Gartner finds RPA is fastest growing market in enterprise software – TechCrunch
If you asked the average person on the street about robotic process automation, you most likely would have no idea. However, new data from Gartner shows that the RPA market has grown by over 63% over the past year. This makes it the fastest growing business software category. It should be noted, however, that the total market value of $ 846.2 million remains rather modest when compared to other multi-billion dollar enterprise software categories.
RPA helps companies automate a number of highly manual processes. The beauty of RPA, and why companies like it so much, is that it allows customers to automate legacy processes without having to rip and replace the legacy systems.
As Gartner points out, this plays a good role in companies with large amounts of legacy infrastructure such as banks, insurance companies, telecommunications companies, and utilities. “The ability to integrate legacy systems is the main driver for RPA projects. By leveraging this technology, companies can quickly accelerate their digital transformation initiatives while unlocking the value associated with previous technology investments, “said Fabrizio Biscotti, research vice president at Gartner, in a statement.
The biggest winner in this fast-growing market is UIPath, the startup that raised $ 568 million on a bold $ 7 billion valuation last year. Part of the reason it has received so much attention is because of its incredible growth path. Note that UIPath had revenue of $ 15.7 million in 2017 and increased that by a whopping 629.5% to $ 114.8 million last year. This type of growth will get you noticed. According to Gartner, it was good for 13.6% market share and first place, down to fifth place in 2017.
Another startup that’s almost as hot as UIPath is Automation Anywhere, which received $ 300 million from SoftBank last year on a valuation of $ 2.6 billion. According to Crunchbase, the two companies have raised a whopping $ 1.5 billion, with UIPath raising $ 1 billion and Automation Anywhere receiving $ 550 million.
Automation Anywhere revenue rose from $ 74 million to $ 108.4 million, a 46.5% growth rate, good for second place and a 12.8% market share. Automation Anywhere was replaced by UIPath in first place this year.
Blue Prism, which went public in 2016, issued $ 130 million of shares last year to raise additional funds, likely to keep up with UIPath and Automation Anywhere. Whatever the reason, it more than doubled its sales from $ 34.6 million to $ 71 million, a healthy growth rate of 105 percent, good for third place with 8.4 percent market share.
Right now everyone seems to be winning as the market is growing by leaps and bounds. In fact, the growth numbers are impressive across the board: NTT-ATT is growing 456% and Kofax is growing 256% year over year as two prime examples, but even with those growth numbers, market share is starting to fragment into much smaller bites.
While the market is still in a developmental phase that could be responsible for this growth and jockeying for market position, this fragmentation at the lower end of the market could lead to consolidation as companies attempt to buy additional market share.