Global Robotic Process Automation Market Growing at 40-43 Percent CAGR
The global automotive robotics market size in 2020 was worth $2.29 billion and is expected to grow by a 40 percent CAGR between 2020 to 2024, reaching the $8.85 billion mark by 2024.
The major end-use industries in the global industrial robotics market include manufacturing, Healthcare, BFSI, Transportation, Media & Advertising, and the Retail sector. Nearly 50 percent of the industrial robotics market share is contributed by North America because of higher technology implementation. It also results from strong competition between major players and small and medium-sized businesses. Enterprises based out of the U.S. contribute to over 60 percent of RPA adoption.
Industrial robotics market analysis shows that innovative service quality requirements of end customers drive Europe's contribution to the global robotics market size. For the APAC region, the driver is the rise in IT service providers, mainly in countries like India, Japan, China, and others.
There has been a rise in demand for RPA services because of COVID-19. So, it has a positive impact on the robotics industry growth, resulting in a marginal increase in prices. Also, the pandemic has led to a decline of IT spending by 5-10 percent in 2020.
RPA technology providers help in administering business processes, carry out IT support processes, back-office work, remote infrastructure, and others by providing automated customized solutions to their clients through the cloud. They provide cognitive technologies like optical character recognition, image recognition, handwriting recognition, natural language processing, and others. All these involve processing the semi-structured or unstructured input data. RPA service providers are responsible for providing optimized solutions for ongoing operations. They can be Implementation Partner, Technology Partner, and Consulting or Strategic Partner based on the type of functions performed.
RPA in Life Science and Healthcare helps in claim administration, member management, provider management, remote monitoring support, and management. Major RPA deployments help in reducing labor complications, orchestration of redundant tasks, better IT support and management that results in customer satisfaction.
Robotics industry stats in North America shows that it is expected to witness an annual growth rate of 40-43 percent in 2020-2024. It has a high RPA adoption rate. The U.S. BFSI sector will benefit from the rise in the use of AI along with awareness of RPA. In Europe, the robotics industry would witness an annual growth rate of 42-45 percent in the 2020-2024 period. The BFSI sector will have a major contribution to the RPA. Other industrial sectors such as logistics and manufacturing will also have a high adoption rate of RPA technology in countries like Germany, Russia, Spain, Denmark, and others. The industrial robotics market size in the APAC region is expected to rise by 45-48 percent annually from 2020 to 2024. The RPA technology adoption will be triggered by a large number of Global Innovation Centers and Business Process Outsourcing.
Robotics trends are driven by factors like lower labor costs as the need for human resources is reduced. Around $5,000 to $10,000 is the annual cost of an RPA whereas an FTE is paid thrice the amount for the same work. Other factors include better productivity with minimal process change, and employing the staff to perform higher functioning roles instead of redundant work.
RPA faces certain challenges too. For better implementation, the workforce has to fulfill the technical and operating requirements as there are risk factors involved across numerous impact points. Dependency on RPA restricts the strategic migration to other technologies linked with BPM. It might also face resistance from IT organizations, and ambiguous business objectives.
- The rise in the adoption of digital solutions by organizations increases the demand for RPA solutions. COVID-19-19 has fueled it more.
- For onshore operations, their RPA implementation results in 35-65 percent cost reduction and it is 10-30 percent for the offshore operations.
- Companies can have efficient work processes with better speed, quality, security, and business continuity. Even the ROI can be expected quickly with RPA, in just 6-9 months. But huge capital investment is needed for the initial implementation of RPA.
- Large scale and niche suppliers are involved in the supply market who invest in developing new solution features for supporting the organizations. Buyers get more options because of the niche suppliers.
- RPA has easier management and configuration controls. Since it is rule-based, it is more convenient to use the user interface. Data safety is ensured through high security and non-invasive architecture.
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