Field Service Management Market Outlook 2031
The global field service management market size was valued at USD 2.29 Billion in 2022 and is projected to reach USD 5.40 Billion by 2031, expanding at a CAGR of 10% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing number of field operations across several end-use industries such as oil & gas, telecom, construction, and energy & utilities.
Field service management software helps companies process job orders, collect payments in the field, and dispatch technicians. These solutions facilitated remote diagnostics, virtual assistance, and self-service options, reducing the need for in-person visits. Industries like healthcare, telecommunications, and utilities embraced these contactless service models.
Customers are increasingly demanding faster response times, improved service quality, and personalized experiences. Field service management solutions help organizations meet these demands by optimizing resource utilization, reducing downtime, and enhancing service delivery.
FSM solutions help organizations optimize costs by reducing travel time, minimizing equipment downtime, and improving first-time fix rates. This leads to increased operational efficiency and reduced costs. For instance,
In July 2020, Zinier Inc. and Tata Consultancy Services Ltd., launched a digital solution to help field service organizations adapt to unexpected disruptions to essential workforces and services. The AI-driven solution on the Zinier platform will empower field service teams on the front lines during a global pandemic.
The research report finds that the COVID-19 pandemic has significantly accelerated the adoption of the field service management market. With travel restrictions and social distancing measures, organizations had to shift to remote work models.
Field service management solutions enabled technicians to work remotely, accessing real-time information, collaborating virtually, and minimizing physical contact. This led to increased adoption of cloud-based FSM platforms. The pandemic accelerated the need for contactless service delivery.
In addition, COVID-19 disrupted global supply chains, causing delays in equipment and spare parts availability. Field service management solutions helped optimize inventory management, track shipments, and ensure timely delivery of critical components, minimizing service disruptions.
Impact of Artificial Intelligence on Field Service Management Market
Artificial Intelligence (AI) has accelerated the field service management market by enabling automation, predictive analytics, and enhanced decision-making capabilities. AI-powered algorithms analyze historical data and sensor readings to predict equipment failures before they occur.
This proactive approach helps schedule maintenance tasks, optimize resource allocation, and reduce downtime. For example, in the manufacturing industry, AI predicts machine failures and creates maintenance requests accordingly.
Field Service Management Market Dynamics
Rising adoption of field service management solutions by several small and medium enterprises is estimated to fuel the field service management market growth. FSM software allows tasks to be sent to the field worker’s mobile. It contains information like spare parts and tools required, the best route to the site, and contact numbers. These factors are anticipated to drive the market.
Furthermore, high accuracy is obtained when field service management software is used to track and maintain processes. In addition, increasing advancements in technology are propelling the demand of the field service management market.
Advancements in technology such as cloud computing, mobile devices, and the Internet of Things (IoT) help to enhance workforce efficiency, improve customer satisfaction, and enable real-time monitoring and predictive maintenance. For example, as per the published report, on June 2023, the IT service market is expected to grow by 13.97% in the coming years.
High implementation costs are expected to hamper the field service management market growth. Implementing FSM solutions is expensive, especially for small and medium-sized businesses. This act is a restraint to adoption.
In addition, data security and privacy concerns are anticipated to hinder the growth of the FSM market. Field service management solutions involve collecting and processing sensitive data, raising concerns about data security and privacy.
Emerging technologies are expected to create lucrative opportunities in the market. The field service management market presents opportunities for organizations to leverage emerging technologies such as artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and augmented reality (AR) to enhance service delivery and improve customer experience.
NLP enables conversational interfaces and virtual assistants that understand and respond to customer queries in real time. This technology enhances customer support, reduces response times, and improves overall service experience. For example, in the utilities industry, AI-powered chatbots assist customers with troubleshooting or bill inquiries.
Scope of Field Service Management Market Report
The report on the field service management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Field Service Management Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Enterprises (Small, Medium, and Large), Solutions (Service Contract Management, Mobile Field Execution, Warranty Management, Customer Management, Workforce Management, and Inventory Management), Deployments (Cloud and On-premise), Service (Training & Support, Implementation, and Consultancy & Advisory), and Applications (Telecom, Manufacturing, Energy & Utilities, Healthcare, BFSI, Construction & Real Estate, and Transportation & Logistics) and Regions
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Comarch SA, Infor, Accenture, ClickSoftware Technologies, SAP SE, Trimble Navigation Limited, Astea International, Inc., Tech Mahindra Limited, and Klugo Group.
Field Service Management Market Segment Insights
Enterprise Segment Analysis
Based on enterprises, the global field service management market is segregated as small, medium, and large. The large enterprise segment is expected to hold a major share of the field service management market. The growth of the segment is attributed to the presence of a large workforce.
It helps in maintaining member records, sub-contracting, individual performance statistics, document maintenance, and contract renewals. The FSM software is integrated with mobile computing to improve communication with field workers, enhance productivity, and streamline work processes.
The small and medium enterprise segment contains fewer employees as compared to large enterprises. These enterprises are largely adopting FSM across their organizations.
The growth of the segment is attributed to the increasing adoption of technological developments in mobility, Software as a Service (SaaS), and machine learning. This software helps technicians to reach customer locations to offer several services such as repair & maintenance.
Solutions Segment Analysis
On the basis of solutions, the global field service management market is fragmented as service contract management, mobile field execution, warranty management, customer management, workforce management, inventory management, and others.
Field service management software helps in better communication between management and technicians. Improvement of technologies such as cloud advanced analytics, and big data supports the integration of cloud and mobility with FSM software.
Numerous cloud technology service providers offer advanced level of FSM solutions, which fulfill the needs of small, medium, and large enterprises and are projected to boost the market during the forecast period.
FSM software offers several solutions for the accomplishment of fieldwork. It helps to gain visibility in the individual performance of technicians and field workers. FSM software helps in the execution and management of service contracts made with vendors, customers, employees, and partners.
The service contract management segment generally deals with processes such as tooling, travel, sub-contracting, contract renewals, help desk service, and document maintenance. Some technology service providers offer improved levels of FSM solutions that cater to the requirements of large, medium, and small enterprises.
This software supports in quick reduction of reserve & warranty costs, improved cash flow for maximum profitability, forecasting accuracy, and supplier recovery. It offers supervision of non-capitalized assets & stock items and inventory management services.
This software helps to lower the costs involved in field processes. Therefore, many enterprises opt for FSM software for increased productivity and enhanced performance of their organization.
Deployment Segment Analysis
In terms of deployment, the global field service management market share is bifurcated into cloud-based and on-premise. The cloud segment is anticipated to expand at a substantial CAGR during the forecast period. Industries are slowly transferring their data from on-premise to the cloud, as the deployment of cloud service provides the efficiency of work processes and increased storage space.
Cloud deployment helps to minimize capital and operational expenses. Cloud-based FSM solutions provide scalability, flexibility, real-time access to data, and low cost irrespective of the location of the employees. For Instance,
In May 2023, IFS, a global cloud enterprise software company, announced the release of IFS Cloud. This update aims to enhance business resilience and connectivity capabilities. IFS Cloud integrates various functionalities, such as human capital management, enterprise resource planning, and asset management, to deliver comprehensive field services.
On-premise segment requires large storage space on the system. Moreover, it is flexible to use. If many users are held on the same cloud server, a hacker may try to break into the data of the users hosted.
Application Segment Analysis
On the basis of applications, the global field service management market is segregated as telecom, manufacturing, energy & utilities, healthcare, BFSI, construction & real estate, and transportation & logistics.
Growth of the healthcare segment is attributed to increased competition in the healthcare sector in developing countries, which calls for effective FSM solutions to minimize supply chain management costs.
The utilities sector held a major market share in 2016. Growth of the segment was attributed to increasing demand to automate business processes in power plants under pressure to surge their business productivity. The oil & gas segment is projected to expand at a rapid pace during the forecast period, owing to rising demand for petroleum products.
The construction segment is anticipated to expand at a high CAGR during the forecast period, due to increasing population and rapid industrialization in developing countries such as China and India. The construction segment uses FSM for tracking construction activities on the site. Therefore, the growth of the construction sector is expected to boost the demand for FSM.
Service Segment Analysis
Based on services, the global field service management market share is fragmented into training & support, implementation, and consultancy & advisory. The service segment is expected to expand, owing to its increasing prominence among end-users, due to an upsurge in implementation and integration services.
FSM software is integrated into organizations for help in workforce management. The software acts as an alternative for field surveys, does the needed work, and provides updated information. Additionally, it provides training to the workers. FSM solutions, when integrated into the organization, offer consultation services to enterprises.
The software helps in organizing all the data and provides it as and when it is required. Additionally, it provides suggestions to the organization to improve its efficiency and performance. Moreover, it minimizes human efforts, saves time, and is efficient, which in turn, drives the market.
On the basis of regions, the global field service management market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to expand at a rapid pace during the forecast period.
Companies in the region are increasing expenditure on IT to improve security features such as encryption of end-to-end data transfer and secure access, which in turn, is expected to drive the market.
The market in Asia Pacific is anticipated to expand at a substantial CAGR during the forecast period. Rising demand for integrated connectivity and the growing adoption of advanced technology among consumers is estimated to fuel the market.
The global field service management market has been segmented on the basis of
- Service Contract Management
- Mobile Field Execution
- Warranty Management
- Customer Management
- Workforce Management
- Inventory Management
- Energy & Utilities
- Construction & Real Estate
- Transportation & Logistics
- Training & Support
- Consultancy & Advisory
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Comarch SA
- ClickSoftware Technologies
- SAP SE
- Trimble Navigation Limited
- Astea International, Inc.
- Tech Mahindra Limited
- Klugo Group
Key players in the global field service management market include Comarch SA, Infor, Accenture, ClickSoftware Technologies, SAP SE, Trimble Navigation Limited, Astea International, Inc., Tech Mahindra Limited, and Klugo Group.
Manufacturers are involved in several strategies, such as mergers and acquisitions to increase their market share. For instance,
On November 1, 2021, ServiceMax, Inc., a global leader in asset-centric field service management, announced the acquisition of Liquid Frameworks, a mobile field operation management provider company. This acquisition is expected to expand its FSM solution in energy sectors.
On August 16, 2021, Mize, Inc., a leader in Field Service Management and Warranty Management solutions, announced its merger with Syncron, a leader in Service Parts and Contracts Management, including Inventory, Pricing, and IoT-based preventive repair monitoring solutions. The merger aims to deliver the industry's first connected service experience and accelerate new service-centric business models.