Automation-as-a-Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Global Automation-as-a-Service Market revenue was estimated at 2.6 billion in 2020 and is expected to register a CAGR of 26.9% over the forecast period from 2021 to 2026. The growing adoption of automation across all end-user industries, expanding the scope of cloud computing, and increasing IIoT devices are some of the major factors driving the growth of the studied market. The increasing demand for virtual workforce, business process automation, and growing advancements in cognitive computing and reducing costs of automation solutions further augment the need for automation as a service platform.

• Due to the recent COVID-19 outbreak, the market is witnessing a significant rise in self-service channels, remote workspaces, 'as a service' models, productized services, and comprehensive AI technology. This has further accelerated the adoption rate within a few months. The automation as a service (AaaS) is helping businesses and enterprises in transforming their service delivery and operations process, to achieve higher accuracy, cost savings, and productivity. AaaS solutions can quickly, effectively, and inexpensively automate time-consuming, highly repetitive, and accident-prone internal IT and business processes, and can help business pass resources to other business functions and segments.
• The continuous development in the new technologies of AI, machine learning, cloud computing, and the Internet of Things (IoT), and its implementation across different organizations, have paved new avenues for the significant development of AaaS. According to Morgan Stanley, the AI industry is expected to cross USD 1 trillion in revenues by 2050, which will have a direct effect on the AaaS market. Adoption of cloud-solutions will continue to witness significant growth in the near-term as organizations demand deployment options that help them realize value more quickly. As organizations are expanding their digital workforces to streamline hard-to-automate, content-intensive operations, the need for flexible deployment and licensing options drives them to invest in a private or public cloud.
• Moreover, growing cloud computing across the globe is expected to expand the forecast period's studied market growth. According to the Capgemini Report, 75% of organizations agree that automation has led to increased revenue. In comparison, 76% of organizations agree that the adoption of AaaS within the organization improved overall profitability. The significantly growing adoption of automation across all the end-user industries in Asia-Pacific is also attracting companies to the region. For instance, in December 2019, US-based Rockwell Automation launched its first automation center in India that will cater to customers solutions in five focus sectors, i.e., oil and gas, chemicals, food and beverage, auto, and tire, life science.
• Recently, 2020, Nasscom also reported that the COVID-19 outbreak had accelerated the development of automation technologies globally, creating massive opportunities for the AaaS industry. According to an industry expert, before COVID-19, over 40% of companies were actively investigating automation, self-service, machine learning, and AI. Since February 2020, the number increased to over 55%. AaaS is also helping companies productized services at scale. The growing adoption of IoT devices and solutions, and growth in markets such as autonomous cars, industrial robots, Machine to Machine (M2M) will also expand the scope of the studied market. For instance, India-based Bajaj Allianz General Insurance recently launched an IoT powered service, DriveSmart, to helps customers monitor their driving habits.

Scope of the Report

Automation-as-a-service enables an organization to automate the existing business processes by recording and analyzing data from the existing applications. It allows an organization to transform from a manual process to reliable, accurate, and fast automation processes across several organizations.

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Key Market Trends

BFSI is Expected Hold Major Share

• BFSI is one of the significant adopters and investors in the studied market, owing to a high rate of automation adoption across business process applications. Automated teller, draft deposit, and cash deposit machines are some of the initial applications of automation solutions in the sector. AaaS is also helping in aggregating information to review loan applications, validate the credit profile, and automate the processing of loan to the customer. AaaS cam play a significant role in processes such as customer service, compliance, invoice digitization, mortgage processing, credit card approval, detection of fraud, know your customer (KYC) processing, and account closing process.
• Growing adoption of virtual assistants and bots across customer service industries, like BFSI, is further expanding the studied market growth. And the number could significantly increase due to the recent COVID-19 crisis. The recent COVID-19 gave an unexpected boost to automation adoption, which is also surging demand. According to automation Anywhere, businesses began scaling up their digital transformation efforts, and the company witnessed a surge in demand and interest from customers for a rapidly scalable infrastructure on the cloud.
• In May 2020, Kryon, a full-cycle automation solution provider known for its customer-centric approach to robotic process automation (RPA), announced its game-changing Full-Cycle Automation as-a-Service (FCAaaS) in partnership with intelligent automation group Virtual AI. Kryon's Full-Cycle Automation Suite combines Process Discovery, RPA, and analytics in a single, unified, and easy-to-use platform, works seamlessly with Virtual AI's bespoke virtual workforce solutions. The result is a wholly managed automation service that always runs in a Virtual AI's cloud or private cloud infrastructure. The company's suite is used by several enterprises worldwide, such as Allianz, Ernst & Young, Santander Bank, etc.
• In November 2019, Financial technology and cloud-based banking company nCino announced nCino IQ to expand its Bank Operating System in a press release Thursday. nIQ uses artificial intelligence to help clients increase efficiency and use analytics to enhance the customer experience. The AI system has several features, such as data recognition, insights, and digital assistance into its system. Financial institutions will be able to utilize the banking automation and significantly reduce labor costs through nIQ's ability to monitor risk, measure performance, and easily extract data. The company acquired FinSuite, based in Australia, to add data to interpret financial statements in any language and format to nIQ.

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