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The professional service automation (PSA) software market size is projected to increase by USD 7.50 billion, at a CAGR of 11.64% between 2023 and 2028. Mergers and acquisitions among PSA software companies drive market growth. Consolidation via M&A enhances competitiveness and service offerings. For example, BigTime Software Inc. acquired Projector PSA, aiming for industry leadership. Demand for AI in operational efficiency shapes market trends, fueling digital transformations. Businesses prioritize real-time solutions, IT infrastructure, and analytics for competitive edges.
Enhanced corporate intelligence is crucial, integrating virtual agents, chatbots, and machine learning for optimized operations. Meeting efficient service management demands ensure customer satisfaction and streamlined financial processes in financial institutions and the banking industry. However, challenges persist, including a shortage of knowledgeable resources and complex auditing. Embracing cloud-based deployments and collaboration tools with PSA software is essential for invoicing, resource planning, and effective business intelligence.
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The market share growth by the cloud segment will be significant during the forecast period. Cloud-based PSA solutions are scalable, making them suitable for businesses of various sizes. Cloud-based PSA software allows users to access the system from anywhere with an internet connection. Cloud-based PSA software often follows a subscription-based model, eliminating the need for upfront hardware and software investments. This can result in cost savings, as companies only pay for the features and resources they need.
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The cloud segment showed a gradual increase in the market share of USD 3.11 billion in 2018. Additionally, maintenance and updates are typically handled by the service provider, lowering IT overhead costs. With cloud-based PSA software, updates and new features are often automatically deployed by the service provider. This assures that users always have access to the latest functionalities, security patches, and advancements without the need for manual updates from the IT team. The rising adoption of cloud-based technologies across the globe will drive the demand for cloud-based PSA solutions, which in turn will propel the growth of the market during the forecast period.
In technology companies adherence to industry standards and data security are important. PSA software helps companies maintain obedience to regulations and security standards, protecting sensitive data and adhering to legal requirements. PSA software assists technology companies in optimizing service delivery by simplifying processes, lowering manual errors, and improving overall operational efficiency. As technology companies grow and take on more projects, they need scalable solutions. PSA software offers scalability, allowing technology companies to handle an increasing number of projects, clients, and team members without compromising efficiency. Thus, such factors are expected to boost the growth of the professional service automation (PSA) software market during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The North American market has the highest concentration of established industrial-technological pioneers. Greater demand is being felt as a result of the region's rising elderly workforce, automation facilitating smooth management, increased usage of cloud technologies, and optimal resource allocation.
Additionally, the exponential expansion and technical developments in the service industry may also be connected to the geographical development of North America. Inorganic growth approaches have also been used by regional firms and PSA providers to expand their global reach. Hence, such factors are expected to drive market growth in this region during the forecast period.
The Professional Service Automation (PSA) Software market is significantly influenced by mergers and acquisitions among PSA software companies, driving consolidation and innovation in the industry. A notable trend is the increasing demand for AI integration within PSA software to enhance operational efficiency and streamline service management processes.
However, the market faces challenges related to security concerns associated with PSA software, highlighting the importance of robust data protection measures and adherence to compliance standards. With a focus on cloud-based deployment types and collaboration and communication functionalities, PSA software solutions offer scalability and flexibility to meet the evolving needs of professional service organizations. Additionally, features like accounts receivable automation market and professional services automation (PSA) software to optimize resource allocation and improve project and service complexity handling. Despite the ongoing shortage of knowledgeable and experienced resources, the demand for efficient service management solutions continues to drive the adoption of cloud-based PSA software, facilitating seamless integration with other business systems for enhanced productivity and performance.
Mergers and acquisitions among PSA software companies are the key factors driving market growth. Mergers and acquisitions (M&A) often contribute to professional service automation (PSA) software market consolidation, where larger establishments acquire smaller ones to boost their market presence. This consolidation can lead to increased competitiveness and a more streamlined offering of products and services. For instance, in July 2022, BigTime Software Inc. acquired Projector PSA. This acquisition will help the former company to be the leading operating platform for professional services organizations.
Similarly, in July 2023, Rev.io LLC acquired Tigerpaw, a software company offering end-to-end professional services and business automation software to technology providers. With this acquisition, Rev.io is expanding its reach within the managed services space. Thus, such mergers and acquisitions (M&A) among companies will positively impact the growth of the market during the forecast period.
An increase in demand for AI in operational efficiency is the primary trend shaping market growth. The digital transformation of organizations is an effort aimed at growing linked structures and enterprise income streams. Therefore, several industries choose real-time solutions besides spending on IT infrastructure and analytical solutions to achieve a competitive edge in the professional service automation software market. Modern businesses are distinguished by an increase in the demand for enhanced corporate intelligence, which contains virtual agents and chatbots, suggestive online searches, voice and speech recognition, pattern identification, machine translation, automatic scheduling, and so on.
Additionally, aligned with market trends and analysis, professional services automation can help to encourage and schedule content without much human intervention and can create a content experience that makes sense to the target audience. This provides businesses with a more precise way of nurturing their leads through offerings in products, services, or brands. Hence, with the use of AI, the market is expected to witness significant grow significantly during the forecast period.
Security concerns associated with PSA software is a challenge that affects market growth. Storing sensitive project and client data in the cloud, which is common for many PSA solutions, may increase security concerns. Providing robust security measures, adherence to regulations, and addressing data privacy issues are critical for user trust and system integrity. PSA software naturally handles sensitive data, including project details, client information, and financial data. Ensuring the privacy and confidentiality of this information is crucial to prevent unauthorized access or data breaches.
Moreover, securing robust user authentication, access management, and role-based permissions is essential to prevent unauthorized users from accessing sensitive data. PSA software often integrates with other systems, such as CRM, accounting, and project management tools. Providing secure and seamless integration is important to prevent potential vulnerabilities that could be exploited to compromise the overall security of the IT ecosystem, which may impede market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing a surge in demand as businesses seek efficient service management solutions to streamline operations. Cloud-based solutions offer flexibility and accessibility, enabling seamless collaboration and communication across teams.
Integration with other business systems enhances productivity, while data analytics provide valuable insights into project and service complexity. Regulatory compliance is crucial, especially for industries like IT and Telecommunication, Consulting Services, and Architecture, Engineering, and Construction (AEC), where paper-based invoices are being replaced by digital solutions.
However, challenges persist, including implementation costs, data security issues, and the complexity of integration. Training requirements and scalability problems further complicate adoption, particularly for small and medium-sized enterprises (SMEs) facing maintenance and support constraints.
Despite these obstacles, the market witnesses growth fueled by industry fragmentation and the increasing globalization of businesses. AI and automation features are driving innovation, while standardized project management tools cater to diverse sectors like legal services and healthcare, enhancing customer experience and optimizing billing & invoice management.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Professional Service Automation (PSA) Software Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.64% |
Market Growth 2024-2028 |
USD 7.50 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.44 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accelo Inc., Aprika Business Solutions Ltd., BigTime-Software Inc., Cloud Coach LLC, ConnectWise LLC, Datto Holdings Corp., HaloPSA, Kantata Inc., Logic-Software Inc., Microsoft Corp., Oracle Corp., Planview Inc., Primetric Sp. z o.o., Promys, Rev.io LLC, Roper Technologies Inc., Salesforce Inc., SAP SE, Upland-Software Inc., and Workday Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, market growth analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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