PUBLISHER: The Business Research Company | PRODUCT CODE: 1426430
PUBLISHER: The Business Research Company | PRODUCT CODE: 1426430
Digital process automation is a methodology that leverages digital technology to automate one or more tasks within a business process. This approach employs low-code development tools to automate processes, eliminating the need for human intervention in various business processes. The purpose of digital process automation is to enhance efficiency, reduce errors, and enable organizations to respond swiftly to changing business needs.
The primary components of digital process automation include solutions and services. A solution refers to a set of tools, services, or processes designed to address specific business problems or needs. In the context of digital process automation, a solution aids in improving efficiency and enhancing decision-making by offering a structured approach to workflow automation. These solutions can be deployed on-demand or on-premise, catering to organizations of different sizes, including small and medium-sized enterprises as well as large enterprises. End-users span various industries, including banking, financial services, and insurance (BFSI), manufacturing, IT and telecommunications, aerospace and defense, healthcare, retail and consumer goods, among others.
The digital process automation market research report is one of a series of new reports from The Business Research Company that provides digital process automation market statistics, including digital process automation industry global market size, regional shares, competitors with a digital process automation market share, detailed digital process automation market segments, market trends and opportunities, and any further data you may need to thrive in the digital process automation industry. This digital process automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The digital process automation market size has grown rapidly in recent years. It will grow from $12.68 billion in 2023 to $14.42 billion in 2024 at a compound annual growth rate (CAGR) of 13.8%. The growth observed in the historical period can be attributed to several factors, including initiatives for legacy system modernization, efforts to reduce costs, compliance with regulatory requirements, improvements in customer experience, and a focus on enhancing business agility and adaptability.
The digital process automation market size is expected to see rapid growth in the next few years. It will grow to $24.29 billion in 2028 at a compound annual growth rate (CAGR) of 13.9%. The anticipated growth in the forecast period can be attributed to the implementation of hyperautomation strategies, the increasing popularity of low-code and no-code platforms, the adoption of cloud-based digital process automation (DPA) solutions, a heightened focus on employee experience, and the utilization of dynamic case management. Noteworthy trends expected in the forecast period include the integration of hyperautomation and intelligent process automation, the continued prominence of low-code and no-code platforms, the use of process mining for optimization, integration with robotic process automation (RPA), and an emphasis on security and compliance.
The anticipated surge in the adoption of cloud-based solutions is set to drive the growth of the digital process automation market in the future. Cloud-based solutions involve providing on-demand access to a shared pool of configurable applications and services delivered via the internet. Digital process automation providers are extending their services to a wider customer base by leveraging cloud infrastructure, eliminating the need for extensive hardware or on-premises installations. This approach lowers entry barriers for businesses aiming to integrate AI into their operations, as they can easily access AI capabilities through a subscription-based model. For instance, projections from the Office of Communications indicate a 20.7% increase in global end-user spending on public cloud services from 2022 to 2023, reaching £477.7 billion ($524.41 billion) in 2023 from £395.7 billion ($434.40 billion) in 2022. Additionally, a Eurostat article from December 2021 reported a 5-percentage point increase in organizations using cloud computing services, rising from 36% in 2020 to 41% in 2021. Thus, the growing adoption of artificial intelligence (AI) is a key driver of the digital process automation market.
The increasing demand for digital services is expected to fuel the growth of the digital process automation market. Digital services encompass a range of online or technology-based offerings, providing diverse solutions, information, or functionalities to individuals, businesses, or organizations. These services include e-commerce platforms, strengthening services, and social media platforms. Digital process automation (DPA) optimizes digital services through workflow automation, reducing manual interventions, ensuring accuracy, and enhancing user satisfaction and operational efficiency. For example, data from the United States Census Bureau reveals a consumer value of $277.6 billion for retail e-commerce sales in the United States during the second quarter of 2023, representing a 7.5% growth rate from the second quarter of 2022. This indicates a growing demand for digital services, contributing to the expansion of the digital process automation market.
High investment costs pose a major constraint on the growth of digital process automation during the forecast period. The investment cost in digital process automation technology is substantial and depends on various factors, including the type, complexity, and frequency of processes, data sources, and desired outcomes for implementation in organizations. According to FlowForma, an Ireland-based business process management firm, only 32% of organizations implemented digital process automation in May 2022, primarily due to the prohibitive nature of high investment costs. Thus, the substantial investment costs hinder the growth of the digital process automation market.
Leading companies in the digital process automation market are strategically integrating their efforts to introduce IoT-enabled open digital business platforms, such as Siemens Xcelerator, to gain a competitive advantage. Siemens Xcelerator is a platform providing companies with tools and services to digitize processes, automate work, and enhance client experiences. Siemens AG, a Germany-based automation company, launched Siemens Xcelerator in June 2022, offering an open digital business platform to expedite digital transformation. It provides access to a curated portfolio of IoT-enabled hardware and software, enabling organizations of all sizes to achieve their business goals and accelerate digital transformation. Siemens Xcelerator serves as a comprehensive platform where organizations can access the necessary products and services for connecting physical systems to the digital world, collecting and analyzing data, and automating processes.
In January 2022, Ricoh Company Ltd., a Japan-based electronics company, completed the acquisition of Axon Ivy AG for an undisclosed amount. This acquisition is poised to enhance Ricoh Company Ltd.'s digital process automation capabilities, enabling the delivery of advanced solutions to customers in the digital services industry. Axon Ivy AG, based in Switzerland, specializes in digital process automation.
Major companies operating in the digital process automation market report are Microsoft Corporation, Infosys Limited, Siemens AG, General Electric Company, Panasonic Holdings Corporation, International Business Machines Corporation (IBM), Oracle Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, SAP SE, ABB Ltd., Cognizant, Rockwell Automation Inc., ServiceNow Inc., Yaskawa Electric Corporation, OpenText Corporation, NICE Systems Ltd., Pegasystems Inc., Software AG, TIBCO Software Inc, UiPath, Automation Anywhere, Appian Corporation, Nintex Global Ltd., K2 Partnering Solutions, Bizagi, Laserfiche, Zapier, BP Logix Inc.
North America was the largest region in the digital process automation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital process automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the digital process automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The digital process automation market includes revenues earned by entities by providing services such as workflow design, process analysis, performance optimization, analytics, and reporting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Digital Process Automation Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on digital process automation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for digital process automation? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The digital process automation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.