Search Market Research Report
Professional Services Automation Market Size, Share Global Analysis Report, 2024 – 2032
Professional Services Automation Market Size, Share, Growth Analysis Report By Applications (Legal Services, Scientific Research & Development Companies, Audit & Accounting Firms, Architecture, Engineering & Construction Companies, Technology Companies, Marketing & Communication Companies, Consulting Firms, And Others), By Enterprise Sizes (Small-Medium Enterprises And Large Enterprises), By Deployment Modes (On-Premise And Cloud), and By Region - Global Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2024 – 2032
Industry Insights
[215+ Pages Report] According to Facts & Factors, the global professional services automation market size was valued at USD 12.06 billion in 2023 and is predicted to surpass USD 35.27 billion by the end of 2032. The professional services automation industry is expected to grow by a CAGR of 12.67% between 2024 and 2032.
Market Overview
Professional services automation (PSA) is software that helps end users automate their different business processes and deliver specialized services to clients. The software works across different firms like legal firms, IT service providers, accounting firms, marketing agencies, and many other entities. Some of the major capabilities of these software solutions include resource management, project management, billing, invoicing, time & expense, tracking client relationship management, and many others. It offers improved project visibility, efficiency, collaboration, and scalability.
Key Insights
- As per the analysis shared by our research analyst, the global professional services automation market size is estimated to grow annually at a CAGR of around 12.67% over the forecast period (2024-2032).
- In terms of revenue, the global professional services automation market size was valued at around USD 12.06 billion in 2023 and is projected to reach USD 35.27 billion by 2032.
- Digital transformation and automation are driving the growth of the global professional services automation market.
- Based on the applications, the technology companies segment is growing at a high rate and is projected to dominate the global market.
- Based on the enterprise sizes, the large enterprises segment is projected to swipe the largest market share.
- Based on deployment modes, the on-premise segment is expected to dominate the global market.
- Based on region, North America is expected to dominate the global market during the forecast period.
Growth Drivers
- Digital transformation and automation are driving the growth of the global market.
Organizations are increasingly digitizing their operations, and therefore, there is a high demand for PSA solutions in the market to streamline the project management process. Automation helps in improving efficiency and lowering errors, thereby helping companies scale their operations more efficiently. Also, the rising complexities of projects are further boosting their demand in the global professional services automation market. The modern project involves multiple stakeholders and geographically dispersed teams.
Therefore, these solutions help end users with more comprehensive project management, planning, and monitoring solutions to ensure the project's success. Businesses across the globe are looking forward to ways to lower costs along with delivering better outcomes to these clients. This solution has emerged as a savior as it helps users optimize resource utilization, eliminates downtime, and enhances project profitability.
For instance, Workday Inc. successfully partnered with Dayshape in 2023. The former is a financial management software company, and the latter is a resource management software solution company. It is likely to offer strategic assistance to professional service businesses.
Restraints
- Resistance to change behavior is expected to hamper the growth of the global market.
Many organizations are reluctant to adopt PSA solutions because of their resistance to changing behavior. Moreover, the complex implementation process is further likely to affect the growth trajectory of the professional services automation industry. Integration with existing CRM, ERP, and HRM systems causes many technical challenges. Therefore, such a landscape is expected to slow down the growth trajectory of the global market.
Opportunities
- Rising trend of remote work is expected to foster growth opportunities in the global market.
The emerging trend of remote work is propelling the requirement for PSA solutions to strengthen collaboration between dispersed teams. The cloud-based PSA solutions are becoming more popular because of growing globalization. Cloud-based PSA solutions help cater to the rising requirements of remote workers and also facilitate real-time communication. PSA solutions also improve client satisfaction by offering precise billing information and project delivery timelines. Technological advancements are another major factor strengthening the growth of the market. Developments in predictive analytics, machine learning, and AI are further widening the scope of PSA solutions in the market.
Nowadays, vendors are offering customized solutions according to the requirements of particular companies in each sector. This feature of customization is also attracting consumers all across the globe. Therefore, such a landscape is expected to foster growth opportunities in the global professional services automation market.
For instance, Infor is said to expand its operation in the Indian subcontinent by inaugurating a new development center in Hyderabad in 2022. The company started the development of 350,000 sq ft with 3,500 employees.
Challenges
- Limited awareness is a big challenge in the global market.
Many businesses particularly, the smaller firms, lack awareness regarding the advantages of PSA solutions. Therefore, it is expected to be a big challenge in the professional services automation industry. Moreover, market fragmentation and vendor selection are also expected to affect the growth trajectory of the industry.
Segmentation Analysis
The global professional services automation market can be segmented into applications, enterprise sizes, deployment modes, and regions.
On the basis of applications, the market can be segmented into legal services, scientific research & development companies, audit & accounting firms, architecture, engineering & construction companies, technology companies, marketing & communication companies, consulting firms, and others. Technology companies are the fastest-growing segment in the professional services automation industry. Technology companies deal with big projects with a lot of complexities, and therefore, they need advanced project management capabilities. Professional services automation solutions equip companies with managing, tracking, and planning solutions to navigate the complex market landscape easily.
Moreover, the rising demand for automation is another major factor contributing to the growth of the segment. The tech industries are moving fast to achieve high productivity, lower manual errors, and streamline operations. Automation services find a growing scope in the market in order to align with the surging demands. The solutions offer scalability and flexibility for tech companies so that they can easily and quickly adapt to the changing market conditions.
On the basis of enterprise sizes, the market can be segmented into small-medium enterprises and large enterprises. The large enterprise segment accounts for the largest share of the global professional services automation industry. Large enterprises have diverse operations and, therefore, need more advanced management solutions. The PSA solutions help streamline operations by offering comprehensive project oversight.
Large organizations have high-volume projects, and in order to handle these projects simultaneously, there is a requirement for proper resource management, planning, tracking, and reporting services. Also, large enterprises pose huge requirements for the scale of resource management services for optimum allocation, tracking, and utilization of resources.
Moreover, large enterprises have the financial capability to include such professional service automation solutions in their billing, which is another major factor propelling the growth of the segment. Large enterprises also need a variety of systems to integrate with PSA solutions, and therefore, the segment is expected to see huge growth in the coming years.
On the basis of deployment modes, the market can be segmented into on-premise and cloud. On-premise segment is likely to dominate the global professional services automation market during the forecast period. Many leading organizations are prioritizing their data security and privacy aspects, and therefore, they are demanding on-premise solutions to get greater control over their data. On-premise solutions are viewed as more secure solutions as compared to other available options.
Moreover, with the growing need for customization and integration with legacy systems, the demand for on-premise PSA solutions continued to rise. Moreover, the improving user experience and ease of use are further making the on-premise segment more feasible. User-friendly and more initiative interfaces, further making these on-premise PSA solutions popular in the market. On-premises solutions are witnessing many developments, like easy integration with AI and advanced analytics to enhance decision-making and predictive analytics capabilities, which are further boosting the growth of the segment.
Report Scope
Report Attribute |
Details |
Market Size in 2023 |
USD 12.06 Billion |
Projected Market Size in 2032 |
USD 35.27 Billion |
CAGR Growth Rate |
12.67% CAGR |
Base Year |
2023 |
Forecast Years |
2024-2032 |
Key Market Players |
Comp15, Workday Inc., Upland Software Inc., SAP SE, PROJECTOR PSA, Planview, Oracle Corporation, NetSuite OpenAir Inc., Microsoft Corporation, Klient Inc., Kimble Apps, FinancialForce.com, ConnectWise Inc., BMC Software Inc., Autotask Corporation, and Others. |
Key Segment |
By Applications, By Enterprise Sizes, By Deployment Modes, and By Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
Request customized purchase options to meet your research needs. Explore purchase options |
Regional Analysis
- North America to terminate the global market.
North America will account for the largest share of the global professional services automation market because of the changing dynamics of the region. The presence of major market players is the primary factor for the high growth rate of the regional market. The growth in the United States is largely driven by innovations and technological developments in automation.
Moreover, the emergence of a diverse range of professional services across all the end-user industries is further likely to positively impact the growth trajectory of the regional market. Canada is also contributing immensely towards the growth of the region market because of the growing adoption of PSA solutions in the region. Canada is posing a huge demand for client service delivery and operational efficiency, which in turn is expected to expand the scope of the regional market. Consumers in the region are the early adopters of advanced technologies, which is also a major factor contributing to the high growth of the market in the region.
Asia Pacific is also expected to witness significant growth in the coming years. The market is driven by the fast expansion of professional service firms and the growing adoption of digital technologies in the region. Emerging economies like India, China, Japan, Australia, and South Korea are further expanding the scope of the regional market. India’s IT sector is witnessing revolutionization in the market. The country is a pool to the growing IT start-ups in the market which is posing huge demand for efficient project management tools.
Additionally, the growing technological innovations in Japan are expected to revolutionize the market in APAC in the coming years. Enterprises in Japan are investing heavily in digital technologies to stay competitive globally. Australia and New Zealand are also the major contributors towards the growth of the regional market. These countries have a well-established professional service sector which in turn is expected to further propel the growth of the regional market. For instance, Klient Inc. said to partner with Sage Intacct in 2023 to change the operational and functional operations of businesses. Also, it will lead to a better flow of data effortlessly from one platform to another.
Competitive Analysis
The key players in the global professional services automation market include:
- Comp15
- Workday Inc.
- Upland Software Inc.
- SAP SE
- PROJECTOR PSA
- Planview
- Oracle Corporation
- NetSuite OpenAir Inc.
- Microsoft Corporation
- Klient Inc.
- Kimble Apps
- FinancialForce.com
- ConnectWise Inc.
- BMC Software Inc.
- Autotask Corporation
For instance, Deltek Inc. successfully acquired Replicon in 2023 to strengthen its portfolio of information solutions, professional service automation, and enterprise software. The former is the professional service automation software provider, and the latter is a time tracking software.
The global professional services automation market is segmented as follows:
By Applications Segment Analysis
- Legal Services
- Scientific Research & Development Companies
- Audit & Accounting Firms
- Architecture
- Engineering & Construction Companies
- Technology Companies
- Marketing & Communication Companies
- Consulting Firms
- Others
By Enterprise Sizes Segment Analysis
- Small-Medium Enterprises
- Large Enterprises
By Deployment Modes Segment Analysis
- On-Premise
- Cloud
By Regional Segment Analysis
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Table of Content
Industry Major Market Players
- Comp15
- Workday Inc.
- Upland Software Inc.
- SAP SE
- PROJECTOR PSA
- Planview
- Oracle Corporation
- NetSuite OpenAir Inc.
- Microsoft Corporation
- Klient Inc.
- Kimble Apps
- FinancialForce.com
- ConnectWise Inc.
- BMC Software Inc.
- Autotask Corporation
Copyright © 2023 - 2024, All Rights Reserved, Facts and Factors