Business Process Management as a Service (BPMaaS) Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Business Process Management as a Service Market Forecast 2023-2027

The business process management as a service Market size is estimated to increase by USD 26.98 billion, growing at a CAGR of 28.76%. 

The market's growth hinges on several key factors, including the rising demand for process automation and digital transformation, the need for streamlined and efficient business processes, and the increasing adoption of cloud-based services. These trends reflect a broader shift towards leveraging technology to enhance productivity, agility, and scalability across various industries. As organizations seek to optimize operations and stay competitive in a rapidly evolving digital landscape, investments in automation, digitalization, and cloud solutions become imperative. This convergence of factors fuels market expansion, driving innovation and creating opportunities for providers of advanced software and services.

What will be the Size of the BPMaaS Market During the Forecast Period?

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Technavio’s Exclusive Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027. 

Global Market Customer Landscape

BPMaaS Market Dynamics 

The demand for solutions that enhance operational efficiency and adaptability. Leveraging SaaS (Software as a Service) models, BPM platforms seamlessly integrate with existing IT systems, offering flexibility and scalability. These platforms serve as comprehensive solutions for managing workflows, enforcing business rules, and improving the agility of process through the implementation of diverse BPM methodologies. However, organizations often face challenges such as resistance to change and the need for a cultural shift towards embracing new technologies. BPM platform stands as a cornerstone for ensuring the agility of process and optimizing various facets such as finance and accounting, and the financial services sector.

With the proliferation of digital transactions like credit card transactions and the evolving Business-to-Business (B2B) sector, the demand for robust data security and compliance measures has never been higher, especially in light of concerns surrounding data breach and data loss. Leveraging cutting-edge technologies such as Artificial Intelligence (AI) and Intelligence solutions, BPM platforms bolster operational efficiency while addressing critical aspects like customer tastes and data being made. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Driver

The increasing demand for process automation and digital transformation is driving market growth. Automation allows more and more business processes to be digitized. This speeds up the company's workflow and increases the accuracy and consistency of results. Technologies such as BPM, RPA, and AI are being implemented to increase operational efficiency, reduce time-to-market. This is helping in improving customer experiences along with reductions in costs. Hence, various industries like BFSI, retail, and manufacturing are implementing BPMaaS solutions for the automation of both internal and external processes.

Additionally, the integration of BPMaaS solutions with RPA and AI is referred to as intelligent automation. It helps create data-informed decisions and ensures efficiency. For example, BP Logix Inc offers low code solutions for the digital transformation of business processes by providing Process Director, an AI-enabled BPM software. Hence, businesses are shifting towards BPMaaS due to reduced operating costs and operational efficiency, causing further growth of the global BPMaaS market during the forecast period.

Significant Trends

The emergence of mobile BPM solutions is a key trend in the market. Growing technological advances have increased the adoption of connected devices and the need for real-time data sharing to make quick and reliable business decisions. The shift in business models to the integration of digital technologies and serving consumers worldwide has increased the need to complete business tasks anywhere and anytime. These changes in business models have increased the use of smart devices such as mobile phones, tablets, laptops, and other digital resources in business processes. 

Moreover, the advances in technologies such as big data, machine learning capabilities, and artificial intelligence have made mobile BPM solutions an integral part of businesses as they help increase business responsiveness and optimize productivity. Due to various benefits such as reduced complexity, faster planning, and increased ROI, companies are adopting mobile BPM solutions for their business processes. The benefits of mobile BPM and the accelerated adoption of enterprise mobility are expected to drive the growth of the global BPMaaS market during the forecast period.

Major Challenge

Data security and privacy issues are challenging market growth. Using BPMaaS offers a number of advantages to businesses, but it can expose the BPMaaS to security risks such as malware, data theft, and hacker attacks related to cloud technologies. This hinders the widespread adoption of IoT devices and sensors in business applications due to the large amounts of sensitive business data such as customer information and value of value.

As a result, it is increasing data security concerns and the prevalent legacy network infrastructure may not be capable of helping enterprises in handling data threats. If a cyber attacker identifies all devices in an IoT network, it could lead to a severe data breach. Hence enterprises must invest in methods to ensure data security while utilizing BPMaaS solutions, which pose a hindrance to further growth of the market during the forecast period.

Who are the Major Business Process Management as a Service Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc - The company offers business process management as a service such as intelligent finance operations.

Appian Corp. - The company offers business process management as a service such as the BPM suite.  

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

• BP Logix Inc
• Capgemini Service SAS
• Cloud Software Group Inc.
• Cognizant Technology Solutions Corp.
• ExlService Holdings Inc.
• Fujitsu Ltd.
• Genpact Ltd.
• getsix Polska Sp. z o.o.
• HCL Technologies Ltd.
• International Business Machines Corp.
• Oracle Corp.
• Pegasystems Inc.
• SAP SE
• Software AG
• Tata Consultancy Services Ltd.
• Tech Mahindra Ltd.
• Wipro Ltd.
• WNS Holdings Ltd.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Segmentation 

The market is witnessing rapid evolution, particularly in the business-to-business (B2B) sector, driven by the need for increased efficiency and agility. Companies are investing heavily in capital expenditures (CAPEX) to implement BPM solutions that streamline operations and reduce operational costs. With the rise of digital companies and financial services sector, BPM platforms such as Dropbox and IaaS (Infrastructure as a Service) enable seamless finance and accounting processes and facilitate credit card transactions securely. Additionally, BPM leverages intelligence solutions to analyze data, optimizing time to market and enhancing customer tastes. By minimizing data loss and human intervention, BPM enhances the agility of processes and efficiency of workforce, regardless of organization size or telecommunications infrastructure.

Deployment Segment Analysis

On-premises segment of the BPMaaS market is majorly opted for by large enterprises. The primary reason for on-premises BPMaaS solutions over cloud-based BPMaaS solutions is due to a greater degree of control and ownership. This is especially important in industries with exposure to large volumes of sensitive customer data. Certain companies that provide such on-premises BPM solutions include Process Director, ConceptDraw PRO, and Metastorm BPM.

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The on-premises segment showed a gradual increase in the market share of USD 2.54 billion in 2017 and continued to grow by 2021. This type of deployment permits storage in private data centers, ensuring the safety and security of important business data. It also permits ease of compliance with regulations like the Health Insurance Portability and Accountability Act (HIPAA) in the healthcare sector that mandates the maintenance of private data centers. Hence the above factors are likely to contribute to the growth of the on-premises segment of the BPMaaS market during the forecast period.

End-User Segment Analysis

The BFSI segment will be one of the major industries with high adoption of BPMaaS solutions during the forecast period. Some of the companies in this segment include Ultimus Inc. (Ultimus) and BPMONLINE. This sector has a vast amount of sensitive customer data such as account and transaction details. The deployment of BPMaaS solutions are allowing to create a better customer banking experience by mobile banking and wallets. Moreover, increasingly stringent norms like Basel III, FATCA, and Dodd-Frank are present and BPM solutions and services help in compliance with these norms as well. They also help in the automation of loan disbursement, account opening, payment collections, and internal processes. All these factors are likely to result in the growth of this segment of the market during the forecast period.

Regional Analysis

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North America is estimated to contribute 41% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Rising adoption of cloud computing services and several companies like International Business Machines Corp., Oracle Corp., and Pegasystems Inc., in the North American region are key reasons for driving demand for BPMaaS during the forecast period. This is further boosted by the data explosion in several industries like telecommunication, manufacturing, healthcare, and retail. Hence, companies are offering BPM solutions to optimize decision-making using data analytics and improve business efficiency. For example, Kissflow is offering a BPM suite that provides real-time analytics to direct business decisions and improve productivity. Increased demand for automation in the banking sector is also another factor likely to result in regional market growth during the forecast period.

Market Analyst Overview

The market caters to organizations of varying sizes, encompassing human resource management (HRM), accounting, sales, and procurement and supply chain management (SCM) across diverse industries and geographies. It integrates Robotic Process Automation (RPA) and Internet of Things (IoT) to streamline supply chains, especially amidst work-from-home mandates. Mission-critical enterprise customers prioritize service speed, security, and quality, driving cost-effective solutions.

Significant growth fueled by the increasing demand for enhanced operational efficiency and cost-effectiveness in various sectors such as finance and accounting, and the financial services sector. Leveraging technologies like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service), BPM solutions integrate seamlessly with existing IT infrastructures to optimize processes and reduce operational costs (OPEX). With the aid of intelligence solutions, including Artificial Intelligence (AI) and Machine Learning (ML), BPM platforms empower organizations to streamline workflows, improve productivity, and ensure compliance with strict laws and rules. Additionally, they address challenges such as human intervention and cultural shifts, enabling businesses of all sizes to enhance their agility and time to market while minimizing risks such as data breaches and ensuring data security and compliance in an era of increasing Internet of Things (IoT) connectivity.

Finance, accounting, and supply chain management benefit from digital solutions like Paypal and Microsoft Skype VoIP, aligning with customer preferences in the B2B sector. Operational efficiency, data security, and compliance are crucial, with companies like IBM, Cognizant, and Tata Consultancy Services leading through collaborations and acquisitions. The market witnesses innovations in SaaS, IaaS, and PaaS, addressing privacy concerns and regulatory requirements such as GDPR and Second Payment Services Directive. Major players like Oracle and Vodafone emphasize integrated threat management and cloud infrastructure, catering to sectors like financial services and facilitating digital transformations for companies like Samsung Securities and Cox Automotive.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook
  • On-premises
  • Cloud-based

• End-user Outlook
  • BFSI
  • Manufacturing
  • Retail
  • Telecommunication and others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Scope
Report Coverage	Details
Page number	181
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 28.76%
Market growth 2023-2027	USD 26.98 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	27.45
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 41%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, Appian Corp., BP Logix Inc., Capgemini Service SAS, Cloud Software Group Inc., Cognizant Technology Solutions Corp., ExlService Holdings Inc., Fujitsu Ltd., Genpact Ltd., getsix Polska Sp. z o.o., HCL Technologies Ltd., International Business Machines Corp., Oracle Corp., Pegasystems Inc., SAP SE, Software AG, Tata Consultancy Services Ltd., Tech Mahindra Ltd., Wipro Ltd., and WNS Holdings Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market vendors

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