SDA market is expected to grow at a CAGR of over 27% during the forecast period (2022 – 2031). According to the World Robotics Report by the International Federation of Robotics (IFR), global sales of industrial robots will increase 14% per year on average from 2019 to 2021.
– Cost-cutting is a major driving factor for industries to adopt SDA. Chatbots in banks replace contact center employees and can store conversations for later reference. They are voice or text activated, thereby enhancing the customer’s digital experience, while limiting the number of bank employees. The Netherlands’ largest telecom company KPN aims to cut operating expenses worth 350 million euros through further automation and simplification during 2019-2021 in a bid to boost its core profit.
– SDA helps to improve operational efficiency by catering during peak demand periods. For instance, in October 2018, Cainiao, Alibaba’s logistics affiliate opened a warehouse with over 700 robots working in it. This was done to support the shopping festival “Singles Day” which is run by Alibaba. It also opened a new warehouse in Wuxi, China which employs 700 automated guided vehicles for moving the parcel to one place to another within the warehouse.
– The challenging factor which might hinder the growth of this market is lack of skilled professionals to develop and manage the automation processes. As new technologies are appearing at an exponential rate, there is a need to re-skill the old workforce.
Scope of the Report
Service delivery automation (SDA) is defined as an umbrella concept, where new technologies automate a series of human actions in an IT or business process. Service delivery automation (SDA) is an ability to match the legacy technologies with the automated technologies that can simplify the different business cases and minimizes the disruption. Industries like Retail, Hospitality, Healthcare and Logistics are embracing automation.
Key Market Trends
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Retail Industry to Dominate the Market
– With expected delivery times going down, the number of orders going up, automating the retail process can both reduce costs and increase the speed of handling orders.
– According to the latest survey by IBM, 85% of retail and 79% of consumer products companies plan to be using intelligent automation for supply chain planning by 2021.
– The same survey stated that consumer products executives project the highest rate of intelligent automation adoption over the next three years to be in manufacturing, and product design and development, while for retail executives its is supply chain planning.
– The latest example of how retail industry is adopting service delivery automation can be seen in Amazon warehouse, where it is experimenting with the automation of packaging lines. Goods are scanned coming down a conveyor belt and are enveloped seconds later in boxes custom-built for each item. It replaces 24 people.
Asia-Pacific to Witness the Highest Growth
– Several leaders in Asia-Pacific’s telecom industry are embracing power of automation with use of workforce engagement software to automate quality management.
– Alibaba, the world’ biggest e-commerce company, launched cashier-less wine storage and retail facility in its home city of Hangzhou, enabling shoppers to purchase wines by the case without paying any cash or interacting with any sales staff.
– Other businesses are also getting automated in China, like restaurants, convenience and clothing stores. The Robot.he restaurant in the Hema supermarket uses a series of apps, QR codes, and robots to provide a futuristic dining experience.
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