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Field Service Management (FSM) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·7-min read

The Global Field Service Management Market (henceforth referred to as the market studied) was valued at USD 2. 85 billion in 2019, and it is expected to reach USD 7. 10 billion by 2026, registering a CAGR of 15.

New York, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Field Service Management (FSM) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06028486/?utm_source=GNW
4% during the period 2021-2026.

Field service management firms are experiencing immense pressure to effectively lead teams and ensure safety compliance with the outbreak of COVID-19, where the risks are running high. There is no space for miscommunication or distrust. According to Harvard Business Review, before the pandemic, the U.S. average for organizational trust was only 70%. Seeing as stressful situations exacerbate fear and distrust, it is even more critical at this point of time to focus on developing confidence within the organization.

In the wake of COVID-19, the previously estimated growth of FSM across end-user segments is expected to rise as the pandemic restricts the industry professionals and stakeholders from managing their fieldwork remotely. The COVID-19 pandemic has resulted in limited workers on the floor to have social distancing measures, which will further boost the adoption.

Key Highlights
Also, the field service management industry has been witnessing rapid growth over the last few years, buoyed by the increasing demand for time and cost-effective solutions. Several studies have revealed that there would be a shortage of field service workforce in mature markets such as the U.S. and Europe due to the prevalent demographic conditions, which has, in turn, led to organizations placing a higher emphasis on back-end automation and the use of advanced technologies to enable remote monitoring.
Various pricing strategies are being implemented by the vendors to survive in the competitive market environment. The software vendors are adopting customer-centric pricing strategies enabled by technological advancements. Several vendors in the FSM industry are focusing on providing value-based pricing models depending on the needs of the customers and value perception. The software solution pricing is based on the differentiating characteristics of the solution and the value-added features given to the customers.
The preference for software-as-a-service (SaaS) over the traditional on-premise software is set to increase considerably during the forecast period, aided by the growing demand for better and faster service. With the growth of cloud computing in the field service management market, many enterprises are switching to cloud-based FSM solutions. These solutions ease the burden on the I.T. department and allow the external service providers to offer support and maintenance to their users.
The original equipment manufacturers are adopting the industrial Internet of things (IIoT) for new services, which require a modern FSM system to manage the field service delivery leading to an increased demand for FSM solutions. Additionally, machine learning provides new sources of competitive advantage. The successful execution of this requires modern FSM solutions. There has been an increasing adoption of field service management solutions, as it improves workforce productivity and streamlines the business process without increasing the size of the field-based workforce.

Key Market Trends

Service Contract Management to Hold Significant Market Share

Businesses that have been relying on outside contractors or third-party service providers for their fieldwork also require the same functionality as enterprise businesses, but the client details and visibility are even more important here. The outsourcing of field services, whether partial or full, can help the companies in reducing labor costs and expand their operations.
After a job was assigned to a contractor, multiple companies had no way to know when service was delivered, how long it took, or if the issue was even resolved until they started receiving complaints from the customers. The FSM software for outsourced services primarily provides visibility into the contractor service delivery, making third-party technicians indistinguishable from an organization’s internal workforce.
The companies have now become able to manage their contractors and related administrative tasks through the vendor portals within the FSM software solution. Just as with the traditional field workers, contractors also need real-time access to the work order information and parts availability and the ability to report back quickly on service delivery and submit claims. The customer calls requiring a technician on-site can also be dispatched by a company to its own technicians or a local service partner. Moreover, these portals can exist outside of the main company interface so that the company data remains secure while allowing everyone to access what they need.
Further, in Sep 2020, it was announced that the Salesforce field service platform would be getting a third-party add-on that will help service providers and customers monitor and manage equipment in the field much more effectively. The offering, called ServiceMax Asset 360 for Salesforce, will primarily deliver a 360-degree view into various metrics, including install base, service contracts, asset performance, and warranties to maximize equipment uptime and reduce maintenance costs.
Also, the adoption of cloud-integrated contract management solutions across various organizations due to digital transformation is increasing. It enables better management and allows organizations from various industries in public and private sectors to draft, negotiate, sign, approve, track, and renew contracts in one centralized location.

Asia Pacific to Witness Significant Growth Rate

The Asia Pacific is expected to witness significant growth for the field service management market. The rapid rate of growth is attributed as the region is being home to a large number of SMEs, which are highly involved in the development and adoption of field services and their management solutions.
The rise of the mobile worker is on the increase and will continue to grow. The global mobile workforce is expected to rise from the current in the coming few years. With an increasingly wide range of field service and mobile roles available, the role of the mobile worker is more prevalent than before, as is the use of mobile apps with over for technical projects.
In the developing countries that include China, India, Singapore, Japan, and South Korea, among others, with today’s generation now more digital savvy, there is a growing demand not only from staff but a growing expectancy from organizations for staff to be able to use mobile apps and technology.
China is one of the largest E-Commerce markets in the region. The expansion in the sector is a significant driver for the adoption of FMS solutions as more and more new retail is shifting from a novel concept to the mass market sector; the need for the management of filed service will also grow.
Moreover, Japanese service companies have laid a roadmap to commence specific changes with the business transformation years behind the United States. For instance, in January 2020, Accenture in Japan announced its plans to achieve digital transformation by following the example of a parts-maker in Europe that has so far been very effective in integrating cloud applications, SaaS platforms, connected devices, and artificial intelligence (AI).

Competitive Landscape

The market landscape of the Field Service Management (FSM) market remains quite fragmented. Various vendors of pre-packaged FSM software solutions exist, but no single FSM vendor has ever dominated the global market or any regional markets. There are several mergers, partnerships, and collaborations happening in the market among the players.

June 2021 - ServicePower and PwC Enterprise Advisory, part of the PwC network of firms providing assurance, advisory, and tax services, announced a partnership that delivers a joint field service management offering to manufacturing organizations across Europe. The two organizations will initially focus on the European market. With this agreement, ServicePower will Provide schedule optimization, Mobility application, Customer facing portal, Reporting, and analytics.
July 2021 - ServiceMax has signed a definitive agreement to acquire LiquidFrameworks, a mobile field operations management solutions company specializing in the energy industry. The acquisition enables ServiceMax to expand its field service management solutions to meet the unique challenges of the energy sector.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06028486/?utm_source=GNW

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