Robotic Process Automation Market Size, Share & Trends Report

Robotic Process Automation Market Size, Share & Trends Analysis Report By Type, By Service, By Application, By Deployment, By Organization, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-145-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 140

Report Overview

The global robotic process automation market size was valued at USD 1.57 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 32.8% from 2021 to 2028. A shift in company business operations due to the pandemic-induced work-from-home situation is expected to favor market growth over the forecast period. The market is anticipated to evolve with the integration of cognitive technologies and changing business processes across enterprises. Moreover, the increasing need for automating redundant tasks is expected to drive the market over the forecast period. Automation induces quick implementation, execution, and arrangement of the large volume of data in less time than mechanical procedure with the reduced overhead expense for enterprises.

U.S. RPA market size, by type, 2016 - 2028 (USD Million)

The role of technology is evolving continuously at a faster pace, aiding in overcoming business challenges to meet ever-changing consumer requirements. The integration of robotic process automation (RPA) with machine learning can help in advancing the capabilities of software bots beyond rule-based processes and allowing task execution similar to human decision-making skills. Moreover, Artificial Intelligence (AI) in RPA can aid in structuring unstructured data, enhance business insights, and improve data integrity. For instance, Automation Anywhere is developing a Discovery Bot that would exhibit the importance of AI systems in automation. The bot solution is expected to help in overcoming the challenges in RPA, such as identifying processes to automate by recording and analyzing keystrokes from worker’s desktops. The AI embedded in RPA bots and its application in enhancing automated processes across enterprises is expected to augment the market growth over the forecast period.

In a highly competitive market, it has become essential to increase the agility of work and deliver enhanced customer experiences. The enterprises across the BFSI, healthcare, IT and Telecom, and other industries are deploying RPA to increase productivity and efficiency while reducing overhead labor costs for repetitive tasks. RPA bots can work across different legacy systems to retrieve information available on the digital platform. For instance, bank users can check their account online and set up automatic bill payment and KYC verification, among other functions, through the use of the internet. These services have reduced manual intervention by assisting in delivering a better customer experience. Thereby, the need to automate repeated tasks across business domains, such as tech support, technology, finance, HR, operation, and procurement, is contributing to the market growth.

The global pandemic disrupted both internal and external business processes. Industries, such as retail, manufacturing, and IT & Telecom, were facing slumped business, whereas healthcare organizations were overwhelmed with the increasing number of Covid-19 cases. This unprecedented event affected back- and front-end office operations leading to long response time, employee burnout, documentation backlog, and supply chain disruptions among others. Thereby implementation of an automation solution was pivotal in optimizing costs, offering faster customer services, and streamlining testing and reporting. Moreover, the pandemic has accelerated the need for a digital workforce across enterprises and open up new avenues for RPA providers to capture the market. Automation is expected to define the work post-pandemic as the organizations are witnessing structural changes with employees working from home. The positive outcome of implementing RPA during a recession-induced by the pandemic is expected to boost its demand post-pandemic and impel the market growth.

Type Insights

The service segment accounted for the highest market share of over 61% in 2020 and is expected to grow further at the highest CAGR from 2021 to 2028. The growth is attributed to the rising demand to accomplish repetitive high-volume tasks by outsourcing RPA and deploying software through the cloud for automation. The intense competition among enterprises has compelled the service providers to enhance their advisory, training, and consulting services. The continued improvement in automation services to achieve increased scalability and reduced cost has boosted the demand for RPA as a service. The implementation of RPA as a service helps organizations in identifying the automation opportunities to be optimized and then builds a business case by focusing on the right vendor selection for a step towards pilot project deployment. This method of implementation strengthens the core of RPA resulting in the successful deployment of the platform.

The software segment is expected to grow at a steady CAGR over the forecast period owing to the need for enterprises to overcome remote working issues and automate tasks for internal control on the data while reducing the company expense on additional employees. The market leaders offer software/platform license as per the enterprise business need and set of rules required to automate the specified processes. For instance, the UiPath offers a single user (named user) and multiple user (concurrent user) license of its platform that encompasses UiPath robots, unattended robots, attended robots, UiPath studio, non-production robots, and UiPath orchestrator. As the solutions are customized based on industry requirements, the pricing model also varies as per the required software and its implementation time for successful application.

Service Insights

The consulting segment accounted for the largest revenue share of over 41% in 2020 and will expand further at a significant CAGR from 2021 to 2028. The segment growth is attributable to the increasing awareness about automation among organizations. The consulting service for RPA is crucial to identify the type of RPA solution required based on the nature of the enterprise’s business. RPA consultant partners with the customer from industries, such as BFSI, Manufacturing, and IT & Telecom, to identify the method by which, process re-design and automation will provide a direct and immediate impact on customer KPI.

Also, the organizations are keen on enhancing their business process using RPA to expedite day-to-day operation, which, in turn, helps them focus on more intensive business decisions. However, to achieve optimal use of automation software, the organizations need RPA consultants to assess their IT infrastructure, business landscape, and existing processes to outline the automation roadmap and avoid failure in implementation. Thus, demand for consulting services is anticipated to grow significantly over the forecast period.

Implementation is also an integral part of RPA services and thus, the segment is anticipated to witness the highest CAGR over the forecast period. Successful development and implementation of RPA solutions require skilled consultants, developers, and training to end-users. The implementation services are vital for ensuring a robust automation environment for the end-user. The vendors offer related consulting and implementation services for infrastructure management by continuous development of application management services. Increased adoption of customer-specific RPA solutions is propelling the growth of the implementation services segment.

Deployment Insights

The on-premise segment accounted for the largest revenue share of over 90% in 2020 and will expand further at a steady CAGR from 2021 to 2028. Initially, the large-scale enterprises emerged as the highest adopter of RPA solution, which enabled them in building use cases for large-scale application. Moreover, the large-scale enterprises were skeptical about exposing their internal data and information, leading to the large-scale on-premise deployment of such systems. The RPA tool installed on the premise of the organization ensures that it access policies and follow in-house protocols. However, large enterprises are now shifting to cloud-based infrastructure as building a robust technical environment for on-premise deployed RPA is highly expensive.

The cloud segment is anticipated to exhibit the highest CAGR exceeding 34% over the forecast period. The cloud segment growth is accredited to the increased adoption of RPA as an outsourcing service wherein the solution is deployed on the cloud for enterprises. RPA deployed on the cloud provides low infrastructure cost, automatic upgrades, less maintenance cost, and ease of deployment. Moreover, the transition to cloud-based IT infrastructure is also compelling end-user towards cloud-based RPA deployment that can also address the cybersecurity concerns in a robust manner. The RPA adoption through the cloud is expected to augment as it supports flexibility in scaling the operations while aiding in accessing real-time data regardless of the employee work location.

Organization Insights

The large enterprise's segment accounted for the largest revenue share of more than 66% in 2020. The enterprises’ demand for autonomy and changing workforce scenario due to the Covid-19 pandemic boosted the adoption of virtual workforce and RPA among the large enterprises. RPA enables large enterprises to rely on automation for reducing overhead expense, reduced human errors, improve work efficiency, and adherence to regulatory compliance. As the pandemic derailed enterprises of their revenue targets, the RPA vendors extended licensing period at no additional cost for their existing clients as these solutions proved crucial to perform automated tasks with a reduced workforce. For instance, in April 2020, licensing period for the FPT software product, akaBot, was extended for three months for its existing clients. In addition, in April 2020, UiPath provided access to its Automation HUB at no additional cost to enterprises and offered free software to the healthcare sector.

The SME segment is estimated to register the fastest CAGR during the forecast period. The high growth is credited to the rising implementation of RPA among SMEs to improve their productivity, reduce labor costs for time-intensive repetitive tasks and thereby gain a competitive edge. For small and medium organizations, regardless of its growth, the major concerns are the need for reducing the standard monthly costs to improve the bottom-line profits. These organizations are trying to solve the efficiency problem by integrating new solutions into their existing accounting program. The rising awareness regarding the benefits of using automation among SMEs can help boost the market growth. SMEs have limitations, in terms of budget and human resources, and need to keep their operational expenses lean. The RPA helps SMEs overcome the shortage of employees for repetitive tasks and reduce human error by leveraging automation functionalities, which is expected to boost market growth.

Application Insights

The BFSI application segment emerged as the dominant segment accounting for a revenue share of over 29% in 2020.RPA adoption is expected to be high in the BFSI sector as it is taking over the tasks, such as rekeying, data entry, compliance regulations and assembly, and formulation, offering further advancements. Moreover, it improves efficiency, speed, and provides comprehensive insights on integration with AI, which are vital for the BFSI sector to formulate new services and policies. The increased financial activity due to rapid globalization has led to a rise in data volumes and transactions structured around legacy systems that are hard to integrate. This demands automation solutions to enable organizations to realign their resources to focus only on high-value facing customer and strategic roles instead of repetitive tasks.

Global RPA market share, by application, 2020 (%)

The pharma and healthcare segment is expected to augment at the fastest CAGR over the forecast period due to the increasing adoption of RPA solutions in the healthcare, pharma, and life sciences industry. Furthermore, work pressure in the pharma and healthcare sectors has increased manifold with the second wave of Covid-19 and programs for vaccinating the population. The RPA implementation at hospitals and vaccination centers is helping in regulatory reporting, vaccine schedule, keeping portable vaccine records, assisting with supply chain management, and streamlining other end-to-end vaccination processes. Thus, the changing healthcare scenario due to the pandemic is expected to increase the demand for these solutions to minimize the time consumed in finding records and other redundant tasks.

Regional Insights

North America dominated the overall market and accounted for a revenue share of over 37% in 2020. This is attributable to the high penetration rate of process management and automation solutions among enterprises and government agencies across the region. Furthermore, the adoption of RPA among SMEs in North America owing to increased awareness about improving various business functions, such as accounting/finance, data entry, record keeping, procurement detail, and other HR-related processes, is augmenting the market growth. Moreover, the U.S. government comprehended the benefits of RPA tools and introduced them into the country’s budget for FY2020. Also, the RPA Community of Practice, established at GSA in 2019, was focused on helping other U.S. government agencies that were unaware of RPA benefits. The U.S. government’s step to encourage other government agencies to implement such software solutions has fostered market growth.

Asia Pacific region is expected to witness the highest CAGR over the forecast period due to increasing product adoption across the pharma, healthcare, IT and Telecom, retail, and manufacturing industries. Moreover, rising awareness among other industries and SMEs is expected to bolster the market growth. The regional growth is also credited to the rising demand for automation in the Business Process Outsourcing (BPO) sector. The region has a high potential for vendors trying to increase their market share as Asia remains the hub for the manufacturing, IT, and outsourcing services sector that require automation solutions to reduce redundant tasks. However, SMEs in India are still skeptical about data security and face budget constraints to implement these solutions. In addition, the enterprises in Japan lack trained RPA professionals in SMEs, which is a concern while implementing the technology. However, Covid-19 has triggered the demand and need for product implementation across the regional sectors supporting market growth.

Key Companies & Market Share Insights

The market is characterized as highly competitive with the presence of many niche small-scale, and established large-scale vendors offering robust robotic process automation solutions. Prominent players in the market are offering sophisticated solutions that can perform beyond rule-based automation. The leading players are focusing on developing more improved solutions as niche players are emerging with distinct solutions to compete in the global market. Prominent players are expanding their operations through partnerships to acquire a large customer base. For instance, In March 2021, UiPath acquired an API integration platform company, Cloud Element.

The acquisition established UiPath as the first provider of API-based automation capabilities and enterprise-grade User Interface (UI) in a single platform. In March 2021, Automation Anywhere partnered with Google to assist in developing a new suite of products that can automate enterprises’ basic job functions. As the new players are entering the market, the established companies in the IT sector, such as Goggle, IBM, and Microsoft, are partnering with niche players to leverage the market growth potential. Some prominent players in the global robotic process automation (RPA) market include:

  • UiPath

  • Automation Anywhere

  • Blue Prism

  • NICE

  • Pegasytems

  • KOFAX, Inc.

  • NTT Advanced Technology Corp.

  • EdgeVerve Systems Ltd.

  • FPT Software

  • OnviSource, Inc.

  • HelpSystems

Robotic Process Automation Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 1.89 billion

Revenue forecast in 2028

USD 13.74 billion

Growth rate

CAGR of 32.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, competitive ranking, competitive landscape, growth factors, and trends

Segments covered

Type, service, deployment, organization, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; France; Germany; U.K.; China; India; Japan; ANZ; Singapore; ASEAN; Brazil; Mexico

Key companies profiled

 UiPath; Automation Anywhere; Blue Prism; NICE; Pegasystems; KOFAX, Inc.; NTT Advanced Technology Corp.; EdgeVerve Systems Ltd.; FPT Software; OnviSource, Inc.; HelpSystems

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global robotic process automation market report on the basis of type, service, deployment, organization, application, and region:

  • Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Software

    • Service

  • Service Outlook (Revenue, USD Million, 2016 - 2028)

    • Consulting

    • Implementing

    • Training

  • Deployment Outlook (Revenue, USD Million, 2016 - 2028)

    • Cloud

    • On-Premise

  • Organization Outlook (Revenue, USD Million, 2016 - 2028)

    • Large Enterprises

    • Small and Medium Enterprises (SMEs)

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • BFSI

    • Pharma & Healthcare

    • Retail & Consumer Goods

    • Information Technology (IT) & Telecom

    • Communication and Media & Education

    • Manufacturing

    • Logistics, and Energy & Utilities

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • France

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • ANZ

      • Singapore

      • ASEAN

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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