Global IT Robotic Automation Market is Estimated to Witness High Growth Owing to Favorable Government Policies and Increasing Return on Investment in Robotic Process Automation Projects
Global IT robotic automation market is estimated to be valued at US$ 5.08 Bn in 2024, exhibiting a CAGR of 16.3% over the forecast period (2024-2031). The growth of the market is primarily driven by favorable government policies focusing on adopting new technologies and increasing return on investment with robotic process automation. Furthermore, organizations are increasingly deploying robotic process automation to drive operational efficiency and optimized resource utilization.
Market Dynamics:
The growth of the global IT robotic automation market is driven by favorable government policies focusing on adopting new technologies as well as increasing return on investment in robotic process automation projects. They are providing subsidies, tax benefits and other incentives for automation technology adoption. This is positively impacting the growth of IT robotic automation market. Furthermore, organizations are witnessing significant improvement in operational efficiency, cost reduction and optimized resource utilization by deploying robotic process automation solutions. Robotic automation helps eliminate repetitive tasks and human errors, thereby enhancing productivity. The increasing return on investment is encouraging more businesses to incorporate robotic automation in their processes.
Increasing Need for Business Process Automation to Increase Efficiency and Reduce Operational Costs
One of the major drivers of growth in the global IT robotic automation market is the increasing need among organizations to automate business processes and improve operational efficiency. Manual and repetitive tasks consume a lot of time and resources for companies. Automating such tasks through robotic process automation (RPA) tools allows companies to redeploy human resources to more strategic functions. It also helps reduce errors and rework. By automating routine back-office operations like data entry, invoice processing, customer support and more, companies can significantly improve productivity and lower operating costs. The cost savings achieved through automation of tasks is a key factor attracting more businesses to adopt RPA solutions.
Growing Demand for AI-powered Intelligent Automation from Digital Native Businesses
Another driver strengthening demand is the rising uptake of AI-powered intelligent automation solutions from digital native companies. These young, technologically adept businesses understand the potential of emerging technologies like artificial intelligence, machine learning and advanced robotics in augmenting human capabilities. They are integrating AI and other cognitive technologies with RPA to deliver enhanced automation capabilities beyond rule-based task automation. The combination of AI and automation allows for more complex process automation, decision making and interaction. Digital native firms are early adopters of such intelligent automation tools to gain competitive edge through superior customer experience, hyper-personalization at scale and data-driven insights.
Skills Shortage Causing Constraints in Automation Program Implementation
One major restraint faced by the IT robotic automation market is the shortage of professionals with skills to implement automation projects and operate automation solutions. Developing, deploying and managing automation programs requires expertise in RPA tools, process mining, software engineering, and domain knowledge. However, the talent pool of such skilled resources is limited globally. This leads to delays in adopting automation and increased costs of hiring talent. It also poses challenges for companies in scaling up their automation initiatives. The talent crunch acts as a roadblock in many organizations realizing the full potential of automation technologies.
Integration and Compatibility Issues with Legacy Systems
Another challenge is the integration of RPA and other automation solutions with legacy applications and systems used by many large enterprises. A lot of critical business processes and data still reside on old and outdated backend systems that are not designed to support peripheral automation technologies. Integrating automation software with such legacy infrastructure requires additional effort and costs for customization, testing, and more. Compatibility problems also arise during integration that need to be resolved, extending project timelines. This makes it difficult for organizations modernizing their operations through automation to achieve seamless integration and scaling across all processes and departments involving legacy platforms.
Opportunities in Digitizing Knowledge Work Processes
An area presenting major growth prospects is the application of AI-powered automation to digitize knowledge work processes. So far, focus has been majorly on digitizing rule-based repetitive tasks through RPA. However, as cognitive capabilities of virtual agents and virtual assistants advance, more complex practices involving analysis, reasoning and decision making can be automated. AI technologies are maturing to understand natural language, derive contextual insights and offer personalized recommendations to support professionals in knowledge-intensive domains like healthcare, finance, consulting and law. This opens up the opportunity to digitally augment human expertise at scale through cognitive automation.
Geographic Expansion into Emerging Markets
Finally, emerging economies in Asia Pacific, Middle East, Africa, and Latin America present lucrative opportunities for automation technology providers to expand their geographic footprint. While developed markets are getting saturated, the adoption of RPA, AI and other intelligent automation solutions is in the nascent stage across developing regions. Rapid digital transformation and industrialization underway provide a fertile environment for automation vendors to tap a large untapped market. Localization of offerings to cater regional requirements along with strategic partnerships can help global players establish presence and accelerate penetration of their solutions in high-growth emerging economies.
Link - https://www.coherentmarketinsights.com/market-insight/it-robotic-automation-market-845
Key Developments:
- In February 2024, WorkFusion, a leading provider of AI-powered intelligent automation solutions for enterprises, announced its merger with a prominent data analytics company. This strategic move aims to strengthen WorkFusion's capabilities in delivering advanced analytics and insights to its customers, further enhancing its intelligent automation platform.
- In June 2023, Pega Systems, a leading provider of low-code software for customer engagement and process automation, introduced a new automation solution specifically designed for the healthcare sector. This innovative offering aims to enhance operational efficiency and improve patient outcomes by streamlining workflows and automating critical processes within healthcare organizations.
- In January 2023, Blue Prism, a British multinational software corporation renowned for pioneering robotic process automation (RPA) solutions, announced the expansion of its global operations to enhance service delivery. This strategic move aims to improve the efficiency and effectiveness of its automation offerings across various markets.
- In October 2022, IBM, a global leader in technology and consulting services, partnered with a major bank to implement intelligent automation solutions aimed at enhancing operational efficiency and customer service. This collaboration is part of IBM's ongoing efforts to leverage its expertise in artificial intelligence and automation to transform the banking sector.
- In July 2021, Automation Anywhere, a global leader in robotic process automation (RPA) software, acquired a cloud-based automation firm to expand its service offerings. This strategic acquisition is part of Automation Anywhere's ongoing efforts to enhance its platform and provide customers with more comprehensive automation solutions.
Key Player:
UiPath, Automation Anywhere, Blue Prism, IBM Corporation, Pega Systems, WorkFusion, NICE Ltd., Kofax, Microsoft Corporation, SAP SE, HelpSystems, AntWorks, Kryon Systems, Appian Corporation, and ServiceNow
