Business Process Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Business Process Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The business process management market was valued at USD 3.38 billion in 2020, and it is expected to reach a value of USD 4.78 billion by 2026, witnessing a CAGR of 6.26% over the forecast period (2021-2026). In recent years, business process management (BPM) has received considerable attention due to its potential to increase productivity and significantly reduce costs. These are generic software systems driven by specific process designs that enact and manage the operational business processes.

Key Highlights

• As per the 2020 State of BPM by Signavio, nearly 70% of the organizations implement BPM to reduce costs or improve productivity. A mere 2% of respondents have all of their business processes modeling. Furthermore, 60% announced working on one or more transformation projects, and 36% working on ten or more process improvement projects.
• This is suggestive of the increasing demand for business process management. A part of the adoption is driven by the emergence of advanced technologies, such as artificial intelligence, machine learning, and other intelligence solutions that assist in developing new, advanced BPM platforms and technologies.
• For instance, IBM’s Intelligent business process management suites (iBPMS) offer business process management (BPM) software with additional capabilities, such as artificial intelligence (AI). This is mainly designed to assist companies in the dynamic automation of workflows. These suites are often cloud-enabled and provide low-code tools that help developers create workflow solutions quickly and easily.
• As the demand for business process management is directly related to the need for process automation in different sectors, the higher the demand for process automation around the world, the higher is the demand for business process management solutions. These factors help organizations and vendors to focus on entering the business process management market, as their core competency results in the overall growth of organizations.
• With the onset of COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, the fragile ecosystem includes providers of critical IT services. Additionally, work-from-home mandates have led service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided, thereby boosting the market growth.

Key Market TrendsBFSI Industry is Expected to Drive the Market Growth

• The banking, financial service, and insurance sectors pose a significant demand for BPM. As the industry is indicative of economic and financial crises, financial entities rely on technological tools to help them optimize their resources and processes.
• IT infrastructure in banks and financial institutions needs regular updating, as multiple core-banking systems can collide, hampering effective decision-making. Therefore, it becomes challenging to achieve cost-efficiencies or proper integration between the two blended entities. Moreover, an IBM study reveals that over 50% of banking and financial organization CEOs are focusing on simplifying their products and operations to manage complexity effectively.
• Business process management tools enable banks to automate lending loans, account opening, getting payment from the parties, risk management and customer inquiries, complaints, and support processes, to name a few. Therefore, multiple banks globally are shifting to BPM. For instance, Société Générale Serbia, one of the leading banks in the Serbian market, resorted to deploying IBM’s Business Process Manager and IBM Application Connect Enterprise to serve its clients better.
• Moreover, ING Group revealed success using ARIS for business process modeling and customer journey mapping by Software AG. The company has been using it to comply with GDPR and set up pilots across potential risk management capabilities.
• Additionally, retail banking has been benefitting from the adoption of advanced technologies as the same discipline impacted the fintech and technology market landscape. As per a recent EFMA survey on retail banking, it is expected that in 2020, banks and credit unions may be aligned toward product agility (32%), digital marketing (31%), digital channel migration (29%), and cutting costs (28%). This leads to bank employees dealing with a huge volume of data originating from customers and automated processes.

North America Accounts for a Significant Market Share

• According to the recent State of BPM 2020 Survey, the majority of North American organizations reported a significant business driver that led to business process change required to reduce costs and improve productivity.
• However, benefits, such as improved agility and flexibility and the ability to deploy new applications more quickly, hold significance. Additionally, the companies in United States, where employees are more than 100 in number, are adopting cloud-based applications. According to a report from IBM’s Institute for Business Value in 2019, nearly all companies surveyed said they are using some form of cloud computing, with 85% of them using more than one cloud environment, thus, indicating a substantial impact cloud-based BPM platforms.
• Moreover, the region acts as the base for the leading global cloud providers, contributing to a huge share of cloud storage. The amount of data being generated in the country has led to being a significant driver of the BPM adoption.
• The region has been witnessing a series of collaborations, mergers, and acquisitions to take advantage of this opportunity. The major driver for these investments has been the continuous evolution of new technologies and deployment options to unlock enormous volumes previously considered non-commercial.
• For instance, in July 2019, IBM acquired Red Hat for USD 34 billion to extend open source innovation to a broader range of clients and offer solutions on the next-generation hybrid multi-cloud platform. Furthermore, in November 2019, Open Text announced the acquisition of Carbonite Inc. to extend its capabilities on the cloud-based platform through Carbonite’s subscription data protection, backup, disaster recovery, and end-point security to small- and medium-sized businesses.

Competitive Landscape

The business process management market is competitive due to regional and international players' presence. Players are doing mergers and acquisitions and product innovation to maintain their position in the market, which holds an intense rivalry among competitors. Some of the recent developments in the market are:

• April 2021- Workflow automation provider Zoho announced the launch of their low code workflow product called Qntrl. It allows a less technical end user to drag and drop the components and then get help to finish the rest. The company is aiming for the mid-market with a product that requires less technical expertise than traditional business process management tools.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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