Field Service Management (FSM) Market Size, Share & Segmentation By Component, By Deployment, By Enterprise, By End-use, By Region, and Global Forecast 2024-2032

Field Service Management Market Report Scope & Overview:

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The Field Service Management (FSM) Market size was valued at USD 4.31 Billion in 2023 and is expected to grow to USD 13.68 Billion by 2032 and grow at a CAGR of 13.7 % over the forecast period of 2024-2032. 

A major factor fuelling the growth of the field service management market is the increasing digitization of government services and initiatives towards a smart infrastructure. Based on the latest government statistics released by the U.S. Department of Commerce in 2023, public-sector spending on digital transformation projects has grown by 12.7% compared to the previous year. This growth is largely attributed to the increasing acceptance of advanced technologies in the roll-out of public utilities, transport, and infrastructure projects. To this end, governments globally are making substantial investments in digital tools tailored to monitor in real-time, automate, and otherwise manage field operations as a way of enhancing service delivery efficiency. Further, various governments globally are applying innovative initiatives towards sustaining the environment and reducing energy through the use of efficient smart grids and infrastructure management. Based on the inbuilt technology, smart grids require robust field management for operations and maintenance, consequently increasing the need for FSM. An example is the Latest funding by the European Union Smart Cities in 2023 with over €1.5 billion used to deploy the advanced service management technologies for urban utilities and energy projects. Such developments are fuelling the adoption of FSM platforms across multiple sectors, driving market growth.

Real-time field service systems are increasingly in demand across industries to enhance customer satisfaction by enabling efficient management of field technicians and solving queries on the first attempt. There is also a massive demand for real-time field service systems across various end-users aimed at maximizing the probability of the company life in solving a query by a field technician on the first attempt and also efficient management of field technician for exceptional customer satisfaction. These solutions offer credible real-time visibility benefiting organizations in the timely delivery of responses to clients, resource allocation, and operational efficiency. For instance, in March 2021, ORTEC’s cloud-based scheduling and dispatching software enhanced the real-time and continuous monitoring of all field technicians while also smoothing the service request process benefiting the customer satisfaction levels and overall business sustainability.

Field service employees and contractors are frequently sent to designated areas to install, repair, or maintain systems and equipment. To manage these operations, companies use a system called Field Service Management (FSM). FSM is a comprehensive tool that tracks various aspects of field operations, including inventory management, scheduling, vehicle tracking, dispatching, invoicing, billing, customer portals, and other features.

Market Dynamics

Drivers

• The integration of AI and machine learning, enabling predictive maintenance, optimized scheduling, and real-time decision-making.

One of the latest trends driving the field service management market is the growing integration of artificial intelligence and machine learning technologies to enhance automation and predictive capabilities. AI and ML are being combined to affect FSM solutions with increasing regularity in applications; this allows for field operations to be optimized, decision-making processes to be improved, and operational efficiency to be raised. By employing AI technologies to analyze vast amounts of data collected through sensors, IoT devices, and the history of rendered services, FSM systems can predict the failure of equipment, provide routes for preventive maintenance, and plan optimal routes for field technicians. As a result, the implementation of these technologies helps companies decrease downtime and field force operational costs, raising the overall service quality. The trend is reinforced by The U.S. Department of Commerce the latest report states that investments into AI-driven instruments for field services have risen by 18% over the course of the year as current solutions utilizing the technology become more widespread. The growing popularity of AI-driven chatbots and other virtual assistants used to provide customer service or technical support is also reflected in their growth and will keep doing so as utilities, manufacturing, and telecom companies keep searching for more advanced ways to handle field operations, eliminate the needs for manual interference and boost customer satisfaction.

• Rising Demand for Real-Time Visibility Services Will Drive Market Growth

Real-time field service solutions are in high demand across sectors to improve customer satisfaction. Real-time monitoring and control of field technicians enable organizations to resolve customer inquiries on the first try by linking them with the nearest service provider. As a result, these solutions are gaining popularity across all industries. These solutions assist organizations in promptly reacting to client concerns, hence increasing customer experience and connection. The real-time FSM system can effectively manage all field activities in order to make better business decisions.

Restrains

• Inexperienced Labor to Limit Market Growth

Because of the underskilled workforce, service providers and managers face a variety of issues in managing complex assets and services. Due to a shortage of skilled personnel, providers are experiencing on-the-job obstacles such as confusion regarding job requirements, increased return trips, scheduling conflicts, inability to grasp instruction, and other issues. The absence of technician training and information transfer is likely to impede on-field operations. Furthermore, due to the rising burden of on-field personnel, organizations are unable to maintain or recruit new staff. This is predicted to have a negative effect on market growth. Many businesses are employing distinct solutions, such as automation, to handle the problem.

Segment Analysis

By Deployment

The cloud-based deployment model generated the highest revenue in the FSM market in 2023, accounting for a share of 66.3%. Service companies are increasingly adopting cloud solutions due to their scalability, cost-effectiveness, and easier deployment. Cloud-based FSM solutions promote real-time updates and better data access while enhancing collaboration among field teams that work across different regions. Another major factor contributing to the increasing cloud adoption rates is associated with government statistics, which indicated that the cloud expenditure of the U.S. federal government increased by 15.2% in 2023. Similar trends are observed in other developed and developing countries, where public and private sector organizations are actively using cloud-based platforms to streamline operations. The trend is not only expected to continue but also speed up because the need for remote work is increasing in the post-pandemic era, and cloud-based platforms are encouraged by the governments as part of the digital economy strategies. For instance, the Indian government has long implemented the “Digital India” initiative which integrated different cloud-based platforms to increase transparency, and accountability and minimize corruption in public service delivery. As a result, the need for large upfront investments in IT infrastructure is reducing, which makes cloud deployment a viable option for companies of all sizes.

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By Enterprise

In the FSM market, large enterprises commanded the highest revenue share of 65.3% in 2023, and this is primarily because large enterprises have ample resources and their field operations are detail-oriented and complex. Large organizations such as those in the utilities, energy, and telecommunications industries have extensive field forces that require technology that handles scheduling tasks, optimizes resources, and provides real-time monitoring solutions. According to government data, in 2023, large energy-based firms increased their IT budgets by 9.8 percent to cater to more sophisticated FSM solutions. Additionally, the prevalence of assets across large enterprises that require maintenance has propelled the adoption of FSM solutions that provide real-time analytics and predictive maintenance capabilities. According to the U.K. government’s 2023 industrial strategy report, large energy and utility companies are increasingly implementing FSM software to manage their geographically dispersed assets. These organizations are prioritizing tools that can enhance productivity, minimize operational costs, and ensure compliance with strict regulatory standards. This sector-wide adoption of FSM solutions in large enterprises is further amplified by the need for robust, scalable systems that can handle the complexity of large-scale operations.

By End-Use

The largest revenue share of the FSM market was held by telecom 31.1% in 2023. The telecommunications industry is characterized by extensive field operations for network maintenance, installation, and customer service. This major aspect has a direct impact on the high consumption of FSM solutions and is actively spurring the growth of this segment. According to data provided by the government, EMNOs raised their spending on FSM solutions by 11.5% in 2023. The objective of the industry’s considerable investment activity is network infrastructure and the operations supporting customer service improvement.

With the rollout of 5G technology and increased demand for fiber optic networks, telecom companies face rising field service demands. The U.S. government announced a new investment for the upgrading of 5G networks, which is estimated to reach $1.2 billion in 2023. This ongoing development of telecom infrastructure is the key factor behind the rising demand for FSM management that would allow effective real-time technician, equipment, and service support control.

Regional Analysis: North America Dominated the FSM Market in 2023

North America led the FSM market in 2023 and accounted for a market share of 33%. The contribution is due to the high technological infrastructure, which has seen the region digitize at a high rate. Both the public and private sectors have allocated substantial resources toward investments in field service technologies. For example, according to the U.S. Department of Commerce, field service automation investment in North America increased by 13.4% in 2023. The adoption of IoT devices, AI-driven analytics, and cloud-based platforms has fuelled these developments. In addition, there has been high demand for the enhancement of the U.S. infrastructure due to its old age, especially in utilities and transportation. The U.S. federal and state governments have invested heavily in smart city projects requiring highly developed field service operations. The U.S. Department of Transportation, for example, allocated $3.5 billion to the smart transportation infrastructure in 2023. A significant amount of the investment is utilized in FSM for monitoring and maintenance. Such a situation has served in maintaining North America as the FSM market leader.

However, Asia Pacific is expected to record the highest CAGR between 2023 and 2032. This growth can be attributed to the high economic growth and the ongoing development in the field service and inventory management ecosystem. Consequently, organizations will invest highly in the FSM market to maintain the industry’s growth and streamline efficiency. High digital transformation, cloud deployments, increased technological capabilities among the small and medium firms, and the ongoing modernization in workforce management strategies in emerging countries have highly contributed to the growth.

Latest News and Developments

• The U.S. Department of Commerce reports that in 2023, public sector spending on field service automation grew by 15%. The report emphasizes that more government agencies are adopting FSM tools to upgrade public services and manage public infrastructure.
• April 2024, the Canadian government announced an additional CAD 750 million for the Smart Cities initiative. Evidently, the funding will raise the deployment rate of FSM software in utilities and public transport to increase service delivery and real-time monitoring.
• February 2024, Comarch SA announced another collaboration. This time Kyivstar, a Ukrainian telecom company, will enter the fray and modernize their field service maintenance with Comarch FSM.
• October 2023, Infor introduced a new platform for its industry-specific CloudSuites, designed to help enterprises operate more efficiently, swiftly, and dynamically than ever.

Key Players

• Oracle Corporation (Oracle Field Service Cloud, Oracle Service Cloud)
• Microsoft Corporation (Dynamics 365 Field Service, Dynamics 365 Remote Assist)
• Salesforce (Salesforce Field Service, Service Cloud)
• SAP SE (SAP Field Service Management, SAP Service Cloud)
• ServiceMax (ServiceMax Core, ServiceMax Asset 360)
• IFS AB (IFS Field Service Management, IFS Mobile Workforce Management)
• ClickSoftware (acquired by Salesforce) (Click Field Service Edge, ClickMobile)
• Astea International (acquired by IFS) (Alliance Enterprise, FieldCentrix)
• Zinier (Zinier Field Service Automation, Zinier Intelligent Automation)
• Trimble Inc. (Trimble PULSE, Trimble Fleet Management)
• FieldAware (FieldAware Mobile, FieldAware Scheduling)
• Praxedo (Praxedo FSM, Praxedo Mobile)
• Accruent (Kykloud, Maintenance Connection)
• Comarch (Comarch FSM, Comarch IoT FSM)
• GEOCONCEPT (Opti-Time, GeOptimization)
• OverIT (Geocall, SPACE1)
• Jobber (Jobber Business Management, Jobber Client Hub)
• Mize (Mize Field Service Management, Mize Service Parts Management)
• Coresystems (acquired by SAP) (Coresystems Field Service, Coresystems Now)
• Inseego Corp. (Inseego Field Service Automation, Ctrack Field Service Management) and other players