Robotic process automation is the application of technology that enables employees in a company to configure computer software. IT robotic automation can also help in infrastructure management and application management. The robotic automation software tools aid in the automation of existing user actions and thereby allowing IT companies to save cost since robotic software can replace the employees perfuming similar repetitive tasks.
The global IT robotic automation market is estimated to account for US$ 125,300.2 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
Business process outsourcing is a multi-billion market with hundreds of BPO service providers operating on a global scale. The BPO industry takes care of an entire range of customer service and back-office processes and works on a contract basis to minimize costs and realize profits. BPOs outsource through on-shoring or off-shoring models, in order to gain greater efficiency. However, outsourcing to a remote place requires skilled labor and the availability of resources ton suffice their livelihood. By using robotic process automation, BPOs can achieve high-cost savings and faster processing along with improvements in efficacy. The key potential areas where RPA can be utilized include Record-to-Report (R2R) outsourcing, Human Resource Outsourcing (HRO), Customer Services, and Invoicing and Order Management among others. Therefore, these factors are expected to propel the global IT robotic automation market growth over the forecast period.
The finance and accounting (F&A) sector play a crucial role in reducing the overall operating costs of an organization. The human engineers working in this sector come across various challenges related to regulatory compliance, service expansion, use of billing models, and growth management issues in certain sectors apart from globalization. As a result of this, cost optimization, revenue growth, and other business metrics are impacted. Robotic automation helps in achieving improvements in many F&A activities such as task allocation, invoicing, payment processing, query handling, compliance, and integration. Hence, these factors are expected to drive growth of the global IT robotic automation market during the forecast period.
| Report Coverage | Details | ||
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| Base Year: | 2019 | Market Size in 2019: | US$ 3,176.9 Mn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 58.5% | 2027 Value Projection: | US$ 125,300.2 Mn |
| Geographies covered: |
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| Companies covered: |
Blue Prism, Genpact Ltd., Be Informed B. V., Genfour, Appian Corporation, Capgemini, IPSoft, Inc., Infosys Limited, Atos SE, Tata Consultancy Services Limited, and Cognizant Technology Solutions Corp. |
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Figure 1: Global IT Robotic Automation Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
Despite its numerous benefits, robotic automation includes several risks and compliance issues as a single programmer or individual end-user can simultaneously exercise control over many automated processes using this technology. This can also give rise to issues regarding the segregation of duties. Therefore, these factors are expected to hinder the global IT robotic automation market growth over the forecast period.
The introduction of robotic automation in the IT industry would change the roles of employees wherein they would be engaged in doing skilled and innovative tasks rather than performing repetitive jobs. However, this transition is expected to encounter challenges related to the social implications of releasing people from their roles. This can result in resistance from the existing workforce in an organization since releasing people from their established roles lead to uncertainty about their utility in the company. Thus, these factors are expected to restrain growth of the global IT robotic automation market during the forecast period.
Market Opportunities
The long-term benefits of robotic automation have been understood for BPO applications; however, the technology is also expected to gain significant adoption in application and infrastructure management. In application management, robotic automation can be largely utilized for testing applications. Furthermore, robotic automation can be extremely useful in infrastructure management since tasks such as server maintenance can be taken care of by robotic software. By adopting robotic automation, tasks such as maintenance, management, and troubleshooting of IT infrastructure can be accomplished and the infrastructure headcount can be reduced by more than half.
The IT robotic automation market is expected to witness high growth in the coming years as technology continues to evolve. One of the key players in the market, Blue Prism, anticipates that if a large global player in the IT industry, for instance, Google, offers Robots-as-a-Service in the cloud then mass adoption of the robotic process automation could happen faster. Moreover, political and macroeconomic events are expected to accelerate the repartition of previous offshore contracts (existing BPO contracts) and can expedite the rate of adoption across the U.S. and Europe.
Figure 2: Global IT Robotic Automation Market Value (US$ Mn), 2017 - 2027
The global IT robotic automation market was valued at US$ 3,176.9 Mn in 2019 and is forecast to reach a value of US$ 125,300.2 Mn by 2027 at a CAGR of 58.5% between 2020 and 2027.
Market Trends
Major companies in the market are focused on partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in December 2013, Be Informed B. V. partnered with Centennium to develop a solution named Business Data Vault, which is a fully automatic data warehouse solution. In December 2012, IPSoft, Inc. partnered with Accenture plc to focus on Amelia robotic automation platform.
Key players in the market are focused on investment, in order to accelerate research and development activities. For instance, in March 2014, Tata Consultancy Services Ltd. announced its plans to invest and create intellectual property in robotic automation. The company wants to automate 40 – 50% of its business processes in the BPO business in the next few years.
Global IT Robotic Automation Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on IT robotic automation market, as Chinese industries were rapidly closing their business to reduce the spread of COVID-19 pandemic. Further, this trend continued in Europe and North America region, as factories were temporarily closed due COVID-19 spread. On the other hand companies witnessed decline in businesses which resulted into reduced spending on adoption of new technology such as IT robotic automation.
Competitive Section
Key players operating in the global IT robotic automation market are Blue Prism, Genpact Ltd., Be Informed B. V., Genfour, Appian Corporation, Capgemini, IPSoft, Inc., Infosys Limited, Atos SE, Tata Consultancy Services Limited, and Cognizant Technology Solutions Corp
Key Developments
Robotic process automation (RAP) is a form of business process automation technology based on metaphorical software robots or artificial intelligence. The robotic automation software tools aid in the automation of existing user actions and thereby allowing IT companies to save cost since robotic software can replace the employees perfuming similar repetitive tasks.
Market Dynamics
The demand of IT robotic automation is rapidly increasing in the business process outsourcing market. BPO industry is rapidly growing as it supports wide range of back office tasks processes on the contract basis. Majority of these task requires skilled labor and infrastructure. By using robotic process automation, BPOs can achieve high-cost savings and faster processing along with improvements in efficacy. The key potential areas where RPA can be utilized include Record-to-Report (R2R) outsourcing, Human Resource Outsourcing (HRO), Customer Services, and Invoicing and Order Management among others. Therefore use of IT robotics automation in the BPO industry will help to reduce the overall cost.
Furthermore, robot-as-a-service market is expected to rapidly grow across the globe especially in the healthcare sector. Current pandemic COVID 19 situation is forcing government to invest in the Healthcare sector to adopt advanced technology such as robotics which is expected positively aid the global IT robotics automation market.
However, factors such as security concerns of the technology over increased access to individuals are expected to hinder the global IT robotic automation market growth over the forecast period.
Market Taxonomy
This report segments the global IT robotic automation market on the basis of type and region. On the basis of type, the global IT robotic automation market is segmented into tools and services. Tool segment is further segmented into Model based and Process based. The Services segment is further segmented into o Professional and training. The professional segment is further segmented into Consulting, Integration and development, and BPO. On the basis of region, the global IT robotic automation market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Key features of the study:
Detailed Segmentation:
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