Professional Services Automation Software Market Size, Share, & Trends Analysis Report By Solution, By Application, By Deployment, By Enterprise Size, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global professional services automation software market size was valued at USD 10,796.7 million in 2022 and is expected to register a compound annual growth rate (CAGR) of 11.9% from 2023 to 2030. Shifting various organizations' focus on digitizing business operations for improvement in operational visibility and business process efficiency is anticipated to drive Professional Services Automation (PSA) software across the globe. Furthermore, PSA's various advantages, such as enriched customer experience, revenue leakage reduction, and enhanced forecasting capability, are accelerating the sale of PSA solutions.

The COVID-19 pandemic positively affected the professional services automation software market owing to a surge in remote working practices and hybrid projects. The companies adopted PSA software across their business models for balancing integrated project delivery, higher project profitability, and efficient project resource utilization amid the pandemic. Professional services automation software’s fundamental functions are project management, resource allocation, invoice & expense management, and automated billing.

This software also plays a vital role in profit margin expansion, automating various time-consuming tasks, and establishing robust communication between internal stakeholders of the business, supporting market growth. Additionally, PSA solutions create a unified platform enabling teams to efficiently collaborate and complete the given task or projects in minimum time. Most governments focus on digitalizing their economic operations, which is anticipated to create robust market opportunities for professional services automation software. Various governments, such as Canada, India, Germany, and Saudi Arabia, are supporting regional market players to accelerate economic growth.

For instance, in March 2022, the Government of Canada established Canada Digital Adoption Program (CDAP) with an investment of USD 4 billion to assist small and medium-sized enterprises (SMEs) in adopting digital technologies. Under this program, the SMEs will receive USD 2,400 microgrant to cover the costs related to their e-commerce business such as social media advertising, website development, and other automated web actions. The rising implementation of professional services automation software across the globe encourages industry participants to invest in R&D activities for innovations and increase their brand value.

Market players such as NetSuite OpenAir, Inc., ProductDossier Solutions, and Microsoft Corporation are highly emphasizing expanding their consumer base to accelerate their market revenue. For instance, in March 2022, ProductDossier Solutions announced that it had signed an agreement with multiple companies to implement its flagship professional services automation software TouchBase. The company’s new customer base includes Tiger Analytics, Aujas Cyber Security, Hical Technologies, and Tata Communications. Lack of awareness and high implementation costs of professional services automation software are two main factors challenging the market growth.

The company needs to spend significantly on training sessions for the employees after the implementation of this software across organizations, contributing to high operational costs. Furthermore, evolving digital threats pose an immense threat to cloud-integrated PSA solutions. These digital threats can manipulate the data, steal it, and affect the overall business processes, hampering industry statistics. Industry players are partnering with digital security firms to improve their software capability to defend against evolving digital threats.

Application Insights

The technology segment acquired a higher market share which is valued at USD 4,966.7 million in 2022. Technology solutions providers use PSA solutions in their development process to decrease their solutions’ time to market and establish a transparent business model. Various PSA solution providers for technological companies are emphasizing mergers and collaborations to improve their PSA service offering to target a larger potential audience. For instance, in April 2021, Kohlberg Kravis Roberts & Co. (KKR) backed Exact and acquired Gripp, a professional services automation solution provider. Gripp's strong client network in the Netherlands, Belgium, Luxembourg, and Spain will assist Exact in improving its market share in Europe’s PSA market.

The marketing and communication segment is expected to expand at a CAGR of 13.9% through 2030. This segment is anticipated to register the highest CAGR through 2030. PSA solutions developers are launching their new PSA innovations in the market for various communications & marketing applications is anticipated to drive the segment growth in the forecast period. For instance, in April 2019, Upland Software introduced the Upland Professional Services Automation solution equipped with Upland WorkCenter to provide key performance indicators (KPIs) information in one unified dashboard. This Upland Professional Services Automation software is a cloud-based solution that provides insights through its pre-integrated data analytics tools and assists in critical decision-making in marketing.

Deployment Insights

Professional services automation on-premise software deployment accounted significant market share of around 52.5% in 2022. On-premise PSA solutions offer robust data security & privacy and are less vulnerable to digital threats, driving the segment growth. Moreover, on-premise, PSA solutions can perform their work and provide safe access to the data even if the internet connection is interrupted due to its local data storage system. Market players are participating in various exhibitions to advertise their on-premise PSA solutions to improve their brand identity. For instance, in October 2021, work & portfolio management solutions provider Plainview, Inc. showcased its latest professional services automation on-premise software at Technology & Services World (TSW) 2021 in Las Vegas, Nevada, organized by Technology & Services Industry Association (TSIA).

The cloud segment is expected to register a CAGR of 14.7% from 2023 to 2030. Cloud-based PSA solutions provide various benefits such as quick deployment, support for remote work management, unlimited storage capacity, and reduced Total Cost of Ownership (TCO) & CAPEX costs, driving the segment growth. Industry participants such as Kimble Applications, Projector PSA, and SAP SE are emphasizing establishing strategic partnerships to improve their cloud-based professional services automation software portfolio. For instance, in November 2021, cloud-based PSA solution provider Kimble Applications collaborated with professional cloud platform service company Infor in delivering professional services automation software with improved financial solutions to its clients through cloud integration.

Enterprise Size Insights

The large enterprise segment held the largest market share of around 58.5% in 2022. These enterprises are major consumers of professional services automation solutions due to low operating costs, enhanced consumer experience, better team collaboration, and reduced workforce costs. These large enterprises majorly sign a long-term partnership with professional services automation software providers to optimize the software costs and enable their employees to become familiar quickly with the PSA solutions. The market players are establishing strategic partnerships to improve their service offerings and attract large enterprises. For instance, in March 2022, Nividous Software Solutions collaborated with Damco Solutions to streamline core and non-core business processes of various industries using intelligent automation processes.

Small and medium-sized enterprises (SMEs) are expected to register a substantial CAGR of 13.6% through 2030 owing to flexible pricing options offered by professional services automation software vendors and strengthening their business operations to compete with larger firms. Integration of professional services automation software in SMEs assists companies in improving the consumer experience, reducing products & services’ time to market, and boosting employee productivity. Emerging startups and SMEs are focusing on establishing a strategic partnership with key market players for the adoption of professional services automation software. For instance, in November 2019, the software company Aptivio Inc. collaborated with Oracle Corporation to automate sales processes using Oracle professional services automation software and a cloud platform.

Solution Insights

The project management segment is anticipated to dominate the market with a share of more than 25% through 2030. Professional services automation software usage in project management solutions is rapidly increasing owing to their various benefits, such as reducing overhead costs, faster completion, and efficient team management. Industry participants are unveiling their PSA software solutions to help clients in efficient project management. For instance, in July 2021, Logic Software Inc. introduced a professional services automation platform, Birdview PSA, equipped with analytical tools to assist clients in managing each project stage and improve the project's overall profitability. BirdView PSA helps in various project lifecycle stages such as planning, execution, delivery, development, control & monitoring, project accounting, and optimization.

The business analytics segment is expected to register a CAGR of 14.0% through 2030. Shifting various companies' focus toward making data-driven decision-makings for profitable business outcomes is anticipated to drive segment growth. The companies such as Dynatrace, Inc. and Salesforce, Inc. are focusing on introducing their new products to attract potential business clients and improve their market share. For instance, in October 2022, Dynatrace, Inc., a software Intelligence Company, launched Grail core technology for its Dynatrace software intelligence platform to power log management and analytics. With this new technology, the data and its security can be monitored more efficiently through multi-cloud environments.

Regional Insights

North America held the highest market share of USD 4,651.8 million, which is 43.1% market share in 2022. Integration of advanced technologies such as Artificial Intelligence (AI) & Machine Learning (ML) and new solution introduction by market players are creating positive traction for PSA solutions in North America. Furthermore, the presence of established market players such as Appirio, Inc., Salesforce, Inc., Oracle Corporation, Upland Software, and NetSuite OpenAir, Inc. in the region is further driving the market growth. Market players are launching new products to achieve higher profitability and increase their customer base in this potential region. For instance, in December 2022, Salesforce, Inc. introduced Automation Everywhere Bundle to accelerate automation across any system and end-to-end workflow orchestration using AI and embed data technology.

Asia Pacific's professional services automation software market is anticipated to register the highest CAGR of 14.0% through 2030 owing to increasing digitalization and emerging professional services automation startups in the region. The rising adoption of online service delivery and cloud integrations are playing a vital role in contributing to industry growth. Regional key players are focusing on expanding their professional services automation solutions portfolio and strengthening their R&D operations. For instance, in November 2022, an IT company, Wipro Limited introduced Wipro Data Intelligence Suite, to allow its clients an end-to-end automated cloud migration.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares. The professional services automation software market is expected to experience intense industry rivalry owing to emerging startups and their efforts to raise funds to expand their global presence and acquire potential business clients.

For instance, in January 2022, SuperOps.ai, remote management & services automation firm, raised USD 14 million in a Series A funding round led by Tanglin Venture Partners, Elevation Capital, and Matrix Partners India. Furthermore, industry players are focusing on collaboration to expand their business operations in potential regions. For instance, in November 2021, Top Step, U.S. based PSA software company partnered with CLiP Solutions to expand its NetSuite OpenAIR professional services automation solutions in the Asia Pacific region, creating a positive outlook for market growth. Some of the prominent players in the global professional services automation software market include:

• Autotask Corporation

• BMC Software, Inc.

• ConnectWise, Inc.

• Deltek, Inc.

• FinancialForce.com

• Kimble Apps

• Microsoft Corporation

• NetSuite OpenAir, Inc.

• Oracle Corporation

• Planview

Professional Services Automation Software Market Report Scope

Global Professional Services Automation Software Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global professional services automation software report based on solution, application, deployment, enterprise size, and region:

• Solution Outlook (Revenue, USD Million, 2018 - 2030)

  • Project Management

  • Billing & Invoice Management

  • Resource Management

  • Timesheet & Expense Management

  • Business Analytics

  • Others (Opportunity Management, Contract Management, Knowledge Management)

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Consulting Firms

  • Technology Companies

  • Marketing and Communication Firms

  • Others ( Audit & Accountancy, Legal Services, Government)

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Enterprise

  • Small & Medium Enterprise

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Italy

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Singapore

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)

    • U.A.E.

    • Saudi Arabia

    • South Africa