Read Time: 3 minutes
Digital transformation is driving the adoption of hyperautomation across the globe. The need for hyperautomation technology and solutions has manifested across all domains of the organization as they look to transform and move towards a digital-first workspace.
Spurred by the rising demand for digital transformation, hyperautomation technology will be a USD 860 billion market in 2025 growing at a CAGR of 12%, as per Gartner. Hyperautomation enables organizations to automate, optimize, and integrate digital processes across the front, middle and back office to make systems more efficient and opens up a world of automation possibilities for even the most complex businesses.
The hyperautomation services market offers opportunities to invest in an established but hyper-scaling sector with no clear market leaders. Our recent report on the inevitability of hyperautomation provides insights into the critical elements which will shape the future of the hyperautomation space.
Hyperautomation is scaling beyond back-office functions
Organizations are increasingly using hyperautomation technology across their entire value chain. Automation of various front office functions can drive customer satisfaction by providing customized and efficient sales and customer service, as well as revolutionizing the interaction between companies and their customers. Low-Code No-Code platforms are increasingly being used for rapid deployment of customer-facing enterprise applications and processes and it is estimated that there will be a 30% increase in the use of RPA by 2023 for front-office functions, including sales and customer experience.
As the nature of work changes, organizations will need to follow suit
Advanced technologies such as hyperautomation and their human interaction will benefit the economy to the tune of a USD 15 trillion. This will also change the skills required in human workers. Industry-wide stakeholders will need to re-align themselves as automation brings a structural shift to the workforce and will need to work together to hire, train and upskill this new cadre of worker - with less focus on transactional and repetitive tasks, and more focus on delivering the greatest value from automation efforts. With hyperautomation the future of work is not just tasks being completed by robots, but re-imagining work as done by employees leveraging technology.
Hyper-scaled ecosystem with a double digit CAGR
Despite being such a nascent industry, external service and implementation partners are heavily demanded by a plethora of organizations. Both platforms and service providers have grown exponentially in the last few years, having shown double digit CAGR growth and have rapidly expanded their technology suite to offer an all-encompassing solution. This indicates the growing adoption and recognition of such technology.
Growing demand necessitating inorganic expansion
Deal activity has increased ~7x since 2017 as the sector visibility and impact has rapidly grown. The market will carefully evaluate the quality and depth of offerings and how players leverage the fragmented nature of the market for inorganic growth. Increasing demand from scaled platforms, IT/BPO players and PE firms indicate high transaction velocity. As demand for implementation partners is expected to increase, the market will leverage the fragmented market for inorganic growth. We expect more firms to emerge as market leaders, with scaled hyperautomation solutions and a diversified revenue base.