Field Service Management (FSM) Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, Services), By Application (Work Order Management, Schedule, Dispatch, and Route Optimization, Customer Management, Inventory Management, Service Contract Management, Reporting & Analytics), By Deployment (Cloud, On-Premise), By Enterprise Size (Large Enterprises, Small & Medium Size Enterprises), By Vertical (BFSI, IT and Telecommunication, Healthcare & Life Sciences, Manufacturing, Transportation & Logistics, Construction & Heavy Equipment), and Regional Forecast, 2021-2028

The global field service management (FSM) market size was USD 2.87 billion in 2020. The market is projected to grow from USD 3.24 billion in 2021 to USD 8.06 billion in 2028 at a CAGR of 13.9% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with field service management witnessing a significant impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 12.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Field service management is software developed to coordinate field operations by keeping track of various components such as inventory management, scheduling, vehicle tracking, customer portals, and others. There has been a persistent demand for customer-centric solutions among various businesses, which has further elevated field service solution demand. The mobile-driven solution is also helping businesses to drive consumer-led experiences and maximize productivity. Further, the technologically advanced innovations in FSM are likely to drive the market share.  In June 2020, ServiceMax, Inc. partnered with Spoke IoT to automate field service solutions by leveraging artificial intelligence and IoT connectivity.

COVID-19 Impact

Advanced FSM Solutions to Sustain Service Demand during COVID-19 Pandemic

The sudden outbreak of the COVID-19 crisis has increased numerous barriers and threats for the field service industry. The sudden imposition of lockdown has affected severely to the on-site business operations. Thus, the global COVID-19 somewhat has slowed down the field service management market growth during the year 2020.

However, advanced technology-based field services helped in addressing the challenges and risks of COVID-19 efficiently. The solutions powered by automation, the internet of things, artificial intelligence, smart devices, and more offered new opportunities for market growth amid pandemic. Using mobile-based solutions, workers were able to complete their field tasks by maintaining their safety and health during the pandemic time. Considering the potential growth, various vendors are investing in innovative solutions. For instance, in September 2020, FieldAware, a mobile-based field service organizations collaborated with industrial IoT PaaS provider, ThingTech. This partnership aims to offer predictive maintenance and automation to the field solution for the businesses to gain real-time analysis of the field environment. Thus, post-pandemic, advanced field services solutions are expected to gain traction.

LATEST TRENDS

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Mobile Field Services to Revolutionize Market Growth

The field service providers are the early adopters of mobile technology and today also, companies implementing mobile-enabled software are gaining distinct advantages. As per the Infographic HSO CRM report, 49% of the company workforce relies on smartphones or handheld devices as the primary communication tools. The report also states that 62% of field service managers are leveraging bring your own device strategy to enhance communication and efficiency. Owing to this, the FSM providers are focusing on mobile-driven culture companies to offer high-level experience. For instance, SAP SE offers mServiceOrder, a field service management tool for the organization. The app supports field technicians with real-time insights that help to resolve issues efficiently.

Thus, access to smart and mobile devices helps the workforce in providing support and assistance at any time from any location. It helps in enhancing the customer services and the staff’s day-to-day activities. Thus, the growing demand for mobile technology and apps is expected to boost field service management market share.

DRIVING FACTORS

Increasing Demand for Real-time Visibility Services to Fuel Market Growth

The real-time field service systems are witnessing surging demand across the industries to boost customer satisfaction. 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 service provider. Hence, these solutions are gaining traction across all businesses. These solutions are helping businesses in responding to client’s problems quickly which helps to improving the customer experience and relationship. 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. For instance, in March 2021, ORTEC launched a cloud-based Field Service with scheduling and dispatching software to continuously monitor and access the operations. This continuous monitoring helps in offering customer satisfaction and capabilities of handling challenges instantly. Thus, real-time visibility to field operations offers a better customer experience as well as business sustainability.

RESTRAINING FACTORS

Underskilled Workforce to Hamper Market Growth

The service providers and managers are facing various challenges in managing complex assets and services owing to the under skilled workforce. The providers are witnessing on-field challenges such as miscommunication about job tasks, increasing return trips, scheduling conflicts, incapability to understand instruction, and more due to limited trained workforce. The lack of training and knowledge transfer amongst the technician is likely to hamper the on-field operations. Also, owing to the increasing strain on the field workforce, the companies are not being able to retain or attract new employees. This is expected to negatively impact the market growth. To control the situation many companies are implementing separate solutions such as automation to reduce the workload.

SEGMENTATION

By Component Analysis

Major Focus on Customer Service to Boost Solution Market Share

Based on the component, the market is categorized into solution and services.

The solution is to gain maximum market share during the forecast period. Some of the solutions included in the study are Salesforce Field Service, CoConstruct, Mhelpdesk, AT&T Workforce Manager, among others. These solutions empower workers at all levels of the organization to communicate effectively with their customers and help managers focus on the customer experience. Also, the increasing automation and digitalization to fuel its demand during the forecast period.

Services to gain rapid growth owing to its capabilities to offer support in management and functionalities of the solution. Based on the services, the market has fragmented as managed and professional services, where professional services dominate the market. These services are further segmented as integration and implementation services, training and education services, and support and maintenance services.

By Application Analysis

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Growing Focus on Customer Satisfaction to Drive Customer Management Growth

Based on application, the market is segmented into work order management, schedule, dispatch, and route optimization, customer management, inventory management, service contract management, reporting and analytics, and others.

Customer management to gain maximum market share owing to the growing focus on customer experience and retention. As the world has started adopting the customer-centric business approaches, the customer experience has to become a high-priority task for businesses. Better serving to customers would help businesses to build a strong and loyal customer base, resulting in increased sales and revenue.

The demand for work order management solution is also increasing to organize the crucial tasks, reflecting a strong CAGR during the forecasting years. Service contract management to gain steady growth owing to increasing automation in contact management and renewal. Similarly, schedule, dispatch, and route optimization are also gaining popularity to collaboratively manage the workforce and timely product dispatch to enhance customer satisfaction.

By Deployment Analysis

Flexible and Real-time Access of Data to Fuel Cloud-based Deployment

Based on deployment, the market is bi-furcated into on-premises and cloud.

On-premise deployment to hold major market share owing to high security and flexibility while retrieving data. Various industries such as BFSI, government, healthcare among others are more focused on security data and hence, driving on-premises demand.

The adoption of cloud deployment is growing at significant CAGR during the forecast period, as it helps businesses to manage information in a secure, efficient, remotely accessible, and consolidated manner. In addition to this, the installation cost of cloud deployment is comparatively lower than the conventional ways of deployment.

By Enterprise Size Analysis

Cost-optimized FSM Solutions Are Likely to Drive Significant Adoption Among SMEs

Based on enterprise size, the market is bifurcated into small and medium-sized enterprises (SMEs) and large enterprises.

Small and medium-sized enterprises to gain significant growth during the forecast period. The growing competition is driving the integration of automated processes and tools amongst the SMEs to efficiently manage field staff and technicians.

Large enterprises dominate the segment share owing to the presence of a huge workforce, large documentaries, and extensive consumer records. The services help field technicians with an overview of the operations movement, managing coordination and projects.

By Vertical Analysis

Growing Automation to Fuel Field Service Solution Demand in Manufacturing Industry  

Based on vertical, the market is segmented into 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 this market. Rapid industrialization is encouraging the manufacturing industry to adopt technologies that automate field operations and processes. Manufactures are also shifting their business approaches to customer-centric by delivering cost-optimized and value-added services to their customers.

The energy and utility industry is likely to emerge as the fastest-growing segment owing to the increasing adoption of mobile-driven FSM solutions. The industry requires a majority of the workforce in the fields to ensure everyday work. Similarly, healthcare is one of the most significant industries in adopting field service solutions for managing their business operations effectively. The solutions eliminate paperwork from their daily workload, reducing the time required for administration, and spend it to take care of the patients.

REGIONAL INSIGHTS

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Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America is likely to dominate the market share owing to the growing preference for enterprise mobility solutions and continuous focus to streamline field service teams and operations. The region is considered as the hub for technological advancements and it houses major key players working on field service management solutions. These players in North America are investing in research and development activities to offer efficient services to the customers.

Europe is showcasing exponential growth in the adoption of these solutions owing to the adoption of automation in current manual field service processes. Various industries in European countries are keen on investing in new technologies to support respective field forces.  For instance, in February 2020, the UK-based renewable energy solution provider, Anesco, collaborated with FSM software provider, named Advanced, to improve field safety, efficiency and reduce costing.

Asia Pacific outpaced the market in terms of CAGR. The large scale industrialization across countries like India, Japan, and China is a highly demanding FSM solution for achieving optimized workflow and enhanced productivity. In addition to this, organizations in the region are shifting towards innovative ways to serve their customers, which has further elevated the demand for effective FSM solutions.

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Similarly, growing demand for automation, customer satisfaction along with worker’s safety are likely to drive mobility-based FSM solution adoption in Latin America and Middle East & Africa.

KEY INDUSTRY PLAYERS

Focus on Business Expansion to Drive Various New Product Launch

Key players are adopting various strategies to sustain their market position and to upsurge their business value. New product launch or new feature updates into the existing product portfolio is helping key players to strengthen their market position. Key players are also focusing on acquiring small companies as well as expanding their product or business network to strengthen their competitiveness. For instance, in December 2019, IFS AB has acquired the global FSM solution provider, Astea International, Inc. to strengthen its market position. Strategic partnerships and collaborations are helping companies to broaden their business and sales network.

July 2021 – ServiceMax, Inc. acquired LiquidFrameworks, a mobile field operations management provider, to expand its FSM solution in energy sectors.

March 2021 – IFS AB launched IFS Cloud to help businesses in orchestrating customers, people and assets to deliver end-to-end capabilities. Customers can integrate human capital management, customer relationship management, enterprise resource planning, asset management to deliver enhanced field services.

List of the Key Companies Profiled:

• ServiceMax, Inc. (California, U.S.)


• Oracle Corporation (California, U.S.)


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


• Salesforce.com, Inc (ClickSoftware) (California, U.S.)


• PRAXEDO (Paris, Ile de France)


• Infor, Inc. (New York, U.S.)


• Comarch SA (Kraków, Poland)


• OverIT S.p.A. (Fiume Veneto, Italy)s


• FieldAware Group Ltd. (Texas, U.S.)


• GEOCONCEPT SAS (Bagneux, France)

KEY INDUSTRY DEVELOPMENTS:

• August 2021 – Mize, Inc. merged with service parts and contracts management company, Syncron. Together, the companies are using the brand name and well established customer base to expand in global business.


• July 2020 – Zinier, Inc. in partnership with Tata Consultancy Services, Ltd. launched field service automation to help customers in operation during unexpected disruptions of services and workforce.

REPORT COVERAGE

An Infographic Representation of Field Service Management (FSM) Market

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The global field service management market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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