Dublin, March 2021 (GLOBE NEWSWIRE) — The “Field Service Management (FSM) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
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 15.4%, 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 are expected to rise as the pandemic restricts the industry professionals and stakeholders to manage their fieldwork remotely. The COVID-19 pandemic has resulted in limited workers at the floor to have social distancing measures, which will further boost the adoption.
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 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 demanding 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
Inventory Management to Hold Significant Market Share
- Inventory management is one of the most mismanaged components of the field services segment. Several factors, such as returns, component failure, and warranty issues, make it one of the most complex tasks in the field services industry. Hence, deploying inventory management solutions help the service providers to provide the right parts to customers accordingly, in a cost-effective manner.
- Since most technicians carry and manage spare parts, the policies, like BYOD, allow the technicians to monitor and update their inventory from a mobile device to simplify management. For example, General Electric’s (GE) ServiceMax FSM software even allows the technicians to track and search spare parts in their fleet to facilitate exchanges between technicians if necessary. Such practices are witnessed in the consumer electronics service industries and several B2B operations.
- In November 2019, Comarch Improved the Hospital Inventory Management by Cloud-based FSM Software for MedicAir in Italy. The company’s cloud-based Field Service Management (FSM) will ensure hospital inventory management in all the warehouses where the medical gases are stored. The staff from the hospital will be able to order equipment, which will be delivered from the warehouse to the specific unit. Additionally, the team will be able to monitor the cylinder’s location, gas level and use, and the expiry date for gas and cylinder.
- Further, the increasing development of AI has led to AI Field Management, which is a cloud-based solution that helps both small and large enterprises to manage and collaborate with field employees. It also includes a customer website portal, inventory management, time tracking, payroll reports, and job management. The increasing availability of SaaS solutions and value-added features, such as system alerts and analytics services, provided by the inventory management solutions, is expected to increase the affordability and efficiency of the inventory management solutions. This factor is increasing the adoption among large and small organizations alike.
Asia Pacific to Witness Significant Growth Rate
- Asia-Pacific is expected to dominate the regional field service management market, and it’ s 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. China is one of the largest E-Commerce markets in the world. The expansion in the sector is a significant driver for the adoption of FMS solutions. And 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.
- The field service management market has a vast scope in India, mainly due to large-scale industrialization. The country is expected to exhibit steady growth in the field service management market with enhanced geographic zones and a high client base. The growth in the number of technology users in the country further propels the growth of the field service management market. In December 2019, Field Service Management Summit was held in India which covered the topics such as technology, skills and change management strategies required to meet the increasing complexity of the field service touchpoint, future of IoT for field services management, addressing the challenges in third-party workforce management & third billing, increasing first-time fix rates to achieve higher customer satisfaction and profits, etc.
- Japanese service companies have laid a roadmap to commence specific changes with the business transformation years behind the United States. In January 2020, Accenture in Japan 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). By pursuing digital transformation, the parts-maker was able to connect every aspect of its field services management, such as central operations, dispatch, repair, predictive maintenance, and other activities.
- Field service management for manufacturing organizations is increasing in the region where Manufacturers in South East Asia are no exception, and also happen to be significant growth drivers for the region. It’s an exceptionally substantial sector right now for the region with China’s rising wages, tighter regulations, and trade wars leading some companies to consider moving their manufacturing to South East Asia. The companies are utilizing service management (FSM) solution that uses the predictive maintenance or IoT triggers to generate work activities and, in real-time, find the best-suited field technician to be on-site to perform the work activity.
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