Robotic Process Automation

Global Market Outlook on Robotic Process Automation (RPA)

• The global demand for the global robotic process automation market, in terms of revenue, was $2.46 billion in 2022 and expected to reach 2.94 Billion in 2023, and it is forecasted to grow at a CAGR of 32.8 percent between 2022 and 2028 and estimated to reach $13.7 billion by 2028. 

Robotic Process Automation Demand Market Outlook

• The forecast is that by 2024, new RPA clients will be generated from business buyers outside of the IT organization using the concept of low-code/no-code automation

• Reduction of operational costs, increase in process efficiency, human resource downsizing, etc., are the major drivers for RPA adoption across the world

RPA: Category Overview

RPA Technology Providers

• RPA technology providers are companies who provide automated solutions to administer business processes, IT support processes, which are workflow based, remote infrastructure, back-office work, etc.

• They usually deploy customized solutions for clients through cloud and on-premise methods, irrespective of their geographic scope

• RPA technology providers also offer Cognitive Technologies, which primarily involves processing of semi-structured or non-structured input data

• They exceed traditional RPA technologies, which are relevant for processing structured data based on the rules and the process orchestration 

• Optical character recognition, handwriting recognition, image recognition, natural language processing, etc., are some of the most prevalent cognitive technologies

RPA Service Providers

• RPA service providers are companies who provide support and assistance for on-going operations with optimized solutions, i.e., audit compliance, business intelligence, process analytics, etc.

• They are classified into three categories: Implementation Partner, Technology Partner, Consulting or Strategic Partner

• Implementation Partners provide assistance in system integration, installation, configuration, technical support, maintenance, etc.

• Technology aid in product platform transition, process auditing, etc., resulting in product innovation.

• Consulting/Strategic Partners help with business intelligence, process analytics, and process guidance.

Global RPA: Drivers and Constraints  

Drivers

Reduced labor costs

• RPA replaces manually intensive tasks with machines reducing the need for resources

• The annual cost of an RPA robot will range from $5,000 to $10,000, which is approximately one-third of an FTE

Increase in employee productivity with minimal process change

• RPA elevates employees into higher functioning roles that make use of their expertise rather than invest a significant time in mundane workflow-based tasks

Rise of innovative RPA applications

• With companies constantly looking for more ways to apply automation (i.e., cognitive computing, NLP, ML, etc.) in their operations and the continuous technological advancements, this demand would create opportunities for greater number of tasks to be performed entirely by the automated workforce.

Increased adoption of RPA in  SME, BFSI and Healthcare Industry: Small and medium enterprises have realised the importance of process automation to stay competitive among the other players

Constraints

Lack of technical ambiguity

• Though RPA takes a minimal implementation time, the workforce must satisfy technical and operating requirements for sound implementation, as it involves risk factors across multiple impact points

• E.g., Defining process rules, modifying IT architecture, data compliance and management, etc.

Managing stakeholder expectations

• RPA implementation also includes managing expectations of both individual employees whose jobs are impacted by RPA and their managers

• The shift to RPA addresses pandemic risks of disruption but can potentially introduce new risks when implemented insecurely. RPA requires policies on control, validation, and monitoring to be securely used to mitigate internal risks 

Porter's Five Forces Analysis on Robotic Process Automation

Supplier Power

• The RPA market is highly fragmented. Hence, the supplier power is low

• RPA has a high supplier base, ranging from global to regional vendors, who can cater to specific business needs

• Due to this, competitive pricing and stiff competition exist across all tiers of players

Barriers to New Entrants

• The RPA market has low barriers to entry, due to low capital investment and abundance of technical workforce

• The market is driven by demand for value-added solutions that can deliver value-added services, such as consulting, training, support, etc.

Intensity of Rivalry

• Intense competitive rivalry exists, as the vendors are competing to establish product, service differentiation, and competitive advantage in the marketplace by providing a variety of services

Threat of Substitutes

• Threat of substitution is low, as RPA itself is an alternative for human workforce

Buyer Power

• A competitive supplier landscape will be an advantage to the buyer, since they can choose the best-fit service provider from a diversified supplier base

• Hence, the bargaining power of a buyer is high, as they are provided with choice of selecting a supplier with best-in-class rates and service portfolio (i.e., market leaders to start-ups)

Why You Should Buy This Report

The market report on the robotic process automation trends contains a detailed analysis of various growth drivers, restraints, challenges, and opportunities that the market players will face during the projected timeline. In addition, the research study offers extensive research into the regional developments of the market, affecting its growth during the forecast period. 

Our research analysts have used several methodologies to source insights from industry professionals. The competitive landscape delivers further detailed information into strategies such as collaborations, product launches, mergers and acquisitions adopted by industry players to maintain their edge.