Report : South and Central America Robotic Process Automation Market Forecast to 2028 - COVID-19 Impact and Analysis by Component (Solutions and Services) and Industry Vertical (BFSI, Retail, Telecommunication, Healthcare, Transportation & Logistics, and Others)
Increasing BPO and Shared Services Fuels South and Central America Robotic Process Automation Market Growth
According to the latest market study on “South and Central America Robotic Process Automation Market Forecast to 2028 – COVID-19 Impact and Analysis – by Component and Industry Vertical,” the market is projected to reach US$ 1,145.2 million by 2028 from US$ 115.3 million in 2021; it is expected to grow at a CAGR of 38.8% from 2021 to 2028.
Robotics and automation are disruptively transforming the way businesses function. Presently, more than half of BPO (business process outsourcing) service providers across the globe are engaged in mere replication of client processes at reduced costs. However, the rapidly advancing technological environment imposes constant pressure on BPOs, as their conventional methods become obsolete over the years. In addition, end clients prefer automated processes while selecting a BPO service provider. Owing to these factors, BPO service providers are investing in robotic automation of various repetitive processes.
BPO service providers, who have already implemented robotic process automation (RPA) solutions, have significantly improved their productivity levels and experienced noteworthy financial gains in the past few years. Further, RPA innovations and increasing BPO and shared services aim to minimize human involvement. They would retool their business models to reflect higher service levels, such as cost reduction and enhanced cycle speed. This refurbished business model of BPOs will have to incorporate RPA products, which is expected to drive the South and Central America robotic process automation market during the forecast period.
Based on component, the South and Central America robotic process automation market is bifurcated into solution and services. In 2021, the services segment held the largest South and Central America robotic process automation market share. By industry vertical, the South and Central America robotic process automation market is segmented into BFSI, retail, telecommunication, healthcare, transportation and logistics, and others. In 2021, the telecommunication segment held the largest South and Central America robotic process automation market share.
Impact of COVID-19 Pandemic on South and Central America Robotic Process Automation Market
As per the pre-COVID-19 pandemic situation on South and Central America robotic process automation market analysis, the demand for robotic process automation (RPA) was rising, owing to the growth of the e-commerce sector in SAM countries. With 649 million people living in SAM and mobile subscribers making up 68% of the population, there is a significant potential for the growth for RPA across the region. Along with the rising digitally-connected consumers and fastest-growing e-commerce markets in SAM offers significant potential for RPA in the region. For instance, in 2019, over 150 million South and Central Americans bought goods and services online, while retail sales alone had surpassed ~ US$ 84.7 billion by 2019, according to the article published by Crunchbase Inc. in December 2019. Thus, the surging need for RPA in the e-commerce sector drives the growth of the market.
In 2020, the COVID-19 pandemic positively impacted the robotic process automation market in SAM due to the increasing spending on the healthcare sector. As per observation, in October 2020, the Brazilian government spent over 120 billion Brazilian reals (US$ 21.31 billion) on the healthcare industry, out of which more than 37% was allocated to the hospital and outpatient care. Thus, the healthcare industry was positively impacted during 2020, which boosted the market growth.
As per South and Central America robotic process automation market analysis in 2021 and 2022, the growth of defense, financial institutions, and telecommunication sectors bolstered the South and Central America robotic process automation market growth. South and Central America’s fintech sector is booming. For instance, US$ 2 billion was invested in financial services, according to Crunchbase Inc. in June 2021. Therefore, the increasing adoption of RPA among fintech companies is expected to drive the market growth during the forecast period.
The South and Central America robotic process automation market size before COVID-19 pandemic was US$ 63.3 million in 2019. The market size during the pandemic was US$ 84.9 million in 2020. Furthermore, in 2021, the South and Central America robotic process automation market size was at US$ 115.3 million. Therefore, the overall impact of COVID-19 pandemic on the South and Central America robotic process automation market was positive in 2020.
Growtec, Atos SE, NICE Ltd., AUTOMATIONEDGE, Pegasystems Inc., SAP SE, Blue Prism Group, HelpSystems, UiPath, and IBM Corporation are among the key companies profiled in the South and Central America robotic process automation market. Several other players are also functioning in the market, contributing significant revenue shares year-on-year.
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