Robotic Process Automation (RPA) adaptation grows across the industries of the global market

Wojciech Andryszek
Robotic Process Automation (RPA) adaptation grows across the industries of the global market

In recent years concepts like Industry 4.0 and Business 3.0 strongly appeared in mainstream awareness. Software robots are becoming a significant part of it, making Robotic Process Automation (RPA) one of the fastest-growing global markets. Companies worldwide see RPA more as an inherent part of their ventures than a cost generator, adopting this technology faster than ever.

At this very moment, we should mention a very repetitive, mundane, tedious, and almost ubiquitous RPA definition saying that software bots can free employees from... repetitive, mundane, and tedious tasks. That is, of course, true, but there is a slightly broader and deeper sense in it.

Defining the RPA

To some extent, we can say that the RPA robot resembles a virtual worker. It simulates human activity in a computer environment, performing defined, routine actions - unlimited times or according to a given need or schedule. The bot conducts these tasks faster, with greater efficiency, and within a narrow margin of errors (depending mainly on the preparation method or interference in the bot code).

Looking at emerging trends we could also say that RPA is no longer about repeating tasks after people. More and more it is about building "duties" for robots and the platform they operate within.

Referring to the exact sciences, we can say that such software platforms script and handle predefined tasks, enabling "iterating" of many activities. RPA solutions often include AI, which provides the required context and autocorrects to an automated process. It allows the bots to perform their tasks with a narrow error margin.

RPA growth

As we all know, the pandemic has changed the way we work and, in many cases, also the way businesses operate. Consequently, it has also accelerated the process of digital transformation, including automation and thus RPA. COVID-19 and the transition to remote work made around 76% of organizations reach for automation, and this is a trend that will continue in the post-covid era. In the opinion of experts and available research, RPA is becoming an inseparable part of business and even a necessity.

One of the main reasons for the increase in demand for RPA solutions is the cost of employee retention. In each company's best interest, especially its efficiency and profitability, employees' productivity is as high as possible, mainly in large companies from the most dynamically developing industries.

For example (based on SAP Concur research), in German companies hiring 500 people, the time wasted on repeat tasks weekly reaches 5 hours and 9 minutes, which translates into $1,3119,353.45 per year. As a comparison, it is 4 hours and 55 minutes in the US, which gives $1,478,750 yearly. But in Japan, it takes 2 hours and 56 minutes with the cost of $457,600 per year.

However, as RPA solutions become more mature and one of the crucial elements in enterprise development, smaller companies, are also beginning to see the benefits of task automation. The same is true of companies that provide business process outsourcing services, which see software robots as a way to lower the cost of providing services.

How much time and money do companies waste on repetitive tasks

One of the main advantages of RPA is automation at a relatively low cost and in a short time. In addition, the implementation and use of software robots are non-invasive, controlling selected infrastructure elements without interfering with existing systems. Otherwise, their maintenance would be burdened with higher costs, and the possible replacement would be difficult and significantly burden the company's budget. And that would be a significant deterrent to companies from investing in RPA.

Meanwhile, it is estimated that over 53% of enterprises have already implemented their first solutions in this technology. Interestingly, 19% of Deloitte Global RPA Survey plan to adopt software robots technology in two years.

The market's state

As we have already mentioned, one of the main factors driving the RPA market's growth is that companies using the Robotic Process Automation capabilities can quickly and cost-effectively improve their operations' quality, speed, and productivity.

Companies that have decided to implement this technology in recent years have recorded a significant increase in cost-effectiveness due to reduced labor costs. According to Grandview Research, this will translate into an expected total CAGR growth rate of 32.8% in 2021-2028.

Such optimism is rooted in numbers. According to Computer Economics, up to June 2021, 20% of all companies implemented RPA, which raised the 2020's adoption rate to 13%. Gartner estimates that by 2022, almost 85% of large and international entities will invest in, quote: "some form of RPA". At the same time, total spending on this technology will reach $2.4 billion. The RPA market is expected to grow up to $13.74 billion by 2028.

Looking at the parting global RPA market, we can analyze the dynamics of the technology adoption from various points of view. For example, we can check different segments. Each can be defined by a given element, variable, or operation depending on the current need.