111 Crucial Field Service Management Software Statistics: 2023 Market Share & Data Analysis

Published in – FinancesOnline – January 2023

Like many other industries, the field service industry has taken a hit from COVID-19. In fact, 55% of fleet managers and executives reported that the pandemic negatively impacted their businesses (Verizon Connect, 2021). But just like other industries, field service operations turned to digital tools to keep providing essential services to both end consumers and other businesses. They have accomplished this by using the most effective field service management software tools on the market today.

However, each business has different field service management (FSM) needs. In fact, as you will see, there are many types of software tools being used in the industry. So, in this article, we will discuss the current state of the field service management software market and the industry as a whole to look at its trajectory while considering other market forces. Through this field service management software statistics article, we hope to inform you on how you can keep your field service management best practices up to date for 2022.

Even with the COVID-19 pandemic, the field service management industry, as a whole, is on a very bright path. Recent field service management research has shown that the market is growing at a fast pace towards exponential growth by 2030.

Global Field Service Management Market Statistics

  • From 2021 to 2030, the global field service management market size is estimated to grow at a CAGR of 19.7% (Allied Market Research, 2021).
  • The global market for field service management was estimated to have reached $4,005.00 million in 2020 (Allied Market Research, 2021).
  • In 2021, the global market size was valued at $4.819 billion (Allied Market Research, 2021).
  • By 2030, it is projected to reach $24,294.00 million (Allied Market Research, 2021).

The US Market is Growing, But COVID-19 Has Negative Effects

  • 55% of fleet managers and executives reported that the COVID-19 pandemic came with a negative business impact (Verizon Connect, 2021).
  • Amid the pandemic, 44% of fleet managers see increasing costs as their top challenge in this time of economic and regulatory uncertainty (Verizon Connect, 2021).
  • In the US, the field service management software industry market size, on average, has grown 13.0% every year from 2017 to 2022 (IBISWorld, 2021).

Supply and Demand: End-Users and Types of Field Service Management Software

As you will see, there are different digital tools for field service management. Many popular tools of the trade include inventory management and work order management software. Also, in 2020, GPS fleet tracking and in-cab cams have also been the rage. Considering this, many businesses in the industry prefer to use multiple software tools, which many call a “stack.”  Ideally, each specialized software in the stack seamlessly integrates with one another. So, you can cover key business processes from inventory management to fleet management in one smooth digital environment.

Field Service Management Software End Users (Mordor Intelligence, 2021)

  1. Allied FM (Hard – Building and HVAC and Soft – Landscaping & Cleaning)
  2. IT and Telecom
  3. Healthcare and Life Sciences
  4. Energy and Utilities
  5. Oil and Gas
  6. Manufacturing
  7. Other End Users (Transportation, Real Estate, etc.)

Main Field Service Management Software and Service Types (Mordor Intelligence, 2021)

  1. Scheduling, Dispatch, and Route Optimization
  2. Service Contract Management
  3. Work Order Management
  4. Customer Management
  5. Inventory Management
  6. Other Software (Billing, Invoicing, and Warranty Management)
  7. Services

Fleet Management Software System Users (Verizon Connect, 2021)

  • In a recent survey, 72% of respondents used GPS fleet tracking software in 2020. This is eight percentage points higher than the recorded 64% in 2019. Here are the field market software statistics on market share by industry technology adoption in the GPS fleet tracking segment:
    • 81% – Transportation
    • 77% – Services
    • 68% – Government
    • 50% – Construction

Workforce Statistics in Field Service Management

As seen in the previous section, field service management cuts through many industries. Also, it employs millions of workers in the US. The top industries mentioned are transportation and services. Moreover, as you will see below, the numbers of employees, and, by extension, the complexity of operations, best practices involve the use of relevant technological tools.

Transportation Industry

The transportation industry employs most workers with transportation-related degrees. These not only include pilots and engineers but also managers and controllers.  Moreover, the industry employs field service technicians as well, given its myriad of operations that involve many aspects like IT and specialized equipment repair.

The most common industries that employ people with transportation-related degrees are (Data USA, 2021):

  • 43,977 – Air Transportation
  • 10,217 – Services Incidental to Transportation
  • 6,226 – Aircraft Parts and Manufacturing
  • 5,761 – National Security and International Affairs
  • 4,880 – Colleges, Universities, and Professional Schools (including junior colleges)

The most common occupations in the transportation industry are (Data USA, 2021):

  • 45,659 – Aircraft Pilots and Flight Engineers
  • 8,032 – Other Managers
  • 5,725 – Air Traffic Controllers and Airfield Operations Specialists
  • 5,062 – Aircraft Mechanics and Service Technicians
  • 2,524 – General and Operations Managers

Services Industry

Installation, Maintenance, and Repair Industry (Data USA, 2021)

  • The total workforce in 2019 was around 4.73 million with an average salary of $51,378.
  • The most common industries employing these types of workers were:
    • 694,861 – Automotive Repair and Maintenance
    • 554,249 – Construction
    • 251,980 – Car Dealers
    • 143,529 – Wired Telecommunication Carriers
    • 126,495 – Electric Power Generation, Transmission, and Distribution

General Field Service Workers

  • For Field Service Technician in the US, the annual salary range is $33,000 to $69,000, with a national average of $47,423 (Glassdoor, 2021).
  • As of February 2021, the annual salary of a field service manager in the US ranges from $127,739 to $148,315 (Salary.com, 2021).

Electrical and Electronics Installers and Repairers

  • The total number of recorded electrical and electronics installers and repairers jobs was 116,600 as of May 2020. Also, the median pay was $62,020 per year or $29.82 per hour (BLS, 2021).

Pipelayers, Plumbers, Pipefitters, and Steam-lifters

  • Most recent data shows that there were around 451,390 pipelayers, plumbers, pipefitters, and steam-lifters jobs. The mean wages for these jobs were $59,890 per year (BLS, 2021).

The Benefits of Technology Adoption Statistics

Recent field service management software statistics show that there are many benefits that companies can get from adopting digital technology.  This sets new field service industry benchmarks. This is especially true for one field service management software type: GPS Fleet Tracking.

Also, many products in this software segment have features for customer management and job order management. Moreover, it is also good to note that top project management solutions used in field service management also have route planning features.

Benefits of GPS Fleet Tracking in Field Service Management (Verizon Connect, 2021)

  • 11% decrease in accident costs
  • 10% decrease in labor costs
  • 8% decrease in fuel costs
  • In the same survey, it was found that 32% of businesses that implemented fleet tracking technology began seeing a positive ROI in just six months.
  • A year before, in 2020, 61% of fleet managers think that the most important feature of FSM software is its ability to capture customer information and job details and automatically update records (Verizon Connect, 2020).

Time Frame in Achieving Positive ROI (Verizon Connect, 2021)

Also, the time frame for achieving positive ROI after adopting FSM tools is quite short in terms of business years. In fact, more or less half of firms in the services and transportation industries reached positive ROI in less than a year after adoption. Again, this sets new benchmarks as important goals have been achieved with the use of digital tools.

Services

  • 59% – less than a year
  • 21% – one year or more

Transportation

  • 50% – less than a year
  • 19% – one year or more

Construction

  • 36% – less than a year
  • 26% – one year or more

Government

  • 35% – less than a year
  • 31% – one year or more

Goals Achieved Since Implementing FSM Software (Verizon Connect, 2021)

  • 62% – improved customer service
  • 54% – improved compliance
  • 50% – improved routing
  • 49% – improved productivity
  • 41% – improved vehicle maintenance

Particularly, in the services industry, there are three important goals that were achieved since implementing GPS tracking. They are:

  • 63% – improved vehicle maintenance
  • 53% – decreased fuel consumption
  • 50% – improved customer service

For those that implemented in-cab video. There are also several key benefits. Here they are by share of respondents:

  • 78% – improved driver safety
  • 76% – reduced false claims
  • 54% – reduced accident costs
  • 42% – reduced insurance costs

Cost Reduction by Industry (Verizon Connect, 2021)

Transportation

  • 10% – Fuel Cost Reduction
  • 14% – Accident Cost Reduction
  • 9% – Labor Cost Reduction

Government

  • 6% – Fuel Cost Reduction
    7% – Accident Cost Reduction
  • 5% – Labor Cost Reduction

Construction

  • 8% – Fuel Cost Reduction
  • 14% – Accident Cost Reduction
  • 10% – Labor Cost Reduction

Services

  • 9% – Fuel Cost Reduction
  • 8% – Accident Cost Reduction
  • 15% – Labor Cost Reduction

Top Reasons for Incorporating AI

Also, AI is getting very popular in all industries. Many believe that it can make work faster and offer different insights. AI is not only being used to handle routine automation but also in useful field service functions like route optimization.

  • The top three reasons for adopting AI are (Digital.ai, 2021):
    • 64% – the ability to handle changing priorities
    • 64% – accelerating software delivery
    • 47% – boosting team productivity
  • The combination of mobility and artificial intelligence (AI) improves field service agent productivity by 30% to 40% (ReachOut, 2020).

Moreover, if you operate a business structure like field service verticals, you may want to check out statistical facts about the benefits of adoption here in our recent supply chain statistics compilation.

Field Service Management Projection and Statistics

Because of today’s technology trends, it is hard to keep a business competitive, or even afloat, when it couldn’t rise and meet the competition head-on. These recent trends include the use of augmented analytics and the Internet of Things. Field service management software statistics show that firms in the industry are warming up to these types of tools.

This is because of their obvious advantages when it comes to business intelligence and connectivity. In fact, many types of field service management software solutions either offer some built-in features for this or seamless integrations with specialist applications.

Adoption Trajectory

  • 73% of field management firms have already incorporated the Internet of Things (IoT) into their operations (ReachOut, 2020).
  • About 75% of field service businesses that utilize mobility tools have observed increased employee productivity, while the rest have seen customer satisfaction rates rise (ISE, 2020).
  • 77% of FSOs invest in technology and solutions geared towards information enablement (ServicePower, 2020).
  • The value of growth brought about by IoT apps as utilized in the field service industry increases by $470 billion annually. (ReachOut, 2020)

Home Improvement May Fuel More Adoption

Also, there is a growing home improvement market in the world and in the US as real estate statistics show. Moreover, because of the COVID pandemic and safety precautions, homeowners and tenants look for new improvements that satisfy safety conditions. These include outdoor activity spaces. These, and many more real estate trends, may fuel software adoption especially by repair and maintenance firms and professionals.

  • In 2020, the global home improvement market value sat at $763 billion. In 2021, the estimated value rose to $796 billion. This is a growth of 4.15% (Grand View Research & Statista, 2021).
  • By 2022, the market is projected to grow and reach $830 billion (Grandview Research & Statista, 2021).
  • Furthermore, the market value is expected to reach $1.01 trillion in 2027 (Grandview Research & Statista, 2021).

Smart Homes as Needle Movers for Field Service Management Industry Expansion

Furthermore, smart homes and technology are also getting more popular in the US. This comes with the necessary services that people usually outsource to companies. These include installation, maintenance, tech support, and repair work. Thus, the growth of the smart home market is likely to be a needle mover for field service management industry expansion.

  • The US has the largest global smart home market value in the world. In 2020, revenues reached $23.3 billion (Statista, 2021).
  • Moreover, in 2022, the global market is expected to reach a total of $126.1 billion (Statista, 2021).
  • The revenue by segments are:
    • $48.1 billion – Smart Appliances
    • $25.3 billion – Control and Connectivity
    • $18.9 billion – Security
    • $13.2 billion – Home Entertainment
    • $10.6 billion – Comfort and Lighting
    • $10.0 billion – Energy Management

Technology Retention Because of COVID-19 (Statista, 2021)

Because of COVID-19, there is a sharp global increase in technology spending. This, of course, includes SaaS products like field service management solutions. Segments by market share are:

  • 84% – Cybersecurity
  • 74% – Hybrid or Multicloud
  • 66% – Automation
  • 59% – AI
  • 49% – 5G
  • 43% – IoT
  • 38% – AR/VR
  • 27% – Blockchain

Choosing the Right Digital Tools for Field Service Management

The pandemic has really changed the way markets behave. Consumers expect goods and services to be there on demand. Simple mistakes can cost a lot because of the social-media-centric culture. And, modern businesses can make mistakes on all fronts. This is especially in the field service industry. Serious mistakes can come from late arrivals of a field service technician to poor FSM marketing. This is why, again, those in the industry opt for software stacks rather than a single solution.

But, of course, the particular stack depends on a particular business’ needs. For many, however, the best tools are a mix of features from software products from project management, inventory management, work order management, customer service management, and fleet management solutions. And, again, these features don’t usually come in one singular software suite. Many times, businesses have to create a specific seamlessly integrated software stack. This is especially true for those that outsource processes like accounting to other professionals or firms. They create their own stacks that can integrate well with the software used and valued by their accountants.

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About TimeLinx
TimeLinx delivers innovative project & service management software as a complete solution that perfects the sell-track-manage-support-bill cycle that services organizations must have to delight their customers; TimeLinx brings the cycle together in a single application that offers less frustration, better project management, complete reporting, and improved profitability – all specially designed for Infor and Sage.

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