The Global Business Rules Management system (BRMS) market is expected to grow at a CAGR of 11.24% to reach US$1,575.743 million in 2025 from US$831.538 million in 2020.Business rules management system is a software that is used to build, store, and analyze the execution of business rules more properly. For example, “if a user subscribes to a channel, send them a welcome e-mail”. Moreover, the presence of BRMS software in an organization helps in the automation of the business process making it more time-efficient and reliable for the staff members to abide by.
The global market for the business rules management system software is expected to witness a steady growth in spite of the budget constraints the organizations are going through. This will happen as a lot of businesses are now digitalizing the processes given the pandemic wherein a significant number of businesses have opted for work from home policy. With the businesses getting more and more digitalized, there has been a significant increase in the usage of web applications to keep running the processes. In order to keep a reliable track of the activities and make the process more time-efficient, a significant number of companies have deployed the BRMS software.
The pandemic in the picture further fuels the growth of the market in the coming years as the organizations are going through budget constraints and are keenly willing to reduce capital expenditure (CAPEX) and operational expenditure (OPEX). The BRMS software significantly reduces the operational expenditure as the organization will not need an extra person to develop business rules as the rules can be easily built and developed in the software. Furthermore, the software helps in automating a number of tasks and also reduce turnaround when a policy change occurs.
The segmentation of the market is done firstly on the basis of components (Software & Services), by deployment mode (Cloud & On-premise), by enterprise size (SMEs and large enterprises), by end-user (Retail, Banking & Finance, Government and Defence, IT & Telecom, Manufacturing & Others), by region (North America, Asia Pacific, South America, Middle East & Africa, Europe).
REDUCTION IN THE NEED OF ADDITIONAL IT EXPERTS TO DEPLOY BUSINESS RULES WILL DRIVE THE MARKET
The software requires a basic knowledge of IT in order to develop and deploy business rules. This will further cut the expenses of an additional IT expert to do the same task. Through this the organization can gain complete control over the development and deployment of the business rules in the company. This will result in a lot lesser time required to develop and deploy a business rule. A BRMS software is comparatively easier in order to automate business tasks and thus can be done by any IT professional in the organization.
HIGH SWITCHING COST WILL POSE AS A CHALLENGE
Though deploying and executing of business tasks is easier in BRMS software, the existing vendors make it difficult for an organization to switch to an altogether different method to run the tasks. Given the current scenario globally, organizations are reluctant towards any extra expenditure owing to a drastic cut in their budget because of the revenue fall. Moreover, as the deployment is to be done throughout the organization, the implementation of the software turns out to be costly while switching from any previous vendor, thus, inhibiting the growth of the market.
THE IMPACT OF COVID-19 ON THE MARKET
The report also covers the impact of the global COVID-19 pandemic on the market. The businesses have been adversely hit during the pandemic forcing them to cut short on their budget as the revenue fell a significant height. Therefore, the market is expected to see a steady growth with factors like budget constraints on one hand, and the diminishing need for additional IT experts playing an important role in the decision making. The organizations falling under the “Small and Medium-size Enterprises” are more inclined towards delaying the adoption of BRMS software, whereas the organizations falling under “Large enterprises” are set to keep adopting the software in the coming years as well.
SOFTWARE SEGMENT HOLDS A LARGER MARKET SHARE
Among the components, the software segment will hold a larger market share owing to an increasing number of organizations adopting the software. The software helps in easing down the execution of business tasks in an organization and makes the process more reliable and more time-efficient. Moreover, the software helps in defining the business rules and making it easier for the organization to connect them with other IT applications. Given the increase in awareness about the benefits of the software, the segment is set to continue this trend in the coming years as well.
NORTH AMERICA IS EXPECTED TO HAVE THE LARGEST MARKET SIZE DURING THE FORECAST PERIOD
The region consists of developed economies like the United States and Canada and is also the home of almost all the biggest IT companies. As the region consists of such developed economies, it witnesses an increasing growth of advanced IT infrastructure across industries and early adoption of advanced technologies such as Artificial Intelligence (AI), IoT (Internet of things), Cloud storage, etc.
THE ON-PREMISE DEPLOYMENT MODE HOLDS A LARGER MARKET SIZE
The on-premise deployment mode is used in a number of organizations still as it is one of the oldest methods for deploying the software. On-premise deployment of the software helped the organizations in managing the operation costs and proper execution of the processes. The organizations feel safer with having a data storage unit within their premises eliminating the need for any third party.
As the world is moving towards the digitization of all the business tasks, the cloud deployment mode is set to rise at a significant rate during the forecast period. Given the amount of data generated in current times, it becomes costly for the organization to keep a data storage unit on the premises itself but a lot more economical to have a cloud storage for the same. Thus, the on-premise deployment mode will hold a larger market share but the cloud deployment will see a faster growth in the coming years.