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Rising Demand For Professional Services Automation Software To Drive Market Growth: Pivotal Factor Influencing Professional Services Automation Software Market Growth in 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.Professional Services Automation Software Market Size Growth Forecast: What to Expect by 2025?
The market for professional services automation software has seen robust growth in the past few years. The market value is expected to rise from $12.4 billion in 2024 to $13.56 billion in 2025, indicating a compound annual growth rate (CAGR) of 9.4%. Factors contributing to this growth in the historic period include a greater focus on efficiency and productivity, the global spread and dispersal of workforces (up until two years ago and earlier), increased challenges in project management, and higher demands for effectiveness and integration with other systems.
How Will the Professional Services Automation Software Market Size Evolve and Grow by 2029?
The market size for professional services automation software is anticipated to undergo swift expansion in the upcoming years, reaching a value of "$22.14 billion in 2029 with a compound annual growth rate (CAGR) of 13.0%. Factors contributing to the growth during the forecast period include an emphasis on user experience and accessibility, heightened security issues and compliance needs, heightened focus on the user experience, and an increased prioritization of cybersecurity and industry-oriented customization. Key trends expected in the prediction period are integration capabilities, the use of AI and automation, cloud implementation, mobile accessibility, and data security as well as compliance.
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What Drivers Are Propelling the Growth of Professional Services Automation Software Market Forward?
The professional services automation software market is anticipated to grow due to increased demand from various organizations, particularly small and medium-sized businesses. The usefulness of professional services automation software in diverse businesses, especially small and medium-sized enterprises, is quite apparent. Its ability to automate and streamline important business processes like resource allocation, tracking time and expenses, and project management is invaluable. For instance, as per the data from The United States Small Business Administration, a governmental agency based in the US, in 2022, small businesses, amounting to 33.2 million altogether, constitute 99.9 percent of all US businesses. As such, the growing demand for professional services automation software from these enterprises is propelling the market's growth.
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Which Emerging Trends Are Transforming the Professional Services Automation Software Market in 2025?
In the professional services automation software market, companies are developing innovative tools like AI-powered timesheet automation to improve project tracking and billing accuracy. For instance, in February 2024, US-based Deltek launched Replicon Time Tracking and Polaris PSA for government contractors. These solutions integrate with ERP systems and offer AI-driven automation, centralized project oversight, and enhanced resource management, helping firms comply with regulations like FAR and DCAA.
What Are the Key Segments in the Professional Services Automation Software Market?
The professional services automation software market covered in this report is segmented -
1) By Type: Project Management, Project Accounting, Time And Expense Management, Project Analytics, Billing And Invoice Management, Resource Management, Contract Management, Opportunity And Lead Management, Other Types
2) By Deployment: On-Premise, Cloud
3) By Enterprise Size: Large Enterprise, Small And Medium Enterprise
4) By Application: Consulting Firms, Technology Companies, marketing and Communication Firms, Other Applications
Subsegments:
1) By Project Management: Task Scheduling, Milestone Tracking, Project Collaboration
2) By Project Accounting: Budget Management, Cost Tracking, Financial Forecasting
3) By Time And Expense Management: Timesheet Management, Expense Tracking, Expense Reimbursement
4) By Project Analytics: Performance Reporting, KPI Tracking, Data Visualization
5) By Billing And Invoice Management: Invoice Generation, Payment Processing, Billing Cycle Automation
6) By Resource Management: Resource Allocation, Capacity Planning, Skill Matching
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Who Are the Key Players Shaping the Professional Services Automation Software Market's Competitive Landscape?
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.
What Geographic Markets Are Powering Growth in the Professional Services Automation Software Market?
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
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