Professional Service Automation Software Market Size, Share, & Trends Analysis Report By Application, By Deployment, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global professional service automation software market size was valued at USD 8,266.1 million in 2018. It is a solution used for improving process efficiency and operational visibility in project and services-driven organizations. Changing business model of enterprises is anticipated to drive the adoption of PSA solution over the next six years.

Core functions of PSA software typically include resource management, automated time & billing, and project management capabilities. Systems also provide consistent and powerful reports and dashboards giving management, the key information they need to make informed decisions. It also offers other benefits such as improved forecasting capability, project effectiveness, reduced revenue leakage, and improved customer satisfaction. These benefits of PSA software are anticipated to drive demand among service companies over the forecast period.

Small and mid-size organizations rely on spreadsheets to capture time, expense, and manage resources. SMBs are looking for solutions that enable automation and streamline processes. Firms using traditional tools for business purposes such as spreadsheets are expected to offer growth opportunities over the forecast period. This solution reduces overall administration expenditure owing to the fewer manual, error-prone spreadsheets, and costly data re-entry. Increase in the popularity of cloud computing and the growing IT budget of Small and Medium Enterprises (SMEs) are anticipated to propel industry growth.

Solution providers battling with tight profit margins are anticipated to adopt PSA solutions over the next six years. Solution vendors also add features such as project and opportunity management capabilities to support deal capture, resource scheduling, and project delivery. Industry players have added functionalities such as support for a variety of mobile devices, graphical reporting, dashboards, and integration with major social channels to the existing solutions to enhance products and gain a competitive edge.

Application Insights

Dynamic resources and fast-moving projects in the technological field may affect the industry positively. Technology companies accounted for over 46% of the global revenue share in 2018 and are expected to continue being the dominant segment in terms of market size by 2025. This solution is also used by consulting firms, legal firms, and the marketing and communication industry.

The growing popularity of the tools among marketing and communication firm is expected to drive adoption over the forecast period. The increasing popularity of digital and social media marketing is expected to drive the marketing and communication industry over the forecast period. The industry is expected to witness tremendous growth owing to increasing demand in the marketing and communication application segment. The professional service automation software market is gaining traction in consulting firms with the increasing requirement for resource management.

Moreover, PSA software is finding growing applications in professional services pertaining to consulting, auditing, and assurance. The industry software allows professional service providers to automate their processes and offer high productivity at much lower costs and time.

Deployment Insights

Cloud and on-premise are the two deployment methods used by industry players. The PSA software industry stands to benefit from the increasing sprawl of cloud services and the ease and pay-as-you-go nature. Cloud-based solutions held significant market share and was valued at USD 5,562.5 million in 2018.

Increased concern for data privacy of cloud-based solutions is anticipated to hinder its growth over the forecast period. However, the segment will continue to maintain its dominance throughout the forecast period owing to the fact that cloud-based solutions offer greater benefits. The range of benefits includes economies of scale, disaster recovery, effective monitoring of projects, and reduced technology infrastructure cost, among others.

On-premise is anticipated to lose revenue share over the next six years to cloud owing to the requirement of low investment cost. Stringent government regulations to safeguard information stored on the cloud are expected to hinder its growth over the forecast period.

Regional Insights

The North American region is expected to emerge as the largest user of professional services automation software. Both North America and Europe are anticipated to be key regions in the market over the next six years as the regions comprise a major share of early adoption of the industry software.

North America regional market comprises the majority of industry technology leaders. These leaders are actively working towards the advancement of existing technologies as well as the development of innovative market offerings. Higher demand is experienced owing to the rapidly aging workforce in the region, automation facilitates easy management and efficient allocation of available resources.

The Asia Pacific PSA market contributed to over 18% of the overall revenue in 2018 and is expected to grow at a CAGR of over 10 percent from 2019 to 2025. Increasing adoption of the solutions by SMEs is anticipated to spur regional growth in the next six years.

Professional Service Automation Software Market Share Insights

Appirio, Inc., ChangePoint, ConnectWise, FinancialForce.com, Microsoft Corporation, NetSuite OpenAir, Projector PSA, and Tenroxare some of the major industry players in this domain. Other key vendors include Autotask Corporation, Compuware Corporation, Clarizen, Oracle, Panview, and Deltek, Inc.

Key industry players such as Autotask Corporation, ConnectWise, and HarmanyPSAsupply their product offerings to meet the needs of managed Services Providers (MSPs). Many new entrants are expected to enter into this space over the next six years.

Partnerships and strategic mergers and acquisitions are anticipated to be the most effective ways for industry players to gain quick access to emerging markets and enhance technological capabilities.

In November 2015, Unanet announced partnerships with Cordia Partners and DragonEye Consulting LLC to deliver outsourced business functions to project-driven organizations. Industry players provide frequent updates and enhanced features to maintain an edge over competitors; for instance, in December 2015, Upland Software announced the availability of its latest version of Tenrox professional service automation and time & expense tracking application to empower Upland customers to maximize business performance by simplifying the user experience. In November 2015, Upland Software announced a partnership with Dell Boomi to offer its customers the capability to integrate multiple cloud products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global professional service automation software market report based on deployment, application, and region.

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Consulting Firms

  • Technology Companies

  • Marketing and Communication Firms

  • Others

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • Cloud

  • On-premise

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA