Robotic Process Automation Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Robotic Process Automation Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The robotic process automation market was valued at USD 7.2 billion in the current year and is expected to reach USD 10.2 billion over the next five years, registering a CAGR of 27.7% over the forecast period. RPA adoption is increasing across organizations of all sizes to generate greater Return on Investment (ROI) and boost productivity. Major market players are launching new Robotic Process Automation (RPA) solutions based on AI, machine learning, and cloud models to help meet the increasing demand.

• Robotic process automation (RPA), also known as intelligent automation or smart automation, is a general term for cutting-edge technologies that can be programmed to carry out a variety of tasks that previously required human intervention, such as data manipulation, setting off reactions, and establishing necessary communication with other processes and systems. Vendors in the market are also improving their products by including new capabilities like automation lifecycle management, workload management, SLA-based automation, credential management, and Citrix automation, in addition to new data APIs. These improvements are drawing in new sectors of industry that require more operational and security capabilities.
• The rising use of cutting-edge technologies like AI, machine learning, and the cloud will primarily fuel the robotic process automation market growth. More and more businesses are adopting RPA to automate business processes and handle increasingly complex data. Companies are developing and deploying cloud and AI-based RPA solutions to automatically optimize business processes and workflow. The increase in the adoption of Artificial Intelligence and cloud-based solutions for internal efficiency among SMEs is thriving the market growth. According to Vistage, among the 13.6% of SMBs leveraging AI, a significant share is using it to improve business operations, followed by customer engagement.
• The expanding use of SaaS, IaaS, and PaaS services for customer relationship management, cloud computing, enterprise resource management, open source resources, cooperative robot learning, network connectivity, and other financial applications is also creating a market for RPA solutions. RPA's functional advantages in various end-user industries, including IT and telecom, BFSI, healthcare, and retail, fuel the market's expansion. It is anticipated that the growing trend toward cloud-based solutions and the growth of robot-based solutions across a range of end-user industries will open up new potential for the construction of robotic process automation worldwide.
• RPA boosts output and revenue but also confronts risks that could cost millions. Two significant security threats associated with robotic process automation are data loss and theft. If the proper security measures are not in place, sensitive data, such as RPA bot passwords or consumer data handled by RPA, may be exposed to attackers, which could stifle the market.
• COVID-19 has negatively impacted the robotic process automation market and witnessed significant growth, owing to an increased usage of automated process automation solutions and increased social distancing norms, which will continue soon. Also, the human resource crunch observed by enterprises in industries is expected to further influence the adoption of RPA during the next two years, thus, driving the demand for such solution vendors. The industry continues to expand as software robots are used to manage regular tasks performed by temporary or seasonal workers and for staff peaks caused by regulatory spikes, new product launches, or new operations.

• Returns processing, workflow management, customer support management, accounting and finance, ERP management and marketing, and consumer behavior analysis are some of the applications in the retail sector, with RPA playing an important role. It has been estimated that more than USD 2 trillion can be saved in a global workforce by automating almost half of human tasks, especially in an emerging industry like retail.
• The rise in business operational adjustments brought on by the pandemic-induced work-from-home trend is one of the major drivers of the robotic automation market expansion in the retail industry. The industry also benefits from using cognitive technologies and modifying internal business procedures across organizations.
• Rapid growth in the e-commerce industry is an essential factor adding to the growth of the RPA market. Online sales in United States are expected to double, by 2023, reaching approximately 20 to 25% of the overall retail sector. According to The Census Bureau of the Department of Commerce, the estimate of US retail e-commerce sales for the third quarter of 2022, adjusted for seasonal variation, was USD 251.7 billion. Within United Kingdom (United Kingdom), retail plays a vital role in shaping the economy and employs nearly 3 million people.
• Along with adopting innovative practices to attract and engage more customers, the players in the retail industry have been using newer technologies for retail automation to smoothen their processes and gaining a growth momentum to counter various challenges. The growing number of warehouses is making the retail sector use robotic process automation to do tasks more efficiently and effectively. A study by Zebra Technologies on the trends in the retail industry revealed that around 75% of retailers are expected to adopt automation across all critical functions by 2023.

• Among the leading innovators and pioneers in adopting robotics, United States is one of the largest markets. Robot use in the region continues to grow, helping make US companies more competitive and leading to new job growth. Further, according to the Robotic Industries Association (RIA), the most significant driver of the year-to-date growth of industrial robots was an 83% increase in units purchased by automotive OEMs for process automation.
• According to the Association for Advancing Automation, over 180,000 robots have been dispatched to various American companies since 2010, and more than 1.2 million new manufacturing jobs have been created during this time. According to MIT, automotive manufacturing accounted for a significant portion of the demand for industrial robots in United States, followed by electronic, plastics, and chemical manufacturing. It is anticipated to augment robotic process automation (RPA) growth.
• The increasing initiatives by the government and regulated authorities to boost the adoption of RPA across various industries are expected to fuel market growth over the forecast period. According to UiPath, more than 30 agencies in the region are using its RPA to eliminate compliance issues, improve throughput, and reduce their backlogs.
• Several government organizations and private companies are investing in creating conversational RPA chatbots for automating their processes. For instance, the National Science Foundation (NSF) Organization has created an RPA bot that automates messages and helps to remind people about upcoming public meetings. Since the NSF organization holds several thousand meetings annually, and the RPA bot helps save over 25,000 hours for the administrative staff.

The robotic process automation market is low consolidated with a few players such as Automation Anywhere Inc, Jafada, Kofax, etc., as various acquisitions and collaborations of large companies are expected to occur shortly. Some of the Key developments in this market are:

• In November 2022, Fabric, a retail fulfillment automation company, and Reply, which specializes in new communications channels and digital media, entered into a strategic partnership to offer brands and retailers seamless integration to a single-point solution for a warehouse management system and automated robotic fulfillment.
• In October 2022, Automation Anywhere, a robotic process automation vendor, unveiled its Automation Success Platform with new robotic process automation tools for process discovery and document processing. This successful platform lets enterprises automate all aspects of their business operations.

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