The domestic RPA first appeared in the Gartner competition landscape report, you need to pay more attention to the Chinese RPA market

Posted May 28, 202010 min read

From Gartner's global RPA competition landscape to the domestic market of domestic RPA

The domestic RPA first appeared in the Gartner competition landscape report, you need to pay more attention to the Chinese RPA market

In addition to the Gartner competition landscape report, what other domestic RPAs are worthy of attention?

text/Wang Jiwei

On May 13, Gartner released a report called "Competitive Landscape:Robotic Process Automation Software"(Chinese translation), which mainly explained the current global RPA market competitive landscape. At first glance, there are three Chinese RPA manufacturers appearing in the report, namely Alibaba Cloud RPA, Yisaiqi and Yunzhang Technology.

This is the first time that a domestic manufacturer has entered Gartner's RPA report, which is indeed gratifying. It seems that Gartner really began to pay attention to domestic RPA manufacturers. In fact, it is not surprising that many foreign RPA manufacturers led by the three major industry giants of UiPath, Automation Anywhere, and Blue Prism have entered the Chinese market, and many RPA bidding projects are connected with Chinese local RPA soldiers. Manufacturer?

The number of Chinese companies is one of the best in the world, and the degree of informatization is relatively lagging behind. The urgent need for digital transformation means that the Chinese market has more potential. This market, on the one hand, can make the global market share of foreign RPA a hundred feet further, on the other hand, it is enough to create the existence of several comparable to the three major RPA manufacturers, which can not be ignored by Gartner.

However, this report shows too little for domestic RPA. Even though the relevant data shows that China currently has only 2%of the RPA market, there are many domestic RPAs that perform well and are worth introducing in terms of product capabilities, ecological construction, financing process, market feedback, and customer evaluation.

Through the Gartner report on this topic, Wang Jiwei's channel also made some introductions to domestic RPA to let everyone understand the current status of domestic RPA companies.

The world's top five RPAs occupy 47%of the market, and the Chinese market is full of flowers

The Gartner report shows that the global market is dominated by eight market participants. These manufacturers have sufficient breadth and depth in capabilities to enable their products to be deployed globally. The eight vendors are Automation Anywhere, Blue Prism, NICE, Pegasystrems, UiPath, Kofax, EdgeVerve system, WorkFusion, of which the top five vendors occupy 47%of the RPA market.

In the Gartner report, the global RPA market share was divided among more than 50 RPA vendors. In fact, there are still many foreign RPA vendors whose business has not yet reached China. At the same time, many consulting companies and accounting firms mainly cooperate with RPA. In the Chinese market, in addition to the foreign RPA vendors that have entered, more market share is in the hands of rising general RPA vendors, vertical RPA vendors, cloud computing vendors that launch RPA, and enterprise management software vendors.

However, the RPA market in China is not the same picture as Gartner.

Some RPA manufacturers in the Chinese market

At present, UiPath, Automation Anywhere, Blue Prism and other foreign manufacturers are working with major service organizations to open up new frontiers. General RPA manufacturers such as Laiya Technology, Topview Data, Yunkuan Technology, Yisaiqi, etc. have already won some major customers in many fields such as energy, medical care, and government affairs. Vertical RPA manufacturers such as Jin Zhiwei, Abbots, and Innocent have all stabilized in their respective areas.

Alibaba's original code stack has been renamed as Alibaba Cloud RPA and packaged into the overall solution service users. RDA tools have also been launched by vendors such as JD Cloud. A number of enterprise management software such as SAP, UFIDA, Kingdee, etc., also launched self-developed RPA products at the same time as cloud conversion into SaaS/PaaS. Some large enterprises, such as Suning s RPA, have already begun to serve their merchants in large numbers. Industrial Bank s Jintianluo RPA and Ping An Bank s An Xiaofeng RPA have also moved from serving themselves to providing external services.

At the same time, technology giants have finally made up their minds to enter the RPA field. IBM launched its own RPA two years ago, and Microsoft launched Power Automate with integrated RPA last year. In addition, accounting firms and consulting agencies such as Deloitte and Ernst & Young have also launched their own RPAs.

The products of various manufacturers are concentrated, there are probably dozens of RPA products, and each product has a certain user group. Regarding the RPA industry pattern, Wang Jiwei Channel will elaborate in another article, and I wo n t go into details here.

Foreign RPA leads the global trend, domestic RPA manufacturers have not fallen

The Gartner report shows that in 2020 and beyond the RPA competition landscape, the main players will dominate the market with brand awareness and software service capabilities and IT cooperation capabilities. How to better educate the market and build a better ecosystem to support and serve customers is the focus of RPA business operations. RPA manufacturers must not only pay attention to the product roadmap, but also have to effectively convey the product value to the target audience, so they also need to have a strong sales team.

In short, factors such as technology research and development, product capabilities, user experience, sales strategy, partners and user ecology will affect the speed and progress of RPA manufacturers to quickly seize market share in the future. In the latter competition, only RPA manufacturers with such comprehensive capabilities can break out.

Many domestic RPA manufacturers do the same. Most RPA manufacturers now regard AI as their core competitiveness, and RPA is moving from IPA to intelligent cognition. This also allows RPA enterprise users who have not been in contact with RPA before to apply the RPA + AI fusion solution in one step, which can maximize the automation of business processes, and the effect of increasing efficiency and reducing costs is more obvious.

To build the comprehensive capabilities of RPA manufacturers, in addition to continuous product iteration, ecological construction is an important part. At present, the first echelon of RPA manufacturers have launched RPA malls and developer communities to connect the supply and demand of developers, users and merchants.

For example, Lai Ye Technology UiBot has more than 300,000 registered users. It is already the second largest developer community in the world, and recently released the new RPA + AI platform product UiBot Mage. This is the world s first AI capability platform specifically designed for RPA robots ; The self-developed AI component of Daguan Data has more than 40 types of document information extraction in process automation. At the same time, good RPA vendors are actively constructing partner ecosystems such as technology, consulting, deployment, and sales to serve customers more comprehensively.

In terms of technology trends, global RPA is moving towards Hyperautomation. The orchestrator/dashboard, development environment, client/server architecture and cloud computing architecture, as well as product integration capabilities with various enterprise management software, are being studied by various manufacturers.

It can be said that in the process of integration of various new technologies and RPA, and in the mainstream construction of ecological construction becoming the main competitiveness of RPA manufacturers, domestic RPA has not fallen behind. Even in some respects, it has surpassed some foreign manufacturers.

See the real chapter of financing ability, the first echelon of domestic RPA

Financing capacity is the recognition of enterprises by the capital market. Capital vents mean more financing opportunities, but investment institutions pay more attention to whether companies can develop in accordance with the established goals, whether teams can work together to cope with difficulties, whether market share can be steadily expanded, and whether operating data has better performance. Continuous and fast-paced financing means rapid development of the enterprise.

Since August last year, the domestic RPA companies that received the last round of financing have stolen enough to gallop on their respective tracks. Half a year later, the new crown epidemic occurred in the 2020 year, but I did not expect that the financing process of RPA was not affected by the epidemic. Laiye Technology first received C round of US $42 million in financing on February 24, Yunzhuang Technology completed a US $36 million in round B financing on March 16, and Daguan Data completed a 270 million yuan in B + round of financing on May 14. Among the general RPA companies, these three companies took the lead in getting a new round of financing this year, which is already the first echelon of general RPA.

In fact, regardless of financing amount and market valuation, domestic RPA has exceeded some foreign RPA manufacturers in Gartner's report in terms of investment and financing. At present, the valuations of Laiya Technology, Yunzhang Technology, and Daguan Data are 2.73 billion yuan, 975 million yuan, and 2 billion yuan, respectively. In terms of the current round B financing amount, Yunzhang Technology's round C financing may also exceed RMB 2 billion.(Note:The latest valuation is an IT orange estimate)

Among the Gartner listed companies, Kryon Systems' valuation after completing the C round of financing is about 1.3 billion yuan. As for Electro Neek and RPA Labs, they are two start-up companies. Among them, ElectroNeek's latest financing progress was to obtain a seed round of additional investment of 2.5 million US dollars in mid-April. The financing volume of these companies is far less than the three major domestic RPA manufacturers. And WorkFusion, one of the world's eight major manufacturers, has an E round of financing of US $50 million in 2018.

Postscript:The Chinese market has a large volume, strong attributes, and strong domestic RPA opportunities.

The Gartner report comprehensively introduced the current market structure and competition situation of the global RPA industry. Only this pattern cannot reflect the current status of the Chinese RPA market. And after reading the report, more people are also asking about the situation in the Chinese market. This is also one reason why Wang Jiwei channel wrote this article.

In fact, although the domestic application of RPA is later than that of foreign countries, the development progress of domestic RPA is not slow, and in terms of strategic layout, technology research and development, product application, etc., it is in line with the international leading level.

In terms of applications, Chinese companies have basically not experienced the RPA1.0-RPA2.0 era, and have directly entered the cognitive RPA3.0-4.0 era. The integration of RPA and AI has enabled cognitive RPA to bring better efficiency and cost reduction for enterprises, and business process automation solutions that incorporate RPA have also become the first choice for digital transformation.

Compared with foreign markets, China has some differences.

First of all, in terms of market size, the Chinese market is really huge. Forbes just released the "Top 2000 Global Listed Companies" with 367 Chinese companies. According to data from the National Bureau of Statistics, by the end of 2018, of the 985,000 enterprises above designated size, 99.6%used computers in production, operation and management, and 83.9%had information investment. As of December 2019, the average number of computers owned by each enterprise exceeded 50 for the first time.

There are still about 30 million small and medium-sized enterprises in China, and efficiency reduction is just what they need. For enterprises that "dare not dare to transfer, will not transfer, and have no money to transfer", they can all try to start transformation from business process automation.

The informationization level of Chinese enterprises is generally low, even some industry giants are no exception. The economic downturn, sudden epidemic situation, coupled with policy encouragement, the need to increase efficiency and reduce costs, and the planning of digital transformation, have released a large number of companies' needs for business process optimization.

In this regard, IDC also has a forecast data:In 2023, China's RPA software market size will reach 1.02 billion US dollars. However, at present, the market is likely to exceed RMB 10 billion by then. For these data, Wang Jiwei's channel does not explain more. I believe that those who are interested have seen the huge opportunities for RPA in the data.

At the same time, as can be seen from some bidding cases, Chinese companies prefer domestic RPA. Leading companies in many fields in China have chosen domestic RPA, and many projects are easily at the level of hundreds to tens of millions or even hundreds of millions. For example, Laiye Technology won the bids for China Southern Power Grid, Shougang, China Post, Midea, Dahua, etc., and Jin Zhiwei won the bids for the two large state-owned banks. Daguan Data also has large customers such as China Construction Bank and China UnionPay. At the time of bidding, it did not lose even if it competed with first-tier vendors such as UiPath.

During the epidemic, various RPAs came to a round of concentrated appearances. Almost every RPA manufacturer has customized corresponding government robots for relevant departments in the first place. These manufacturers are mostly local RPA.

The truth is simple. In terms of products, AI algorithms and models for the domestic enterprise service market, and a better understanding of the domestic office business process environment, this is not what ordinary foreign RPA can do. Simply put, when the product capability is similar to the solution, domestic enterprises generally give priority to domestic RPA. Price is on the one hand, and faster response after-sales service and more assured data security are the first choice.

For domestic RPA, this can be described as "the first moon near the water tower".

Another point must be mentioned, that is the localization alternative. In a more complex global economic and political situation, China's autonomy and control can no longer be delayed. Now from the government to enterprises, many organizations' office and management facilities, from hardware to software systems have been replaced by localized products.

For RPA manufacturers, localization substitution will be an important factor for customers to choose domestic RPA, which can bring more markets to enterprises. But it also brings challenges to RPA vendors, at least your product can adapt to multi-platform systems such as Linux.

Therefore, even if the Chinese market is good for domestic RPA companies, the premise must be the internal work of product development and technology iteration.

Finally, friends who are interested in Gartner's report, please remember to write to me privately.

[Wang Jiwei Channel, focusing on TMT and IOT, focusing on digital transformation and process automation.

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