The robotic process automation market is expected to grow at an annual growth rate of 31.5% to reach a market was valued at US$2.039 billion in the year 2020. RPA (robotic process automation) is a software technology that allows for the design, deployment, and management of software robots that replicate human actions while working with digital systems and software. Software robots, like humans, can grasp what's on a screen, complete the correct keystrokes, traverse systems, locate and retrieve data, and do a variety of predetermined tasks. Because they don't have to stand up and stretch or take a coffee break, software robots can accomplish tasks faster and more reliably than humans. Workflows are streamlined through robotic process automation, which makes businesses more lucrative, adaptable, and responsive. It also improves employee happiness, engagement, and productivity by eliminating tedious activities from their workdays.
RPA is non-intrusive and may be used quickly to speed digital transformation. It's also ideal for automating operations on systems without APIs, virtual desktop infrastructures (VDIs), or database access. The dangers associated with data security, which impedes the adoption of robotic process automation in the financial domain, and the reduced potential of robotic process automation for knowledge-based business processes are the primary limitations of the robotic process automation market.
Surging Demand and Adoption of New and Advanced Technologies in Various Industry Verticals Will Boost the Market in the Forecast Period
Organizations are looking for robotic process automation to manage complicated unstructured data and automate any business operation from start to finish. Companies are merging artificial intelligence and cognitive technologies with RPA to broaden the scope of business process automation. These technologies automatically monitor work activities, identify ideal processes, and recommend an automation path to organisations. For example, AntWork will introduce ANTstein, an AI, RPA, and machine learning integrated platform, in May 2020. This intelligent automation allows for the most efficient use of bots, as well as insights into a variety of data, data curation, and the creation of new bots. To enable end-to-end automation, robotic process automation paired with artificial intelligence can offer access to unstructured information such as audio, video, and human chat discussion. Furthermore, the increased deployment of PaaS, IaaS, and SaaS services for cloud computing, customer relationship management, cooperative robot learning, resource management, and network connectivity, among other things, is likely to drive this market.
The Cloud Segment Will Have a Significant Market Share During the Study Period of 2019 to 2026
The robotic process automation market is segmented, based on deployment as cloud and on-premise among which the cloud segment is anticipated to witness substantial growth. The growing usage of RPA as an outsourced service, where the solution is installed on the cloud for companies, is linked with the growth of the cloud segment. RPA in the cloud offers minimal infrastructure costs, automated updates, lower maintenance costs, and simplicity of deployment. Furthermore, the shift to cloud-based IT infrastructure is enticing end-users to install cloud-based RPA, which can handle cybersecurity concerns in a comprehensive manner. RPA use through the cloud is projected to increase since it allows for greater flexibility in expanding operations while also facilitating access to real-time data independent of the employee's work location.
Initially, major corporations were the most enthusiastic users of RPA technologies, allowing them to develop use cases for large-scale applications. Furthermore, major corporations were unwilling to disclose their own data and information, resulting in the widespread on-premise installation of such systems. The RPA tool deployed on the organization's premises guarantees that it has access to policies and follows internal standards. Large companies, on the other hand, are increasingly migrating to cloud-based infrastructure since establishing a solid technical environment for on-premise installed RPA is too expensive.
The Application of Robotic Process Automation in the Bfsi Sector Is Expected to Drive the Robotic Process Automation Market in the Forecasted Period
The robotic process automation market, by end-user industry, is divided into BFSI, pharma & healthcare, retail & consumer goods, information technology and telecom, communication, media & education, manufacturing, logistics, energy & utilities, and others. The demand for robotic process automation in the BFSI sector has surged during the forecast period. Multiple systems in the BFSI business are connected together through interfaces to allow the flow of transaction-related data. Robotic process automation manages and monitors these interfaces to ensure that transactions go smoothly and to close gaps. The accuracy and efficiency of many operations in the BFSI business are improved through robotic process automation. These solutions also aid in regulatory reporting and balance sheet reconciliation by aggregating data from different systems and performing a slew of validation tests to prepare data for further examination. For example, in April 2020, the United States Banks implemented the UiPath software robot to handle loan applications from small and medium-sized companies (SMB) across the country.
North America and the Asia Pacific Region Will Develop Rapidly Throughout the Predicted Timeframe
The robotic process automation market, by geography, is fragmented into North America, Middle East and Africa, Europe, Asia Pacific and South America. North America has the lion's share of the robotic process automation market, owing to the increasing use of automation and process management solutions by big as well as small and medium-sized businesses. Furthermore, the US government pushes all other agencies to implement automation technologies to streamline their work operations. This is projected to boost the region's worldwide market growth.
During the projection period for the robotic process automation market, Asia Pacific is expected to be the fastest-growing region. This is due to the increasing need for automation from every industry in the region. Furthermore, the region's market growth is expected to be boosted by the increasing use of Industry 4.0 in industrial applications. China and Japan are projected to have the largest market shares, while India is expected to develop rapidly in the next years. Demand for this software solution is being driven by India's rapid digital transformation across industries. For example, India's largest bank, ICICI, was an early adopter of RPA technologies for automating customer email response, IT assistance, and account portability.
These tools are in high demand in European countries such as the United Kingdom and Germany. Manufacturing firms in these nations have embraced these solutions quickly because they enable them to begin automating with small-scale initiatives and eventually scale up across their operations. Similarly, with the increasing use of modern technology, South American companies are focusing on automating their business operations.
The Impact of the Outbreak of COVID-19 on the Robotic Process Automation Market
The COVID-19 pandemic has had a significant influence on the world as a whole, causing economic disruption and loss of life. The COVID-19 epidemic has had a negative impact on industries and their manufacturing and production units. Due to the widespread spread of the virus, several governments have instituted severe countrywide lockdowns. The COVID-19 virus has had a negative impact on the robotic process automation market owing to the limited among various end user industries due to the temporary lockdown implemented across the globe. Companies rely heavily on the digital media to automate both back-end and front-end operations in order to stay in business. The need for advanced software to automate the process is increasing as companies seek to alter their interactions with employees, suppliers, consumers, and other stakeholders. The implementation of this automated software is intended to lessen the impact of the epidemic on businesses. Because this form of process automation enables for the fast automation of processes in less time, it is regarded as one of the best software for increasing work from home and remote location productivity. The pandemic has had the greatest impact on some industries, including retail, hospitality, and manufacturing. These industries are looking for new technology to better analyze client behavior as well as new ways to engage them. During the pandemic, for example, UiPath and Automation Anywhere saw a significant increase in demand for RPA solutions from numerous businesses.