BUSINESS PROCESS MANAGEMENT MARKET ANALYSIS

The Business Process Management Market is estimated to account for US$ 14.46 Billion in terms of value by the end of 2022 and is expected to grow at a CAGR of 13.2% during the forecast period (2023-2030)

Businesses frequently adopt Business Process Management (BPM) as a strategic tool to achieve specific business objectives and enhance operational efficiency. With a strong emphasis on process automation, companies aim to boost productivity and streamline workflows, thus reducing time constraints. BPM also facilitates the development of customized systems, effectively minimizing the risk of human errors.

The BPM approach entails a meticulous analysis of business processes, which are then modeled in various scenarios. This analysis leads to the implementation of process improvements, and continuous monitoring of newly implemented strategies, all with the ultimate goal of optimizing business outcomes. Noteworthy use cases, which play a pivotal role in enterprise selection criteria, encompass digital business optimization and transformation, self-service intelligent business process automation, and adaptive case management.

Global Business Process Management Market: Regional Insights

Figure 1: Global Business Process Management Share (%), By Region, 2022

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• The global Business Process Management market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
• North America is one of the largest and most mature markets for BPM. The United States and Canada have a significant adoption rate of BPM solutions across various industries, including finance, healthcare, IT, and manufacturing. The region's advanced technological infrastructure, strong economy, and focus on process optimization contribute to the growth of the BPM market in North America.
• Europe is another prominent market for BPM, with countries like the United Kingdom, Germany, France, and the Netherlands leading the adoption. The region's emphasis on digital transformation, regulatory compliance, and efficiency gains drives the demand for BPM solutions.
• The Asia-Pacific region is witnessing rapid growth in the BPM market. Countries like China, India, Japan, and Australia are major contributors to this growth. The region's expanding IT and business process outsourcing (BPO) industry, along with the increasing adoption of automation technologies, fuels the demand for BPM solutions.
• Latin America is a developing market for BPM, with countries like Brazil, Mexico, and Argentina showing increasing interest in process optimization and automation. The region's growing industrial and service sectors offer opportunities for BPM adoption.
• The BPM market in the Middle East and Africa is also growing steadily, driven by the need for improved business efficiency and digital transformation. Countries like the United Arab Emirates, South Africa, and Saudi Arabia are significant contributors to the market.

Business Process Management Market - Impact of Coronavirus (COVID-19) Pandemic

Globally, COVID-19 has adversely affected various industries. Due to the global lockdown and travel restrictions, the supply chain was significantly disrupted, and enterprises were forced to work remotely. The COVID-19 pandemic affected the business process management market positively, triggering a rapid transition to new business policies and systems. This has necessitated plenty of changes all at once in business process management.

The COVID-19 pandemic has impacted a more significant digital shift, marking more extensive changes in business process management across the board, from workflow updates to new financial management methods. For instance, according to the IBM Institute for Business Value, 59% of businesses surveyed have begun a digital transformation in response to the COVID-19 pandemic. In addition to developing the latest information systems (for example, IoT-based supply chains to keep the supply chain running with less human intervention), companies are also implementing more embedded social media and communication tools (e.g., MS Teams, Google Meet, Zoom), which were not always used to their fullest extent before. It is, therefore, a global event that has impacted rapid business transformations across all organizations and sector sizes.

Global Business Process Management Market - Drivers

Rising Adoption of Cloud-Based Bpm Software

• Cloud computing allows enterprises to store, manage, and process critical data remotely over the internet. The cloud-based business process management system consists of business processes, business information, and IT resources, which combine to create real-time intelligence systems. One of the most critical activities a firm performs is collecting and storing data. Businesses generate enormous amounts of data because of their transactions and other activities. The rising amount of data storage has paved the way for adopting cloud- based BPM as a solution, which incorporates cloud computing and storage. Several companies used cloud- based BPM services to resolve common problems with traditional BPM, including promoting flexibility and event-driven business processes to take advantage of market opportunities. Many companies are adopting cloud-based BPM software to provide a more flexible IT environment. For instance, in 2020, according to state of BPM market report, 70% of the companies are using process modelling tools in order to improve efficiency and reduce costs for their companies.
• BPM, available as SaaS in the cloud, offers full software functionality without the need to install and maintain the software. It eradicates the overhead of managing a server infrastructure while executing a solution for BPM and workflow management. It includes software deployed remotely and usually on demand & via a 'pay as you go model.' Companies are increasingly adopting SaaS-based cloud BPM as it provides fast time-to-solution coupled with low infrastructure costs. Many SaaS-based BPM platforms offer low-code functionality to strengthen business units and employees who are familiar with business processes but lack technical expertise. The development of customized applications to accelerate the digital transformation of companies is becoming the norm in business today. Many companies are seeking simpler and more efficient ways to remove the need for expert teams. This is expected to drive the growth of the BPM market.
• Cloud service providers are increasing the security of their services and are anticipated to fuel the market development. Organizations increasingly rely on data centers to access information, which needs to be integrated with the business processes to optimize performance. Some firms may not be able to reap the benefits of cloud BPM because they might not have related data suiting their businesses. In such scenarios, the onsite BPM service delivery would flourish.

Increasing Adoption of Bpm in Banking and It & Telecom Sector

• The rise in demand for BPM in various sectors such as banking, IT & Telecom, and more is increasing owing to its benefits of increased flexibility, reduced costs, and enhanced service quality. Moreover, BPM allowed companies to focus on their main business activities to deliver value to their customers. Owing to the advantages mentioned earlier, BPM is witnessing significant demand among various end-use industries. For instance, in 2020, according to the State of BPM by Signavio nearly 70% of organizations implemented business process management in order to improve productivity or reduce costs. Only 2% had all business processes modeled. In addition, 60% said they worked on one or greater than one transformation project, and nearly 36% said they worked on ten or greater than 10 process improvement projects.
• Banking and Financial institutions pose a significant demand for BPM to improve cost efficiency and provide ease of customer management across various regions. BPM is an integral part of the BFSI business model, catering to multiple domains of the financial sector, including asset management, phone banking, customer service, and investment management. The growing digitization of services in the BFSI industry and increasing focus on personalized services have led to the need for service providers to optimize data management, enhance customer value, and enhance cross-selling opportunities. It has led to increased adoption of BPM in the BFSI industry and is anticipated to drive the market over the forecast period. For instance, in 2021, an IBM study revealed that more than 50 % of CEOs of banking and financial organizations are focused on simplifying their operations and products to manage the task complexity effectively.
• The IT & telecommunications industry is constantly evolving owing to technological advancements. Several companies in the industry such as Bharti Airtel, AT & T, Verizon, and more are quickly adapting and responding to the market changes due to rising competition in the industry. It has paved the way for the rising adoption of BPM software in the IT & telecommunication industry, mainly associated with the growing emphasis on operational excellence, business visibility, and customer service. Using BPM in telecommunications companies provides end-to-end transparency to identify processes and solve problems so that customers are satisfied.
• Utilize value stream mapping to optimize productivity and efficiency by analyzing value, cost, and efficiency. Through streamlined processes, companies can improve cycle times, reduce errors, and speed up the process. This has surged the adoption of business processes management software by various companies in the market.

Global Business Process Management Market - Opportunities

Rising Integration of Digital Technologies in Business Process Management Software

• Several companies are integrating Artificial Intelligence (AI), and Machine Learning (ML) technologies with business process management software to reduce manual errors and improve IT systems innovation, global competition, and new technologies are the key driving factors behind the expansion and growth of the business process management (BPM) industry. BPM has provided businesses with the means to increase profits and cut costs effectively. With the increased influence of these technologies, BPM can boost the efficiency of its services even further.
• Technologies such as robotic process automation (RPA) that have emerged over the past few years have influenced the BPM industry. RPA, with its cost savings abilities, speed, and efficiency, is slowly making its way into all sectors and all types of business processes. Robotic process automation has also emerged as the fastest growing trend in BPM, mainly in the management sector, enabling high-value creation with rapid time- to-value and notable cost savings. For instance, in 2020, Appian Corporation launched the Appian Robotic Process Automated platform which utilizes workflow, artificial intelligence, case management, and decision rules at the speed of low code. This means companies can use the technology for automating the end-to-end process.
• The increasing sophistication and application of process automation in the BPM domain leads to an increase in virtual workers. Robotic process automation will enable the completion of tasks more cost-efficiently and with greater accuracy. Due to this, robotic process automation technologies are expected to take over labor- intensive back-office operations. The adoption of RPA in BPM is predicted to increase over the next few years since it does not require costly and complex integrations and has no unintended technology consequences.

Integration with Emerging Technologies

• In the dynamic landscape of business process management, the integration of emerging technologies is becoming increasingly crucial. The Global BPM market is witnessing a significant shift as businesses seek to capitalize on the potential offered by cutting-edge technologies. This integration aims to enhance process efficiency, drive innovation, and gain a competitive edge in today's fast-paced business environment.
• One of the key drivers behind the synergy between BPM and emerging technologies is the pursuit of improved automation and intelligent decision-making capabilities. Robotic Process Automation (RPA) is one such technology that has gained prominence in BPM solutions, enabling the automation of repetitive tasks and the optimization of workflows. RPA's ability to work seamlessly alongside existing systems, without the need for significant infrastructure changes, has made it a favored choice for businesses seeking immediate efficiency gains.
• Artificial Intelligence (AI) and Machine Learning (ML) are also revolutionizing BPM. By leveraging AI and ML algorithms, businesses can analyze vast datasets to gain valuable insights, make data-driven decisions, and predict potential bottlenecks in processes. These technologies empower BPM solutions to become more agile, adaptive, and proactive, thereby fostering continuous improvement and innovation.
• The integration of Blockchain technology is yet another area driving transformation in BPM. Blockchain's distributed ledger system ensures data transparency, traceability, and enhanced security, leading to improved trust and accountability in various business processes, such as supply chain management and financial transactions.
• Furthermore, the Internet of Things (IoT) is reshaping BPM by connecting various devices and systems, providing real-time data for better decision-making and predictive maintenance. With IoT integration, BPM solutions can optimize resource utilization, monitor performance, and enable proactive maintenance, ultimately leading to cost savings and improved customer experiences.

Global Business Process Management Market -Trends

Low-code/No-code BPM

• The global Business Process Management (BPM) market is witnessing a significant trend towards Low-code/No-code BPM solutions. These innovative platforms offer a simplified approach to designing, deploying, and managing business processes without the need for extensive coding knowledge. With Low-code/No-code BPM, businesses can streamline their operations, automate processes, and achieve desired outcomes more efficiently and rapidly.
• The Low-code/No-code BPM platforms enable even non-technical users to create and modify business processes through intuitive visual interfaces, reducing the dependency on IT developers. This democratization of process automation empowers organizations to respond quickly to changing market demands and make agile decisions, leading to improved business agility and faster time-to-market for products and services.
• As more companies recognize the advantages of Low-code/No-code BPM solutions, the market for these platforms is experiencing significant growth. Enterprises are increasingly adopting these solutions to enhance productivity, reduce costs, and enhance customer experiences. Moreover, the ease of implementation and scalability of Low-code/No-code BPM platforms make them attractive options for organizations across various industries and sizes.
• In conclusion, the rise of Low-code/No-code BPM is shaping the global BPM market, providing businesses with a powerful toolset to optimize their processes and gain a competitive edge in today's dynamic business landscape.

Robotic Process Automation (RPA)

• The Global Business Process Management Market is experiencing significant growth, largely driven by the adoption of Robotic Process Automation (RPA) technologies. RPA has emerged as a key enabler in streamlining and automating business processes, leading to enhanced efficiency and cost-effectiveness for organizations worldwide.
• RPA involves the use of software bots or robots to automate repetitive tasks, data entry, and rule-based processes, which were previously performed manually by employees. By implementing RPA, businesses can achieve improved accuracy, increased productivity, and reduced operational costs.
• The integration of RPA with Business Process Management (BPM) solutions has further accelerated the digital transformation of businesses. BPM platforms offer a comprehensive approach to manage, analyze, and optimize end-to-end business processes. When combined with RPA, companies can achieve even greater process automation, resulting in seamless workflows and quicker turnaround times.
• As a result, the Global Business Process Management Market has witnessed significant traction, with various industries adopting RPA-powered BPM solutions to stay competitive in today's fast-paced business landscape. The demand for these technologies is expected to continue to rise as more organizations recognize the potential benefits of implementing RPA within their BPM strategies.

Global Business Process Management Market - Restraints

Rising Security Concerns

• Companies must consider many threats when using Business Process Management (BPM). Business processes are vulnerable to security hazards, including hacker attacks, malware, or data theft. These may negatively impact a company's value, such as shareholder value, profit, or reputation. Customers' skepticism about a company's security would negate the advantages of BPM, which include cheaper or faster service delivery. As a result, companies are increasing their resources to protect their business processes. Companies are investing a lot of money in security. Often, they fail to enforce security policies appropriately, thus making the development process insecure. For instance, in 2020, according to the Global DNS Threat Report, 79 % of enterprises had been affected by DNS attacks. Security breaches cost an average of USD 924,000 each year. Furthermore, hackers may have a significant economic impact on companies. Due to the cost of theft, the cost of recovery, the loss of business value, and the loss of reputation and confidence. This is expected to hamper the growth of the market.
• Many outsourcing companies outsource to countries without a legal framework that protects them from breaches of confidentiality and infringements of intellectual property rights to reduce operational costs. A lack of legal framework in an outsourcer's operational country can significantly impact any legal action or compensation in case of a breach, regardless of whether corporate contracts bind the outsourcer and outsourced. Because of this, outsourcing companies are concerned with how outsources handle information and are often reluctant to share it because even a small error can result in a permanent setback regarding a company's market position. Thus, it is anticipated that outsourcers' reluctance to outsource business processes will significantly hamper the market's growth.

Process Diversity

• Organizations witness different types of processes across various business operations. These processes may primarily need a system–to-system exchange, human interaction, alteration of information, the creation of documents, or necessitate arrival at a significant decision. Additionally, processes can be categorized as simple or complex, managing a limited or considerable number of transactions.
• Some processes, such as sales campaigns, are time-consuming and may take several days, weeks, months, or years whereas others might occur in less than a second. Further, processes may be categorized as highly structured with repetitive tasks or unstructured, wherein the workflow can be identified during the execution.
• The diversity of these processes has conventionally compelled enterprises to utilize multiple process management systems, which focus on handling a subgroup of these process types. This consequently increases the complexity of the system. However, efficiency may be achieved in a few processes, but complete efficiency and agility are still challenged, owing to the barriers imposed by a point process solution.
• BPM does not form the ideal process management solution to address all types of processes. Thus, process diversity is anticipated to evolve as a significant restraint. However, if BPM solutions can overcome this barrier in the future, it would reduce IT complexity in supporting several products. It would also offer a better return on investment, owing to the reduced IT & business costs.

Figure 2: Global Business Process Management Market Share (%), By Deployment, 2022

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Global Business Process Management Market - Segmentation:

• The global business process management market report is segmented into by solution, by application, by deployment, by end user, and by region
• Based on Deployment, the Cloud-based sub-segment dominated the global market in 2022, accounting for 63.9% shares in terms of value, followed by the on-premises

Global Business Process Management Market: Key Developments

• In February 2021, Genpact announced a partnership with Massmart (Africa), a leading retailer, to transform the financial operations and leverage analytics and digital technology to drive the competitive growth of Massmart. The former company will manage and change the financial and accounting services of Massmart, including accounts receivable, payable, and defined activities in financial tax, control, treasury, and perform financial analysis.
• In May 2022, IBM announced its extended partnership with SAP SE. As a part of the partnership, IBM is migrating to SAP ERP software SAP S/4HANA. This partnership will help IBM centralize and standardize data worldwide. The SAP HANA database allows data to be easily shared among business teams and accessed in real-time.
• In June 2022, Opentext unveiled its plan to accelerate cloud investment under Project Titanium. This project will strengthen the OpenText cloud platform by providing a common platform for using OpenText services and software.
• In March 2021, Nintex announced Desktop Imaging as their reseller partner in New Zealand. Desktop Imaging, based in Wellington (New Zealand) is a company that provides a complete document processing cycle for its customers. The Partnership between Desktop imaging and Nintex is made in response to the growing demand for solutions such as process automation, and process management, among others in the region.

Global Business Process Management Market: Key Companies Insights

Key players operating in the global Business Process Management market are Accenture, Appian Corporation, Genpact, Infosys Limited (Infosys BPM), Open Text Corporation, International Business Machines Corporation, Kissflow Inc., Nintex Global Ltd., Software AG, Tata Consultancy Services Limited., and Pegasystems Inc.

*Definition: Business Process Management (BPM) is a systematic approach that involves designing, modeling, executing, monitoring, and continuously optimizing business processes to achieve specific organizational goals and objectives. It is a discipline aimed at improving the efficiency, effectiveness, and agility of an organization's processes to enhance overall performance and customer satisfaction.