Professional Service Automation (PSA) Software Market Size & Analysis By Application (Consulting Firms, Technological Companies, Marketing And Communication, Others), By Deployment (On-Premise, Cloud), By Region, And Segment Forecasts, 2018 - 2024

Industry Insights

The global professional service automation (PSA) software market size was valued at USD 6.65 billion in 2015. Changing business model of enterprises is anticipated to drive adoption of PSA solutions over the next seven years.

It is a solution used for improving process efficiency and operational visibility in project and services driven organizations. 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.

Global PSA software market, by application, 2014 - 2024 (USD Million)

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 fewer manual, error-prone spreadsheets, and costly data re-entry. Increase in the popularity of cloud computing and 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 seven 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

Information Technology companies accounted for over 40% of the global revenue share in 2015 and are expected to continue being the dominant segment in terms of market size by 2024. This solution is also used by consulting firms, legal firms, and marketing and communication industry. Growing popularity of the tools among marketing and communication firm is expected to drive adoption over the forecast period.

The professional services automation software offers the benefits of cost reduction and improved efficiency, which is expected to be the major driver of the solutions across different industries. Increasing popularity of digital and social media marketing is expected to drive marketing and communication industry over the forecast period

Deployment Insights

Cloud and on-premise are the two deployment methods used by industry players. Cloud-based solutions hold the major market share. On-premise deployment segment is anticipated to lose revenue share over the next seven years to cloud owing to the requirement of low initial investment cost. Stringent government regulations to safeguard information stored on the cloud are expected to hinder its growth over the forecast period.

Asia Pacific PSA software market, by deployment, 2015 (USD Million)

Regional Insights

North America and Europe are anticipated to be key regions in the market over the next seven years owing to the early adoption of software. The regional growth can be attributed to technological innovations in the solutions and their rapid sprawl in the services industry. In addition, the demand for replacing and upgrading the existing PSA software is also high in the region.

The Asia Pacific PSA market contributed to over 18% of the overall revenue in 2015 and is expected to grow at a CAGR of over 10% from 2016 to 2024. Increasing adoption of the solutions by small and medium enterprises is anticipated to spur regional growth over the next seven years. As the region is experiencing exponential growth owing to developing markets such as China and India, the PSA software market is estimated to benefit from the ongoing trends.

Competitive Insights

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

Bundled Remote Monitoring & Management (RMM)/PSA is gaining popularity among users. Existing players are adding such solution to its product portfolio either through in-house development or acquisition of the existing company. For instance, Connectwise acquired Labtech in 2010 to offer this bundled solution. Similarly, Kaseya has acquired Vorex in 2016 and Autotask acquired CentraStage in 2014 to strengthen their offering.

Key industry players such as Autotask Corporation, ConnectWise, and HarmanyPSA supply 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 seven years.

Report Scope

Segments Covered in the Report

Grand View Research has segmented the global PSA software market on the basis of application, deployment and region:

• Application Outlook (Revenue, USD Million; 2014 - 2024)

  • Consulting firm

  • Technology companies

  • Marketing and communication

  • Others

• Deployment Outlook (Revenue, USD Million; 2014 - 2024)

  • On-premise

  • Cloud

• Regional Outlook (Revenue, USD Million; 2014 - 2024)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)