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The global robotic process automation market size is expected to reach US$25.66 billion by 2027, according to a new report by ResearchAndMarkets.com, expanding at a CAGR of 40.6% over the forecast period. The higher demand for automating the process to save time and reduce operational cost is driving market growth over the forecast period.
The COVID-19 pandemic has resulted in inclination towards cost saving by reducing the number of employees involved in performing redundant tasks or improving the efficiency of its workforce using automation software.
Specifically, the adoption of robotic process automation has increased in small and medium organizations that need to monitor its cost and human resource more precisely to save on additional and unwanted expenses. The significant benefit of RPA (robotic process automation) for SMEs (small and medium enterprises) includes improved employee and customer satisfaction, enhanced compliance, and accelerated productivity gains with reduced cost and time.
Moreover, large enterprises are also adopting RPA to improve their business operation due to the implication of remote working that has affected the overall company business. Hence, changing workforce dynamics is expected to increase the adoption of RPA over the forecast period.
Regional insights
The Asia Pacific region is expected to witness CAGR of 43.3% over the period 2020 to 2027, Grand View Research, Inc. Automation, which includes machine learning, robots, and AI, are the frontiers for market growth in the region. Rising awareness about automation in the region is expected to boost demand.
Furthermore, increasing demand for business process automation solutions in the BPO (business process outsourcing) sector in China and India is contributing to regional growth. However, SMEs in Indian are more concerned about data security and have affordability issues that prove to be challenging for the RPA vendors. Additionally, the lack of training for RPA among the SMEs in Japan proves to be a concern while implementing the technology. However, enhanced awareness within the region is anticipated to boost the growth of the market for robotic process automation.
Meanwhile, North America accounted for over 37% share of global revenue in 2019. This can be attributed to the increased penetration of automation and process management solutions across the region. Additionally, a strong inclination of SMEs for adopting RPA within their business functions such as accounting/finance, human resource-related processes, and procurement has contributed significantly towards market growth. The U.S. government has realized the benefits of the RPA tool and has encouraged all other government agencies to implement robotic process automation, which has fostered market growth.
Report Overview
Technological advancements have triggered businesses to overcome new challenges aimed to cope with changing consumer demand and requirements. In the recent past, the adoption of RPA has captured the attention of many SMEs and large enterprises. This can be attributed to the ability of RPA to deliver seamless operation coupled with significant value addition from the resources. Organizations worldwide are continually looking to identify processes that can be automated to accelerate productivity. The combination of AI (artificial intelligence), ML (machine learning), and other cognitive technologies with robotic process automation is expected to reshape the global business environment.
RPA alleviates human workers from their mundane and repetitive daily tasks by processing workflow much quicker and subsequently more efficiently. The technology also improves and scales up businesses, data security, and effectiveness by adapting and interpreting the existing application for processing a transaction, triggering responses, manipulating data, and communicating with other digital systems. Robotic process automation technologies can reduce the impact of the costs by automating the processes that were done manually. Furthermore, RPA's ability to learn countless skills without human intervention while consistently carrying out prescribed functions and scaling up or down to meet the demand is expected to augment market growth. The role of RPA is evolving continuously at a faster pace.
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