The global field service management market size is expected to reach USD 11.78 billion by 2030, registering a CAGR of 13.3% from 2023 to 2030, according to a new report by Grand View Research, Inc. Various other factors such as improper management of inventory, increased inventory cycle time, increased holding cost, increased ordering cost and incorrect information about the stock further increase the cost of business operations. FSM software helps to fortify the functionality of the service industry while improving overall profitability.
The main forces which are driving the market include the increase in number of field operations across manufacturing, oil & gas and construction sector., increase in the use of smartphone devices, and rising demand for better organizational efficiency and reduced cost of operations. The advancement of cloud services supports the integration of the cloud to the FSM software. This is expected to surge the FSM market growth over the next nine years. Over the forecast period, most of the end-use industries are expected to deploy the FSM software on the cloud rather than on the premise.
The global field service management market is anticipated to witness high growth over the forecast period. The high presence of smartphones and tablets are playing an important role in the overall growth of the FSM industry globally. FSM solutions are also compatible with next-generation smartphone operating systems, further boosting their importance across the competitive landscape.
Gather more insights about the market drivers, restrains and growth of the Field Service Management Market
Detailed Segmentation:
Component Insights
The solution segment accounted for the largest revenue share of 81.3% in 2022. In an organization, enhanced productivity leads to an increase in profitability. With this software, there are better lines of communication between the front office, management, and technicians. Since technicians and field workers spend less time coordinating logistical tasks, they have more time for client work. The development of technologies, including cloud, big data, and advanced analytics, supports the integration of mobility and cloud with FSM software. Several cloud technology service providers offer an enhanced level of FSM solutions that cater to the needs of small, medium, and large enterprises and are expected to drive the field service management market growth in the coming years.
Deployment Insights
The cloud segment accounted for the largest revenue share of 67.7% in 2022 and is expected to grow at the fastest CAGR of 14.9% during the forecast period. The cloud deployment of the FSM software is expected to gain traction with the increase in cloud usage. Industries are gradually moving their storage from on-premise to the cloud since the deployment of cloud services results in better efficiency of work processes and increased storage space.
Enterprise Insights
The FSM software offers various solutions to all user types, including small, medium, and large enterprises. The large enterprises segment accounted for the largest revenue share of 66.1% in 2022. The adoption of FSM software is higher in large enterprises than in small & medium enterprises. Large enterprises are extensively adopting the software owing to a large workforce. It assists in maintaining employee records, individual performance statistics, sub-contracting, contract renewals, and document maintenance, among others. The FSM software uses mobile computing to improve communication with field workers, streamline work processes, and enhance productivity.
End-use Insights
The growth of end-use industries such as energy & utilities, telecom, manufacturing, healthcare, BFSI, construction & real estate, transportation & logistics, retail & wholesale, and others are expected to increase the demand for FSM solutions. The telecom segment accounted for the largest revenue share of 30.8% in 2022 and is expected to grow at the fastest CAGR of 15.4% during the forecast period. The telecom segment growth is due to the increasing demand for 5G and other new technologies, the rising complexity of telecom networks, and the need to improve customer satisfaction. Cloud-based field service management solutions are becoming increasingly popular among telecom providers due to their scalability, flexibility, and cost-effectiveness.
Regional Insights
North America dominated the market and accounted for the largest revenue share of 26.5% in 2022. The region has witnessed significant growth rapidly due to several factors, including the growing need for cost-effective solutions, the rising demand for mobility solutions, and the need to simplify field service teams and processes.
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Key Companies & Market Share Insights
The market is characterized by moderate competition with the presence of a few major global players and other small vendors offering the FSM solutions. The FSM industry is witnessing mergers and acquisitions as a means of inorganic growth strategy amongst software development companies. For instance, IBM Corporation acquired Ravy Technologies Pvt. Ltd and Agile 3 Solutions LLC, both of which work in the information security domain. These acquisitions have enabled IBM to provide better security features to its FSM solutions. In addition, the software developers are inching toward better customer service to maintain their position in the market.
Key Field Service Management Companies:
• IBM Corporation
• Agile 3 Solutions LLC
• Accenture
• Comarch SA
• Salesforce, Inc.
• Infor
• Klugo Group, SAP SE
• Astea International, Inc.
• Trimble Navigation Limited
• Tech Mahindra Limited
Field Service Management Market Segmentation
Grand View Research has segmented the global field service management market based on component, deployment, enterprise, end-use and region:
Field Service Management Component Outlook (Revenue in USD Million, 2017 - 2030)
• Solution
o Mobile field execution
o Service contract management
o Warranty management
o Workforce management
o Customer management
o Inventory management
o Others
• Services
o Implementation
o Training & support
o Consulting & advisory
Field Service Management Deployment Outlook (Revenue in USD Million, 2017 - 2030)
• On-Premise
• Cloud
Field Service Management Enterprise Outlook (Revenue in USD Million, 2017 - 2030)
• Large enterprises
• SMEs
Field Service Management End-use Outlook (Revenue in USD Million, 2017 - 2030)
• Energy & utilities
• Telecom
• Manufacturing
• Healthcare
• BFSI
• Construction & real estate
• Transportation & logistics
• Retail & wholesale
• Others
Field Service Management Regional Outlook (Revenue in USD Million, 2017 - 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
• Asia Pacific
o China
o Japan
o India
o Australia
o South Korea
• Latin America
o Brazil
o Mexico
• Middle East and Africa
o Saudi Arabia
o South Africa
o UAE
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Recent Developments
• In September 2022, Tech Mahindra launched YANTR.AI, a new cognitive AI solution that enhances and simplifies field services. The solution is expected to provide actionable insights to enterprises for better planning and execution of field services. It further strengthens Tech Mahindra's Business Process as a Service (BPaaS) portfolio.
• In July 2022, Accenture was selected by Hero MotoCorp Ltd. to help the company manage the increasing complexity of its products, markets, and supply chain networks. The program includes planning optimization, supply chain strategy, and logistics enhancement & cost optimization of overall digital supply chain suite.
• In October 2021, Opsivity, a field support Software-as-a-Service (SaaS) provider, launched in the U.S. market. The company targets the fast-growing remote field operations sector, needing more skilled field technicians. Opsivity's SaaS solution uses AI and AR to help field technicians solve technical issues faster, increasing productivity in a labor-challenged industry.
• In April 2020, IBM launched an equipment maintenance assistant, IBM Maximo, an AI-powered solution that helps organizations improve their asset maintenance program. The solution provides insights into equipment failure patterns and recommends the most effective repair methods. It helps to reduce knowledge gaps and silos within organizations, leading to faster repairs, lower costs, and extended asset life.
• In August 2019, Salesforce announced the acquisition of ClickSoftware, a provider of field service management solutions. The acquisition will improve Salesforce Service Cloud by offering clients a more connected and intelligent customer service experience. Salesforce's acquisition of ClickSoftware enabled it to provide its customers with a full field service management solution. It enables firms to improve the efficiency and efficacy of their field service operations, resulting in better customer service.