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The way businesses operate and deliver value to customers is continuously changing. More than ever, digital transformation, the integration of digital technology into all areas of a business, is a disruptor that takes a leading role in changing companies’ strategic landscape. In several industries, physical robots are doing many of the repetitive and often dangerous physical jobs that humans previously performed. Industrial welding, deep-sea exploration, and disaster response are examples of areas where physical robots are increasingly useful.
The equivalent in the digital world is called Robotic Process Automation (RPA). RPA is a way of automating high-volume, low-complexity, routine processes so that recurring and manual digital work is done by software robots, or bots. Typically, bots perform tasks that are both simple and structurally repetitive, at a much higher rate than would be possible for a human alone.
Robotic Process Automation (RPA) is a type of automation technology that uses software robots, or “bots,” to perform repetitive, rule-based tasks typically carried out by humans. RPA is designed to automate routine and mundane tasks that do not require complex decision-making or human intervention, freeing up human workers to focus on higher-value tasks that require creativity, problem-solving, and critical thinking.
RPA is an application of technology, governed by business logic and structured inputs, aimed at automating business processes. Using RPA tools, a company can configure software, or a “robot,” to capture and interpret applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems. RPA evolved from three key technologies: screen scraping, workflow automation, and artificial intelligence.
RPA bots can be programmed to interact with different types of software applications, data sources, and user interfaces. They can simulate the actions of a human worker by manipulating data, triggering responses, and communicating with other systems. RPA bots can be trained to complete a wide range of tasks, such as data entry, data extraction, data manipulation, report generation, and transaction processing.
RPA technology has the potential to significantly improve the efficiency and accuracy of business processes, reduce operational costs, and increase productivity. RPA solutions are increasingly being adopted by organizations across a variety of industries, including finance, healthcare, retail, and manufacturing.
Robotic Process Automation (RPA) has the potential to automate entire processes or part of processes that are repetitive, monotonous and occur in high volumes. For example, rather than an accountant manually reconciling two or more sets of data and then researching any differences, RPA technology can automate the reconciliation tasks leaving the accountant with the analytical tasks of researching and understanding the differences. Other examples of automating financial management processes through RPA include repetitive Data Entry of data from one system to another, Email scraping or extraction of information from email attachments, Form Validation processes that help ensure data are correctly input into forms we get from customers RPA scenarios range from something as simple as generating an automatic response to an email to deploying thousands of bots, each programmed to automate jobs in an ERP system.
RPA provides many benefits like reduce the processing time or increase throughput or processing capacity without adding human resources. RPA software performs tasks exactly as defined significantly reducing human error like eliminating all copy-and-paste mistakes that result from entering the same data into multiple systems. Robotic Process Automation can improve efficiencies to deliver more accurate intelligence data and also provide real-time access to financial data with reporting and analytic capabilities.
David Schatsky, a managing director at Deloitte LP, points to a bank’s experience with implementing RPA, in which the bank redesigned its claims process by deploying 85 bots to run 13 processes, handling 1.5 million requests per year. The bank added capacity equivalent to more than 200 full-time employees at approximately 30 percent of the cost of recruiting more staff, Schatsky says. It allows to save thousands of person hours. The extra time would allow staff to work on higher-value activities that often compete with the manual, labor-intensive work that accompanies these seven processes.
In conclusion, Robotic Process Automation (RPA) has the potential to significantly improve the efficiency, productivity, and accuracy of businesses across a wide range of industries. By automating routine and repetitive tasks, RPA frees up employees to focus on higher-value work and enables organizations to reduce costs and improve customer satisfaction.
Cognitive RPA Enterprises can also supercharge their automation efforts by injecting RPA with cognitive technologies such as ML, speech recognition, and natural language processing, automating higher-order tasks that in the past required the perceptual and judgment capabilities of humans. In a shrinking budget environment, RPA is a tool to “do more with less”. While RPA automates “hand work”, AI assisted Intelligent Automation also automated “head work”.
Key Benefits: RPA offers several benefits to companies, including increased efficiency, improved accuracy, reduced costs, and faster processing times. RPA also allows employees to focus on higher-value tasks, which can lead to improved job satisfaction and employee retention.
RPA, IA and AI has spread rapidly in the private sector and many federal and state agencies are currently using these tools in production or as pilots to speed up cycle times reducing the time it takes to perform certain processes, augment the efforts of human workers and provide better outcomes for the business of government.
U.S. Government’s 2020 Budget Encourages Using RPA and AI to Serve Citizens Better. The administration’s budget document calls for “Robotics Process Automation and other emerging technologies [be used] to reduce error, improve compliance, and focus the Federal workforce on higher-value work.” Walmart, Deutsche Bank, AT&T, Vanguard, Ernst & Young, Walgreens, Anthem and American Express Global Business Travel are among the many enterprises adopting RPA.
Walmart CIO Clay Johnson says the retail giant has deployed about 500 bots to automate anything from answering employee questions to retrieving useful information from audit documents. “A lot of those came from people who are tired of the work,” Johnson says.
David Thompson, CIO of American Express Global Business Travel, uses RPA to automate the process for canceling an airline ticket and issuing refunds. Thompson is also looking to use RPA to facilitate automatic rebook recommendations in the event of an airport shutdown, and to automate certain expense management tasks.
“We’ve taken RPA and trained it on how employees do those tasks,” says Thompson, who implemented a similar solution in his prior role as CIO at Western Union. “The list of things we could automate is getting longer and longer.”
According to Deloitte, 53 percent of organisations have started to use RPA to improve efficiency and productivity. RPA adoption is expected to increase to 72 percent in the next two years and, if adoption continues at its current level, it is set to achieve near-universal adoption within the next five years. Some of the key companies offering solutions for the RPA/CRPA market are Automation Anywhere , Blue Prism, Nice Systems, Work Fusion, UiPath , Kryon Systems, Softomotive, and Ipsoft, among others.
Challenges: Despite its many benefits, the adoption of RPA also poses some challenges. One of the biggest challenges is the need for proper planning and execution of the automation process. Companies need to carefully assess their processes to identify tasks that can be automated and ensure that the RPA solution is properly integrated with their existing systems. Another challenge is the need for proper training of employees to work alongside the RPA solutions and to address the fear of job displacement.
As with any automation technology, RPA has the potential to eliminate jobs, Forrester Research estimates that RPA software will threaten the livelihood of 230 million or more knowledge workers, or approximately 9 percent of the global workforce. Workforce reskilling and restructuring into the digital workplace early in the life cycle of RPA technology can help mitigate employee concerns that robots are coming to take their jobs.
While there are challenges and limitations to implementing RPA, such as the need for careful process identification and design, as well as potential job displacement, organizations that approach RPA implementation thoughtfully and strategically can reap significant benefits.
As RPA technology continues to evolve and improve, we can expect to see even greater potential for automation across a broader range of tasks and industries. Ultimately, the successful adoption and implementation of RPA will require a collaborative approach between businesses, employees, and technology providers, in order to fully realize the benefits of this exciting and transformative technology.
Future Trends: The RPA market is expected to witness several future trends, including the increased adoption of cognitive automation, the use of RPA as a service (RPAaaS), and the integration of RPA with other technologies such as artificial intelligence and machine learning. As these trends continue to evolve, the RPA market is expected to become even more competitive and dynamic.
For more details about RPA please visit: Robotic Process Automation: Automating Business Processes with Robots
Robotic Process Automation (RPA) Market
The global RPA market has seen significant growth in recent years and is expected to continue growing at a rapid pace in the coming years.
The Robotic Process Automation (RPA) Market size was valued at USD 2.27 billion in 2021 and is predicted to reach USD 18.69 billion by 2030, with a CAGR of 22.5% during the forecast period from 2022 to 2030.
The market is being driven by several factors, including the need for cost-effective and efficient business processes, increasing demand for automation in various industries, and advancements in artificial intelligence and machine learning technologies. Additionally, the COVID-19 pandemic has accelerated the adoption of RPA in many industries, as companies seek to automate tasks that were previously performed by on-site workers.
Overall, the RPA market is expected to continue growing as more companies seek to automate their processes and improve their operational efficiency. However, the market is also expected to become more crowded and competitive, which may lead to consolidation and mergers in the industry.
Market Dynamics
Drivers
As we all know, the pandemic has changed the way we work and, in many cases, also the way businesses operate. Consequently, it has also accelerated the process of digital transformation, including automation and thus RPA. COVID-19 and the transition to remote work made around 76% of organizations reach for automation, and this is a trend that will continue in the post-covid era. In the opinion of experts and available research, RPA is becoming an inseparable part of business and even a necessity.
The global demand for Robotic Process Automation (RPA) has increased as a result of factors such as the increase in demand for efficient and hassle-free work, which is driving the growth of the Robotic Process Automation (RPA) market. The increased deployment of RPA tools in the BFSI and telecom sectors also contributes to the growth of the RPA market.
Rising Adoption and Development of RPA-Enabled Self-Learning Conversational Chatbots
Increasing Adoption of Advanced Technologies Such as AI, Cloud, and Machine Learning.
Developments and Innovations in RPA to Fulfil Consumer Demands
Growing Adoption of Deep Learning and Neural Networks
Restraints
However, high RPA tool prices, as well as a skilled workforce shortage, are impeding market growth. On the contrary, increasing focus on human-aware AI systems and the development of smarter robots is expected to create ample opportunities for key players operating in the Robotic Process Automation (RPA) market in the coming decade.
Absence of Highly Skilled Manpower and Cybersecurity Threats
Opportunities
Increasing Focus on Human-Aware AI Systems and Development of Smarter Robots
Segment Overview
The global robotic process automation (RPA) market is segmented on the basis of component, process, application, deployment, organization size, end-use industry and region.
By component, the market is classified into software and services
Businesses can also analyze the RPA market in terms of services and software. The service segment generated a record 61% of overall RPA revenues in 2020. Analysts expect further growth until 2028. More so, enterprises are increasing their expenses on advisory, consulting, and training services related to automation while targeting scalability.
On the other hand, the software segment grew steadily (a steady CAGR) due to the high business requirements resulting from remote work and remote infrastructure access, network security, automated internal data control tasks, and much more.
By process, the market is segmented into automated solutions, decision support and management solutions.
By application, the market is categorized into administration and reporting, customer support, data migration and capture extraction, analysis and others.
By deployment, the market is divided into cloud and on-premise.
By organization size, the market is fragmented into large enterprises and small & medium enterprises.
By end-user industry, the market is bifurcated into bfsi, healthcare and pharmaceuticals, manufacturing, telecom and it, retail and consumer goods, travel and hospitality, transportation and logistics, energy & utilities, communication and media & education and others.
Regional Analysis
The RPA market is segmented into several regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America is currently the largest market for RPA, followed by Europe and Asia Pacific.
North America is projected to hold a dominant share by 2030
North America dominates the global Robotic Process Automation (RPA) market and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the factors such as the presence of well-established market players such as Xerox Holdings and UiPath along with surging investments in robotic process automation (RPA) in the information technology (IT) sector. In addition, the rising demand for RPA tools in the BFSI and automotive sectors are also propelling the RPA market forward.
The Asia Pacific region is expected to witness the highest growth rate due to the increasing adoption of RPA in countries like India, China, and Japan.
Key Market Players
The RPA market is highly competitive and includes both established players and emerging startups. Some of the key players in the market include UiPath, Automation Anywhere, Blue Prism, Kofax, and WorkFusion. These companies offer a range of RPA solutions that cater to different industries and use cases.
Emerging and efficient key players in the Robotic Process Automation (RPA) market research include companies such as UiPath, Inc, Automation Anywhere, Blue Prism Limited, Nice Ltd.,
Pega System, Kofax Inc., NTT-AT, EdgeVerve System, HelpSystems, WorkFusion, Inc.
Recent Developments
October 2022
Automation Anywhere launched the Automation Success Platform which was designed to accelerate business transformation by making automation accessible for everyone.
October 2022
Pegasystems announced the latest release of Robot Studio, the robotic process automation (RPA) low-code authoring environment for Pega’s intelligent automation platform.
June 2022
NICE launched NICE Robotic Process Automation (RPA) version 7.7, extending the capabilities of NEVA (NICE Employee Virtual Attendant) for a frictionless user experience.
May 2022
BluePrism launched a desktop automation solution Blue Prism Desktop. Blue Prism Desktop helped to guard against operational vulnerabilities resulting from human interaction, including governance and security risks.
May 2022
UiPath launched ‘Automation in a box’ managed service on Finastra’s cloud platform to deliver automation to banks and credit unions.
