Up to Two-Thirds of iPaaS Vendors Will Not Survive By 2023

Although the market for integration platform as a service (iPaaS) shows strong growth, the first signs of market consolidation are starting to emerge, according to Gartner. The analytics company predicts that by 2023, up to two-thirds of existing iPaaS vendors will merge, be acquired or exit the market.

Megavendors such as Oracle, Microsoft and IBM are better-equipped to handle those challenges as they offer more-competitive offerings with more-aggressive pricing and packaging options than smaller players in the market. Gartner expects that this trend will continue, further diminishing the market share of specialist iPaaS players. However, market consolidation means an increased risk that platform services will be discontinued due to the vendor exiting the market or being acquired.

Gartner estimates that global spending on robotic process automation (RPA) software will total $2.4 billion in 2022, up from $680 million in 2018. This increase in spending is primarily driven by the necessity for organizations to rapidly digitize and automate their legacy processes as well as enable access to legacy applications through RPA.

Gartner predicts that by the end of 2022, 85 percent of large and very large organizations will have deployed some form of RPA. 80 percent of organizations that completed proofs of concept and pilots in 2018 will aim to scale RPA implementations and increase RPA spending in 2019.

Moving forward, Gartner expects more organizations to slowly discover that RPA offers benefits beyond cost optimization. RPA technology can support productivity and increase client satisfaction when combined with other AI technologies such as chatbots, machine learning and applications based on NLP.