The Cognitive Process Automation Market was valued at $4.42 billion in 2021 and is anticipated to grow at a CAGR of 11.3% during the forecast period of 2022 – 2027. The heavy automation solutions adopted by industries like healthcare, BFSI, IT and Telecom, and other industry is the major reason driving the growth of the market. Enterprises are now focusing on improving the operational efficiency and enhancing the business processes and automating the process has aided them to achieve their goals, which is subsequently propelling the growth of the market.
Automation has realigned how industries conduct their business across the world. Automation in industries has provided the business with safer, faster, and stronger solutions, which has empowered businesses with more key information and insights with more speed and depth than ever before. Many companies are inspired by the application and usefulness and are rapidly integrating Cognitive Process Automation techniques into their business activities. Cognitive process automation is helping to restructure the fundamental process and has helped enterprises and businesses achieve enormous scalability and also helped in reducing operational costs.
Businesses today require technologies that can improve their efficiency and business operations. So, the vendors of the automation industry and digital sector are now focusing on integrating cognitive process automation with business operations to achieve an intelligent solution that can be more productive and economical. The scalability and process optimization offered by cognitive process automation techniques support complete business availability for global customers, as it reduces operation time, improves revenue generation, provides enhanced customer insights, gives efficient and quick delivery of market-relevant products, and aids in capitalizing the enterprise data assets and also eases the risk. Furthermore, the latest technologies like big data, Artificial Intelligence, and machine learning are also being widely used by major market players to automate numerous activities are also contributing to the growth of the market. However, the high initial cost to install and implement process automation is high and is a reason hampering the growth.
Increased productivity and reduced operational cost drive the cognitive process automation market growth
Adoption of automation features has resulted in optimizing routine tasks this has resulted in increased productivity and also reduced the operational cost and this drives the market growth. The automation service vendors have integrated cognitive abilities with the robotic process which has led to the development of Cognitive Robotic Process Automation software bots. These features are being widely used in the BFSI, healthcare sector, IT and Telecom and other industry as it helps automate repetitive tasks and this drives the market growth.
Rapid advancement in technologies boost the cognitive process automation market growth
The creation of Cognitive Robotic Process Automation software bots has resulted from the integration of cognitive capabilities into robotic process automation platforms. Natural language processing, machine learning, and speech recognition are examples of technological breakthroughs that can assist enterprises in automating perceptual and judgment-based operations. These tools aid in the study of structured, unstructured, and semi-structured documents to find, extract, and structure data for future research. This has the potential to push the market.
High initial investment hamper the rise in the cognitive process automation market
The use of cognitive process automation technology in industries requires high capital investments for licensing, installation, and setup. Thus, it is not favorable for small and medium-size organizations to install such technologies that require high investment at the time of implementation. It requires a skilled workforce who can operate the systems, regular maintenance is also necessary all these factors swell up the input cost and acts as a hindrance in the market growth.
Based on type, the Cognitive Process Automation Market can be segmented into Robotic Process Automation and Intelligent Automation. Among these, Robotic Process Automation captured the major market of 53.42%. Robotic process automation tools can eliminate or diminish the repetitive and routine human operations with business applications and this is the prime factor for market growth. Implementation of robotic process automation techniques helps the businesses in achieving cost efficiencies, providing quality work in reduced cycle time, and enhancing the operational efficacy are pushing the market growth towards an appositive trend. It assists workers in doing their jobs more efficiently as this technology does not require any special technical training or skills, which is eventually going to drive the market growth.
Based on services the Cognitive Process Automation Market can be further divided into Finance, human resources, procurement, and IT operations among others. Automation processes are heavily being implemented in enterprises as a substitute for the human workforce. The implementation of automation techniques for performing repetitive tasks has reduced the burden on the human workforce immensely. This has resulted in enhancing the productivity of workers and has also reduced the input cost which is driving the market growth. The IT operation sector dominated the market segment as cognitive automotive processes were used for users and services management, monitoring, routing, and reporting purposes. With the deployment of automation processes in numerous projects, including application and software development this technology helps in reducing their manual work and thus fuels the market growth.
The major industries adopting the Cognitive Process Automation techniques are BFSI, Telecom, Healthcare, Logistics, and IT among others. Of all the industries Healthcare industry emerged as the growing segment in the Cognitive Process Automation market and is estimated to register a CAGR of 12.05% during the forecast period. Healthcare companies' work includes dealing with lots of paper records including medical files, and financial documents, and maintaining all these is a tedious task. The Healthcare industry has to look for a solution that helps systematic handling to evade any inconsistency in operations. This is poised to create opportunities for cognitive process automation in healthcare as it smooths and streamlines the process, thereby driving the market during the forecast period. The BFSI sector is also anticipated to lead the growth of the cognitive automation process substantially in the coming years. Automation of the processes enables multiple systems to interlink which streamlines the flow of data. These solutions enhance the accuracy and productivity of business operations and also assist in compliance and regulatory process by reporting and collating data from numerous systems and performing validation checks to prepare information for detailed analysis and are eventually influencing the market growth.
From a geographical perspective, North America emerged as the dominant region in the Cognitive Process Automation market in 2021 with a market share of 36.89%, followed by Europe and Asia pacific. The growth in the North American region is attributed to the increased spending in the health care sector. Healthcare organizations use automation techniques for maintaining data including medical files, financial records, and inventory items such as gloves, medicines, needles, and injections. Automation solutions support medical organizations to improve service and security and handle daily transactions. Thus, North America is poised to continue to hold a major market share of the cognitive process automation market over the forecast period.
The Asia Pacific region is estimated to grow substantially in the coming years. The region is increasingly witnessing a strong adoption of advanced automation solutions, typically in Japan, China, and Taiwan owing to the emerging competitive landscape and growing connected solution offerings by numerous companies. The economic development, rapid urbanization, digitalization, and the increased adoption of cloud-based technologies are poised to drive the growth of the market in the Asia Pacific region. The European market is also estimated to grow significantly.
Europe is the hub for automobile manufacturing and the cognitive process automation market is primarily driven due to the presence of the manufacturing sector that deploys the automation techniques which subsequently drives the market growth.
Key companies in the market
Notable Happenings in Cognitive Process Automation Market
COVD-19 impact on Cognitive Process Automation Market.
The pandemic has not only created havoc in the healthcare sector but has also adversely affected the global economy and industries. The lockdown imposed by the government as a precautionary measure to curb the widespread of the virus led to supply chain disruptions that caused difficulty in the procurement of raw materials, shortage of laborers, and also price rise due to an increase in demand has affected the industry negatively. However, changing lifestyles and rapid shift in the adoption of digital alternative has paced up. For example, people preferring e-commerce for shopping, getting their food delivered from digital platforms, etc. has also caused companies to restructure their business operations and adjust accordingly to the changing landscape. Therefore, automation of processes serves as a viable solution as it helps to reduce costs, improves revenue generations, and enhances productivity. These factors are strongly influencing the growth of the Cognitive Process Automation Market.
Chapter 1. Cognitive Process Automation Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Cognitive Process Automation Market – Executive Summary
2.1. Market Size & Forecast – (2022 – 2027) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2022 - 2027
2.3.2. Impact on Supply – Demand
Chapter 3. Cognitive Process Automation Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. Cognitive Process Automation Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porter's Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Cognitive Process Automation Market - Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Cognitive Process Automation Market – By Type
6.1. Robotic Process Automation
6.2. Intelligent Automation
Chapter 7. Cognitive Process Automation Market – By Services
Master Data Management
7.2. Human resource
7.3. IT operations
IT Service Management
Supplier Data Management
Chapter 8. Cognitive Process Automation Market- By Industry Vertical
8.3. Information Technology
Chapter 9. Cognitive Process Automation Market- By Region
9.1. North America
9.4. Rest of the World (Middle East, South America, and Africa)
Chapter 10. Cognitive Process Automation Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)
10.1. Company 1
10.2. Company 2
10.3. Company 3
10.4. Company 4
10.5 Company 5
10.6. Company 6
10.7. Company 7
10.8. Company 8
10.9. Company 9
10.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.