data Corporation (IDC), businesses operating in regulated sectors could have to set aside a sizeable amount of their SDA budget to maintain compliance. A significant percentage of the early implementation costs may be attributed to compliance-related charges. Furthermore, there may be additional expenses for organizations that want to use advanced SDA features like natural language processing and cognitive automation. For instance, a financial institution may need to invest in state-of-the-art AI and machine learning technologies to construct an SDA system that can handle sophisticated data processing and reporting.

Global service delivery automation market opportunity:

Expanding application in healthcare industry

The healthcare business is transitioning digitally, and SDA offers enormous automation prospects. With increased demand for healthcare services, there is a greater need to reduce administrative chores, manage patient data efficiently, and improve the patient experience. SDA can play an important role in meeting these demands. Healthcare organizations can use SDA to automate claims processing and medical invoicing. Healthcare providers can shorten the revenue cycle and eliminate errors by automating the validation of insurance information, medical operations coding, and claims submission to insurance carriers. According to research by the Healthcare Financial Management Association (HFMA), automation in claims processing can cut costs by up to 40% while shortening the time required for reimbursement.

Furthermore, SDA-powered chatbots and virtual health assistants can provide automated responses to patient inquiries, help with appointment scheduling, and provide information on prevalent health conditions. Patient engagement and access to healthcare services are improved due to this automation. The SDA market can play a critical role in improving the quality and accessibility of healthcare services as the healthcare industry continues to digitize and embrace automation.

Regional Analysis

Asia-pacific dominates the global market

The global service delivery automation market analysis is conducted in north america, europe, asia-pacific, the middle east and africa, and latin america.

Asia-Pacific is the most significant global Service Delivery Automation market shareholder. The Asia-Pacific manufacturing industry is currently experiencing a move toward Industry 4.0 and a surge in digital technology usage, which is expected to result in significant growth in the use of Service Delivery Automation, further boosting market expansion. According to the NDRC (National Development and Reform Commission), China's investment in advanced manufacturing increased from January to August 2020. 

Furthermore, the rapid adoption of digital technology and the shift to Industry 4.0 are now impacting the Asian manufacturing industry. Several robot manufacturers are developing leasing models to expedite the adoption of the robot by small- to medium-sized firms. The growing need to automate accounting and process management drives automation growth in India. India's BFSI, telecom, and healthcare industries were among the first to adopt automation technologies. Automation is a big improvement in the banking industry. It has become a critical technological innovation with implications for the financial industry. Portions banks in the country have already automated portions of their banking procedures.

North America is anticipated to exhibit impressive healthy CAGR over the forecast period. According to the North America service delivery automation market insights, the market is a dynamic environment comprised of many businesses and sectors. This region frequently uses SDA solutions to streamline operations, improve client experiences, and boost efficiency.

Additionally, the North American telecom business is constantly bombarded with customer requests ranging from service activation and billing questions to technical help. Telecom firms use SDA in the form of chatbots and virtual assistants to manage these client contacts more efficiently. Bank of America unveiled Erica, a virtual assistant that utilizes SDA and artificial intelligence to deliver financial advice, track expenditures, and establish financial objectives for customers. According to Deloitte's banking industry outlook, SDA use in the banking sector will likely expand. The market continues to change and expand as firms in the region recognize the benefits of SDA in terms of cost savings, operational efficiency, and customer satisfaction.

The European SDA market exhibits a dedication to innovation and efficiency across various businesses and sectors. SDA solutions are tailored to specific regional and industry needs, highlighting the region's significance in the global SDA scene. The United Kingdom's National Health Service (NHS), a major healthcare provider in Europe, is experiencing a digital transformation involving automation technologies. This is consistent with the European healthcare sector's commitment to digital transformation, as stated by the European Commission in its eHealth Action Plan.

Segmental Analysis

The global service delivery automation market is segmented based on component, user type, industry verticals, and region.

Based on components, the market is sub-segmented into software and services.

Software holds the major share of the market.

Software

This subsegment covers SDA software solutions and platforms businesses use to automate numerous tasks and procedures. Workflow automation tools, robotic process automation (RPA) software, cognitive automation platforms, and other automation technologies are common components of SDA software. The core technology that drives automation in businesses is SDA software. It offers the automation capabilities required to streamline and optimize company processes.

Services

The services sub-segment includes SDA vendors' and consulting firms' support, implementation, consulting, and maintenance services. These services are intended to assist enterprises in efficiently adopting and using SDA solutions.

Type is further segmented into IT Process Automation and Business Process Automation.

It process automation is a significant contributor to the market.

IT Process Automation

The automation of tasks and processes within the Information Technology (IT) area is called IT Process Automation. This comprises typical IT operations, including software provisioning, system monitoring, server upkeep, and incident response. IT Process Automation attempts to improve the productivity and reliability of IT systems by streamlining IT operations, reducing manual interventions, and streamlining IT processes. Furthermore, IT Process Automation is crucial for optimizing IT workflows, boosting service quality, and assuring the seamless operation of IT infrastructure. It makes it easier for IT staff to manage difficult and repetitive activities.

Business Process Automation

Business Process Automation focuses on automating various non-IT business operations throughout an organization's departments. This involves automating tasks in finance, human resources, customer support, sales, and other areas. Business process automation aims to improve operational efficiency, eliminate errors, and accelerate business operations.

The market is sub-segmented by user type into large enterprises, small and medium enterprises.

Small and medium enterprises influenced the market growth.

Small and Medium Enterprises

SMEs are smaller organizations with a smaller workforce, revenue, and operational size. These companies may operate on a regional or niche market level. Small and medium-sized enterprises (SMEs) are distinguished by their capacity to react swiftly to market changes and their emphasis on cost-effective operations. Small and medium-sized firms (SMEs) frequently strive to compete with larger enterprises by embracing automation and technology to simplify operations, decrease overhead, and improve customer service. SDA solutions for SMEs are typically intended to be affordable and scalable.

Large Enterprises

Large firms are major industry participants known for their ability to invest in new technology and automation solutions. SDA may entail automating complex and diversified business processes for large businesses to maximize efficiency and agility.

Industry verticals can further bifurcate the segment into BFSI, Healthcare, Travel/Hospitality/Leisure, IT/Telecom, Manufacturing, Transport/Logistics, and Retail.

Retail accounts for the largest share of the market.

Retail

Retail encompasses enterprises that sell consumer items in both physical locations and online. Inventory management, order processing, customer inquiries, and supply chain coordination can all be automated with SDA in retail. With projected delivery times decreasing and orders increasing, automating the retail process may result in lower costs and faster order processing. 

BFSI

Banks, financial institutions, insurance firms, and related service providers are all part of the BFSI sector. Customer onboarding, claims processing, risk assessment, fraud detection, and compliance are all activities that can be automated in this industry.

Recent Developments

• October 2023- Xerox announced that its production data automation service, Xerox® FreeFlow® Vision, will be showcased at PRINTING United Expo 2023.
• October 2023- EY and IBM introduced an AI-powered solution designed to drive human resources efficiencies and increase productivity.