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| Report Code: A02147 | Pages: 398 | Oct 2022 | 27397 Views | ||
| Author(s) : Shrawanty Y, Shadaab K , Vineet K | Tables: 236 | Charts: 63 |
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The global field service management market was valued at $5.2 billion in 2021, and is projected to reach $29.9 billion by 2031, growing at a CAGR of 19.2% from 2022 to 2031.
COVID-19 outbreak has a moderate impact on growth of the field service management market as worldwide lockdown during the COVID-19 has increased wide adoption of FSM software to allow projects to continue in a virtual and digital environment even when participants were unable to meet in person. The pandemic has forced to find safer and smarter ways for construction of highways, offices, and homes.
Field service normally means dispatching employees or contractors to specific locations to install, repair, or maintain systems or equipment. Field service management (FSM) is a system designed to keep track of different components of field operations. These components usually include inventory management, scheduling, vehicle tracking, dispatching, invoicing, billing, customer portals, and others. Field service management industry seeks to improve deliverability and productivity of field service teams. Some of the key advantages of FSM include accessibility to customer information from any location, decrease in operational overheads and fuel expenses, management of mobile workforce, improvement of productivity, and enhancement of customer satisfaction.
The factors that drive the growth of the field service management industry include rise need to keep a track of activities taking place in the field, increase in demand for mobility for getting real-time visibility, rise in adoption of automation & digitalization in the field services industry, increase in adoption of IoT driving the adoption of cloud-based FSM solution and integration of AI, AR and VR in field services sector. However, scarcity of skilled workforce to operate on FSM & data security concerns and sticking to manual methods are expected to hamper the field service management market growth during the forecast period.
The field service management market is segmented into Component, Deployment Model, Enterprise Size and Industry Vertical.
Segment Review
The market is segmented on the basis of component, deployment, organization size, industry vertical, and region. By component, the market is divided into solution and services. The solution segment is sub-divided into segments such as schedule, dispatch, & route optimization, customer management, work order management, inventory management, service contract management, reporting & analytics, and others. The services segment is further categorized into implementation & integration, training & support, consultancy services. On the basis of deployment, the market is classified into on-premise and cloud. According to organization size market is classified into large enterprises and small & medium sized enterprises (SMEs). As per industry verticals, market is divided across IT & telecom, healthcare & life sciences, manufacturing, BFSI, transportation & logistics, energy & utilities, construction and others. Based on region, the global field service management market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of component, the solution segment dominated the overall field service management market analysis in 2021, and is expected to continue this trend during the forecast period. This is attributed to increase in adoption of field service management solution among enterprises to gain strategic as well as competitive advantage and strong customer retention over their competitors. In addition, it helps industry vertical to engage workers on field work easily and sustain them for long time, which drives the growth of the market. However, the service segment is expected to witness highest growth, as service segment of field service management market ensures effective coordination between software provider companies and users of field service management software by providing services such as implementation, training, consulting services, and managed services. The adoption of these services speeds up the customer satisfaction of various industrial verticals such as BFSI, IT & telecommunication, and healthcare, which maximizes the value of existing customer by optimizing their needs and minimizes the cost of operation. This further fuel the adoption of services that are needed to handle the software properly.
By region, North America garnered the largest share in 2021, and is expected to continue this trend during the forecast period. Factors, such as, increase in awareness about advanced field management solution, cloud technology adoption, and significant adoption of mobility in the field service industry drive the growth of the FSM market in North America. However, Asia-Pacific is expected to exhibit highest growth during the forecast period, owing to strong economic growth along with the ongoing development in field service and inventory management, which drives organizations to invest heavily in field service management market to sustain growth and improve productivity. In addition, factors such as major shift toward digital transformation, cloud deployment & technological advancement among small & medium businesses, and continuously ongoing modernization in work force management strategy in emerging economies notably contribute toward the market growth.
Impact of Covid-19 on the field service management market trends
COVID-19 outbreak has a moderate impact on growth of the field service management market as worldwide lockdown during the COVID-19 has increased wide adoption of FSM software to allow projects to continue in a virtual and digital environment even when participants were unable to meet in person. The pandemic has forced to find safer and smarter ways for construction of highways, offices, and homes.
This global public health crisis has confirmed significant demand for new ways of building roads, manufacturing goods and energy and utilities by using smart field service management to tackle field service, inventory and dispatch problems, outdated techniques, inefficiency, and environmental challenges. In addition, the field service management market is expected to flourish during the forecast period, as the COVID-19 pandemic has enabled challenges, such as low productivity, affected margins, and drop in R&D investments; hence, manufacturing, energy & utilities, and construction firms are being forced by to adopt field service management software faster. Furthermore, rise in investment in advanced technology and increase adoption of simulation technology such as AR/VR are anticipated the growth of the market during the forecast period. On the contrary, field services management solution provides the limitless scalability and continual enhancement of functionality, which are critical in accomplishing digital transformation, which boost the field service management market forecast post pandemic.
Top Impacting Factors
Increase in adoption of automation & digitalization in the field services industry:
Field service providers are shifting from traditional way operations to modernizing their business processes. Field service companies are increasingly adopting automation & digitalization into field service operations due to changes in customer demands. Automation assists employees to improve their productivity for serving their clienteles in a better way. It enables to adapt to the changes in needs of a field operator throughout the day and eradicates unproductive operations & saves time. It helps immediate access to inventory to the employees, which makes it easy for them to serve the requirements of the customer.
Thus, companies are realizing the need for automating field service management solutions, which drives the demand for the market. FSM market vendors are actively trying to enhance their offerings by using advanced technologies such as AI. For instance, in November 2018, the global automation software provider, ICONICS launched the CFSWorX™ app, which empowers field service workers and maintenance personnel to move past the legacy break/fix model towards more proactive facilities and equipment management. The software can be easily integrated into an organization’s existing Enterprise Resource Planning (ERP) and/or Customer Relationship Management (CRM) systems, utilizing existing contact information, schedules, and field workers’ catalogued skill sets. Such enhancement drives the growth of the market.
Rise in demand for mobility for getting real-time visibility:
Before the advent of smart phones and tablets, field services business could not be operated remotely. This is now turned into reality due to rise in usage of smart phones and tablets amongst the end users. The real-time monitoring of the field service technicians helps in the timely dispatch of the nearest technician to resolve an issue. In addition, it also provides field technicians with the essential customer & case data and step-by-step guidance required to solve the client’s problem and improve first-time fix rates. Technicians can remotely reboot a machine or upload new software through mobility powered field service management solutions instead of going to the site. Equipping technicians with the correct information through mobile application is expected to boost revenue by field-based sales. Customers can track the technician’s movement by real-time visibility into the mobile application and be assured of the help approaching in promised time.
Hence, the adoption of mobility field service solutions facilitates service organizations to get better control on the field operations, make better business decisions, and deliver fast services to their customers.
KEY BENEFITS FOR STAKEHOLDERS
Field Service Management Market Report Highlights
| Aspects | Details |
|---|---|
| Market Size By 2031 | USD 29.9 billion |
| Growth Rate | CAGR of 19.2% |
| Forecast period | 2021 - 2031 |
| Report Pages | 398 |
| By Component |
|
| By Deployment Model |
|
| By Enterprise Size |
|
| By Industry Vertical |
|
| By Region |
|
| Key Market Players | PRAXEDO, OVERIT, SALESFORCE.COM, INC, IFS AB, SERVICEMAX, SAP SE, INFOR, COMARCH SA, MICROSOFT CORPORATION, ORACLE CORPORATION |
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According to CXOs of the leading companies, the global field service management market provides lucrative opportunities to market players. Increase in scope of applications of FSM, such as scheduling & dispatching, route optimization, work order management, inventory management, and service contract management, have contributed toward the field service management market growth. Prominent players in the market have developed and launched new technologies, such as AI based FSM software enabling automated scheduling, dispatching, routing to cater to a wide field technicians base in various locations, usage of AR goggles for assessing the equipment failure & predictive maintenance.
The manufacturing segment has a predominant share in the global field service management market and is expected to maintain this trend during the forecast period. However, the demand for field service management solutions is expected to significantly increase across sectors such as transportation & logistics, healthcare, real estate, energy & utilities, and retail.
Moreover, increase in technological advancements such as driverless cars, 3D mapping, and other supporting software components is expected to supplement the growth of the FSM services market. Market players have adopted acquisition, partnership, and product launch strategies to improve their product portfolio and expand their geographical outreach.
For instance, in August 2022, MiX Telematics, a leading global SaaS provider of connected fleet management solutions signed a definitive agreement to acquire Trimble's Field Service Management's (FSM) business. Through this combination, MiX and Trimble Field Service Management teams will work very closely together to ensure a seamless transition.
In addition, this combination adds significant scale to North American telematics subscriber base while diversifying that business into additional industry verticals. North America is a strategic priority for MiX and well positioned to pursue M&A opportunities to propel regional organic growth investment.
Moreover, the proliferation of connected devices such as smartphones and advent of Internet of Things (IoT) is expected to create increasing demand for mobile field service management solutions, which in turn is expected to boost the growth of the field service management market. Furthermore, adoption of IoT along with AI in field services empower field service organizations to avoid equipment downtime and offer predictive maintenance. This is again expected to garner significant opportunities for market growth.
A. Global Field Service Management Market Expected to Reach $$29,928.77 million by 2031.
A. factor such as increase in need for automation in field service operations, rise in need for real time visibility in field service management, proliferation of mobile devices, shifting preference toward cloud-technology, and need to keep track of all the activities & resources associated with field services are some of the key factors that drive the growth of the global field service management market.
A. The North America is the largest market for Field Service Management Market.
A. The key growth strategies for Field Service Management include product portfolio expansion, acquisition, partnership, merger, and collaboration.
A. Oracle Corporation, Microsoft, IFS AB, Salesforce.com Inc., ServiceMax, OverIT, Comarch SA, Infor, Praxedo, and SAP SE
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