Automation-as-a-Service Market - Growth, Trends, and Forecasts (2020 - 2025)

The Global Automation-as-a-Service Market revenue was estimated at 2.6 billion in 2019 and is expected to register a CAGR of 26.9% over the forecast period from 2020 to 2025. 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.