Automation as a Service Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.39 Billion |
| Market Size (2029) | USD 28.58 Billion |
| CAGR (2024 - 2029) | 27.75 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automation as a Service Market Analysis
The Automation-as-a-Service Market size is estimated at USD 8.39 billion in 2024, and is expected to reach USD 28.58 billion by 2029, growing at a CAGR of 27.75% during the forecast period (2024-2029).
Some key reasons propelling the growth of the studied market are the increasing acceptance of automation across all end-user sectors, expanding the reach of cloud computing, and rising IoT device numbers. The need for healthcare services is anticipated to increase in the upcoming years. Many operations, including admissions and patient histories, need to be automated as most countries' healthcare infrastructure develops to manage massive amounts of patient data.
- The rapid development of new technologies like artificial intelligence (AI), machine learning, cloud computing, and the Internet of Things (IoT), as well as their widespread use by businesses, have contributed to the significant expansion of automation as a service (AaaS). According to Morgan Stanley, the estimated USD 1 trillion in sales for the AI business by 2050 will directly impact the AaaS market. The adoption of cloud-based solutions will rapidly grow as firms look for deployment options that hasten value realization. Due to the growth of their digital workforces, businesses invest in private or public clouds to automate labor-intensive, challenging-to-automate processes.
- Business process automation focuses on automating routine IT procedures and business services to increase productivity, cut expenses, and maintain smooth operations. The general use of BPA throughout organizations results from several factors, including businesses preparing to move their infrastructure to the cloud, bolstering business continuity, and enhancing corporate processes. For instance, Generali, a significant insurance provider in Europe, went from manual to automated business operations, saving time and money. Through repeatable procedures, this led to savings of up to 90% and a 50% decrease in the time required to underwrite challenging tasks.
- Adopting cloud solutions will expand significantly shortly as companies demand deployment options that enable them to gain benefits more quickly. Companies invest in a private or public cloud because they require flexible deployment and licensing choices as they increase their digital workforces to automate tasks. Consequently, the majority of market players focus primarily on cloud-based solutions. Amperity, a brand-new company founded in 2022, offers an enterprise data platform to transform fragmented consumer data into revolutionary cloud experiences.
- Data security and privacy are factors that companies should focus on as data loss is possible. Data loss is a threat from new cases like AlienBot, Wannacry, Cryptojackling, Fireball, Zeus, and others if a ransom is not paid for the decryption key to restore the data. These threats include spam emails, removable drives, potentially unwanted software, and suspicious websites. Over 600 Windows processes are blocked by the most recent malware, called Clop. Therefore, many organizations now include security in their plans to save money, protect the data, and lower the risk of an attack.
- The global demand for automation was accelerated and reemphasized by the COVID-19 pandemic. Across industries, there was an increase in cloud-native bots, intelligent data capture, and process discovery bots. There was a significant desire for automation to streamline tasks and cut expenses, as seen by the high rises in utilization rates from 60 percent to 95 percent reported by automation software vendors.
Automation as a Service Market Trends
BFSI is Expected Hold Major Share
The growing adoption of virtual assistants and bots across customer service industries, like BFSI, further expands the studied market growth. The banking industry has intense industrial competition due to many players. Due to the fierce competition, companies are attempting to introduce cost-effective solutions to help them stay ahead.
Process transparency, improved customer service, process optimization during onboarding, data integrity, and the capacity to successfully comply with regulations of various enforcement agencies, as well as the data-driven nature of the overall banking and financial sector, are some of the factors contributing to the growth of the BFSI Market using robotic automation process.
BFSI is one of the significant adopters and investors in the studied market, owing to a high automation adoption rate across business process applications. Automated tellers, draft deposits, and cash deposit machines are some of the initial applications of automation solutions in the sector. The digital automation wave of RPA for BFSI needs to be regulated for future success.
In July 2022, Tangentia, one of Canada's top automation services providers, will assist businesses in utilizing RPA and AI in the banking and finance industries. TiA Core AI has been built with innovative technologies, including machine learning, natural language processing, computer vision, deep learning, and RPA. TiA Core AI provides services to Soroco, a market leader in task mining tools, to assist with client data. The organization used TiA Core AI for database installations because it recognizes the significance of technological innovation and automation in achieving the high service demands of BFSI clients.
In July 2022, Bajaj Allianz General Insurance Company, one of the leading private insurers in India, automated insurance processes using Amazon Textract, a machine learning (ML) service that automatically extracts text, handwriting, and data from scanned documents. This helps Bajaj Allianz to speed up turnaround times and enhance customer satisfaction.
North America is Expected to Major Share
North America is one of the biggest contributors and investors in the studied market owing to the existence of leading IT companies and the fact that the USA is the home to the bulk of the top suppliers. Additionally, the country is seeing a surge in equity investments in homegrown startups, bringing innovation to the industry. For instance, United States Steel and Carnegie Foundry announced a strategic investment and partnership to accelerate and scale industrial automation driven by advanced robotics and artificial intelligence (AI) in advanced manufacturing, industrial robotics, integrated systems, autonomous mobility, voice analytics, and more.
Regarding installation, the US now dominates the automation-as-a-service business, increasing demand for the sector. The majority of global expenditure on artificial intelligence technologies is absorbed by the US alone. The US is one of the best-connected countries in the world, with around 85% of its people accessing the internet, which contributes to the expansion of automation-as-a-service in the country.
Additionally, the US has a strong integration of linked IoT-based devices, which produce enormous amounts of digital data every second. Leading IT and cloud-based businesses, such as Accenture, IBM, Microsoft Corporation, and others, are also concentrated nationwide. The industry is also heavily impacted by the increased need for automation in several financial and technological sectors.
Apart from core industries, like manufacturing, the growing automation in other sectors further expands the region's studied market. In June 2022, Cypress launched an all-in-one test automation platform to integrate and transform automated testing into continuous testing. Celtra Creative Automation (CA) for Marketing is a production automation solution for enterprises looking to simplify the creative process and collaboration along the entire production workflow. According to the company, Spotify and Adidas have embraced Creative Automation to solve various content scaling and production challenges.
Automation as a Service Industry Overview
The automation-as-a-service market is fragmented. Numerous international market players, like IBM, are becoming increasingly involved in acquisition tactics to increase their market share and product innovation. To increase the capabilities of their products and give their clients the newest technology, UiPath, and Pegasystems Inc. are progressively implementing collaboration or partnership strategies. Product innovation is one of the significant differentiating factors among market vendors.
In August 2022, Re: infer, a London-based natural language processing (NLP) startup for unstructured documents and communications, was acquired by UiPath. UiPath software robots can now comprehend the context and semantics of emails, online chats, and audio sessions, resulting in better customer support interactions using automation and Artificial Intelligence.
In February 2022, Healthnet Global introduced an intelligent in-patient room automation system as a one-stop shop for all in-patient requirements called AutoMaid, which contains a contactless sensor, communication pod, and cloud-based patient monitoring tool having an AI-powered triaging system. These features capture real-time body vitals and offer round-the-clock monitoring for previously manually monitored patients.
Automation as a Service Market Leaders
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IBM Corporation
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Microsoft Corporation
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Automation Anywhere, Inc.
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Blue Prism Group PLC
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Uipath Inc.
*Disclaimer: Major Players sorted in no particular order
Automation as a Service Market News
- November 2023: Walter Surface Technologies partnered with a network of North American system integrators and tool manufacturers focused on robotic systems and material removal. The partnerships with PushCorp, ATI Automation, and Effecto will help Walter provide comprehensive automation solutions to industrial manufacturers, from planning to installation and optimization.
- September 2023: Automation Anywhere enhanced its platform by introducing a new ‘Responsible AI Layer’ and integrating features from its generative AI product range. The ‘Responsible AI Layer’ offers custom automation models developed using Large Language Models (LLMs) like OpenAI, Google’s Palm, Microsoft’s Azure AI, and Amazon’s Bedrock. This blend of generative AI and intelligent automation is a technology shift that promises to boost productivity, foster creativity, and accelerate business growth.
- August 2022: Truist Corporation has expanded its digital investment offerings with Truist Invest, a Robo advisor, and Truist Invest Pro, a hybrid investing solution by automatic making plans and an objective environment as well as a choice for advisor-driven recommendations to businesses related to finance, Healthcare, Sports, etc.
- March 2022: GreyOrange, a provider of warehouse automation, provided robotic fulfillment systems that H&M used. H&M made this choice in light of previous instances when GreyOrange's warehouse automation technology was successfully implemented at other companies, leading to continuously better performance and higher efficiencies. H&M uses grey-orange robots in its warehouses to complete various tasks.
Automation as a Service Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of COVID-19 impact on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increased Demand for Automation Across Business Processes
- 5.1.2 Increasing Adoption of Cloud Services
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5.2 Market Restraints
- 5.2.1 Concerns Regarding Data Security and Privacy
6. MARKET SEGMENTATION
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6.1 By Deployment Type
- 6.1.1 On-premise
- 6.1.2 Cloud
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6.2 By Business Function
- 6.2.1 Information Technology
- 6.2.2 Finance
- 6.2.3 Human Resources
- 6.2.4 Sales and Marketing
- 6.2.5 Operations
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6.3 By Enterprise Size
- 6.3.1 Large Enterprises
- 6.3.2 Small and Medium-sized Enterprises
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6.4 By End-user Vertical
- 6.4.1 BFSI
- 6.4.2 Telecom and IT
- 6.4.3 Retail and Consumer Goods
- 6.4.4 Healthcare and Life Sciences
- 6.4.5 Manufacturing
- 6.4.6 Other End-user Industries
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6.5 Geography
- 6.5.1 North America
- 6.5.2 Europe
- 6.5.3 Asia Pacific
- 6.5.4 Latin America
- 6.5.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Automation Anywhere, Inc.
- 7.1.2 Blue Prism Group PLC
- 7.1.3 IBM Corporation
- 7.1.4 Microsoft Corporation
- 7.1.5 Uipath Inc.
- 7.1.6 HCL Technologies Limited
- 7.1.7 Hewlett Packard Enterprise
- 7.1.8 Kofax Inc.
- 7.1.9 Nice Ltd.
- 7.1.10 Pegasystems Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Automation as a Service Industry Segmentation
The phrase "automation as a service" describes a range of services related to corporate or industrial automation, including installation, support, consulting, and maintenance. The word frequently refers to adopting disruptive technologies and robotic or autonomous systems that can function with little to no human involvement.
The Automation-as-a-Service Market is segmented by Deployment Type (Cloud and On-premise), Business Function (Information Technology, Finance, Human Resources, Sales and Marketing, Operations), Enterprise Size (Large Enterprise, Small and Medium-sized Enterprise), End-user Vertical (BFSI, Telecom and IT, Retail and Consumer Goods, Manufacturing, Healthcare, and Life Sciences), and Geography(North America, Europe, Asia-Pacific, Middle east and Africa, Latin America). The report offers the market size in value terms in USD for all the abovementioned segments.
| By Deployment Type | On-premise |
| Cloud | |
| By Business Function | Information Technology |
| Finance | |
| Human Resources | |
| Sales and Marketing | |
| Operations | |
| By Enterprise Size | Large Enterprises |
| Small and Medium-sized Enterprises | |
| By End-user Vertical | BFSI |
| Telecom and IT | |
| Retail and Consumer Goods | |
| Healthcare and Life Sciences | |
| Manufacturing | |
| Other End-user Industries | |
| Geography | North America |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Automation as a Service Market Research FAQs
How big is the Automation-as-a-Service Market?
The Automation-as-a-Service Market size is expected to reach USD 8.39 billion in 2024 and grow at a CAGR of 27.75% to reach USD 28.58 billion by 2029.
What is the current Automation-as-a-Service Market size?
In 2024, the Automation-as-a-Service Market size is expected to reach USD 8.39 billion.
Who are the key players in Automation-as-a-Service Market?
IBM Corporation, Microsoft Corporation, Automation Anywhere, Inc., Blue Prism Group PLC and Uipath Inc. are the major companies operating in the Automation-as-a-Service Market.
Which is the fastest growing region in Automation-as-a-Service Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automation-as-a-Service Market?
In 2024, the North America accounts for the largest market share in Automation-as-a-Service Market.
What years does this Automation-as-a-Service Market cover, and what was the market size in 2023?
In 2023, the Automation-as-a-Service Market size was estimated at USD 6.06 billion. The report covers the Automation-as-a-Service Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automation-as-a-Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automation as a Service Industry Report
Statistics for the 2024 Automation-as-a-Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automation-as-a-Service analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
