The global Field Service Management (FSM) market is predicted to grow at a CAGR of 11.9% from USD 4.49 billion in 2024 to USD 7.87 billion in 2029, during the forecast period.
Some factors driving the expansion of FSM goods and services include the acceptance of automation and digitalization in the field services industry, the use of BYOD and mobile-based FSM solutions, and the growing demand for predictive analytics.
Field service management (FSM) is the administration of a company's resources. It aids in the coordination of field operations using mobile devices. It is most typically used by organizations that need to handle system or equipment installation, service, or repairs since it allows them to schedule service orders, dispatch agents, and track vehicle locations and task status. Through mobile systems, it assists in automating the field operators of a team of service experts.
These methods are particularly advantageous for field services, as they enable swift and convenient communication with mobile field employees. Mobile devices, when used in conjunction with FSM solutions, provide real-time connectivity to a distributed workforce, facilitating efficient monitoring and administration of remote personnel. This enhanced connectivity allows experts to connect with field technicians and deliver quick, efficient responses to field issues, thereby opening up new growth and customer service opportunities. Consequently, the introduction of mobility solutions has significantly boosted the demand for FSM.
In recent years, field services have witnessed a global surge in size and presence as businesses strive to adopt customer-centric expansion strategies. Real-time field service systems are gaining popularity as the service team expands internationally. FSM solutions play a crucial role in enabling firms to promptly address customer complaints, thereby enhancing the overall customer experience. The real-time FSM system effectively manages all field operations, facilitating better business decisions.
Field activities are being monitored in real-time, speeding up the process of catching and dispatching service requests. It makes it easier to allocate the proper task to the right employee, resulting in increased employee productivity and corporate agility. Field operations, field force, and work status are visible in real-time with powerful FSM systems, allowing them to rearrange and club tasks on the fly to maintain sales and service efficiency.
By assuring data security, the key field service data is housed on corporate servers. However, the devices used to access this data do not provide the same level of security. Advanced mobile worker rules, often known as BYOD policies, allow field personnel to bring their devices to work. These personal devices are particularly vulnerable to attacks if they are connected to insecure Wi-Fi networks. In addition, as the world becomes more digital, the number of cyberattacks has steadily increased. As a result, field data security has become a major security problem for businesses, limiting the adoption of FSM solutions.
The rapid emergence of the COVID-19 situation has created a slew of new challenges and threats for the field service business. The abrupt implosion of lockdown has had a significant impact on on-site business activities. As a result, the global pandemic has hampered the market's growth rate to some extent. Technological advanced field services would solve COVID-19's issues and threats differently. Field employees may now fulfill their tasks from remote places thanks to cutting-edge technologies and the use of mobile-based and connected FSM solutions. As a result, mobile workers can fulfill field responsibilities while staying safe and healthy during the pandemic.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
11.9% |
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Segments Covered |
By Component, Deployment, Organization Size, Industry, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Microsoft (US), IFS (Sweden), SAP (Germany), Comarch (Poland), OverIT (Italy), Geoconcept (France), Praxedo (France), Coresystems (Switzerland), Mize Inc (India), Zinier Tech (India) and Others. |
During the projected period, the solution segment is expected to have a significant market share. Work order management, scheduling, dispatch and route optimization, customer management, inventory management, service contract management, reporting, and analytics are all part of the solution sector. The customer management sector is expected to dominate the field of service management. FSM solutions enable employees at all levels of a business to communicate with customers in new ways and shift managers' attention to the customer experience.
Customer management solutions are acquiring substantial significance. Customer happiness is the sole determinant of field service success. As a result, customer management FSM solutions account for a significant portion of revenue. Using a schedule, dispatch, and route optimization system to cooperatively manage the workforce and improve dispatch operations is gaining traction in the field service industry. Work order management software aids in the capturing of important customers as well as crucial business data. The demand for workflow order management solutions is also increasing to organize critical tasks, with a significant CAGR expected over the projection period.
On-premise deployment field services are expected to hold a considerable market share because of the security and flexibility they provide for data access. These platforms also allow users to access huge amounts of data simultaneously, so customers prefer on-premise deployment.
During the projection period, major businesses are expected to have a significant market share. Field management systems are primarily used by large businesses, which have a large workforce, substantial documentation, and vast customer data. In addition, multinational corporations are increasingly turning to automated solutions to improve field operations.
The cost-effectiveness of cloud-based flexible field services encourages small firms to use cloud FSM services. Furthermore, the automation trend, which encourages SMEs to replace manual work processes with automated work process management systems, would help the category grow.
The manufacturing vertical is expected to dominate the field service management market in terms of revenue. Rapid industrialization pushes the manufacturing industry to adopt technologies that automate field operations and procedures. This is the primary driver of FSM solutions' widespread adoption across the vertical. Manufacturers are changing their business models to become more customer-centric by providing cost-effective, value-added services. With these solutions, they can improve corporate efficiency by improving client connections across the service lifecycle.
The energy and utility business is predicted to be the fastest-growing segment due to the increased adoption of mobile-driven FSM solutions. Energy and utility companies and their staff benefit from field service software that helps them provide excellent customer care.
In 2020, North America's market value was USD 855.7 million. Due to increased research and development initiatives by prominent organizations, the region is projected to dominate market growth. Most significant players have offices in different parts of North America. These major firms are concentrating on expanding their service consumer base throughout the region.
Europe is predicted to grow exponentially as automation is introduced into current manual field service operations. Integration of field service with customer relationship management (CRM) or enterprise resource planning (ERP) technologies is becoming more common in the region.
The Asia Pacific market is expected to rise quickly in the forecast years. Small and medium-sized businesses (SMEs) in rising economies like China and India are driving the need for effective field service management. This is fueling demand for new technology that can automate a variety of company activities, including invoicing and billing, service delivery, task scheduling, and more. Aside from that, large-scale manufacturing in Asia is driving a surge in demand for FSM solutions to improve workflow and efficiency.
Rising internet and smartphone penetration are projected to increase the use of mobility-based FSM solutions in Latin America, the Middle East, and Africa.
Accruent has announced a partnership with OneSource Document Management Services, a Connectiv CMMS SolutionRLDatix company, and one of the industry's leading healthcare management solutions to help Connectiv customers stay compliant with regulatory guidelines and medical equipment manufacturer requirements.
According to Vertex, Inc. and its subsidiaries, a global provider of tax technology solutions, the Vertex® Cloud Indirect Tax solution is now "Fulfilled by Acumatica." By achieving this certification and connecting with Acumatica's cloud-based ERP, Vertex is assisting businesses all over the world in easily automating their compliance reporting procedures and making educated decisions based on more accurate, real-time tax data.
IFS AB, a multinational software corporation based in Sweden, has filed a petition with the Commercial High Court in Colombo to wind up Informatics International Lanka Ltd. IFS brought the winding-up action against International Lanka Ltd after the latter refused to comply with a court order in IFS' favor in a prior contentious legal struggle with Informatics International Lanka Ltd. The Commercial High Court ordered that notice of the winding-up be published in newspapers and the Government Gazette, notifying the public of the proceedings.
Lighthouse Systems, a developer of manufacturing execution system (MES) software for smart manufacturing, has been acquired by Infor. Shopfloor-Online, the company's flagship product, assists manufacturers in managing and improving production, quality, inventory, and maintenance operations.
By Component
By Deployment
By Organization Size
By Industry
By Region
Frequently Asked Questions
Technologies like IoT and AI are revolutionizing the FSM landscape by enabling predictive maintenance, real-time monitoring of field assets, intelligent scheduling, and automated decision-making, thereby enhancing productivity and reducing operational costs.
Industries such as manufacturing, utilities, telecommunications, and healthcare are the primary adopters of FSM solutions due to their complex field service requirements, including equipment maintenance, installations, and repairs, which necessitate efficient workforce management and scheduling.
Regulatory requirements related to data privacy, worker safety, environmental compliance, and service quality standards vary across regions and industries, influencing the customization and implementation of FSM solutions to ensure compliance and mitigate risks.
Emerging trends such as the integration of augmented reality (AR) for remote assistance, the adoption of blockchain for secure transactions and transparency, and the focus on sustainability and eco-friendly practices are expected to drive innovation and transformation in the global FSM market.
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