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South Korea Automation as a Service Market

ID: MRFR/ICT/57273-HCR
200 Pages
Aarti Dhapte
October 2025

South Korea Automation as a Service Market Research Report By Solutions (Services, Solutions), By Service (Managed services, Professional service, Deployment and integration, Support and training), By Type (Automation, Knowledge-based automation), and By Organization Size (Large scale, Small scale)- Forecast to 2035

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South Korea Automation as a Service Market Summary

As per MRFR analysis, the South Korea automation as-a-service market Size was estimated at 54.67 USD Million in 2024. The South Korea automation as-a-service market is projected to grow from 65.05 USD Million in 2025 to 370.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 18.99% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The South Korea automation as-a-service market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The largest segment in the South Korea automation as-a-service market is the IT services sector, while the fastest-growing segment is expected to be the manufacturing sector.
  • There is a notable increase in the adoption of AI technologies, which is reshaping operational processes across various industries.
  • Organizations are placing a heightened emphasis on cost efficiency, seeking to optimize resources and reduce operational expenditures.
  • Key market drivers include the rising demand for operational efficiency and the integration of advanced technologies, which are propelling market growth.

Market Size & Forecast

2024 Market Size 54.67 (USD Million)
2035 Market Size 370.0 (USD Million)

Major Players

UiPath (US), Automation Anywhere (US), Blue Prism (GB), Pega Systems (US), Kofax (US), WorkFusion (US), NICE (IL), ServiceNow (US), IBM (US)

South Korea Automation as a Service Market Trends

The automation as-a-service market in South Korea is experiencing notable growth, driven by the increasing demand for efficiency and cost reduction across various industries. Organizations are increasingly adopting automation solutions to streamline operations, enhance productivity, and improve service delivery. This trend is particularly evident in sectors such as manufacturing, finance, and healthcare, where automation technologies are being integrated into existing workflows. The South Korean government is also promoting digital transformation initiatives, which further supports the expansion of automation services. As businesses seek to remain competitive, the is expected to evolve, incorporating advanced technologies such as artificial intelligence and machine learning., incorporating advanced technologies such as artificial intelligence and machine learning. In addition, the rise of remote work and digital collaboration tools has accelerated the need for automation solutions that can facilitate seamless operations. Companies are recognizing the potential of automation to not only reduce operational costs but also to enhance customer experiences. The focus on data security and compliance is also shaping the landscape, as organizations prioritize solutions that ensure the protection of sensitive information. Overall, the automation as-a-service market appears poised for continued growth, with various factors contributing to its development in South Korea.

Increased Adoption of AI Technologies

The integration of artificial intelligence into automation services is becoming more prevalent. Businesses are leveraging AI to enhance decision-making processes, optimize workflows, and improve overall efficiency. This trend indicates a shift towards more intelligent automation solutions that can adapt to changing business needs.

Focus on Cost Efficiency

Organizations are increasingly prioritizing cost reduction through automation. By streamlining processes and minimizing manual intervention, companies aim to lower operational expenses. This focus on cost efficiency is driving the demand for automation as-a-service solutions across various sectors.

Emphasis on Data Security

As automation solutions become more widespread, the importance of data security is gaining attention. Companies are seeking automation services that not only improve efficiency but also ensure the protection of sensitive information. This trend highlights the need for robust security measures in automation implementations.

South Korea Automation as a Service Market Drivers

Government Initiatives and Support

Government initiatives and support play a crucial role in shaping the automation as-a-service market in South Korea. The South Korean government has been actively promoting digital transformation across various sectors, providing funding and resources to encourage the adoption of automation technologies. Recent policies aimed at enhancing the competitiveness of local businesses have led to increased investments in automation solutions. For example, the government has allocated approximately $500 million to support small and medium-sized enterprises in their automation journeys. This proactive approach not only fosters innovation but also creates a conducive environment for the growth of the automation as-a-service market. As government backing continues, it is likely to stimulate further advancements and adoption of automation technologies across industries.

Shift Towards Remote Work Solutions

The shift towards remote work solutions is significantly influencing the automation as-a-service market in South Korea. As organizations adapt to new work environments, there is a growing need for automated solutions that facilitate remote collaboration and productivity. Tools that automate project management, communication, and workflow processes are becoming essential for maintaining operational continuity. Data indicates that companies utilizing automation tools for remote work have seen a 25% increase in employee satisfaction and engagement. This trend is likely to persist as businesses recognize the long-term benefits of flexible work arrangements. Consequently, the automation as-a-service market is expected to expand, driven by the demand for solutions that support remote work dynamics and enhance overall efficiency.

Integration of Advanced Technologies

The integration of advanced technologies is a pivotal driver for the automation as-a-service market in South Korea. The convergence of artificial intelligence, machine learning, and the Internet of Things (IoT) is transforming traditional business models. Companies are leveraging these technologies to create more intelligent and responsive systems. For instance, the automation of customer service processes through AI chatbots has shown to improve response times by 50%. This technological evolution not only enhances service delivery but also reduces operational costs. As organizations increasingly adopt these advanced solutions, the automation as-a-service market is expected to grow, with estimates suggesting a compound annual growth rate (CAGR) of 20% over the next five years. This driver underscores the importance of technological integration in driving market expansion.

Rising Demand for Operational Efficiency

The automation as-a-service market in South Korea is experiencing a notable surge in demand for operational efficiency. Businesses are increasingly recognizing the need to streamline processes and reduce manual intervention. This trend is driven by the desire to enhance productivity and minimize errors. According to recent data, companies that have adopted automation solutions report a productivity increase of up to 30%. This shift towards automation is not merely a trend but a strategic move to remain competitive in a rapidly evolving market. As organizations seek to optimize their operations, the automation as-a-service market is poised for significant growth, with projections indicating a potential market size expansion to $1 billion by 2026. This driver highlights the critical role of automation in achieving operational excellence.

Focus on Compliance and Regulatory Standards

The focus on compliance and regulatory standards is emerging as a significant driver for the automation as-a-service market in South Korea. With increasing scrutiny from regulatory bodies, businesses are compelled to adopt automation solutions that ensure adherence to legal and industry standards. Automation tools that streamline compliance processes not only mitigate risks but also enhance operational transparency. For instance, organizations that implement automated compliance monitoring systems can reduce the time spent on audits by up to 40%. This emphasis on compliance is likely to propel the growth of the automation as-a-service market, as companies seek to leverage technology to navigate complex regulatory landscapes effectively. As compliance requirements evolve, the demand for automation solutions that address these challenges will continue to rise.

Market Segment Insights

By Solutions: Services (Largest) vs. Solutions (Fastest-Growing)

In the South Korea automation as-a-service market, the distribution of market share among various segment values highlights Services as the dominant force, capturing a significant portion of the overall demand due to its well-established infrastructure and customer base. Solutions, while currently smaller in comparison, exhibit a dynamic presence, appealing to a growing segment of clients seeking innovative and tailored automation options. Looking at the growth trends, Solutions emerges as the fastest-growing segment, driven by rapid advancements in AI and machine learning technologies. An increasing demand for customized automation solutions among businesses is propelling this segment forward. Furthermore, the shift towards digital transformation across industries is reinforcing the importance of Solutions as organizations seek to enhance efficiency and competitiveness in a volatile market environment.

Services: Dominant vs. Solutions: Emerging

Services in the South Korea automation as-a-service market are characterized by their established reliability and broad offering range, catering to diverse client needs. They include comprehensive support and maintenance, strategic consulting, and integration services, solidifying their dominant market position. In contrast, Solutions are emerging rapidly, focusing on innovative, customizable approaches that adapt to specific organizational requirements. This adaptability attracts businesses looking to optimize operations, while evolving technologies continuously enhance their appeal. The competition between these two segments reflects a broader shift towards efficiency and specialized functionalities, fostering an environment where both can thrive, albeit at different growth rates.

By Service: Managed Services (Largest) vs. Professional Services (Fastest-Growing)

In the South Korea automation as-a-service market, the managed services segment has established itself as the largest contributor, commanding a significant share due to its comprehensive offerings that appeal to businesses seeking to outsource their automation needs. On the other hand, the professional services segment is emerging as the fastest-growing area, driven by increasing demand for tailored solutions and expert guidance in implementing automation technologies. Growth trends in this segment are particularly influenced by the accelerating digital transformation across industries, prompting organizations to seek assistance in deployment and integration. The demand for support and training services is also on the rise, as companies recognize the importance of equipping their workforce with the necessary skills to leverage automation tools effectively. As a result, both managed and professional services are set to play vital roles in shaping the future of the South Korea automation as-a-service market.

Managed Services (Dominant) vs. Professional Services (Emerging)

Managed services have become a dominant force in the South Korea automation as-a-service market, offering businesses the advantage of tailored solutions that reduce operational burdens. This segment focuses on end-to-end management of automation processes and is characterized by service providers taking on various responsibilities, from infrastructure management to ongoing support. In contrast, professional services are emerging as a key player, providing organizations with specialized knowledge and expertise necessary for successful automation implementation. This segment includes consultancy, customization, and strategic planning, enabling companies to maximize their investment in automation technologies and adapt to rapidly changing market demands.

By Type: Automation (Largest) vs. Knowledge-based automation (Fastest-Growing)

In the South Korea automation as-a-service market, the segment values are characterized by Automation holding the largest share. This value represents a significant portion of the market, indicating its pivotal role in the automation landscape. Conversely, Knowledge-based automation, while smaller in share, is rapidly gaining traction, reflecting changing consumer preferences and technological advancements. The growth of Knowledge-based automation is primarily driven by the increasing demand for intelligent systems that can enhance decision-making and improve operational efficiency. As businesses strive for digital transformation, the integration of knowledge-driven solutions is becoming essential. Additionally, factors such as advancements in AI and machine learning are propelling growth, making it the fastest-growing segment that complements traditional automation methods.

Automation: Dominant vs. Knowledge-based automation: Emerging

Automation is recognized as the dominant segment in the South Korea automation as-a-service market, characterized by its established presence and widespread adoption across various industries. This segment focuses on streamlining processes, reducing operational costs, and enhancing overall productivity. In contrast, Knowledge-based automation is an emerging segment, leveraging advanced technologies like AI and machine learning to transform how organizations operate. This segment is defined by its ability to provide intelligent insights and support complex decision-making processes, making it increasingly relevant in modern businesses. As the demand for more sophisticated automation solutions rises, Knowledge-based automation is poised to disrupt conventional methods, attracting significant interest from organizations seeking to innovate.

By Organization size: Large scale (Largest) vs. Small scale (Fastest-Growing)

The market share distribution within the organization size segment reveals that large-scale operations dominate the South Korea automation as-a-service market. These entities leverage automation technologies extensively, driving significant adoption rates and contributing to the extensive market size. In contrast, small-scale organizations represent a rapidly growing segment, propelled by an increasing recognition of automation's benefits, such as cost reductions and efficiency improvements. Growth trends in this segment indicate that while large enterprises maintain the substantial market share, small-scale organizations are witnessing the fastest expansion. Factors driving this growth include affordable automation solutions tailored for smaller budgets, as well as the rising availability of cloud-based automation services, which lower the barriers to entry for these businesses. The shift towards more agile and responsive operational models is further encouraging small-scale firms to adopt automation as a service.

Large scale (Dominant) vs. Small scale (Emerging)

Large scale organizations exhibit dominant characteristics in the South Korea automation as-a-service market, utilizing advanced technologies to streamline operations and enhance productivity. These businesses often have the resources and infrastructure to implement comprehensive automation strategies, allowing them to benefit from economies of scale. In contrast, small scale organizations are emerging as key players in this market, driven by the need for competitive agility and cost management. The adoption of scalable and flexible automation solutions allows these smaller entities to harness technology effectively without the need for significant upfront investments. As both segments evolve, their distinct needs and approaches to automation will shape the competitive landscape significantly.

Get more detailed insights about South Korea Automation as a Service Market

Key Players and Competitive Insights

The automation as-a-service market in South Korea is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for operational efficiency. Major players such as UiPath (US), Automation Anywhere (US), and IBM (US) are strategically positioned to leverage innovation and partnerships to enhance their service offerings. UiPath (US) focuses on expanding its footprint through strategic alliances, while Automation Anywhere (US) emphasizes its cloud-based solutions to cater to diverse industry needs. IBM (US), on the other hand, integrates AI capabilities into its automation solutions, thereby enhancing its competitive edge. Collectively, these strategies contribute to a robust competitive environment, fostering innovation and driving market growth.

Key business tactics within this market include localizing services to meet regional demands and optimizing supply chains for efficiency. The competitive structure appears moderately fragmented, with several key players vying for market share. This fragmentation allows for a variety of solutions tailored to specific industry requirements, while the influence of major companies ensures a level of standardization in service quality and technological capabilities.

In October 2025, UiPath (US) announced a partnership with a leading South Korean telecommunications company to enhance its automation capabilities in the telecommunications sector. This strategic move is likely to bolster UiPath's presence in a rapidly evolving market, enabling it to offer tailored solutions that address the unique challenges faced by telecommunications providers. Such partnerships may enhance customer engagement and drive revenue growth.

In September 2025, Automation Anywhere (US) launched a new AI-driven automation platform specifically designed for the financial services sector in South Korea. This initiative reflects a targeted approach to meet the increasing demand for automation in finance, suggesting that Automation Anywhere is keen on capitalizing on the growing trend of digital transformation within this industry. The introduction of this platform could potentially position the company as a leader in financial automation solutions.

In August 2025, IBM (US) unveiled its latest suite of automation tools that integrate advanced AI functionalities, aimed at improving operational efficiency for manufacturing firms in South Korea. This development indicates IBM's commitment to innovation and its strategic focus on sectors that are increasingly adopting automation technologies. By enhancing its offerings with AI capabilities, IBM may strengthen its competitive position and attract a broader customer base.

As of November 2025, current trends in the automation as-a-service market include a pronounced shift towards digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, allowing companies to pool resources and expertise. Looking ahead, competitive differentiation is likely to evolve, with a greater emphasis on innovation and technology rather than solely on price. Companies that can reliably integrate advanced technologies into their offerings will likely emerge as leaders in this competitive arena.

Key Companies in the South Korea Automation as a Service Market market include

Industry Developments

Recent developments in the South Korea Automation as a Service Market have highlighted significant advancements and strategic movements among top companies. POSCO ICT is enhancing its capabilities in smart manufacturing, while Ascent Robotics is focusing on AI-driven robotics solutions. Samsung Electronics has invested heavily in automation technologies, aiming to streamline its production processes. SK Telecom continues to innovate in telecommunications automation, supporting digital transformation in various industries. 

Hyundai Robotics is expanding its collaboration with various sectors to integrate robotics into manufacturing. Locus Robotics has gained traction in logistics automation, facilitating warehouse operational efficiency. Hanwha Corporation has been investing in AI and robotics to fortify its position in the automation market. Recent merger and acquisition activity includes Hanwha Corporation acquiring a controlling stake in a robotics startup in August 2023, which has strengthened its portfolio in automation technologies. 

The Automation as a Service Market in South Korea witnessed substantial growth, with a projected market valuation increase, reflecting the growing demand for efficient automated solutions. Over the past few years, efforts have been made by major players such as LG Electronics and Daewoo Engineering and Construction to innovate and lead in automation solutions, cementing South Korea's position in this burgeoning market.

Future Outlook

South Korea Automation as a Service Market Future Outlook

The automation as-a-service market is projected to grow at an 18.99% CAGR from 2024 to 2035, driven by technological advancements, increased demand for efficiency, and cost reduction strategies.

New opportunities lie in:

  • Development of AI-driven process automation tools for SMEs.
  • Integration of IoT solutions to enhance operational efficiency.
  • Creation of subscription-based models for automation software.

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in automation solutions.

Market Segmentation

South Korea Automation as a Service Market Type Outlook

  • Automation
  • Knowledge-based automation

South Korea Automation as a Service Market Service Outlook

  • Managed services
  • Professional service
  • Deployment and integration
  • Support and training

South Korea Automation as a Service Market Solutions Outlook

  • Services
  • Solutions

South Korea Automation as a Service Market Organization size Outlook

  • Large scale
  • Small scale

Report Scope

MARKET SIZE 2024 54.67(USD Million)
MARKET SIZE 2025 65.05(USD Million)
MARKET SIZE 2035 370.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 18.99% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled UiPath (US), Automation Anywhere (US), Blue Prism (GB), Pega Systems (US), Kofax (US), WorkFusion (US), NICE (IL), ServiceNow (US), IBM (US)
Segments Covered Solutions, Service, Type, Organization size
Key Market Opportunities Integration of artificial intelligence enhances efficiency in the automation as-a-service market.
Key Market Dynamics Rising demand for automation solutions drives competitive innovation and regulatory adaptation in South Korea's automation as-a-service market.
Countries Covered South Korea

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FAQs

What is the expected market size of the South Korea Automation as a Service Market in 2024?

The expected market size of the South Korea Automation as a Service Market in 2024 is 72.48 million USD.

What will be the market value of the South Korea Automation as a Service Market by 2035?

By 2035, the market value of the South Korea Automation as a Service Market is expected to reach 240.0 million USD.

What is the expected compound annual growth rate (CAGR) for the South Korea Automation as a Service Market from 2025 to 2035?

The expected CAGR for the South Korea Automation as a Service Market from 2025 to 2035 is 11.5 percent.

What are the major segments within the South Korea Automation as a Service Market?

The major segments within the South Korea Automation as a Service Market include Services and Solutions.

What is the projected market value for the Services segment in 2035?

The projected market value for the Services segment in the South Korea Automation as a Service Market by 2035 is 124.0 million USD.

What will be the market size for the Solutions segment by 2035?

The market size for the Solutions segment in the South Korea Automation as a Service Market is expected to be 116.0 million USD by 2035.

Who are the leading competitors in the South Korea Automation as a Service Market?

Leading competitors in the South Korea Automation as a Service Market include companies like Samsung Electronics, POSCO ICT, and SK Telecom.

How much market share do the key players hold in the South Korea Automation as a Service Market?

The key players hold a significant market share, contributing to the growth and development of the South Korea Automation as a Service Market.

What are the emerging trends in the South Korea Automation as a Service Market?

Emerging trends in the South Korea Automation as a Service Market include increased adoption of AI and machine learning technologies.

What challenges does the South Korea Automation as a Service Market face?

The South Korea Automation as a Service Market faces challenges such as the need for skilled workforce and integration of systems.

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