WORKFLOW AUTOMATION MARKET ANALYSIS

The global workflow automation market size was valued at USD 18,890 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 16.6% from 2022 to 2030. This is mainly driven by the increasing need to improve efficiency and productivity in organizations. The market is also bolstered by the increasing implementation of advanced technology such as Artificial Intelligence (AI), machine learning, and robotic process automation (RPA). Moreover, the rise of the Internet of Things (IoT) will also drive the workflow automation market in the future.

Global Workflow Automation Market: Regional Insights

The global workflow automation market is geographically divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America among regions is expected to gain major share in the global workflow automation market during the forecast period. This can be attributed to availability of adequate infrastructure, presence of several global financial institutions in the U.S., rise in adoption of cloud platform, and growing adoption of industrial automation among industries in the region. Moreover, proliferation of digital services and technological developments in the region, along with early adoption of novel technologies among industries is also expected to fuel growth of the market in the region.

Furthermore, Europe is also expected to witness substantial growth in the global workflow automation market during the forecast period. Countries such as the U.K. in the region are implementing severe changes in public sector, as they are planning and setting new systems for covering border control, agricultural policy, trade, and immigration; which is likely to drive the adoption of RPA. Moreover, Industry 4.0 initiatives in countries such as Germany is also expected to drive growth of the global workflow automation market during the forecast period.

Figure 1: Workflow Automation Market Share (%), By Region, 2022

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Global Workflow Automation Market Drivers:

Growing adoption of IoT among several industries to boost the market growth

The adoption of IoT is increasing among industries due to emergence of applications and business models along with reduced device costs. Consequently, the number of connected devices such as connected machines, cars, and wearable, meters, and consumer electronics is also increasing around the world. As per Ericsson, the volume of IoT devices having cellular connection is likely to increase from 400 million in 2016 to 1.5 billion in 2022. This is owing to rise in industrial focus on deployment of connected ecosystem and standardization of 3GPP cellular IoT technologies. Thus, due to aforementioned factors, the demand for workflow automation is expected to increase in the coming future, which is expected to boost growth of the global workflow automation market during the forecast period.

Increase in implementation of RPA in business process management to augment the market growth

Robotic Process Automation (RPA) has become an important part of modernization and process improvement in workflow automation. These combined technologies are driving the digital transformation in businesses all over the world. This is happening in the shorter production lead times and is allowing businesses to shorten the gap between consumer demand and supply. As per an article published by Robotics and Automation in September 2021, 40% of business executives revealed that their operational efficiency has improved due to digital transformation. Moreover, 44% of companies have already adopted a digital-first business strategy, and 89% of these companies are planning to adopt digitization. Thus, these factors are expected to fuel growth of the global workflow automation market during the forecast period.

Global Workflow Automation Market Opportunities:

Growing AI research is expected to create growth opportunities in the global workflow automation market during the forecast period. AI research is likely to drive the workflow automation adoption, and it is also being termed as hyper workflow automation. With time, technologies are advancing due to which these solutions have become capable of performing multiple functions without any human intervention. Such technologies are now replacing repetitive tasks and are also increasing capabilities of workforce omitting/reducing human error in related processes. Thus, the market is likely to witness significant opportunities in the coming future.

Growing technological advancements and widespread adoption of workflow automation is expected create lucrative environment for growth opportunities in the global workflow automation market during the forecast period. These advancements are likely to reshape business process management radically. The human FTEs can make mistakes in data entry, however, robots perform this task the same way each time, and require no judgment call when processing the transactions. Thus, these technological advancements such as robotic process automation and its widespread adoption is likely to offer lucrative opportunities in the market.

Global Workflow Automation Market Trends:

Growing adoption of workflow automation among enterprises is a recent trend

Increasing number of enterprises are adoption workflow automation tools to get better results. Due to this, many companies are encouraged to experiment with the capabilities of software, which in turn is leading to increased innovations and new applications. At the moment, RPA is increasingly being adopted and it is focused on the internal processes of businesses. However, in future, innovations could lead to advancements in capabilities of RPA in multiple external processes. Thus, this trend is likely to continue in the global workflow automation market during the forecast period.

Increase in adoption of artificial intelligence is a major trend in the market

The adoption of artificial intelligence (AI) and related novel technologies such as cognitive automation, computer vision, and machine learning is increasing across several industries globally for robotic process automation. This technological convergence is generating automation capabilities that are elevating businesses value and competitive advantages significantly for customers. Thus, this trend is expected to fuel growth of the global workflow automation market during the forecast period.

Global Workflow Automation Market Restraints:

Concerns regarding data security to hamper market pace

Adoption of workflow automation can be risky, as it creates risks for cyberattacks directed at both non-human and human accounts. Due to this, process automation security is highly important. RPA bots often work on data that is confidential, and transfer it from one system to another. When this data is not protected, it can be compromised, which can cost millions to businesses. Data theft and leakage are two of the major threats related to process automation. With the lack of appropriate security protocols, critical data such as consumer data can be exposed to attackers. Thus, these concerns are expected to restrain growth of the global workflow automation market during the forecast period.

High cost of implementation and lack of awareness to hinder market growth

Implementation of workflow automation solutions offers several benefits. However, implementation of these solutions is associated with high cost. Moreover, due to the complexity of these automation solutions, it requires skilled workflow and maintenance services, which again adds into cost of implementation of these workflow solutions. Along with this, there is still lack of awareness regarding benefits of workflow automation, which is also expected to hinder growth of the global workflow automation market during the forecast period.                             

Figure 2: Global Workflow Automation Market Share (%), By Component, 2022

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Global Workflow Automation Market Segmentation:

The global workflow automation market report is segmented into Deployment, Solution, and End-User Industry.

Based on Deployment, the market is segmented into On-Premise, and Cloud. Out of which, On-premise is expected to dominate the global market over the forecast period and this is attributed to the various benefits of on-premise automation solutions of triggering response, interpreting, and communicating with other systems in order to perform several repetitive tasks by deploying software on-premise. Thus, demand for these solutions is increasing among various industries, which is likely to drive the market growth in the near future.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the increasing need for capturing data and manipulation of applications among companies. This is fueling the demand for cloud-based workflow solutions. Moreover, due to various benefits such as lowering infrastructure costs, ease of implementation, and lower costs of installation and maintenance are also creating demand for cloud-based workflow solutions. Thus, the segment is expected to gain strong share in the global workflow automation market during the forecast period.

Based on Solution, the market is segmented into Software, and Service. Out of which, Software is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for workflow software by organizations leading to increased investment in development of more efficient and sophisticated software. For instance, in April 2021, Zoho introduced a novel business division, named Qntrl for offering workflow solutions to enterprises.

Service segment is also expected to witness significant growth in the near future and this is owing to the increasing innovations of solutions and rise in complexity of solutions. These complexities could be ranging from identification, optimization, and prioritizing process for equipment control in different end-user industries. Due to this, the demand for maintenance services is likely to increase in the near future. Thus, the segment is expected to witness strong growth during the forecast period.

Based on End-User Industry, the market is segmented into Banking, Telecom Retail, Manufacturing and Logistics, Energy and Utilities, and Other End-user Industries. Out of which, Banking is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of RPA in banks. For instance, banks in Japan implemented RPA for saving labor costs and gaining operations efficiency. Thus, this segment is expected to gain a major share in the global workflow automation market during the forecast period.

Telecom segment is also expected to witness significant growth in the near future and this is owing to the increase in implementation of Internet of Things, edge computing, and 5G. Due to this growing demand and the increasing amount of data generated is expected to drive adoption of robotic process automation in order to perform tasks such as data entry, report generation, and data mapping. Thus, the segment is likely to witness strong growth in the coming future.

Global Workflow Automation Market: Key Developments

In July 2021, IBM Corporation completed acquisition of myInvenio for providing customers with data-driven software that can help in identification of the most impactful business processes for automating use of AI, including procurement, sales, accounting, and production.

In November 2021, DKB Service GmbH and Pegasystems Inc. entered into partnership for deploying the Pega platform and its intelligent automation capabilities for standardizing and automating back-office service processes.

In July 2021, Appian Corporation, launched a new Appian Japan regional office, and with this Low-Code automation platform, Appian Japan is aiming to add value to the corporate brands in Japan, and increase the intelligent automation and transparency for the Japanese government agencies.

In January 2022, Nintex Global Ltd., announced that the automation and digital form technology of the company are now part of a novel communication system, which is developed by Nintext Premier Partner Myriad Technologies, for helping Australian military personnel to relay crucial operational information in a very low-bandwidth environment.

Global Workflow Automation Market: Key Companies Insights

The global workflow automation market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global workflow automation market are Xerox Corporation, IBM Corporation, Nintex Global Limited, Software AG, Newgen Software Technologies Limited, Oracle Corporation, IPsoft Inc. (Amelia LLC), Pegasystems Inc., Bizagi, and Appian Corporation.

*Definition: Workflow automation is the process of automating and optimizing business processes to streamline operations. This means eliminating tasks that are time-consuming or repetitive. It also allows businesses to cut down on human errors, which helps save money.