Process mining—which is the technique of using software to discover and map business processes in order to optimize and automate them—is an emerging market for service providers, growing at around 140-160% from 2018 to 2019 to reach US$230-US$250 million, according to Everest Group. The process mining vendor market witnessed a doubling in the client base from 2018-2019, indicating increasing adoption among enterprises.
Process mining blends the power of data-based analysis techniques, such as data mining and machine learning, to help organizations discover the as-is process along with its variants and identify opportunities for optimization and automation. Process mining technology can be categorized as follows:
- Classic process mining technology leverages specialized algorithms to examine and analyze process-related information captured in event logs generated by enterprise systems such as ERP, CRM, and SCM to discover processes and generate process maps.
- Desktop Process Mining (DPM) refers to the ability to capture user’s keyboard, mouse and potentially other system-level activities performed simultaneously on various desktops to virtually reconstruct the processes and generate process maps.
Process mining can play a key role in the success of an organization’s process optimization and digital transformation journey. However, the associated technologies are not only relatively new to many potential buyers but also rapidly evolving in terms of product features, deployment options, training and support, partner ecosystem, and commercial models.
Currently over 85% of the revenue generated in the process mining market comes from software licenses, with most vendors offering cloud-based access. Continental Europe holds the lion’s share of the market (50%) while North America accounted for the highest growth rate in revenues in 2019 (nearly 200%). Manufacturing; banking, financial services, and insurance (BFSI); and the telecom industries are among the leading adopters of process mining solutions.
Everest Group expects adoption of process mining to maintain high-growth momentum driven by the need to accelerate automation initiatives and as more enterprises become aware of the benefits of the technology, which include identifying process optimization and automation opportunities, improving process governance and compliance, and enhanced employee experience through better resource allocation.
These findings are discussed in more detail in Everest Group’s recently published report “Process Mining State of the Market Report 2020.” The report includes a detailed view of the current state of the market and analyzes it across various dimensions, including market size and adoption trends, buyer satisfaction, product capabilities and trends, solution characteristics, vendor landscape, challenges to process mining adoption, and the outlook for 2020-21.
“The process mining market has seen exponential growth over the last few years and is expected to continue the momentum in the future,” said Amardeep Modi, practice director of Everest Group. “The COVID-19 crisis is likely to temper the growth of the process mining market in the short term, especially in the manufacturing industry, but the market is expected to pick up toward the end of 2020 as the demand for automation and process optimization begins to surge.”
Overview of the Process Mining Vendor Landscape
- Celonis, Software AG, and Minit are the top vendors in terms of process mining license revenue. ABBYY Timeline (formerly TimelinePI) has experienced the highest year-over-year growth in revenue.
- Celonis dominates the process mining software market, accounting for over 60% market share, and has the largest client base spread across small, mid-size and large enterprise segments.
- The process mining market has expanded beyond Europe and North America to emerging geographies such as Asia Pacific (APAC) and Latin America (LATAM). Localized vendors in these regions, such as Puzzle Data (APAC) and Everflow (LATAM), have started competing with the relatively more established process mining vendors.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com/.