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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 BUSINESS PROCESS MANAGEMENT MARKET By Solutions (Process Modeling, Automation, Integration, Content & Document Management, and Monitoring & Optimization Management), By End User (SMBs, Enterprises & Large Enterprises) GLOBAL FORECAST TO 2019 It s all about markets MARKETSANDMARKETS

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets.. 1

4 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To define, describe, and forecast the global Business Process Management (BPM) market on the basis of solution, end user, and vertical To provide a detailed information regarding the major factors (drivers, restraints, opportunities, industry specific challenges, imperatives, and burning issues) influencing the growth of the market To strategically analyze micro markets with respect to individual growth trends, future prospects, and contribution to the total market To analyze the opportunities in the market for stakeholders and to detail a competitive landscape for market leaders To forecast the size of market segments with respect to five main regions, namely, North America (NA), Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America (LA) To strategically profile key players and comprehensively analyze their market shares and core competencies To track and analyze competitive developments such as joint ventures, mergers and acquisitions, new product developments, and research and developments in the BPM market 1.2 MARKET DEFINITION BPM can be defined as the process that enables enterprises to optimize their business processes by the use of software and services that enable enterprises to attain visibility and enhance the efficiencies of their business processes. The main objective of BPM is to help businesses to optimize business processes enabling businesses to improve the performance of these processes. With the increasing complexities in business processes and growing mergers and acquisitions, enterprises are faced with the difficult task of maintaining these business processes so that these business processes can work within the same business environment and enhance the overall efficiency of the business processes. BPM solutions can be categorized into four main categories, namely, process modeling, process automation, process management, and process optimization which are widely used by enterprises of various sizes globally. The use of these solutions enable enterprises to optimize their business processes and enhance the functioning of these processes enabling them to better manage their resources and help them to quicken there decision-making process. Some of the leading companies in this market include IBM, Oracle, Software AG, Pegasystems, and Appian. These players have shown promising signs and have developed expertise that proves their leading role in this market. Besides these players, the other players who have significant offerings in the market are EMC, Fujitsu, Hyland Software, TIBCO Software, and OpenText. These players have significant BPM solutions portfolio and are gradually catching up with the leading players in the market. IBM is the leading player in the BPM market with a wide portfolio of solutions and services in this market. IBM business process manager enables businesses to customize their business processes in an integrated environment. It also contains tools for the business processes to monitor, execute, and optimize them. 2

5 1.3 MARKET SCOPE The BPM market report defines this market as a set of technologies that are able to automate the entire life cycle of a business process, from identification and design, to automation, monitoring, and continuous improvement. It comprises solutions that enable organizations to be more efficient, and more capable of change than a functionally focused, traditional hierarchical management approach. These processes can impact the cost and revenue generation of an organization. This report strictly includes BPM solutions. This study covers four major solution segments to arrive at the global market size of the BPM market during the forecast period The BPM market comprised solutions which include software, professional services (such as consulting, system integration service, and various others), and support and maintenance service (including database management service, system upgradation, and training) Subsegment solution comprised major solutions such as modeling, automation, managing, and optimizing MARKETS COVERED This research report categorizes the global BPM market into the following segments: Global BPM Market, By Solution Modeling Integration Monitoring and Optimization Automation Content and Document Management MODELLING Business Architecture Design Business Process Analysis AUTOMATION Workflow Automation Lifecycle Automation Compliance and Business Rules Management System Service Oriented Architecture INTEGRATION Enterprise Application Integration Enterprise Service Bus Collaboration CONTENT AND DOCUMENT MANAGEMENT Record Management Document Management Content Analytics MONITORING AND OPTIMIZATION System Management and Administration Business Activity Monitoring Operational Intelligence Business Intelligence Performance Management and Balanced Scorecard Event Processing Simulation and Optimization Process Execution and State Management Engine 3

6 Global BPM Market, By Deployment Mode Hosted On-Premises Global BPM Market, By End User Small and Medium Business (SMBs) Enterprise Large Enterprises Global BPM Market, By Vertical Automotive Banking, Financial Services, and Insurance (BFSI) Consumer Goods and Retail Healthcare Manufacturing Telecom and Information Technology (IT) Transportation and Logistics Other Verticals (academia, media and entertainment, energy and power, and utilities) Global BPM Market, By Region NA Europe APAC MEA LA YEAR Historical Year: 2012 Base Year: CURRENCY The base currency used in the report is U.S. dollars, with market size indicated only in $million. For companies reporting their revenues in U.S. dollars, the revenues were picked from their annual report For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value in U.S. dollars 4

7 1.3.4 LIMITATIONS The study is limited to five types of applications such as process modeling, automation, integration, content and document management, and monitoring and optimizing. The deployment type considered for the report are hosted and on-premises 1.4 STAKEHOLDERS BPM solution providers End users/consumers/enterprise users Government organizations Consultants/advisory firms System integrators and resellers Training and education service providers Support and maintenance service providers Managed service providers 5

8 2 EXECUTIVE SUMMARY The innovation and advancement in the BPM market reflects upon not just one interesting factor but a conglomeration of several catalytic ideas, tools, personalities, and other paraphernalia coinciding together at the right place at the right time. A few players in this domain are Appian, IBM, Oracle, Pegasystems, Software AG, and others. These players along with the others present in the market are expected to make a big impact in this rapidly growing market during the next xx years. The BPM market has advanced significantly in the recent years, in terms of technological expansions. The BPM market has passed through several phases, with more than xx years of evolutionary stages. Currently in its third phase, the BPM market has evolved into a customer-centric and process-centric approach, used for improving business results. With ongoing developments and expanding opportunities in the form of process automations, real-time business requirements, and most importantly expanding cloud-based opportunities, BPM market holds enormous potential in the next xx years. The figure given below depicts the BPM market timeline in three different phases of process evolution. The timeline illustrates that the shaping of BPM into its current state is the result of significant business drivers, tools key technology developments, technology and measurement tools, standards, and related controls. FIGURE 1 THE EVOLUTION OF BPM 3 rd Phase of Process Improvement Information Age Focus Quality management Continuous flow Task efficiency Information Age Technology Computerization MIS 1 st Phase of Process Improvement Information Age Tools Statistical process control Process improvement tool TQM Process Engineering Focus Process innovation best practices, focus on better faster and cheaper methods E-business Process Engineering Technology Enterprise Technology Supply chain management ERP & CRM 2 nd Phase of Process Improvement Process Engineering Tools Activity based costing Six-sigma Process re-engineering methods BPM Focus Assessment, adaptability, & agility Continual transformation (Kaizen) 24X7 global businesses Technology Enterprise application integration Service oriented architecture Performance management software Tools Balanced scorecard Outsourcing, co-sourcing, & in-sourcing Self service & personalization 1970s s Late 1990s Early 2000s and Beyond Sources: Expert Interviews, and MarketsandMarkets Analysis BPM and its related tools are evolving as a result of innovation, customization, increased focus on customer-centric approach, and business growth. Technology, in the form of evolving products, combined with Internet Protocols (IPs), is beginning to enable the separation of business management from systems management, as well as the separation of process systems, and the development of the context-driven process models that are essential to BPM. Processes can now be measured, managed, and aligned to the business, i.e., integrated with technology and used in successive turns to drive the technology. This has led to increased interest in the Enterprise as an Agile and Adaptive System concept. This view reflects upon the fact that enterprises strive for internal and external visibility, agility, and adaptability based on process feedback. The timeline above showcases the increasing use of computers in the 1970s and 1980s combined with procedure specialization that accommodated technological precision in fields such as nuclear power, and led to qualitative statistical software and related data gathering techniques that measured, gathered, and interpreted results. 6

9 During the 1980s to early 1990s, process orientation took over the market and focus shifted to TQM, and then to ISO compliance standards. Over this period, statistical analysis increased the need to manage data in a meaningful way. The organization shifted from a focus on to cross functional teams with more of flat organizations coming into the picture. The third phase began in the mid-1990s and continues in the present as the coming of age of processcentric business. Technology is shifting from being a process driver to a process enabler. Just-in-time manufacturing of the first phase led to just-in-time supply chains of the third phase of BPM evolution. With the advent of thin-client applications and commonly used protocols, applications could be utilized regardless of the operating system or work station. This has allowed business management to start to separate from systems management and enabled process management to exist separate from the systems themselves. The figure given below represents the regional market share and growth rate for the five regions. NA acquires almost XX% of the overall BPM market share for Also, due to its technological advancement, NA will be benefited for the next X years with a CAGR of almost XX%. NA is followed by Europe having XX% of overall market share for BPM in However, APAC is gaining market rapidly, with a market share of around XX% for 2014, and is projected to have the highest growth rate of XX% during the forecast period of The factors responsible for this highest growth rate are that APAC is the region which is expected to showcase the highest adoption rate of any technology in the coming xx years and the increasing number users for Internet, smartphone, social media, and online shopping in that region. The Rest of the World (RoW) includes LA and MEA, with a market share of XX% and XX%, respectively of the overall BPM market in These regions are in the introduction phase of the BPM. However, LA is expected to receive huge investments in the BPM market, due to the BFSI sector, during or after the projected period, depending upon political and economic factors, which might change the BPM market scenario in the region drastically. FIGURE 2 NA DOMINATES THE BPM MARKET WHILE APAC PROJECTING POTENTIAL GROWTH Market Market Share Share = 43.50% = XX% CAGR CAGR = = 14.2% XX% Market Share =30.92% = XX% CAGR = 17.5% XX% Market Share = 4.33% XX% CAGR = XX% CAGR 20.2% Market Market Share Share = = 14.27% XX% CAGR = 25.7% XX% North America Europe Asia-Pacific Middle East and Africa Market Share = XX% 6.98% CAGR = XX% 21.3% Latin America Sources: Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis Note: Market Share (2014) and CAGR ( ) 7

10 The figure given below showcases the top three revenue segments of the BPM market in In case of the regional market share, NA is the leading market for BPM in IT and telecom is the top vertical segment with XX% of overall verticals market share of BPM market for Also, in the solution segment, automation is leading the market with XX% of overall solution market share of BPM in FIGURE 3 TOP THREE REVENUE SEGMENTS IN BPM MARKET 44% xx 17% NA, the largest regional segment in 2014 xx 34% xx Automation highest solution segment in 2014 IT and Telecom, the largest vertical in 2014 Sources: Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis The table given below highlights the overall BPM market size and growth during the forecast period. The overall global BPM market is expected grow from $XX billion in 2014 to $XX billion by 2019, with a Compound Annual Growth Rate (CAGR) of XX% from 2014 to TABLE 1 BPM OVERALL MARKET SIZE AND GROWTH, ($MILLION, Y-O-Y %) Overall Market e 2019-p CAGR ( ) BPM Market Size XX XX XX XX XX Y-o-Y (%) XX XX XX XX XX e- Estimated; p-projected Sources: Related Research Publications, Government Publications, Company Press Releases, Company Annual Report, Company Websites, Company Publications, MarketsandMarkets Analysis The figure given below depicts the global BPM market for the period with Year-over-Year (Y-o- Y) growth rate during the forecast period. The BPM market is set to grow with the rising adoption across emerging economies including India and China (in APAC), Mexico and Brazil (in LA), and UAE, Saudi Arabia, and South Africa (in MEA). The Y-o-Y growth, however, is expected to witness a downward trend as highadoption regions across NA and Europe enter a more stable growth phase with market penetration nearing completion. However, these regions will still witness moderate to high growth in certain areas with newer technologies and ongoing innovations such as cloud-based BPM, shaping the market dynamics in the BPM market. 8

11 Market Size ($ Billion) BUSINESS PROCESS MANAGEMENT MARKET - GLOBAL FORECAST TO 2019 FIGURE 4 BPM MARKET SIZE AND GROWTH RATE, ($BILLION) x x xx xx xx 8.00 xx 6.00 xx 4.00 xx 2.00 xx Market Size e- Estimated; p-projected Sources: Related Research Publications, Government Publications, Company Press Releases, Company Annual Report, Company Websites, Company Publications, MarketsandMarkets Analysis 9

12 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. 10

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