The global Field Service Management market size was valued at USD 1,725.8 million in 2016 and is expected to witness significant growth with an approximate CAGR of 10% due to the growing number of field operations across different end-use industries such as telecom, oil & gas, construction, and energy & utilities. Furthermore, the rapid adoption of FSM solutions by different small & medium enterprises is also expected to drive the market growth over the forecast period.
China field service management market by solution (USD Million), 2014 - 2025
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 in coordinating logistical tasks, they have more time for client work. The development of technologies including cloud, big data, and advanced analytics support 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.
The FSM software provides various solutions for the execution of fieldwork. It also helps gain visibility into the individual performance of field workers and technicians. FSM solutions assist in the management and execution of service contracts made with customers, vendors, partners, and employees. The service contract management process broadly deals with processes such as travel, tooling, sub-contracting, document maintenance, help desk service, and contract renewals.
These solutions also aid in the rapid reduction of warranty costs & reserves, increased supplier recovery, forecasting accuracy, and better cash flow for maximum profitability. They also provide inventory management services and supervision of non-capitalized assets and stock items. They provide companies with different practices, strategies, and technologies that are required to manage and analyze customer interactions and data throughout the customer lifecycle. This software helps lower the costs involved in these different field processes with better efficiency. Therefore, many enterprises would adopt the FSM software for better performance and increased productivity of their organization.
The cloud deployment of the FSM software is expected to gain traction with the increase in the usage of cloud. 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.
Cloud deployment helps to keep capital and operational expenses of an organization minimum. It helps to save substantial capital costs with zero in-house server storage and application requirements. Cloud-based FSM solutions offer flexibility, scalability, low cost, and real-time access to data, regardless of the location of the employees.
On-premise deployment of this software requires a large storage space on the systems. However, the on-premise deployment of the software is more flexible to use. If multiple users are hosted on the same cloud server, a hacker might try to break into the data of other users hosted and stored on the same server.
The FSM software offers various solutions to all the user types including small, medium, and large enterprises. The adoption of the FSM software is higher in large enterprises as compared to small & medium enterprises. Large enterprises are extensively adopting the software owing to the presence of a large workforce. It assists in maintaining employee records, their individual performance statistics, sub-contracting, contract renewals, and document maintenance, among others. The FSM software makes use of mobile computing to improve communication with field workers, streamline work processes, and enhance productivity.
Small and medium enterprises consist of fewer employees as compared to large enterprises. However, these enterprises are increasingly adopting the FSM across their organization. The adoption is growing rapidly across small and medium enterprises in response to proven business results from projects and technology developments in Software as a Service (SaaS), mobility, and machine learning. The software assists in dispatching technicians to customer locations for providing different services such as repair & maintenance and the installation of customer-owned equipment or systems.
The growth of end-use industries such as oil & gas, healthcare, IT, BFSI, telecom, and utilities, among others, are expected to increase the demand for the FSM solutions. The healthcare industry is expected to witness the highest growth rate over the forecast period due to the enhanced competitive landscape of healthcare in developing countries which calls for efficient FSM solutions to reduce supply chain management costs.
However, the utilities sector had the largest market share as of 2016 due to the need to automate business processes in power plants which are under continuous pressure to increase their productivity for enhancing their business capability. The oil & gas industry is anticipated to undergo tremendous growth over the forecast period due to the global surge in demand for petroleum products. The telecom sector is expected to undergo nominal growth across all the regions over the forecast period due to the increase in the number of end users.
Furthermore, the construction industry is also expected to grow over the forecast period due to the rapid industrialization and increase in population, particularly in developing countries like India and China. The construction industry deploys FSM for tracking construction activities at the site. Thus, the growth of the construction industry would lead to a rise in the adoption of this software.
The service segment is witnessing great opportunities and more importance among end users due to the increase in the integration and implementation services. The FSM solutions are implemented in organizations for assistance in workforce management. The management of on-field workers is carried out by the software. Thus, the adoption of the FSM among end-use industries is expected to increase.
When FSM is implemented in an organization, it provides support to its employees and the organization concerning different aspects such as employee performance, work status, and customer and inventory management. Instead of field surveys, the software does the required work and provides updated information. It also offers training to the workers.
Global field service management market share by services, 2016 (%)
The FSM solutions, when installed in the enterprise, provides consultation services to the organization. The software assembles all the data and delivers it as required. Based on the data gathered, the software gives advice to the organization so as to improve its performance and efficiency.
Furthermore, it reduces human efforts and saves time, since all the data gathered on a real-time basis is analyzed and the necessary information is given to the organization. Therefore, it leads to better efficiency and reduced human efforts. Hence, its adoption across end-use industries is expected to increase.
In 2016, North America held the largest share in the FSM market. However, Asia Pacific is projected to be the fastest-growing market over the forecast period followed by Europe. The rise in the number of end-use industries along with the increasing demand for optimized workflow and enhanced productivity in Asia Pacific is expected to fuel the demand for the FSM solution in this region.
The rapid development of the oil & gas and healthcare industries globally is projected to propel the demand for FSM solution. The market is set to witness an increased adoption of FSM solutions in the regions of Asia Pacific, Middle East & Africa, and Latin America due to an increase in IT investment and digital workplace transformation initiatives.
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. At present, some of the global players that provide FSM solutions include Accenture, Comarch SA, ClickSoftware Technologies, Infor, Klugo Group, SAP SE, Astea International, Inc., Trimble Navigation Limited, and Tech Mahindra Limited, among others.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Million & CAGR from 2016 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, UK, Germany, Japan, China, India
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the field service management market on the basis of solution, deployment, service, enterprise, application, and region:
Solution Outlook (Revenue, USD Million; 2014 - 2025)
Mobile Field Execution
Service Contract Management
Deployment Outlook (Revenue, USD Million; 2014 - 2025)
Service Outlook (Revenue, USD Million; 2014 - 2025)
Training & Support
Consulting & Advisory
Enterprise Outlook (Revenue, USD Million; 2014 - 2025)
Small & Medium Enterprises
Application Outlook (Revenue, USD Million; 2014 - 2025)
Energy & Utilities
Construction & Real Estate
Transportation & Logistics
Regional Outlook (Revenue, USD Million; 2014 - 2025)
Middle East & Africa (MEA)
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.