Workflow Automation Market

Market Overview

The global workflow automation market size was valued at USD 16.41 billion in 2021. It is expected to reach USD 34.4 billion by 2030, growing at a CAGR of 9.71% during the forecast period (2022–2030).

Workflow automation is a strategy for enabling the independent performance of tasks, documents, and information across work-related activities in compliance with established business standards. Workflow automation is the development of automated operations for the steps in a business process. It is used to enhance routine business operations. Businesses that automate workflows are more productive, spend less time and money, and make fewer mistakes. Enterprises can gain from workflow automation in several ways, including improved management, streamlined communication, more responsibility, lower costs and mistake rates, increased workplace productivity, and the flexibility for individuals to manage their own time.

Organizations will shift toward more extensive workflow automation across IT and business operations in the upcoming years. The integration of newly developed technology into workflow automation and the growing need for workflow automation in the logistics industry will drive the market during the forecast period. In addition, the market is anticipated to develop in the upcoming years due to the increasing emphasis on workflow automation solutions for simple corporate operations and process simplification. Additionally, a cost-effective workflow automation system is expected to grow the market during the anticipated period.

Market Dynamics

Global Workflow Automation Market Driver

Implementation of IoT Services Across Organizations

IoT adoption is primarily driven by the proliferation of new applications and business models and the steadily declining prices of associated devices. Thus, there is an expansion in the number of connected devices (connected cars, machines, meters, wearable, and consumer electronics). The widespread adoption of Industry 4.0 standards in the manufacturing industry resulted in the creation of a new generation of process automation. Currently, process automation is replacing traditional SOPs. As a result of the rising acceptance of mobility and BYOD rules, almost everything in the world is now connected to networks, including sensors and machinery in industrial environments as well as automobiles and kitchen appliances.

IoT connectivity is starting to use system-level data analysis to supply a new degree of intelligence for buildings. It is widely utilized by businesses that offer fault detection, diagnostics, and energy services. Additionally, AI algorithms that have insight into building data can handle more complex issues than many sophisticated systems in more significant organizational buildings have. The Flowfinity M1 is an industrial IoT controller released in 2021 by Flowfinity Wireless Inc., a leading no-code platform for business process automation. It is pre-configured to interact with the company's Flowfinity Actions mobile data gathering and workflow automation platform. The industry's increased emphasis on building a connected ecosystem and the standardization of 3GPP cellular IoT technologies are the driving forces behind such significant advances.

Global Workflow Automation Market Restraint

Data Security

Contrary to new technology implementations, workflow automation can increase cyberattacks' danger against non-human and human accounts. Process automation security is therefore essential. RPA (robotic process automation) bots frequently move sensitive data between systems while working with confidential data. Without protection, data can be exploited, costing firms millions of dollars. The two main risks connected with process automation are data loss and theft. If suitable security standards are not created, sensitive data, such as customer data or RPA bot passwords processed by RPA, may be made available to attackers.

Additionally, greater connection affects hackers as well. Although many businesses have taken steps to secure their IT, their operational technology systems are still not sufficiently secure, serving as an easy backdoor for hackers. As a result, the widespread adoption of workflow automation systems is constrained.

Global Workflow Automation Market Opportunities

Advent of Newer Technologies

Artificial intelligence and emerging technologies, like computer vision, cognitive automation, and machine learning, are more widely used in robotic process automation. This fusion of technology creates automation capabilities that significantly increase corporate value and provide companies with a competitive edge. Organizations' growing need for workflow software is spurring quick investments in creating increasingly complex and compelling software, opening up profitable prospects.

By the end of 2021, 580 million 5G subscriptions were forecasted by Ericsson's Mobility report. By 2026, there may be 3.5 billion 5G subscriptions, which could fuel the development of IoT devices. In 2026, it is predicted that North America will account for 84% of all 5G subscriptions, making it the region with the most significant percentage. The proliferation of cellular technologies like NB-IoT and Cat-M1 and the decline in chipset costs are expected to be attributed to a large portion of this IoT boom. The usage of workflow automation would increase with such growth in the field.

Regional Analysis

Asia-Pacific Surpasses the Rest of the World

By region, the global workflow automation market comprises North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific will command the leading market position, expanding at a CAGR of 10.92% over the forecast period. China is a technologically well-established country in the region. Due to the market's escalating rivalry, many Chinese industries have improved workflow through a digital transformation. For instance, Dongfeng Nissan started its digital transformation initiative to boost productivity and shorten the time it took to introduce a new line of automobiles. The organization launched its digital transformation strategy to encourage improved data utilization, enhance current workflows, streamline internal business processes, and foster general efficiency. The corporation used UiPath robotic process automation (RPA) software as part of the program to automate routine digital processes.

Automation is one of the most critical aspects of the future of work strategy, and Japan is leading the world in AI innovation. The Nomura Research Institute predicts that by 2035, the country's AI industry will make significant strides. India's economic growth has been significantly influenced by automation. Through the application of technology and innovation, the nation is currently experiencing a transformation in most sectors. According to the National Strategy for Artificial Intelligence (NSAI), by 2035, AI is expected to increase India's yearly growth rate by 1.3%. Southeast Asian businesses are embracing new technology and training staff for an AI-centered future. Digitalization would boost the region's potential for global expansion, assist a successful technology and knowledge transfer, and help local businesses form globally competitive partnerships.

North America will likely grow at a CAGR of 9.2%, accounting for USD 10 billion by 2030. With the United States retaining a dominating position in the region, the North American region is anticipated to play a significant part in the market. The North American market segment is expected to develop due to the high availability of suitable infrastructure, the presence of major international financial institutions, and the rising acceptance of the cloud platform. Additionally, the region is anticipated to experience tremendous growth due to the spread of digital services, technological advancements, and early industry acceptance of the newest technology. The BFSI is turning more of its attention in the region toward process automation. For instance, Bank of America used automated robotic process technologies to serve its clients better and secure the bank. The market for workflow automation is also experiencing demand in the region from the energy and utility industry.

Segmental Analysis

The global workflow automation market is classified based on deployment, solution, end-user, and region.

By deployment, the global workflow automation market includes On-premise and Cloud.

The Cloud section is projected to advance at a CAGR of 10.5% and hold the largest market share over the forecast period. The cloud has unquestionably transformed how businesses function and facilitated the change by allowing organizations to use more complex applications and exchange information globally. The growing requirement is driving the demand for cloud-based workflow solutions among businesses to capture data and manipulate applications. Workflow solutions are being deployed in the cloud for various reasons, including their simplicity of use, fewer infrastructure expenses, and lower installation and maintenance costs. Such an adoption strategy helps SMEs save costs and replicates the advantages enjoyed by corporations.

The On-premise section will hold the second-largest share. A system for automated workflow installed on-premises offers enterprises greater data control. Compared to cloud deployments, these systems provide substantially better automation capability. For deploying on-premise systems, staff members must have the required experience and access to enough resources. Due to the advantages of understanding, triggering reactions, and interacting with other systems to execute a wide variety of repetitive tasks by implementing software on-premise, on-premise automation solutions may continue to play a significant role in an enterprise's business process.

By solution, the global workflow automation market includes Software and Service.

The Service section is projected to advance at a CAGR of 10.88% and hold the largest market share over the forecast period. Players in the market are planning a roadmap for the automation rollout once productivity is maximized and assisting end users in understanding and identifying activities that need automation as part of advisory services. Additionally, automation support offers bot management, failure and catastrophe recovery, risk management, administrative management, and opportunity discovery. The complexity of software is rising as developers try to give new solutions constantly. Finding, improving, and prioritizing equipment control procedures across various end-user sectors can be complicated. This rising complexity would fuel demand for maintenance services during the projected period.

The Software section will hold the second-largest market share. Organizations' increasing need for workflow software prompts a surge in funding for creating increasingly advanced and effective software. The growth of data analytics software for process and workflow automation is fueled by significant expenditures in creating reporting-based software and data analytics. For instance, Seeq Corporation, a US-based developer of advanced analytics software, introduced R52 in 2021, which supports machine learning innovation in manufacturing workflow and process companies.

By end-user, the global workflow automation market includes Banking, Telecom, Retail, Manufacturing & Logistics, Energy & Utilities, and Others.

The Telecom section is projected to advance at a CAGR of 9.92% and hold the largest market share over the forecast period. Due to the growing adoption of edge computing, 5G, and the Internet of Things (IoT), the telecom services sector is rising. Communications service providers (CSPs) face enormous hurdles due to the soaring demand, which also offers substantial income prospects. Using human labor to handle simple operations like data entry, report generation, and data mapping between different applications is costly, time-consuming, and error-prone. As a result, enterprises worldwide use robotic process automation (RPA) to carry out these duties.

The Banking section will hold the second-largest market share. Workflow automation aids banks and financial institutions reduce human labor, ensuring better compliance, minimizing risks, and enhancing the customer experience. Bank personnel handles enormous amounts of consumer data, and manual processes are prone to mistakes. Banks are implementing workflow automation to reduce the human processing of this massive data and prevent errors. It takes a long time to process data physically. With the help of the bots, simple customer data validation across two systems may be completed in seconds instead of minutes.

Recent Developments

• 2022 - IBM Corporation announced the development of a new 33-month work order according to its agreement with the Defense Microelectronics Activity (DMEA) to offer security services designed to improve the Department of Defense's (DoD) microelectronics supply chain for mission-critical platforms.
• 2022 - Oracle and Microsoft Corp announced the release of Oracle Database Service for Microsoft Azure. Customers of Microsoft Azure can provision, manage, and manage enterprise-grade Oracle Database solutions in Oracle Cloud Infrastructure (OCI) using a familiar interface.