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®
Automation Today – State of the Market
26 July, 2019
Proprietary & Confidential. © 2019, Everest Global, Inc. 2®
Not for distribution – for internal consumption only
Disclaimer
Everest Group does not endorse any vendor, product or service depicted in
its research publications, and does not advise technology users to select
only those vendors with the highest ratings or other designation. Everest
Group research publications consist of the opinions of Everest Group’s
research organization and should not be construed as statements of fact.
Everest Group is not an investment advisor and its publications, opinions
and reports should not be construed as investment advice. Everest Group
disclaims all warranties, expressed or implied, with respect to this
research, including any warranties of merchantability or fitness for a
particular purpose
Proprietary & Confidential. © 2019, Everest Global, Inc. 3®
Not for distribution – for internal consumption only
Contents
⚫ Introduction to Intelligent Automation (IA)
⚫ RPA market overview
⚫ IDP market overview
⚫ Intelligent automation solution of the future
Proprietary & Confidential. © 2019, Everest Global, Inc. 4®
Not for distribution – for internal consumption only
Key solution: AI is often used to enable solutions such as
chatbots, Intelligent Virtual Agents (IVA), and Intelligent
Document Processing (IDP)
Intelligent automation | Definition
What is intelligent automation?: Solutions that combine RPA and AI to automate
processes
Diffe
rentia
tin
g c
ap
ab
ilitie
s
Robotic Process Automation (RPA) Artificial Intelligence (AI)
⚫ Mimics a user’s activities
⚫ Follows a non-invasive approach
⚫ Rules-based automation; no learning capabilities
⚫ Highly deterministic
⚫ Mimics human thought process
⚫ Can augment RPA by processing semi- or unstructured
data
⚫ Can “learn” over time
⚫ Probabilistic but can have safeguards to make it
deterministic
⚫ Screen scraping
⚫ Rules engine
⚫ Robot performance analytics
⚫ Machine learning (ML) and library of ML algorithms
⚫ Natural Language Processing (NLP)
⚫ Data capture and Advanced analytics
⚫ Automated training and self-learning
Ke
y c
ha
racte
ristics
Key limitation: Unable to process unstructured data and
most semi-structured data
Intelligent automation RPA and AI solutions augment each other to form intelligent automation to deliver greater business value
Proprietary & Confidential. © 2019, Everest Global, Inc. 5®
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Everest Group’s Intelligent Automation (IA) spectrum
Intelligent automation includes a spectrum of solutions / capabilities for automating
processes
Note: In this report, we have referred to rules-based/deterministic intelligent automation solutions (i.e., RDA, RPA, and autonomics) collectively as RPA
High Low
Inte
llig
en
ce
Hu
man
in
vo
lvem
en
t
Fu
ture
tech
Matu
rity Robotic Desktop
Automation (RDA)
Robotic Process
Automation (RPA)
Autonomics
Narrow Artificial
Intelligence
General Artificial
Intelligence
Ability to handle
input data type
Structured only
Structured and
semi-structured
Structured and
semi-structured
All types of data
including
unstructured
All types of data
including
unstructured
Processing
approach
Deterministic
Deterministic
Deterministic
Probabilistic
Probabilistic
Ability to
learn
No
No
No
Yes, but
limited to a
particular area
Yes, across
multiple
areas
Context
awareness
Minimal
Minimal
Yes, but
limited to its
computing
environment
Yes, but
limited to a
particular
domain
Yes, across
multiple
domains
and similar to
human brain
Approach
Human
triggers
Orchestrated
process
automation
Distributed
computing
Cognitive computing
(machine learning,
deep learning, and
NLP)
Unsupervised learning
and transfer learning;
still a conceptual
discussion
Proprietary & Confidential. © 2019, Everest Global, Inc. 6®
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RPA, IDP, and IVA are the key intelligent automation solutions that
have taken productized shape and are moving beyond early stages of
development
Source: Everest Group (2018)
Markets covered today
Prominent automation markets
⚫ Uses AI technologies to
process unstructured data
from emails, contracts,
handwritten documents, etc.
IDP
⚫ Helps automate rules-based
business tasks
⚫ Can handle structured and
semi-structured data
RPA
⚫ AI-powered conversational
robots that offer round-the-
clock support for enterprises
and improve customer
satisfaction
IVA
Proprietary & Confidential. © 2019, Everest Global, Inc. 7®
Not for distribution – for internal consumption only
Contents
⚫ Introduction to Intelligent Automation (IA)
⚫ RPA market overview
– RPA market size and adoption trends
– RPA technology trends
– Key investment themes by RPA vendors
– Outlook for 2019-2021
⚫ IDP market overview
⚫ Intelligent automation solution of the future
Proprietary & Confidential. © 2019, Everest Global, Inc. 8®
Not for distribution – for internal consumption only
2017 2018 2020E
The RPA software market has seen accelerated growth over the last
few years and is expected to continue growing rapidly in the future
RPA software market size1
US$ million
XX CAGR (2018-2020)
68%32% 70%-85%
Revenue from
software license
Revenue from
professional services
100% = US$1,030-1,060 million
1 RPA software market is calculated based on the revenue that independent technology vendors have generated from RPA licenses. Does not include revenue generated by cognitive
technology vendors, IT automation vendors, service providers, consultancy firms, or system integrators
Source: Everest Group (2019)
Split of RPA ISV revenue by segments
Revenue in percentage
~340-350
~700-720
2,000-2,500
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 9®
Not for distribution – for internal consumption only
With numerous success stories, many new enterprises are looking to
adopt RPA; Existing clients continue to drive growth by scaling up
their RPA deployments
RPA independent technology vendor client base
Total number of clients1
15,000-15,200
23,400-23,600
2017 2018
Software/license revenue per client
Revenue in US$ 000’s
20-25
28-33
2017 2018
As maturity in the market increases and the success stories of RPA implementation gain more visibility, new buyers for RPA emerge not only
in similar industries and geographies as existing buyers, but from new areas as well
1 Total number of clients indicates the sum of clients (not unique clients) across vendors in the RPA market
Source: Everest Group (2019)
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 10®
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45% 45%
23%19%
16%19%
12% 12%
2% 2%2% 3%
2017 2018
North America dominates the RPA market, followed by Continental
Europe and APAC
RPA software market size by buyer geography
License revenue in percentage; US$ million
North America
UK
Continental Europe
APAC
LATAM
145-150%
65-75%
110-115%
135-140%
340-350100% = 700-720 CAGR (2017-2018)
100-110%
MEA 125-130%
Source: Everest Group (2019)
Emerging findings
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BFSI and telecom dominate the RPA market with over 50% share
* Others include energy & utilities and logistics
Note: Banking and capital markets account for 26% and the insurance industry accounts for 11% of the overall market share in 2018
Source: Everest Group (2019)
38% 37%
16% 17%
10% 9%
7% 8%
8% 6%
4% 5%
3% 5%2% 3%
11% 10%
2017 2018
RPA software market size by buyer industry
License revenue in percentage; US$ million
Government
Retail
BFSI
Healthcare
Manufacturing
Travel & logistics
Others*
Telecom
Media & entertainment85-90%
120-125%
230-240%
130-135%
65-70%
125-130%
85-90%
120-125%
95-100%
340-350100% = 700-720 CAGR (2017-2018)
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 12®
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Processes in regulated industries such as BFSI and healthcare form
the bulk of the RPA market; growth is being driven by areas such as
F&A and HR
RPA software market size by business process/function
License revenue in percentage
<85% 85-115% >115%CAGR (2017-18)
100% = 700-720
31% 21% 16% 9% 7% 4% 4% 1% 7%
Industry-
specific
F&A Contact
center
Procurement HR IT services Web-based Document
management
Others
15%
Banking
6%Insurance
5%Healthcare
payer
Capital market
Energy & utilities
Pharma
2%2%
1%
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 13®
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While large-sized buyers have grown significantly, small- and mid-
sized buyers continue to hold a considerable share of the overall pie
RPA software market by buyer size (excluding Softomotive)
Percentage of clients
Source: Everest Group (2019)
64% 60%
23%21%
13%19%
2017 2018
110-120%
45-50%
CAGR
(2017-2018)
45-50%
41% 40%
34%28%
25%32%
2017 2018
115-120%
40-45%
CAGR
(2017-2018)
60-65%
RPA software market by buyer size (including Softomotive4)
Percentage of clients
Large-sized
buyers
Small-sized
buyers
Mid-sized
buyers
Large-sized
buyers
Small-sized
buyers
Mid-sized
buyers
Emerging findings
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RPA technology continues to evolve with a host of capabilities to
help enterprises achieve strategic business outcomes
Computer vision
Workflow orchestration (BPM)
AI-based next-best-action
Online digital worker marketplace
Intelligent workload balancing
Automation recommender
Automating the automation
Private user libraries for
reusable assets
Predictive SLA monitoring
Human-in-the-loop
Text analytics / NLP Process-level business
intelligence
Security and compliance
Built-in wireframe for developing
automations
Robot life cycle management
On-screen agent guidance
Unified screenDynamic workload balancing
IT infrastructure monitoringAuto-scalability
ICA protocol / native support
for Citrix
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 15®
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Technologies such as online digital worker marketplace, predictive
SLA monitoring, and workload balancing are likely to witness
increasing adoption over the next twelve months
Online digital worker
marketplace
Technology
AI-based computer vision for
surface automation
AI-based next-best-action
recommendation
Intelligent workload
balancing
Automating the automation
2018
Initial pilot
Initial pilot
2019
Early adoption
Initial pilot
Early adoption
2020
Early adoption
IT Infrastructure monitoring
Early adoption –
industry adoption
Predictive SLA
monitoringEarly adoption
Industry adoption
Innovation introduction Initial pilot
Innovation introduction
Initial pilot Early adoptionInnovation introduction
Initial pilot Early adoptionEarly adoption –
industry adoption
Initial pilot Early adoptionEarly adoption –
industry adoption
Emerging findings
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Technology capabilities Partnerships Training
⚫ RPA vendors are investing
to develop:
– Built-in cognitive
capabilities, such as ML
and NLP
– In-house capabilities for
process mining and IDP
With technology vendors
⚫ Vendors are partnering
with IDP, IVA, and
process mining vendors
to enhance their value
proposition
With service providers
⚫ They are also
partnering with service
providers to enter into
new geographies and
industries
⚫ Vendors are constituting
dedicated online portal for
training, as well as launching
official programs for training
partners, to increase global
RPA supply and address
automation skills shortage
RPA vendors have been investing in building their technology
capabilities, expanding their partner ecosystem, and building robust
training programs for clients
Major investment themes by RPA vendors
Source: Everest Group (2019)
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 17®
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Outlook for 2019-2021 (page 1 of 2)
RPA market to experience strong growth in
the coming years
RPA to witness increasing adoption across geographies and industries
Partnerships to rise significantly
RPA technologies will have increasing levels of
intelligence
Rise of cloud-based delivery model
Emerging findings
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Outlook for 2019-2021 (page 2 of 2)
Increasing focus on employee enablement
Emergence of process mining technology
Vendors to invest in expanding platform
outreach and product support
Increasing investor interest
Emergence of more RPA vendors, followed by
consolidation in the long term
Emerging findings
Proprietary & Confidential. © 2019, Everest Global, Inc. 19®
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™
®
Everest Group’s PEAK Matrix™ assessment provides a view
of the vendor landscape
1 Star Performers are selected based on a relative comparison of vendors’ performance along both the market impact and vision & capability dimensions between our previous and
current PEAK MatrixTM assessment. Those vendors with the greatest year-over-year improvement are designated as Star Performers
2 Analysis for Blue Prism and Thoughtonomy is based on capabilities before Blue Prism announced its intent to acquire Thoughtonomy
3 Analysis for Nintex is based on Foxtrot RPA capabilities before the acquisition of EnableSoft by Nintex
Leaders
Major Contenders
Aspirants
Star Performers1
Everest Group Robotic Process Automation (RPA) Products PEAK Matrix™ Assessment 2019
LeadersMajor Contenders
Mark
et
imp
act
(Measure
s im
pact cre
ate
d in the m
ark
et)
High
Vision & capability
(Measures ability to deliver products successfully)
Low
UiPath
Automation Anywhere
NICE
Softomotive
Kryon
PegasystemsKofax
EdgeVerve
WorkFusionThoughtonomy2
AntWorks
Servicetrace
Another MondayJidoka
HelpSystems
Jacada
AutomationEdge
Nintex3
Datamatics
Intellibot
Nividous
Low High
Aspirants
Blue Prism2
Proprietary & Confidential. © 2019, Everest Global, Inc. 20®
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Contents
⚫ Introduction to Intelligent Automation (IA)
⚫ RPA market overview
⚫ IDP market overview
– Introduction to IDP and its evolution over time
– IDP market size and adoption trends
– Key investment themes by IDP vendors
– Challenges to IDP adoption and outlook for 2019-2020
⚫ Intelligent automation solution of the future
Proprietary & Confidential. © 2019, Everest Global, Inc. 21®
Not for distribution – for internal consumption only
Understanding IDP solutions
IDP software solutions blend the power of AI technologies to process all types of
documents and feed the output into downstream applications
Incoming
documents
IDP solution
Data
capture
ClassificationExtraction of
relevant data
Generates report
on processed
data for human
verificationPowering AI
technologiesComputer
vision and
OCR
Text mining and
ML
NLP and
machine / deep
learning
Integrated
applicationsERP, CRM,
and SAP legacy
systems
RPA
Feeds output
(structured data)
into downstream
applications
Integrated apps
via APIS
Proprietary & Confidential. © 2019, Everest Global, Inc. 22®
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Core technologies powering IDP capabilities
NLP
Machine learning &
deep learning models
Computer visionOCR
Proprietary & Confidential. © 2019, Everest Global, Inc. 23®
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The IDP market stood at ~US$350-450 million in 2018 and is
expected to grow at CAGR of 70-80% over the next two years
1 Based on revenue estimates of 16 IDP technology vendors projected out to estimate the total IDP technology vendor market. It does not include revenue generated by service
providers, consultancy firms, or system integrators
Source: Everest Group (2019)
IDP independent technology vendor market size1
Revenue in US$ million
~350-450
~1,000-1,50070-80%
2020E2018
XX CAGR
The key growth drivers of IDP adoption are:
⚫ Rising need for enterprises to process
large volumes of semi-structured and
unstructured documents with greater
accuracy and speed
⚫ Increased adoption of complementary
technology solutions such as RPA and the
demand among enterprises to enable end-
to-end process automation with integrated
RPA and IDP capabilities
⚫ Improved sophistication of AI technologies
powering IDP solutions, which significantly
increases their accuracy rates in
processing documents compared to
traditional OCR solutions
Proprietary & Confidential. © 2019, Everest Global, Inc. 24®
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BFSI and healthcare enterprises are the early adopters of IDP
solutions with over 50% share
IDP software market size by buyer industry
License revenue in percentage; US$ million
44%
12%
9%
8%
8%
8%
6%2%
Manufacturing
Government & public sector
BFSI
Healthcare
Travel & logistics
High-tech & telecom
Others (3%)
CPG & retail
2018
350-450100% =
Media &
entertainment
Note: Based on the capability assessment of 16 IDP technology vendors
Source: Everest Group (2019)
The key growth drivers of IDP adoption are:
⚫ Adoption of IDP solutions in BFSI industry
driven mainly by the need to process huge
volumes of semi-structured and
unstructured documents such as KYC
documents and invoices
⚫ The adoption of IDP solutions is highly
prevalent in the healthcare industry across
multiple use cases such as patient
onboarding, support of electronic medical
records, and processing physician
referrals
⚫ CPG & retail, travel & logistics,
manufacturing, and telecom are also
deploying IDP solutions to process
documents in proof of delivery, custom
declarations, driver logs, maintenance
logs, etc.
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North America and Continental Europe dominate the market for IDP
solutions, largely driven by mature enterprises within BFSI
⚫ Within North America, the United States
has witnessed high adoption
⚫ The availability of IDP software products
with the ability to process documents in
multiple European languages has aided
adoption in Continental Europe
⚫ APAC has also witnessed moderate
adoption of IDP solutions
52%
21%
16%
7%2%
North America
Continental Europe
APAC
UK
LATAM (2%)MEA
2018
350-450100% =
IDP software market size by buyer geography
License revenue in percentage; US$ million
Note: Based on the capability assessment of 16 IDP technology vendors
Source: Everest Group (2019)
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Industry-
specific
F&A Procurement HR Contact center Web-based/
e-commerce
Others
IDP solutions are largely deployed in industry-specific processes
within BFSI & healthcare and horizontal functions such as F&A
100% = 350-450
46% 29% 6% 4% 3% 2% 9%
18%
Banking
12%Insurance
Capital markets
Pharma
Energy & utilities
4%1%
<1%
IDP software market size by business function
License revenue in percentage; US$ million
10%Healthcare
Note: Based on the capability assessment of 16 IDP technology vendors
Source: Everest Group (2019)
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Although large-sized buyers were the earliest adopters of IDP
solutions, mid-sized and small-sized buyers also recognize its
benefits and hold a major share of the overall pie
32%
35%
33%
IDP software market by buyer size1
License revenue in percentage; US$ million
Small-sized
buyers
Mid-sized buyers
Large-sized
buyers
100% = 350-450
⚫ A significant chunk of adoption among large-sized buyers is
driven by RPA partners and system integrators
⚫ Point solutions, that are typically focused on a specific
business function or industry, are increasingly being
adopted by mid-sized and small-sized buyers
1 Buyer size is defined as large (>US$5 billion in revenue), mid-sized (US$1-5 billion in revenue), and small (<US$1 billion in revenue)
Note: Based on the capability assessment of 16 IDP technology vendors
Source: Everest Group (2019)
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IDP technology will evolve to include capabilities that make it easier
for the end-user to consume the solution
IDP product capability predictions for near future
More vertical-specific
packaged solutions
Availability of downloadable pre-trained models
and app store-based approach
Advanced image recognition
and processing capabilities
Processing unstructured content
such as speech and videos
Increased configurability
of platformsEnhanced integration with complementary
technology solutions including RPA, BPM etc.
Increased deployments on
public and private cloud
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Barriers for IDP adoption
Various factors are acting as barriers in adoption and scaling of IDP solutions
Sophistication of IDP products
Time to start production
Difficulty in estimating the total benefits
ScalabilityPoor understanding of AI solutions
IDP vs. other solutions
Training set
Internal resistance
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IDP technology vendor market is expected to post strong growth in the coming years
IDP solutions expected to get more sophisticated with technology
advancements
Emergence of new players, followed by consolidation in the long term
Outlook for 2019-2021
Increase in partnerships with RPA technology vendors, as well as
more reseller and implementation partnerships
Package-based solutions likely to become more prevalent than platform-
based solutions
Strong interest and increasing demand across geographies, industries, and
buyer size
Proprietary & Confidential. © 2019, Everest Global, Inc. 31®
Not for distribution – for internal consumption only
™
®
Everest Group’s PEAK Matrix™ assessment provides a view
of the vendor landscape
Mark
et
Imp
act
(Measure
s im
pact cre
ate
d in the m
ark
et)
HighLeaders
Major Contenders
Aspirants
Low
Vision & capability
(Measures ability to deliver IDP products successfully)
HighLow
WorkFusion
ABBYY
Kofax
AntWorks
Parascript
Automation AnywhereInfrrd
HyperScience
EdgeVerve
Datamatics
Hyland
Extract Systems
Celaton
HCL Technologies
Ikarus
Rossum
LeadersMajor Contenders
Aspirants
1 PEAK Matrix specific to IDP software products using proprietary evaluation methodology
Everest Group Intelligent Document Processing (IDP) Products PEAK Matrix™ Assessment 20191
Proprietary & Confidential. © 2019, Everest Global, Inc. 32®
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Contents
⚫ Introduction to Intelligent Automation (IA)
⚫ RPA market overview
⚫ IDP market overview
⚫ Intelligent automation solution of the future
Proprietary & Confidential. © 2019, Everest Global, Inc. 33®
Not for distribution – for internal consumption only
As enterprises mature in their automation journeys, they will seek access
to various, currently disparate capabilities; vendors and/or partners that
can align and bring together capabilities seamlessly stand to win
BPM
Analytics
Process mining
Proprietary & Confidential. © 2019, Everest Global, Inc. 34®
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Contact information
Get in touch with Anil Vijayan to learn more.
@AnilVijayan11
www.everestgrp.com
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