PUBLISHER: The Business Research Company | PRODUCT CODE: 1668528
PUBLISHER: The Business Research Company | PRODUCT CODE: 1668528
Professional Services Automation (PSA) represents a category of software application suites designed to empower service-oriented businesses in managing critical operational functions.
The primary types of professional services automation software covered in this report encompass project management, project accounting, time and expense management, project analytics, billing and invoice management, resource management, contract management, opportunity and lead management, among others. Project management involves the application of processes, methods, skills, knowledge, and experience to attain specific project objectives within agreed parameters and acceptance criteria. Deployment options for these solutions include on-premises and cloud-based implementations. The software caters to enterprises of various sizes, including large enterprises and small to medium-sized enterprises (SMEs). It finds applications across diverse sectors such as consulting firms, technology companies, marketing and communication firms, and others.
The professional service automation market research report is one of a series of new reports from The Business Research Company that provides professional service automation market statistics, including professional service automation industry global market size, regional shares, competitors with a professional service automation market share, detailed professional service automation market segments, market trends, and opportunities, and any further data you may need to thrive in the professional service automation industry. This professional service automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The professional services automation software market size has grown strongly in recent years. It will grow from$12.4 billion in 2024 to $13.56 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to increased emphasis on efficiency and productivity, globalization and distributed workforces ([current year-2] and earlier), rising complexity in project management, increased demand for efficiency, and integration with other systems
The professional services automation software market size is expected to see rapid growth in the next few years. It will grow to $22.14 billion in 2029 at a compound annual growth rate (CAGR) of 13.0%. The growth in the forecast period can be attributed to focus on user experience and accessibility, increased security concerns and compliance requirements, increased focus on user experience, emphasis on cybersecurity, industry-specific customization. Major trends in the forecast period include integration capabilities, AI and automation, cloud adoption, mobile accessibility, data security and compliance.
The professional services automation software market is anticipated to experience growth, propelled by an increasing demand from various enterprises, particularly small and medium-sized enterprises (SMEs). This software proves beneficial for SMEs as it enables the streamlining and automation of key business processes, including resource allocation, time and expense tracking, and project management. In 2022, the United States Small Business Administration reported the presence of 33.2 million small businesses in the US, accounting for 99.9 percent of all businesses. The rising demand for professional services automation software from diverse enterprises, especially SMEs, serves as a significant driver for the market.
The growing adoption of cloud services is expected to drive the growth of the professional services automation software market in the future. Cloud services refer to a wide range of on-demand computing resources delivered via the Internet. They have transformed how businesses use professional services automation software by providing easy online access to these tools. This shift helps eliminate the need for in-house infrastructure, reduces costs, and enhances accessibility and scalability. For example, in September 2022, a report from Google Cloud, a US-based cloud computing service, indicated that the use of multiple public clouds rose by 26% in 2022, up from 21% in 2021. Additionally, hybrid cloud utilization increased from 25% in 2021 to 42.5% in 2022. Thus, the rising adoption of cloud services is fueling the growth of the professional services automation software market.
Major companies in the professional services automation software market are concentrating on developing innovative products, such as AI-driven timesheet automation, to streamline project management and improve accuracy in tracking billable hours. AI-driven timesheet automation uses artificial intelligence to automatically track and record employees' work hours, tasks, and project contributions. This technology helps organizations manage resources efficiently, reduce administrative burdens, and ensure accurate billing, making the entire time management process smoother and more reliable. For example, in February 2024, Deltek, a US-based enterprise software company, launched Replicon Time Tracking and Polaris PSA, specifically designed for government contractors. These tools enhance regulatory compliance and integrate seamlessly with existing ERP systems like Deltek Costpoint and SAP. Key features include AI-driven timesheet automation, centralized project management, and advanced resource allocation capabilities. These solutions aim to streamline operations, optimize project delivery, and meet compliance standards such as FAR and DCAA, allowing contractors to focus on executing projects rather than handling administrative tasks.
Major companies in the professional services automation software market are leveraging platform technology as an innovative approach to gain a competitive edge. Platform technology serves as a foundation or framework upon which various technologies, applications, and processes are built. For instance, in February 2023, Dynatrace, Inc., a US-based software company, introduced AutomationEngine as part of its platform, focusing on intelligent cloud automation. This technology utilizes an intuitive interface and a no-code/low-code toolset to implement answer-driven automation across diverse BizDevSecOps workflows. It includes automated remediation, progressive delivery, automated routing of vulnerabilities discovered by Dynatrace Application Security, and forecasting future cloud infrastructure and compute resource requirements with automated provisioning. The AutomationEngine is designed to help organizations operate clouds more efficiently, innovate faster and more securely, and achieve consistently better business results.
In July 2022, BigTime Software, a software company based in the United States, successfully completed the acquisition of Projector PSA for an undisclosed amount. This strategic move has played a crucial role in enhancing BigTime Software's portfolio, particularly by incorporating practice management functionality tailored to the needs of professional services. Projector PSA Inc., the company acquired in this transaction, is a US-based developer specializing in cloud-based professional services automation (PSA). This acquisition is expected to contribute significantly to BigTime Software's capabilities and offerings in serving the professional services sector.
Major companies operating in the professional services automation software market include Autotask Corporation, Deltek Inc., FinancialForce.com Inc., Kimble Applications Ltd., Microsoft Corporation, NetSuite OpenAir Inc., Oracle Corporation, Planview Inc., BMC Software Inc., ConnectWise Inc., Clarizen Inc., Infor (US) Inc., Changepoint Corporation, Atlassian Corporation Plc, Mavenlink Inc., Upland Software Inc, Atera Inc., Compuware Corporation, Promys Inc., Projector PSA Inc., Tenrox Inc., Appirio Inc., Accelo Inc., HarmonyPSA Inc., Tigerpaw Software Inc., Workfront Inc., Replicon Inc., Wrike Inc., Celoxis Technologies Pvt. Ltd., Paymo Inc., Projectmates Software Pvt. Ltd., Hive Inc.
North America was the largest region in the professional services automation Software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global professional services automation market report during the forecast period. The regions covered in the professional services automation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the professional services automation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The professional services automation software market includes revenues earned by entities through accounting, project management, time and expense tracking, resource allocation, billing and invoicing, document management, client access, software integrations, proposal generation, and team collaboration services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Professional Services Automation Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on professional services automation software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for professional services automation software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The professional services automation software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.