Global Digital Process Automation Market Size, Share & Trends Analysis Report By Deployment Mode (Cloud, and On-Premise), By Component (Solution, and Services), By Business Function, By Organization Size, By Vertical, By Regional Outlook and Forecast, 202

Global Digital Process Automation Market Size, Share & Trends Analysis Report By Deployment Mode (Cloud, and On-Premise), By Component (Solution, and Services), By Business Function, By Organization Size, By Vertical, By Regional Outlook and Forecast, 2024 - 2031

The Global Digital Process Automation Market size is expected to reach $31.51 billion by 2031, rising at a market growth of 12.4% CAGR during the forecast period.

The banking, financial services, and insurance (BFSI) industry has been a major adopter of digital process automation due to its need to streamline complex and time-sensitive processes such as loan approvals, claim management, compliance checks, and customer service operations. DPA helps BFSI organizations reduce operational costs, enhance accuracy, and improve service delivery. Therefore, he BFSI (Banking, Financial Services & Insurance) segment attained 22% revenue share in the market in 2023. Additionally, regulatory pressures and the demand for enhanced customer experience have driven BFSI companies to adopt automation solutions to remain competitive and compliant.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In October, 2024, UiPath, Inc. partnered with SAP to integrate its platform with SAP Build Process Automation, creating a unified solution for automating processes across both SAP and non-SAP systems. This collaboration drives enterprise-wide transformation, enhances efficiency, and accelerates business innovation. Additionally, July, 2024, Appian has partnered with Sandhata to enhance Integrated Process Automation. Combining Sandhata’s expertise and Appian’s low-code platform, the collaboration aims to accelerate digital transformation, reduce costs, and improve customer experiences, positioning both companies as leaders in the Digital Process Automation market.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunners in the Digital Process Automation Market. In June, 2024, Microsoft Corporation expands its collaboration with Automation Anywhere by integrating Azure OpenAI Service into its AI + Automation Enterprise System. This partnership empowers enterprises to automate complex processes across business applications using AI Agents, boosting efficiency, scalability, and automation in key functions. Companies such as Oracle Corporation and IBM Corporation are some of the key innovators in Digital Process Automation Market.

Market Growth Factors

The growing demand for improved customer experiences directly results from the digital transformation that businesses are undergoing. Companies embracing digital channels and automation can offer more efficient and personalized services at scale. DPA helps organizations meet and exceed customer expectations by ensuring every customer interaction is smooth, quick, and relevant. This demand for personalized, efficient customer service is propelling the adoption of DPA solutions, making them essential for businesses that aim to stay competitive in the age of digital transformation. In conclusion, the rising demand for improved customer experience and personalization propels the market's growth.

Digital transformation is about adopting new technologies and rethinking how businesses operate and deliver value to customers. DPA solutions provide businesses with the tools to optimize and automate processes across all departments, from HR to finance to marketing. This widespread adoption of DPA accelerates digital transformation across industries as companies aim to increase their technological capabilities, improve process automation, and foster a more agile, future-ready workforce. The digital transformation trend drives significant demand for DPA solutions, making them a cornerstone of modern business operations. Therefore, accelerated digital transformation across industries worldwide is driving the market's growth.

Market Restraining Factors

Despite the long-term benefits, the reluctance to commit to large capital expenditures and the uncertainty around realizing a quick ROI are major obstacles for businesses considering DPA adoption. Companies must carefully weigh the costs of implementation against the expected benefits, and some may be hesitant to move forward without a clear understanding of how the investment will pay off. The high initial investment and associated costs are, therefore, major restraints that organizations must address in their decision-making process when considering DPA solutions. Therefore, high initial investment and implementation costs hinder the market's growth.

Component Outlook

Based on component, the market is divided into solution and services. The services segment held 36% revenue share in the market in 2023. As companies implement DPA solutions, there is a growing need for consulting, integration, and support services to ensure smooth deployment and optimization. These services help businesses customize and maintain their automation systems, enabling them to achieve maximum value from their investments. The importance of services in the market is underscored by the increasing complexity of automation solutions and the need for ongoing support to adapt to changing business needs.

Services Outlook

The services segment is further subdivided into professional and managed. The managed segment held 45% revenue share in the market in 2023. Managed services focus on outsourcing the management and maintenance of automation solutions, enabling businesses to focus on core operations while leveraging expert support for their digital initiatives. This segment is particularly attractive to organizations seeking cost efficiency, scalability, and reduced in-house IT burdens. Managed service providers offer continuous monitoring, performance optimization, and proactive issue resolution, ensuring seamless operations and high system reliability.

Business Function Outlook

On the basis of business function, the market is segmented into sales process automation, supply chain automation, claims automation, and marketing automation. In 2023, the supply chain automation segment attained 33% revenue share in the market. Automation plays a critical role as businesses focus on optimizing their supply chains for cost reduction, better inventory management, and faster delivery times. Companies can enhance their supply chain operations’ accuracy and efficiency by automating procurement, order processing, and logistics. This demand for supply chain automation continues to grow, especially as businesses seek to mitigate disruptions and ensure smoother operations in an increasingly global and complex supply chain landscape.

Organization Size Outlook

Based on organization size, the market is categorized into large enterprises and small and medium-sized enterprises. The small and medium-sized enterprises segment witnessed 40% revenue share in the market in 2023. SMEs are increasingly recognizing the benefits of DPA in optimizing their business processes. With the adoption of automation, SMEs can enhance productivity, reduce human error, and accelerate decision-making, all while keeping costs under control. As digital process automation solutions become more affordable and accessible, SMEs leverage this technology to improve operational efficiency, optimize workflows, and stay competitive in a rapidly evolving business landscape.

Deployment Outlook

By deployment mode, the market is divided into on-premise and cloud. The cloud segment procured 65% revenue share in the market in 2023. Cloud-based DPA solutions offer flexibility, scalability, and lower upfront costs compared to on-premises solutions. The cloud allows businesses to implement DPA without requiring extensive infrastructure investment, making it an attractive option for small and medium-sized enterprises (SMEs). Moreover, cloud deployment enables businesses to access real-time analytics, collaborate seamlessly, and scale their operations rapidly while benefiting from the cost efficiency and agility that cloud environments provide.

Vertical Outlook

Based on vertical, the market is divided into BFSI (Banking, Financial Services & Insurance), telecom & IT, healthcare, consumer goods & retail, transportation & logistics, manufacturing, energy & utilities, and others. In 2023, the telecom & IT segment procured 11% revenue share in the market. This sector benefits greatly from DPA due to the large volume of customer interactions, service requests, and operational workflows that require constant management. IT and telecom companies can ensure faster response times, higher customer satisfaction, and more efficient network management by automating these processes. Automation also helps these companies address complex billing, provisioning, and service maintenance tasks, improving productivity and cost reductions.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region witnessed the maximum revenue share in the market. This can be attributed to the region’s advanced technological infrastructure, high adoption rates of automation solutions across industries, and the presence of key market players. North American businesses, especially in sectors like BFSI, IT & telecom, and manufacturing, have been at the forefront of adopting digital transformation initiatives, with DPA playing a central role in optimizing processes, reducing operational costs, and enhancing customer experiences.

Recent Strategies Deployed in the Market

• Oct-2024: UiPath introduces Agentic Automation, combining AI agents and robots to automate complex tasks and enhance enterprise workflows. The new Agent Builder™ tool allows users to create agents, while Autopilot democratizes automation, improving productivity across various roles and platforms.
• Nov-2024: Pegasystems Inc. has launched new AI-driven legacy discovery features in Pega GenAI Blueprint, enabling faster digital transformation by modernizing legacy systems. These capabilities streamline workflow analysis, data migration, and cloud application development, accelerating digital process automation and enhancing operational efficiency.
• Apr-2024: Appian Corporation and TELUS Internationalhave expanded their partnership to offer AI-powered, low-code automation solutions, enhancing digital transformation. This collaboration provides clients with faster, more efficient end-to-end process automation, particularly benefiting industries like telecommunications, and driving significant cost savings.
• Apr-2024: Microsoft Corporation and Hexagon have partnered to integrate AI, cloud technologies, and digital twins into Hexagon's Nexus platform. This collaboration enhances real-time data sharing, accelerates product innovation, and streamlines manufacturing workflows, improving productivity and collaboration across engineering processes.
• Mar-2024: UiPath, Inc. announces new investments in Saudi Arabia, including opening an office in Riyadh and launching the first Saudi School of Automation. These initiatives aim to support digital transformation, workforce upskilling, and enhance AI-driven automation across various sectors.

List of Key Companies Profiled

• Appian Corporation
• UiPath, Inc.
• Automation Anywhere, Inc.
• Blue Prism Group PLC (SS&C Technologies Holdings, Inc.)
• Microsoft Corporation
• IBM Corporation
• Oracle Corporation
• Pegasystems Inc.
• NICE Ltd.
• Open Text Corporation

Global Digital Process Automation Market Report Segmentation

By Deployment Mode

• Cloud
• On-Premise

By Component

• Solution
• Services

o Professional

Managed

By Business Function

• Supply Chain Automation
• Sales Process Automation
• Marketing Automation
• Claims Automation

By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By Vertical

• BFSI (Banking, Financial Services & Insurance)
• Manufacturing
• Consumer Goods & Retail
• Healthcare
• Transportation & Logistics
• Telecom & IT
• Energy & Utilities
• Other Vertical

By Geography

• North America

o US

Canada

Mexico

Rest of North America

• Europe

o Germany

UK

France

Russia

Spain

Italy

Rest of Europe

• Asia Pacific

o China

Japan

India

South Korea

Singapore

Malaysia

Rest of Asia Pacific

• LAMEA

o Brazil

Argentina

UAE

Saudi Arabia

South Africa

Nigeria

Rest of LAMEA