If you’re using an Android phone and Google apps, then yes, it’s essential. That way, you know for certain that you’re installing the latest version and that it’s the genuine app. It’s always best to download directly from the Google Play store.
The app also manages services like push notifications. It also manages the access that your apps have to your Google account, device settings, location, and more. Google Play Services is software that constantly runs in the background of your Android device and essentially manages all the apps that you’ve downloaded from the Google Play store.