IT Robotic Automation Market

Industry Insights

[218+ Pages Report] According to Facts & Factors, the global IT robotic automation market size was worth around USD 5.49 billion in 2023 and is predicted to grow to around USD 20.39 billion by 2032, with a compound annual growth rate (CAGR) of roughly 15.7% between 2024 and 2032.

Market Overview

IT robotic automation, aka robotic process automation, is the use of software machines or robots to automate rule-based, repetitive tasks in IT operations. These tasks may comprise data entry, report generation, system monitoring, and software deployment.

By automating such processes, IT robotic automation significantly increases efficiency, reduces errors, and allows teams to concentrate on essential strategic work. The global IT robotic automation market has witnessed substantial growth in recent years owing to the rising automation demand from IT operations, cost efficiency, error reduction, and enhanced precision.

By automating monotonous tasks, businesses can majorly reduce costs for training, labor, and mistakes. Robots can efficiently work 24/7 without needing breaks, overtime, or holidays, thus offering smooth production. Businesses are aiming numerous ways to enhance their IT operations and reduce time spent on repetitive tasks.

Automation reduces human errors in key tasks like system maintenance, data entry, or reporting. This reduces the error rate and results in better outcomes in IT operations.

Nonetheless, high implementation costs and resistance to change are a few barriers to global industry growth. The upfront costs of purchasing and installing IT automation software may be high, mainly for SMEs. These costs comprise integration with the current systems, licensing, and training workforce. Furthermore, employees may hesitate to use automation due to low awareness and its advantages.

Overcoming this resistance needs appropriate change and communication tactics. Yet, the market is opportune for substantial growth owing to cloud-enabled automation solutions and the affordability of automation. The inclination towards cloud computing offers prospects for IT robotic automation. Cloud platforms offer enhanced scalability, cost savings, and flexibility than on-premise solutions, thus increasing the accessibility of automation to businesses of all sizes.

Moreover, as automation is becoming budget-friendly, small and medium-sized businesses are actively adopting ITRA to enhance operations and maintain competition edge. This denotes a major growth opportunity for the businesses offering automation.

Key Insights:

• As per the analysis shared by our research analyst, the global IT robotic automation market is estimated to grow annually at a CAGR of around 15.7% over the forecast period (2024-2032)
• In terms of revenue, the global IT robotic automation market size was valued at around USD 5.49 billion in 2023 and is projected to reach USD 20.39 billion by 2032.
• The IT robotic automation market is projected to grow significantly owing to the growing digital transformation trends, cost-efficiency, and enhanced precision and error reduction.
• Based on type, the Robotic Process Automation (RPA) segment is expected to lead the market, while the Intelligent Automation (AI) segment is expected to register considerable growth.
• Based on deployment, the cloud-based segment is the dominating segment among others, while the on-premises segment is projected to witness sizeable revenue over the forecast period.
• Based on application, the Banking, Financial Services, and Insurance (BFSI) segment is expected to lead the market as compared to the manufacturing segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Asia Pacific.

Growth Drivers

• Integration of ML and AI boosts the IT robotic automation market growth

The integration of ML and AI with robotic process automation notably improves the ability of automation systems to manage cognitive and complex tasks. This allows smart decision-making, continuous improvement with human interference, and predictive analytics. This drives the growth of the IT robotic automation market to a great extent.

Currently, businesses like Automation Anywhere and UiPath have incorporated machine learning and artificial intelligence in their automated platforms. For example, AI-enabled bots of UiPath can efficiently automate tasks like customer service communication and invoice processing in regions that were previously dependent on human judgment for long.

The worldwide artificial intelligence in robotic process automation market is anticipated to grow at a 16.7% CAGR and register a valuation of USD 8.89 billion by 2029.

• Growing adoption in various industries fuels the market growth

Robotic process automation is broadly adopted in several sectors, including banking, financial services, insurance (BFSI), healthcare, manufacturing, retail, and more, to enhance operational workflows and significantly decrease manual work.

In medical, companies, such as CVS Health, have initiated the use of robotic process automation to automate scheduling, appointment, and claims processing. This noticeably improves patient service while lowering administrative costs. In the same way, bigger retail businesses like Walmart have adopted automation for supply chain optimization and inventory management.

Restraints

• The complexity of integration and process selection adversely impacts the IT robotic automation market progress

Identifying the most suitable process for integrating RPA and automation in the current infrastructure might be a complex procedure. Not all tasks are ideal for automation, and choosing incorrect processes may lead to increased costs, inefficiency, and bad results.

In addition, integrating robotic process automation in conventional systems may be complex, mainly in businesses with outmoded infrastructure. This is one of the key restraints in the global IT robotic automation industry.

Recently, IBM reported that their customers frequently experience issues during the integration process. For instance, incorporating RPA in the existing systems without disturbing active operations is one of the key challenges.

To resolve these problems, Blue Prism company is providing pre-configured connectors to incorporate RPA solutions with the largely used old infrastructure.

Opportunities

• Growing adoption in SMEs (Small and Medium Enterprises) impact the IT robotic automation market growth

SMEs are actively adopting RPA solutions to simplify business processes, improve operational efficacy, and maintain a competitive edge. The scalability and affordability of cloud robotic process automation solutions enable these businesses to access automation solutions that were earlier used by larger businesses. This offers an edge to the SMEs in enhancing their productivity, improving customer experience, and reducing costs. SMEs are projected to substantially contribute to the RPA's market growth, with nearly 55% of small and medium businesses aiming to use automation technologies by 2025.

Recently, Cognizant introduced an affordable robotic process automation platform, especially for the SMEs. The platform allows businesses to automate routine tasks like payroll processing, invoicing, and customer support without requiring an IT team.

Challenges

• Scalability issues restrict the IT robotic automation market growth

Most businesses experience issues when scaling RPA solutions afar pilot projects. While robotic process automation may perform greatly on a smaller scale, scaling in numerous geographical and departments may offer problems associated with infrastructure, governance, and process standardization.

Blue Prism is resolving challenges by launching cloud-based RPA services, enabling companies to scale their automation with no significant infrastructure fixes.

UiPath also introduced Automation Cloud for businesses to scale on-demand automation, thus streamlining tasks for businesses to expand the use of RPA while curbing infrastructure costs.

Report Scope

Segmentation Analysis

The global IT robotic automation market is segmented based on type, deployment, application, and region.

Based on type, the global IT robotic automation industry is divided into Robotic Process Automation (RPA), Intelligent Automation (AI), cognitive automation, and others. In 2023, the Robotic Process Automation (RPA) segment registered a notable share of the IT robotic automation market owing to its broad adoption in diverse industries. It emphasizes automating rule-based and repetitive tasks that comprise structured data.

Businesses adopt robotic process automation to simplify operations, decrease human errors, and reduce operational costs. The segment leads the market, among others, since the majority of businesses are focusing on automation tasks. Conversely, IA, or intelligent automation that incorporates ML and AI, is witnessing speedy growth.

The segment is gaining prominence as companies aim for more than just automation and integrate improved decision-making capabilities. This increases the popularity of the intelligent automation segment.

Based on deployment, the global IT robotic automation industry is segmented as cloud-based and on-premises. The cloud-based segment held a major market share owing to the rising demand for cloud-based solutions due to scalability, flexibility, cost-effectiveness, and ease of integration with several cloud tools.

Cloud-enabled platforms enable companies to easily access automation tools, speedily scale automation, and decrease infrastructure costs as needed. As businesses shift towards cloud adoption and digital transformation, the segment is projected to register a notable market share.

On the other hand, the on-premise segment is anticipated to hold a major market share over the estimated period owing to its familiarity and ease of use. Despite the prominence of cloud systems, most businesses still consider on-premise deployment.

Based on application, the global market is segmented as Banking, Financial Services, and Insurance (BFSI), healthcare, retail, manufacturing, and others. The Banking, Financial Services, and Insurance (BFSI) segment is projected to lead the market owing to its wide adoption. Automation in this industry is used for multiple tasks like regulatory compliance, fraud detection, data processing, customer service using chatbots, risk management, and transaction management. The industry's massive volume of monotonous tasks, need for precision, and regulatory pressures make it a suitable option for automation solutions.

Financial institutes are actively adopting automation to enhance service delivery, improve operational efficiency, and reduce costs. However, the manufacturing segment is predicted to register a considerable market share over the forecast period owing to its assistance in reducing downtime, enhancing productivity, and promising safety and high-quality standards.

Regional Analysis

• North America to witness significant growth over the forecast period

North America registered a considerable share of the global IT robotic automation market in 2023 and is projected to continue dominance over the forecast years as well. This growth is attributed to the strong adoption of improved technologies, the presence of prominent technology providers, a proficient workforce, and modernized infrastructure. North America, mainly the United States, is a hub for the majority of adopters of ITRA technologies, comprising RPA and AI-based solutions.

Businesses in industries like manufacturing, healthcare, and BFSI are spending heavily on automation to reduce costs, simplify operations, and enhance customer services. The region also holds the biggest automation providers, availability of enhanced solutions, and modernizations, thus contributing to the region's dominance.

Also, strong technological infrastructure and a skilled workforce support the adoption of intricate automation services like cognitive automation, ML, and AI.

Asia Pacific is projected to progress as the second-leading region owing to speedy digital transformation, operational efficiency, and government initiatives and support. Most nations in the region are experiencing speedy digital transformation, resulting in elevated automation demand for IT operations.

Companies in industries like manufacturing, retail, and banking are increasingly adopting ITRA to enhance their processes. The region also offers a cost-efficient labor market, and automation helps companies decrease dependency on manual work, simplify processes, and enhance productivity. This is mainly essential in IT and manufacturing services.

Furthermore, governments of most nations are supporting technology automation and adoption for development. For instance, 'Made in China 2025', an initiative by China, is fueling the adoption of automation in manufacturing.

Competitive Analysis

The global IT robotic automation market is led by players like:

• UiPath
• Automation Anywhere
• Blue Prism
• Pega Systems
• WorkFusion
• Kofax
• AntWorks
• HelpSystems
• NICE Systems
• EdgeVerve
• AutomationEdge
• Redwood Software
• MaidSafe
• Verint Systems
• Cognizant.

Key Market Trends

• Rise of the Low-Code/No-Code Platforms:

The growth of low-code or no-code platforms is transforming IT automation. These platforms enable users with little or no programming experience to deploy and create automation solutions. This strengthens the implementation of robotic automation among the SMEs and the non-technical end-users.

• Robotic Process Automation in Non-IT Operations:

Robotic process automation is substantially progressing beyond IT branches and is currently used in multiple business operations like customer service, HR, sales, finance, and more. This trend is majorly boosting the adoption of automation in numerous industries to simplify processes like invoicing, payroll, and customer support.

The global IT robotic automation market is segmented as follows:

 By Type Segment Analysis

• Robotic Process Automation (RPA)
• Intelligent Automation (AI)
• Cognitive Automation
• Others

By Deployment Segment Analysis