Posted On: Aug-2023 | Categories : Manufacturing and Construction
Robotic process automation is crucial for every firm to help with human resources. In addition to improving business processes, robotic process automation can lower expenses. With RPA, organizations can quickly automate routine administrative tasks so that staff can focus on important responsibilities.
The market for robotic process automation in 2021 was USD 3.05 Bn and by 2030 it will be worth USD 24 Bn, growing at a 27% CAGR.
Advent of ML and AI technologies have made significant developments in different fields. By 2025, intelligent automation will eliminate 40% of service desk operations, unlocking unmanaged types of automation that combine RPA with AI & ML.
RPA healthcare market will be worth USD 6.2 Bn, growing at a 26% CAGR by 2030. Implementation of RPA in healthcare will enhance patient care and improve efficiency. RPA is being utilized in healthcare to automate tasks such as data entry and scheduling appointments.
Top RPA Statistics
The market for business process management was USD 3.38 billion in 2019, and sales will increase by 6.26% annually to USD 4.78 Bn by 2025.
The service segment led the market with a revenue share of nearly 62.3% in 2022, on the basis of type.
By deployment, the on-premise segment ruled the market with a share of 79.2% in 2022.
Large enterprise segment was the global market leader with a share of 67.2% in 2022. The SME segment will grow at a rapid CAGR by 2030.
BFSI was the largest sector with a revenue share of nearly 29.2% on the basis of application.
North America was the market leader with a revenue share of 37.5% in the year 2022.
RPA technology will play a significant part in automating up to 40% of transactional accounting work by 2025.
In the year 2020, the RPA software revenue grew by 11.9% from 2021.
RPA Adoption Statistics
Nearly 20% of businesses have adopted RPA as of June 2021, increasing from 20% in 2020.
According to 98% of IT leaders, automating company operations is essential for generating financial gains.
Over the next ten years, RPA technology will be most widely adopted in the healthcare sector.
85% of very large and large enterprises used RPA by 2022.
The digital workforce has grown for 72% of the early RPA adopters.
Adoption by Industry
In 2021, manufacturing was the top industry that utilizes RPA more than any other sector (35%). Technology (31%), Medical (10%), Retail and CPG (8%), Money (8%), Public sector (5%), and Learning (3%) were behind manufacturing.
Over the next three years, 78% of companies that have already deployed RPA will see a major rise in investment.
Cognitive RPA Adoption Rate
Organizations prefer to use cognitive technology with greater ambition as RPA adoption advances. Only 6% of those that have not deployed RPA are making progress with cognitive automation, compared to 28% of those who are implementing and scaling RPA.
More than 90% of C-level executives claim that their companies already have some form of intelligent automation.
Results of implementing RPA
61% of participants in total said that cost reduction objectives were fulfilled or exceeded.
In order to support their RPA implementation, 63% of participants intend to work with an RPA implementation partner, while 15% intend to handle RPA internally and 19% intend to use RPA vendors.
Over 90% of C-level executives who use intelligent automation claim that their company outperforms the industry average when it comes to managing organizational transformation in response to new commercial trends.
In 2016, 75% of the firms profiled stated that they have used labor arbitrage to achieve cost-saving goals.
The exception handling portion of automation, which accounts for 80% of the labor, can be enhanced with better process comprehension.
Although technology will not replace workers, it is predicted that 861,000 public sector employment will be eliminated by 2030, saving the public sector £17 billion in payments compared to 2015.
Benefits of RPA
Merging hyper-automation technologies with newly developed operational processes will enable enterprises to reduce operational costs by 30% by 2024.
An RPA bot typically costs one-third that of an offshore person and one-fifth that of an onshore staff.
Robots will perform a sizable amount of current transactional operations. Robots are anticipated to be able to deliver 20% of FTE capacity on average.
RPA reduces 80% of labor-intensive jobs.
RPA can reduce expenses for financial services by 20% to 60% compared to baseline FTE rates.
Digital workplace service workers will be able to cut 30% of the time currently spent on endpoint support and maintenance to continuous engineering by 2024 thanks to endpoint analytics and automation.
According to 85% of respondents, RPA delivered non-financial benefits like accuracy, speed, and flexibility that met or surpassed their expectations.
Using intelligent automation, more than 50% of C-level executives have identified important operational activities that may be improved or automated.
Companies using RPA technology typically save between 35% and 65% on costs.
Businesses receive a typical return of USD 6.74 for every USD 1 invested in RPA technology.
71% of businesses claim that RPA technology has increased employee satisfaction.
RPA Challenges
The biggest obstacle to RPA adoption is a lack of internal and IT resources, followed by staff opposition, fragmented processes, a lack of a clear vision, implementation costs, data preparation, and fear of disruption.
Due to a shortage of specialized expertise, implementation for the majority of firms (63%) will necessitate collaboration with a committed third-party partner.
The majority of CEOs think their company lacks the data science, machine learning, and other AI/cognitive skills required for process automation.
For each automation capability, the following percentages of executives believe they lack the necessary skills: 90% for fundamental process automation, 89% for more sophisticated automation, and 75% for IBM's intelligent process automation.
Top industry using RPA
In the banking sector, awareness of RPA software is rapidly expanding. BY 2025, RPA in banking will reach USD 1.13 Bn.
RPA adoption reduces labor and operational costs in banks. Additionally, it significantly reduces human jobs and errors. For instance, by speeding up banking automation with RPA technology, processing costs can drop by 30% to 70%.
Benefits of RPA in the banking sector
Cost-effectiveness: Banks and financial institutions can cut processing costs and time by up to 50% by automating repetitive processes.
Increased customer satisfaction and service: By incorporating RPA to handle repetitive tasks, staff members concentrate on company operations & offer clients an improved experience.
Growth with legacy data: The application of robotic process automation closes gaps between different processes by merging essential legacy & new data into one system. Additionally, this makes it possible for banks to produce reports more quickly and with greater depth to support corporate expansion.
Due to the implementation of enhanced internal processes & activities, RPA is now more accurate, productive, and operationally efficient
Use Cases of Banking in RPA
Onboarding of both consumers and employees is facilitated by RPA using the optical character recognition (OCR) approach. This enhances the user experience by removing manual mistakes, cutting down on waiting time, and making dispute resolution easier. Similar to this, welcome emails, email ID creation, and other forms of employee onboarding are done automatically for new hires.
The traditional methods for validating and approving credit card and loan applications could take weeks. RPA facilitates quick choices regarding a customer's eligibility and expedites the process of acquiring customer information, conducting credit and background checks, and background checks.
The cost of fraud and cybercrime was USD 6 trillion by 2021, banks have a huge responsibility to secure customer financial information. By using an "if-then" mechanism to track, examine, and transmit any red flags for the investigation to the relevant department, RPA lessens this burden.
The critical and data-intensive KYC compliance process costs banks at least $384 million a year. By reducing time and money, RPA implementation to gather, screen, and validate consumer data enhances the process cycle.
The healthcare RPA market will be worth USD 88.9 Bn growing at a 8.4% CAGR by 2028 due to the rising worry about access to affordable healthcare. A 2019 survey in the U.S. found that 35% of C-suite executives said their healthcare business had implemented robotic process automation (RPA).
Application of RPA in the healthcare sector
An annual 6,000 hours are lost by a nurse looking for misplaced equipment. Additionally, inefficient asset location might have a negative impact on the patient's experience of care by lengthening wait times and delaying critical care.
RPA in conjunction with digital sensors and cloud-based control panels enables personnel to readily discover assets, confirm that equipment inventories are accurate and up-to-date, and monitor asset condition to ensure replacement of assets as needed.
RPA is being used, for instance, by T-Systems in the UK to provide a variety of health solutions, such as assuring smooth organ transplant operations by recording time and location.
Doctors, third-party portals, insurance companies, appointment scheduling software, and databases of medical records are a few sources of health information. Merging all sources of health data into one requires lot of money. RPA can cut down on the amount of resources used in healthcare for clerical work by processing patient records effectively.
Using RPA systems, it is also possible to combine expenses for things like testing, medications, food, and doctor visits into a single payment for medical care. By precisely and swiftly converting bills into invoices, healthcare providers avoid billing mistakes and save time. If there are payment delays, RPA can also email patients specific reminders.
RPA can similarly handle time-consuming health claims processing. Compared to 85 seconds for a human, an RPA solution just needs 12 seconds to check the status of a health insurance claim. Administrative blundering results in the denial of about 25% of claims, including problems with eligibility and registration. An RPA solution lessen this needless financial loss given that each claim costs about $118.
Prior to the pandemic, almost 88% of appointments were scheduled by hand, which resulted in a 2 month delay between the first referral & the actual visit. Missed appointments cost US healthcare providers USD 150 Bn every year. One possible solution for hospitals to decrease their no-show rates, which can range from 5% to 39% depending on the healthcare specialty, is to eliminate the need for human data entry and integrate RPA medical bots into their appointment scheduling and patient engagement software. This approach can potentially improve efficiency & reduce errors in the process.
The market for RPA manufacturing in 2021 was USD 7.60 Bn and will grow at a 33.2% CAGR by 2030. Robotic process automation in the manufacturing sector is one of the cutting-edge strategies that firms can use to boost productivity, cut costs, and improve customer satisfaction in the era of Industrial Revolution 4.0. According to industry experts, 85% of large enterprises have implemented RPA by 2022.
According to McKinsey, at least 87% of factory workers' routine and manual tasks can be automated.
Benefits:
The operations of telecom operators cover a wide spectrum, including infrastructure and IT services, database administration, customer service management, and purchase order management. RPA may be used across processes and departments since it is versatile. While other duties can be automated to the necessary amount, some tasks, including repetitive back office processes, can be automated completely.
No matter how much automation RPA adds to the tasks, cost savings and improved efficiency are observed. RPA is frequently utilized as a lifeline to release back office staff members from daily, monotonous, repetitive chores.
The potential of RPA to automate customer service procedures is one of its main advantages. RPA can be used by telecom businesses, for instance, to update client accounts and automatically reply to user inquiries and survey results. As a result, less manual data entry is required, allowing customer support representatives to concentrate on more challenging duties.