RPA market growth offers channel encouragement
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According to new knowledge, channel partners who expand RPA (Robotic Process Automation) functions will use the “fastest growing” segment of the global market for enterprise software.
Research by Gartner showed a 63.1 percent increase in sales in 2018, creating an RPA market valued at $ 846 million worldwide. For 2019, the analyst company expects a value of 1.3 billion US dollars.
“The RPA market has grown since our last forecast, driven by the demands of the digital business as companies look for ‘direct’ processing,” said Fabrizio Biscotti, research vice president at Gartner. “Competition is fierce and nine of the ten largest providers changed their market share position in 2018.”
According to Biscotti, the five largest RPA vendors controlled 47 percent of the market in 2018, with vendors in sixth and seventh place posting triple-digit sales growth.
“This leaves the top 5 position largely unclear,” added Biscotti. “RPA software is attractive to companies around the world because of its faster deployment cycle times compared to other options such as business process management platforms and business process outsourcing.”
Image credit: Gartner
Although RPA software can be found in all industries, the biggest users are banks, insurance companies, telecommunications and utilities, according to Biscotti. According to Biscotti, such organizations traditionally have many legacy systems and choose RPA solutions to ensure integration functionality.
“The ability to integrate legacy systems is the main driver for RPA projects,” said Biscotti. “Using this technology, companies can quickly accelerate their digital transformation initiatives while unlocking the value associated with previous technology investments.”
Going forward, Gartner expects the RPA software market to “look very different” in three years’ time.
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As explained by Biscotti, large software companies like IBM, Microsoft, and SAP are partnering with or acquiring RPA software providers, which means that they are increasing the awareness and traction of RPA software among their large customer bases.
At the same time, new vendors are taking advantage of the opportunity to adapt traditional RPA functions to digital business requirements such as event stream processing and real-time analysis.
“This is an exciting time for RPA providers,” said Biscotti. “However, current top players will face increased competition as new entrants continue to enter a market whose rapid development is blurring the lines between RPA and other automation technologies such as optical character recognition and artificial intelligence.”
Tags GartnersoftwareRobotic Process AutomationRPA