Field Service Management (FSM) Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, Services) By Deployment (Cloud, On-Premise), By Organization Size (Large Enterprises, Small and Medium Sized Enterprises (SME’s)), By Vertical (BFSI, IT and Telecommunication, Healthcare and Life Sciences, Manufacturing, Transportation and Logistics, Construction and Heavy Equipment, Energy and Utilities, and others), and Regional Forecast, 2020-2027

The global field service management (FSM) market size was USD 2.54 billion in 2019 and is projected to reach USD 7.09 billion by 2027, exhibiting a CAGR of 13.8% during the forecast period.

The field service management landscape is revolutionizing as the technological advancements are efficiently driving field operations. Increasing smartphone adoption has made it easy for field service providers to enable flexible or mobile working. This mobile-driven culture is helping the industry to drive consumer-led experiences and maximizing productivity. The capabilities of mobile FSM software to automate, streamline, and optimize the field operations are the key factors driving the market growth.

Besides, advanced technologies such as the Internet of Things (IoT), smart wearable devices, and artificial intelligence (AI) are automating the field service processes to attain better customer satisfaction. Thus, vendors are putting their efforts to develop superlative FSM solutions by using such cutting-edge technologies. In June 2020, ServiceMax, Inc. announced its partnership with Spoke IoT to automate the field service operations by leveraging artificial intelligence and IoT connectivity. Thus, technological innovations in FSM solutions are likely to drive the field service management market growth. 

Mobile-Driven FSM Solutions to Sustain the Service Demand amid COVID-19

At the start of 2020, the field service industry was showcasing a drastic change in the way to operate field services by using advanced technologies such as artificial intelligence, IoT, and predictive analytics. However, the sudden outbreak of the COVID-19 crisis has increased numerous barriers and threats to the field service industry. The sudden implosion of lockdown has affected severely the on-site business operations. Thus, the global pandemic to some extent has slowed down the market growth rate.

In another way, technologically developed field services would address the challenges and risks of COVID-19. Cutting-edge technologies and the adoption of mobile-based and connected FSM solutions are allowing field workers to complete their job from remote locations. So, mobile workers can complete field tasks by maintaining their safety and health during the pandemic time. The connected mobile workforce is further ensuring customer safety and well-being. In March 2020, ServiceMax, Inc., offered free availability of its communication platform named Zinc, for their new customers. This offering aims to establish direct communication of the fieldwork team across the service delivery chain that will help to serve customers in real-time by maintaining safety during the pandemic period.

LATEST TRENDS

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Optimization of Field Service Excellence with Artificial Intelligence to Stimulate Market Demand

Advanced technologies such as the internet of things (IoT) and artificial intelligence (AI) are optimizing the field processes excellently. The cutting-edge AI-based technology advancements are allowing field service technicians to leverage a substantial amount of data. Thus, technology is escalating the performance of the FSM system by automating the crucial tasks. The integration of artificial intelligence-based scheduling is helping service organizations to quickly convey customer queries to the best service technician and resolve issues faster.

The AI-based field service planning enables administrators to look at the location, skills set, and the availability of the technician to ensure the best fit for the task. This way, artificial intelligence is validating opportunities for the field service providers to drive customer satisfaction, revenue, and upsurge first-time fixes.

DRIVING FACTORS

Adoption of BYOD and Mobile-based FSM Solutions to Aid Market Growth

The increasing use of mobile devices across the organizations have escalated the demand for remote workers or distributed workforce. These approaches are beneficial for the field services as they easily and rapidly connect with the mobile field workers. The companies are increasingly adopting policies such as Bring Your Own Device (BYOD) that allows their technicians to use their personal devices such as mobile phones and laptops for work. Such policies are not only reducing the overall IT cost but also offer efficient availability of tools for the field workers.

The mobile devices in support of FSM solutions provide real-time connectivity to the distributed workforce that offers efficient monitoring and management of remote workers. Experts can connect with the field technicians to provide quick responses to the field problems in an efficient way that creates new opportunities for growth and customer service. So, the emergence of mobility solutions has significantly escalated the demand for these solutions.  

Increasing Demand for Real-time Visibility for Field Operations to Serve Customers in an Efficient Way

In recent years, field services are getting bigger and expanding their presence across the globe as businesses are aiming to incorporate customer-centric strategies for expansion. With the globally expanding service team, real-time field service systems are becoming more demandable. The real-time monitoring and management of field technicians allow businesses to solve customer queries in the first attempt by connecting them with the nearest technicians. Hence, these solutions are gaining traction across all the businesses. The FSM solutions are helping businesses to respond to the client’s problems quickly, which helps to enhance the customer experience. The real-time FSM solution can efficiently manage all the field operations to build better business decisions.

Real-time monitoring of field operations is streamlining the process of catching and dispatching service requests in a quick and efficient manner. It helps to assign the right task to the right worker, which helps to enhance employee productivity and business agility. The advanced FSM solutions are offering real-time visibility to field operations, field force, and work status that helps them to reschedule and club tasks on the spot to uphold sales and service efficiency. Hence, real-time visibility to field operations offers better customer experience as well as business sustainability.

RESTRAINING FACTORS

Security Concerns Regarding Data Confidentiality to Limit Service Adoption

The major field service data is stored on the corporate servers by ensuring data security. Though, devices used for accessing this data do not ensure such protection. The advanced mobile worker or BYOD policies allow field technicians to bring their personal devices to the field site. These personal devices are susceptible to attacks, specifically, if they are connected to unsecured Wi-Fi networks. Also, with rapid digitization, the number of cyberattacks has been rising gradually. Thus, field data security is becoming a major security concern for organizations, which is restraining the adoption of FSM solutions.  

SEGMENTATION

By Component Analysis

Solution Segment is to Hold Large Market Share Owing to Advancements in FSM Solutions

Based on the components, the market is segregated into solutions and services.

The solution segment is anticipated to hold a major market share during the forecast period. The solution segment further has been segmented as work order management, schedule, dispatch, and route optimization, customer management, inventory management, service contract management, reporting and analytics, others. Out of these, the customer management segment is likely to dominate the market for field service management. FSM solutions empower workers at all levels of the organization to communicate innovatively with their customers and change how managers focus on the customer experience.

As the world has started adopting customer-centric business approaches, the customer experience has been a high priority task for businesses. A better serving of customers’ needs would help businesses to build a strong and loyal customer base, resulting in increased sales and revenue. Thus, customer management solutions are gaining significant value in FSM adoption. Field service success wholly relies on customer satisfaction. Therefore, customer management FSM solutions hold a major revenue share.

Schedule, dispatch, and route optimization solution is gaining popularity in the field service landscape to collaboratively manage the workforce and enhance dispatch operations. Work order management solutions help capture vital consumers as well as critical business information. The demand for workflow order management solution is also growing to organize the crucial tasks, reflecting a strong CAGR during the forecast period.

Based on the services, the FSM market is fragmented into managed and professional services, where professional services are dominating the market. These services have further segmented as integration and implementation services, training and education services, and support and maintenance services. Integration and implementation services are experiencing major revenue share, while support and maintenance services are likely to exhibit the highest CAGR.

By Deployment Analysis

On-Premise Solutions Are Likely to Drive Major Revenue during the Forecasting Period

By deployment, the field service management market is bifurcated into on-premise and cloud.

On-premise deployment field services are expected to hold a major market share owing to security and flexibility provided by them while retrieving data. These services further allow access to large volume data at the same time. Thus, on-premise deployment is mostly preferred by consumers. 

The increasing adoption of mobile devices supports cloud-based field service management solutions. These solutions are useful for real-time workforce optimization despite employee location. Hence, the growing adoption of mobile devices is expected to boost cloud FSM market growth. Besides, the growing adoption of cloud owing to its huge storage capability is gradually inclining SMEs towards cloud FSM solutions. Since cloud-based services are augmenting work processes efficiently by offering real-time access to data, cloud deployment is likely to exhibit the highest CAGR in the forthcoming years.

By Organization Size Analysis

Cost-optimized Cloud FSM Solutions Likely to Drive Significant Adoption among SMEs

Based on the organization size, the market has been segmented into large enterprises and small & medium-sized enterprises.

Among these, large enterprises are expected to experience a substantial market share during the forecast period. Large enterprises are majorly adopting field management solutions, as they have a huge workforce, large documentary, and extensive consumer records. Also, large companies are mostly adopting automated solutions for enhancing field operations. Thus, large enterprises are showcasing substantial share in the adoption of field service management systems.

The availability of cloud-based flexible field services at optimized cost is encouraging small businesses to adopt the cloud FSM services. Additionally, the trend of automation that encourages SMEs to replace the manual work processes with automated work process management solutions will favor the growth of the segment.  

By Vertical Analysis

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Manufacturing Industry is majorly Adopting the FSM Solution to Automate the Industrial Processes

By vertical, the market is segmented into banking, financial services and insurance (BFSI), IT and telecommunication, manufacturing, construction and real estate, healthcare and life sciences, transportation and logistics, energy and utilities, and others.

The manufacturing vertical is likely to hold a major revenue share of the field service management market. Rapid industrialization is encouraging the manufacturing industry to adopt technologies that automate field operations and processes. This is the key factor that drives the significant adoption of FSM solutions across the vertical. Manufacturers are shifting their business approaches to be customer-centric by delivering cost-optimized and value-added services. These solutions help them to enhance business efficiency by improving customer relationships throughout the service lifecycle.

The energy and utility industry is likely to emerge as the fastest-growing segment owing to the increasing adoption of mobile-driven FSM solutions. Field service software aids energy and utility industries and its workforce in delivering excellent customer experience.

REGIONAL INSIGHTS

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North America stood at USD 855.7 million in 2019. The region is likely to dominate the market growth owing to the increasing research and development activities by the leading companies. A majority of key players have their headquarters across North American countries. These prominent players are focusing on strengthening their service customer base across the region. The development of advanced technologies such as chatbots, IoT, and artificial intelligence has empowered the network of innovative technology-based field service providers across North America and Latin America.

Europe is anticipated to showcase an exponential growth owing to the adoption of automation in current manual field service processes. The rising demand for the integration of field services with customer relationship management (CRM) or enterprise resource planning (ERP) tools is driving significant adoption across the region.

The market in Asia Pacific is projected to exhibit rapid growth in the forthcoming years. The emerging economies such as China and India are home to the small and medium-sized enterprises that propel the demand for efficient field service management. The constant growth in the number of enterprises led to a noticeable increase in competition. This is driving the demand for innovative technologies for automating numerous business processes such as invoicing and billing, service delivery, job scheduling, and more. Apart from this, large scale industrialization across countries such as India, Japan, and China is leading to high demand for FSM solutions to achieve optimized workflow and enhanced productivity. Furthermore, the growing number of technology users is expected to drive significant adoption of the service in the region during the forecast period.

The increasing penetration of the internet and smartphones are likely to drive mobility based FSM solution adoption in Latin America and the Middle East & Africa.

KEY INDUSTRY PLAYERS

Partnerships and Collaborations are Strategies Helping Key Players to Expand their Products and Businesses

Key players are adopting various strategies to stay competitive in the market and to boost their business value. The new product launch or adoption of new features over the existing product portfolio is helping key players to strengthen their market position. The major companies are focusing on acquiring small companies as well as expanding their product or business network to strengthen their market position. For instance, in December 2019, IFS AB acquired the global FSM solution provider, Astea International, Inc., to strengthen its position in the global marketplace. Strategic partnerships and collaborations are helping companies to broaden their business and sales network.

LIST OF KEY COMPANIES PROFILED:

• ServiceMax, Inc. (California, United States)


• Oracle Corporation (California, United States)


• IFS AB (Industrial and Financial Systems, Aktiebolag) (Linköping, Sweden)


• Salesforce.com, Inc (ClickSoftware) (California, United States)


• PROV INTERNATIONAL, INC (Florida, United States)


• SAP SE (Walldorf, Germany)


• PRAXEDO (Paris, Ile de France)


• Infor, Inc. (New York, United States)


• Comarch SA (Kraków, Poland)


• OverIT S.p.A. (Fiume Veneto, Italy)


• FieldAware Group Ltd. (Plano, Texas)


• GEOCONCEPT SAS (Bagneux, France)


• Mize, Inc (Telangana, India)


• Zinier, Inc. (California, United States)


• Sig Sauer, Inc. (Eckernförde, Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2020 — ServiceMax, Inc. announced its partnership with Krios to launch a digital job board, ServiceMax Field Service Finder that is powered by the Krios. This digital platform has been designed to connect field service providing companies with the existing workforce for ensuring the uptime of the critical assets during the pandemic time.  


• November 2019 – Sig Sauer, Inc announced the launch of integrated field service management and asset performance management (APM) digital solution, the Plant 360 Asset Management. Having comprised ServiceMax’s FSM software and GE Digital’s APM, the newly launched solution will help food and beverage companies to boost production and meet changing consumer needs through automating critical field service tasks.  


• February 2020 - Silver Lake Management, L.L.C., and Salesforce.com, Inc together have invested USD 80 billion in ServiceMax, Inc. to accelerate the asset-centric field service management innovations. 

REPORT COVERAGE

An Infographic Representation of Field Service Management (FSM) Market

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The field service management market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, solution types, and leading applications of the product. Besides this, the report offers insights into the key market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

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