Field Service Management Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Deployment (On-Premise, Cloud), By Enterprise (Large enterprises, SMEs), By End-use (Energy & utilities, Telecom, Manufacturing, Healthcare, BFSI, Construction & real estate, Transportation & logistics, Retail & wholesale, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global field service management market size was valued at USD 3,666 million in 2021, which is envisioned to advance to USD 10,312 million at a CAGR of 13.8% during the forecast period. 

Field service management, also known as FSM, sends employees or contractors to a location away from the company's leading site to install, maintain, or repair various machinery, systems, or assets. Field service managers are responsible for keeping track of an organization's field resources and coordinating the work of field service practitioners, who are the individuals responsible for providing clients with skilled, specialized, or proprietary services.

Field service is the only opportunity for direct customer interaction with a business. Interactions are therefore significant to the retention and loyalty of customers. The organizations can coordinate their resources and provide in-person service thanks to FSM. There is a wide variety of applications for this. Equipment installation and maintenance, as well as break-fix and asset monitoring, are included in these use cases. To complete these tasks, it is necessary for workers, agents, and other individuals to coordinate care with one another.

The global field service management market growth is attributable to the increased demand for workflow optimization and the need for improved productivity, which have prompted the adoption of FSM. The FSM software assists field workers in enhancing their collaboration and productivity. In addition, the widespread availability of smartphones and the internet has made it easier for field service providers to be mobile or flexible. The capabilities of mobile-driven FSM solutions optimized field operations during the pandemic outbreak. Due to the rise in remote work, the FSM industry is experiencing sizable setbacks in developing customer relationships, aligning teams to the same timeline, and maintaining effective communication between technicians and administrators, which has become more complex. Field services are regarded as indispensable, particularly in regulated sectors like utilities, telecom, and oil & gas, where compliance and safety management are 24x7 responsibilities.

Market Dynamics

Market Drivers

Implementation of FSM Solutions by Small & Medium Scale Firms and the Growing Demand for Optimized Workflow

Small and medium-sized businesses have begun incorporating FSM solutions and services to enhance performance. As business practices continue to migrate to the digital realm, the application of FSM improves performance. Companies use field service management software for numerous purposes, including tracking employee activities, scheduling work, assigning technicians, locating vehicles, ensuring driver safety, and integrating inventory and other business systems. It contributes to the streamlining of business operations and reduces wasted time. FSM software is required in businesses to automate field service operations to enhance both efficiency and visibility. The widespread adoption of FSM by various enterprises is propelling the development of the FSM solutions market. Numerous advanced systems also provide composite tools, like automated customer appointment reminders, complex document management, and customer relationship management (CRM) tools. Businesses are constantly utilizing field service management systems and software to boost performance due to their advantages.

Furthermore, workflow optimization is of the utmost importance in every organization, regardless of size. There are technicians in an organization who frequently spend considerable time traveling between jobs. Due to ineffective job scheduling, some service technicians lose nearly 50% of their work time. Field service management systems facilitate the creation of a well-organized work schedule that optimizes the number of time technicians spend working. Additionally, it decreases the cost of functioning job management and logistical functions. Profitability increases with increased productivity. The technicians, front office, and management can communicate more effectively with the software for field service management. Because field workers and technicians spend less on logistical coordination, they have more time to devote to client work. All staff members, from management to technicians, have access to and can utilize all information for decision-making. This helps accomplish better planning and greater operational flexibility in response to urgent client needs. The FSM software's features aid in optimizing performance, thereby increasing overall productivity. Consequently, expanding its use in organizations.

Market Restraints

Lack of Knowledge About FSM and its Applications

The field service management market share is anticipated to have a high growth rate in the coming years; however, a lack of knowledge about the purpose and applications of the software among consumers may hinder market expansion. It is anticipated that the choice of organizations for conventional methods of operation will impede the development of the market. Field service management and its applications remain unknown to the majority of individuals. In the coming years, field management software adoption is anticipated to be hindered by the perception that organizations operate conventionally. In addition, the hassles associated with the end-to-end personalization of software and services are expected to harm the growth of the overall field service management market share. However, these obstacles are surmountable in a variety of ways. The visibility of field service management software and systems can be enhanced by utilizing interpersonal communication channels and mass media.

Market Opportunities

Deployment of Artificial Intelligence in FSM

Artificial Intelligence (AI) and rapidly advancing digital technologies are altering the concept of conducting business. Even in administration, it was typical for organizations to rely heavily on manual labor in the past. However, the advent of AI has benefited the field service management market with the help of AI, software that streamlines tasks and organizes resources and manpower in real-time has made a significant difference in the productivity, performance, and ease with which businesses operate. With competitive pressure in the field service management industry, the key to leading a better FSM business is to remain customer-focused.

To minimize customers' waiting time, technicians and employees must be well-equipped in advance with the appropriate equipment, information, and equipment to resolve issues on the first try. Intelligent chatbots assist in meeting customer expectations with increased speed and precision. A connected and autonomous field service management solution provides technicians, suppliers, management, and customers with a consistent method of communication. Automation adds to time savings, cost savings, and an overall enhancement of service. The future of field service management emphasizes the increasing use of the internet of things, artificial intelligence, and augmented reality to improve customer and employee satisfaction by transforming the way technicians advance their functioning. Emerging technologies, such as artificial intelligence and IoT-driven predictive maintenance, are anticipated to facilitate the troubleshooting of connected devices by technicians.

Regional Analysis

The region-wise segmentation of the global field service management market includes North America, Europe, Asia Pacific, Latin America, Middle East & Africa.

Asia-Pacific and North America Will Dominate the Regional Market

Asia-Pacific will command the market with the largest share during the forecast period growing at a CAGR of 19.89%. The rapid urbanization of the region, as well as the expansion of contract-based service operations across a wide range of end-use verticals, are the primary contributors to the region's growth. It is projected that a significant number of small and medium-sized businesses in the Asia Pacific region will concentrate on implementing FSM to improve their business performance. When implemented in a company, FSM helps prevent the inappropriate management of inventory, shortens the inventory cycle time, and lowers the costs of holding and ordering goods.

The Asia-Pacific region is rapidly becoming one of the world's most critical digital hubs. The local companies of this area have quickly recognized the benefits of tech-enabled marketing solutions as a catalyst for digital transformation. The high growth of the market in APAC can be attributed to several factors, including increased consumer spending and internet penetration, an increase in the number of business processes, the emergence of new businesses with smaller IT budgets, and the growing use of cloud technologies.

North America will hold the second-largest share of USD 2,425 million, growing at a CAGR of 11% during the forecast period. The rapid adoption of cloud computing technology in this region is the primary factor responsible for the growth of this region. The regional market's development is driven by rising demand for enterprise mobility solutions and a continuous focus on streamlining field service operations. In North America, the FSM solutions are increasingly being used for workforce supervision and scheduling, worker safety, fleet management, performance analytics, and mobility solutions, all of which improve the productivity of workers and the work they do on the field.

Segmental Analysis

The global field service management market is classified based on component, enterprise, deployment model, application, and region.

On the Basis of Components

Based on components, the segments include solutions and services.

The solution segment is expected to hold the largest share during the forecast period growing at a CAGR of 13.59%. The increase in the number of field operations is driving up the demand for a field service management solution that is both highly efficient and extremely stable. The solution type segment is further classified into mobile field execution, service contract management, warranty management, workforce management, customer management, inventory management, and others. Solutions for field service management include time and attendance tracking, management of leaves and absences, workforce analytics, and other solutions such as fatigue management and task management. These solutions assist in maintaining various HR-related activities and analyzing data for core business procedures. Demand for field service management solutions is accelerated by field service optimization, increased remote IoT connectivity, and the emergence of augmented and virtual reality in field-based industries like energy and utilities, oil and gas, manufacturing, construction, and real estate.

The segment of mobile field execution is most likely to grow significantly during the forecast period. The expansion of the mobile filed execution solution segment is being propelled in a significant portion by the rising demand for the performance and upkeep of fieldwork by technicians. To improve operational efficiency, businesses have been trending toward adopting FSM software over the past few years. Mobile field execution is a method of performing and maintaining fieldwork carried out by technicians. This method enables visibility into the performance of each worker.

The segment of field service management services is further classified into implementation, training & support, consulting & advisory. Due to an increase in the trend for integration and implementation services, the importance of the service segment among end-users is growing.

On the Basis of Enterprise

Based on the enterprise, the segments include small and medium-sized enterprises and large enterprises.

The large enterprise segment is most likely to hold the largest market share and grow at a CAGR of 12% during the forecast period. The solutions of the FSM are implemented by both small and medium-sized businesses (SMEs) and large businesses. Due to the prevalence of a large labor force, there is widespread adoption of FSM solutions in large organizations. The FSM software facilitates the management of field personnel and supervises their performance. There are numerous divisions and a decentralized workforce in large organizations.

Small and medium-sized businesses adopt FSM at a lower rate than large businesses due to the smaller number of employees in the former group. Small and medium-sized companies have fewer field employees and greater operational effectiveness. The adoption of FSM software is anticipated to increase as the number of SMBs, and large corporations rise.

On the Basis of Deployment Model

Based on the deployment model, the segments include on-premises and cloud.

The cloud deployment segment is estimated to grow at a CAGR of 15.5% during the forecast period and holds the largest share. With the proliferation of cloud-based solutions, cloud deployment has gained significant momentum. Those industries still utilizing on-premises solutions are transitioning to the cloud due to its numerous benefits, low maintenance, and initial costs. The deployment of cloud services increases the effectiveness of work processes and storage capacity.

Businesses utilize on-premise field service management solutions to maintain control over customer and company data security. On-premise solutions are implemented and held within an organization's IT facilities and managed by its internal IT staff. In contrast to cloud deployment, which incurs incremental costs throughout ownership, they require a substantial initial investment from organizations.

On the Basis of Application

Based on application, the segments include telecom, energy & utilities, manufacturing, healthcare, BFSI, construction & real estate, transportation & logistics, retail & wholesale, and others.

The telecom sector is expected to hold the largest market share during the forecast period growing at a CAGR of 15.9%. The expansion of the telecom industry has significantly increased the demand for field service management solutions and related services. With the emergence of new technologies such as 5G and network virtualization, the telecoms industry is predicted to undergo a technological revolution. The transition from 4G to 5G will inevitably affect the infrastructure and services of telecom operators, necessitating the effective management of field service technicians and employees. Providers of FSM solutions and services can seize the opportunity to assist telecommunication companies in managing their resources, thereby ensuring their growth.

The manufacturing segment will hold the second-largest share. FSM aids in assigning the right person at the right time with the necessary skills to perform work efficiently in the manufacturing sector. It is a potent instrument that suggests improvements in the appointment of workers by enabling the filtering of work by multiple conditions.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• In 2022, Oracle and Vodafone announced a strategic partnership to modernize the operator's European IT infrastructure and accelerate its transition to the cloud.
• In 2022, Oracle acquired Cerner, a leading provider of digital information systems used within hospitals and health systems.