The global professional services automation software market size was valued at USD 12,038.66 million in 2023, and is estimated to reach a revised size of USD 35,754.17 million by 2033. This market is projected to record a CAGR of 11.5% during the analysis period.
Increasingly, businesses are digitizing and automating their processes, which leads to an increase in the demand for process automation. Key factors expected to drive PSA software market growth in the forecast period include the growing need for automation services and a reduction in overall costs. This is to increase operational productivity in terms of revenue among professional service organizations.
Consultants' increasing demand for advanced mobility services, as well as a growing need for scalable and flexible professional services, are expected to support market development.
In recent years, the market has seen several innovative solution offerings, contributing to its growth of the market. For instance, VOGSY offers business process support and integration across the core processes of professional services organizations utilizing Google's G Suite.
The professional services automation software was built on a single, accessible platform. It supports employees across all departments, making it unique for creating an engaging PSA that allows users to accomplish more.
Due to their unparalleled deployment flexibility, scalability, enhanced collaboration, cost-effectiveness benefits, and global availability, cloud-based deployment types are expected to have a considerable impact on the accounts receivable automation market during the forecast period. Cloud-based payment collection solutions are available through several vendors in the market and are available under subscriptions and pay-per-use plans.
Along with enhancing profit margins, automating various time-consuming tasks, and supporting robust communication between internal stakeholders of a business, this software supports growth in the marketplace.
As a supplementary benefit, PSA solutions provide a unified platform to enable teams to efficiently collaborate and complete tasks or projects within a short period. For example, PSA solutions allow teams to track resources, project progress, and costs all in one place, allowing stakeholders to stay informed and make timely decisions.
Increasing demand for integrating professional services automation software with other enterprise systems, such as Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) systems, is expected to offer new growth opportunities for PSA software vendors.
| Attributes | Details |
|---|---|
| Professional Services Automation Software Market Value (2023) | USD 12,038.66 million |
| Professional Services Automation Software Market Expected Value (2033) | USD 35,754.17 million |
| Professional Services Automation Software Market Projected CAGR (2023 to 2033) | 11.5% |
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The global professional services automation software market recorded a CAGR of 12.1% CAGR over the past 10 years. The market is expected to record a CAGR of 11.5% over the forthcoming decade. A surge in remote working practices and hybrid projects resulted from the pandemic, which positively impacted professional services automation software.
In the face of the pandemic, companies adopted PSA software across their business models to balance integrated project delivery with increased profitability and efficient resource utilization. Invoice and expense management, automated billing, and resource allocation are the fundamental functions of professional services automation software.
The increased demand for efficient project management and resource allocation solutions, along with the growing trend of cloud-based technology adoption, is expected to drive the market. The market may see increased competition among vendors, with the introduction of new, advanced solutions, and increased emphasis on Artificial Intelligence and Machine Learning.
| Historical CAGR (2018 to 2022) | 12.1% |
|---|---|
| Historical Market Value (2022) | USD 10,797 million |
| Forecast CAGR | 11.5% |
Increased Demand for Efficiency and Productivity
The demand for Professional Services Automation (PSA) software is driven by the need for organizations to streamline and automate their operations, improve efficiency, and increase productivity. For instance, PSA software can be used to automate time tracking, resource management, project management, and billing processes, reducing the time and cost of managing services and improving customer satisfaction.
Growing Adoption of Cloud Technology
The shift towards cloud-based solutions has led to an increase in the adoption of professional services automation software, which is accessible from anywhere, making it easier for remote teams to collaborate. Cloud-based PSA software allows companies to access data in real time, eliminating the need for clunky manual processes and enabling organizations to better scale their operations.
Need for Real-time Data and Reporting
The need for real-time data and reporting to make informed business decisions is driving the demand for professional services automation software. PSA software can provide insights into the number of projects in progress, staff billable and non-billable hours, and project profitability that can help organizations make more informed decisions.
Growing Competition and the Need for Differentiation
Organizations are looking to differentiate themselves from their competitors through better service offerings and customer experience, and professional services automation software can help achieve these goals. For instance, by leveraging professional services automation software, an organization can automate and streamline many of its service operations, like service ticketing, invoicing, and asset management. This can improve customer satisfaction and response times.
Compliance and Regulatory Requirements
The need to comply with various regulations and standards is also driving the demand for professional services automation software, as it helps organizations maintain proper record-keeping and tracking. For example, in the healthcare sector, organizations must adhere to the Health Insurance Portability and Accountability Act (HIPAA), which requires the secure storage and transmission of medical records. PSA software can help companies maintain compliance with these regulations.
Governments are digitizing their economic operations, so professional services automation software is expected to have robust market opportunities. To accelerate economic growth, various governments, including Canada, India, Germany, and Saudi Arabia, support regional market players.
The government of Canada, for instance, provided USD 4 billion to the Canada Digital Adoption Program (CDAP) in March 2022 to support the adoption of digital technologies by small and medium-sized enterprises (SMEs).
As part of this program, SMEs may receive USD 2,400 microgrants for social media advertising, website development, and other automated web actions related to their e-commerce business. Global implementation of professional services automation software encourages industry participants to invest in Research and Development activities to create innovation and increase brand value.
High Initial Cost and Limited Customization
Professional Services Automation (PSA) software can be expensive, especially for small businesses or startups that may not have the budget to invest in such technology. Some PSA software solutions may have limited customization options, making it difficult to adapt to the unique needs and requirements of an organization. PSA software requires ongoing maintenance and support, which can be an added cost and resource burden for organizations.
Resistance to Change & User Adoption
PSA software can be disruptive to the existing processes and workflows of an organization, which can lead to resistance from employees who may be comfortable with their current ways of working. Integrating PSA software with existing systems can be challenging and time-consuming, requiring technical expertise and resources. Getting employees to use PSA software can be a challenge, as they may require training and support to become proficient at using the updated technology.
During 2023, the technology segment acquired a significant market share, valued at USD 5,018.22 million. Technology solution providers use PSA solutions to shorten their solution's time to market and improve transparency.
To target a wider potential audience, various PSA solution providers for technology companies are emphasizing mergers and collaborations. For instance, in 2022 DXC Technology announced the formation of a new DXC ServiceNow Strategic Business Group, making DXC one of the significant ServiceNow globally.
By 2033, the marketing and communication segment is expected to record a CAGR of 12.8%. This segment is expected to expand at a considerable rate through 2033. PSA solution developers are launching their new PSA innovations in the market for various communication & marketing applications, which may drive the segment's growth.
For example, Adobe recently launched its new Web Experience Management (WEM) platform, providing a comprehensive suite of tools for digital marketers to manage their customer experience. Other PSA solution providers, such as Salesforce and Microsoft, are also launching their WEM platforms, offering features such as AI-driven insights, personalization, and automated customer segmentation.
On-premise PSA software deployments are expected to account for a significant share of the market in 2023, representing around 51%. On-premise PSA solutions are more secure & private and less susceptible to digital threats, leading to strong growth in this segment.
PSA solutions that are deployed on-premises can also perform their work and provide safe access to data even when the internet connection is interrupted since their local storage systems store the data securely. To improve their brand identity, market players participate in various exhibitions to advertise their on-premise PSA solutions.
For example, Oracle recently participated in ServiceNow’s Knowledge20 Digital Experience, where it showcased its latest on-premise PSA solutions. Oracle also highlighted its Oracle Field Service Cloud, which can be used to automatically assign technicians and materials to jobs, analyze and optimize routes, and track technician performance.
Between 2023 and 2033, the cloud-based PSA market is expected to grow by 14.7%. Cloud-based PSA solutions offer several advantages. This includes quick deployment, remote work management, unlimited storage capacity, and reduced Total Cost of Ownership (TCO) and CapEx costs, driving the segment's growth. To improve their cloud-based professional services automation software portfolio, industry participants such as Kimble Applications, Projector PSA, and SAP SE emphasize strategic partnerships. For instance, Kimble Applications has partnered with Google Cloud to provide their customers with end-to-end cloud-based professional services automation software on the Google Cloud Platform.
In 2023, North America held a significant market share of USD 4,897 million, or 43.5% of the market. New solutions introduced by market players and the integration of advanced technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), are creating positive traction for PSA solutions.
Several established market players, including Appirio, Salesforce, Oracle Corporation, Upland Software, and NetSuite OpenAir, Inc., are also in the market. Market players are launching their latest products in this potential region to boost profitability and build their customer base thus, driving the market growth. For example, Appirio recently introduced a suite of solutions called Cloud Management Platform to help organizations manage their cloud investments.
Currently, the United States holds a significant share of the professional services automation market in terms of revenues. This market growth is mostly due to the early adoption of core technologies, including cloud computing and machine learning.
This growth has also been attributed to substantial investments by IT companies in developing and deploying cloud-based solutions for PSA software. To boost their revenue growth, service providers in this market are focusing on partnerships and acquisitions.
For instance, the professional services market in the United States posted a 9.4% growth rate from 2019 to 2020 (Services Performance Insight, LLC), and it is believed that the growth may be driven by the increasing demand for the Professional Services Automation (PSA) software market.
According to forecasts, Germany may expand at a CAGR of 5.3% in the next five years. This is due to factors such as a rise in IT spending supported by government initiatives in emerging economies such as Germany. For example, the federal government in Germany has committed to spending more than USD 3.93 billion on its ‘AI Made in Germany’ initiative over the next seven years.
The Asia Pacific professional services automation software market is dominated by India with a market share of 54.0% and is expected to record a CAGR of 14.0% through 2033. This is attributed to increasing digitalization and the emergence of creative professional services automation startups in the region.
Cloud integrations and online service delivery play a key role in increasing industry growth. Regional key players are enhancing their research and development operations and expanding their professional services and automation solutions portfolio.
For example, in March 2022, Nividous Software Solutions collaborated with Damco Solutions to streamline the core and non-core business processes of various industries using intelligent automation processes.
Emerging start-ups and SMEs are focusing on establishing strategic partnerships with significant market players for the adoption of professional services automation software.
There are many start-ups in the professional services automation software market. Some of the popular ones include Workfront, Replicon, Mavenlink, Wrike, Celoxis, Paymo, Accelo, Clarizen, Projectmates, Hive, and others. These start-ups offer various features like project management, time tracking, resource management, invoicing, and more, to help professional services organizations streamline their operations and increase efficiency.
Since there are many players in the professional services automation software market, it is moderately fragmented, because players are introducing innovative products and implementing technological advancements to gain a competitive advantage. In the coming years, the market's growth capacity is likely to be supported by irreplaceable value propositions in product offerings.
Recent Development:
Various Fintech companies are innovating blockchain-based accounts receivable automation solutions to enhance their accounts receivable cycle.
Singapore-based FinTech Global Direct recently launched a blockchain platform aimed at solving the challenges associated with global B2B transactions, which typically take six days to complete. Platform features include tour operator ticketing, rewards management, and alternate currency payment gateways.
Several market players, such as NetSuite OpenAir, Inc., ProductDossier Solutions, and Microsoft Corporation, are putting a great deal of emphasis on expanding their customer base to increase revenue in the market.
ProductDossier Solutions announced in March 2022 that several companies had signed agreements to implement TouchBase, its flagship software for professional services automation. Customers include Tiger Analytics, Aujas Cyber Security, Hical Technologies, and Tata Communications.
In February 2020, through self-service API connectors McAfee® MVISION Cloud, Clarizen, the enterprise collaborative work management company, joined the McAfee CASB Connect Partner Program.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2023 |
| Market Analysis | USD million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Türkiye |
| Key Segments Covered | Application, Deployment, Region |
| Key Companies Profiled | Autotask Corporation; BMC Software, Inc.; ConnectWise, Inc.; Deltek, Inc.; FinancialForce.com; Kimble Apps; Microsoft Corporation; NetSuite OpenAir, Inc.; Oracle Corporation; Planview |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is estimated to secure a valuation of USD 12,038.66 million in 2023.
The emergence of creative professional services automation startups is highly attractive.
India is projected to exhibit a CAGR of 14% through 2033.
Germany is likely to account for a CAGR of 5.3% through 2033.
The market expanded at a CAGR of 12.1% between 2018 and 2022.
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Professional Services Automation Software Market
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