During the projection period, The COVID-19 pandemic has pushed field service solution adoption across business verticals, as customers seek to take advantage of field service solution benefits like as expansion and cost savings. Despite the global economic slump, about half of subscription businesses are growing at the same rate as before, with no negative impact from the COVID-19 epidemic.
The Field Service Management (FSM) market is estimated to increase at a Compound Annual Growth Rate (CAGR) of 11.9 percent, from USD 3.2 billion in 2021 to USD 5.7 billion in 2026.
Impact of COVID-19 on the FSM Market
Organizations all over the world are changing the way they buy and sell products and services as a result of the COVID 19 outbreak. During and after the COVID-19 lockout, several studies and survey companies, including large corporations and SMEs, raised their marketing spending. The COVID-19 epidemic has had an impact on all aspects of society, including individuals and corporations. Throughout the world, the technology ecology has played a critical role. With the onset of COVID-19, field service management organisations are under tremendous pressure to successfully lead teams and maintain safety compliance. There is no room for misunderstandings or mistrust. Prior to the epidemic, the US average for organisational trust was barely 70%, according to Harvard Business Review.
Given that stressful events intensify fear and distrust, it is even more important at this time to focus on building organisational confidence. Vendors are employing a variety of price tactics in order to thrive in a competitive market climate, particularly during the epidemic. Because of technical improvements, several software suppliers are embracing customer-centric pricing models. ServiceMax provided new customers with free access to its Zinc communication platform in March 2020. This service intends to establish direct connection between the fieldwork team and the service delivery chain so that clients can be served in real time while remaining safe throughout the epidemic. Many companies are increasingly adopting policies such as Bring Your Own Device (BYOD), which allow technicians to use their own devices for work, such as mobile phones and laptops, which not only lowers overall IT costs but also increases the availability of tools for field workers and improves their safety. Field service solutions have gained traction as a result of the COVID-19 outbreak, as organisations have adjusted their annual budgets and preferences to get through this pandemic. In addition, organisations all over the world are investing substantially in field service solutions in order to maintain operations. According to a Copperberg survey, COVID-19 has prompted roughly 35% of firms to invest in remote assistance technologies. The COVID-19 pandemic has pushed field service solution adoption across business verticals, as customers seek to take advantage of field service solution benefits like as expansion and cost savings. Despite the global economic slump, about half of subscription businesses are growing at the same rate as before, with no negative impact from the COVID-19 epidemic. Following the pandemic and COVID-19 shutdowns, retailers must reallocate financial and human resources to digital innovation.
FSM Market Trends
Drivers: The field services industry’s embrace of automation and digitalization is increasing.
The field service technicians’ real-time monitoring aids in the dispatch of the nearest professional to remedy an issue. It also gives field workers the customer and case data they need, as well as step-by-step instructions, to remedy a client’s problem and boost first-time fix rates. Instead of coming to the site, technicians can use mobility-enabled field service management solutions to remotely reboot a machine or upload new software. Field-based sales are predicted to increase as a result of providing technicians with the relevant information via a mobile application. Customers may track the technician’s progress in real time through the smartphone application and rest certain that help will arrive on time. Mobile field service solutions enable service firms to obtain more control over field operations, make better business decisions, and provide timely service to their clients through the implementation of mobility field service solutions. Adopting a cloud-based field service solution allows service businesses to take use of the newest hardware, software, and communications technologies available on the market. Many components of technicians’ tasks, such as scheduling, routing, billing, and dispatch, can also be automated. According to the Service Council, 84% of field service executives have no reservations about employing a cloud-based service, and many have already done so.
Restraints: Organizational security issues around data confidentiality
The majority of field service data is stored on corporate servers behind firewalls and security measures. Devices that access this data, on the other hand, are not protected in this way. Technicians’ mobile devices are vulnerable to attacks, especially if they are connected to insecure Wi-Fi networks on the job. As the world becomes more digital, the number of cyberattacks has increased in tandem. As a result, data security has become a big concern for businesses. Companies have a low knowledge of the necessity for cyber-specific procedures to protect their data. With the transfer of data from the field to the cloud, there is a considerable increase in cybersecurity issues, since malevolent parties can attack servers, networks, and communication channels. Several solution providers are working on digital twin solutions that will allow users to test and create all types of equipment in a virtual environment, as well as predict asset issues and unplanned failures. If these applications are hacked, they can expose pieces of intellectual property (IP), such as knowledge about the operation of automation and control systems. As a result, service providers in highly regulated industries are wary of adopting modern asset performance management technologies. Furthermore, enhanced mobile workers rules, often known as BYOD policies, allow field technicians to bring their own devices to the job site. When these personal gadgets are connected to an unsecured network, they are vulnerable to assaults.
Due to the emergence of Covid-19, field service firms are being forced to restrict site visits in order to reduce human-to-human contact, resulting in challenges such as clear communication with customers and support.
Infectious diseases continue to represent a substantial hazard to civilization despite great medical development over the last few decades. While certain diseases are only found in certain areas, others can spread and cause epidemics or pandemics. While the loss of human life is the most important part of an epidemic, the transmission of a virus has substantial economic consequences for national or regional economies. Any disease epidemic has an impact on worldwide trade, significantly complicating the operation of global supply networks. The breakout of the COVID-19 pandemic, for example, had an impact on the global economy in 2020. COVID-19 originated in Wuhan, China, and has had a significant impact on the Chinese economy. The field service industry is facing challenges, such as a decrease in service requests. The number of calls received on a daily basis has decreased by 12% in some firms. Globally, industries such as energy and oil and gas are seeing a decrease in demand. Several field service businesses are under pressure to limit site visits in order to eliminate human-to-human contact, which has resulted in concerns such as customer communication and help.
Emergence of technology, such as augmented reality, provide opportunities.
Many technologies are beginning to make their way into the public. The field service management sector is no exception. Today’s field service firms use technologies like augmented reality (AR) and virtual reality (VR) to improve their operating efficiency (VR). AR improves efficiency, especially when it comes to training and maintenance modules, as well as uploading sensor data to the technician’s AR glasses. This not only directs the technician through the process, but it also allows him to examine the device’s temperature, sensor, and pressure data. This also allows the technician to visually evaluate the equipment without having to physically engage with it, removing distractions and the need to spend hours poring over manuals. The result is achieved quickly, resulting in cost savings and delighted consumers. Customers will be able to visually follow field service workers and customer service representatives through maintenance and repair operations. A field technician may take a customer on a virtual tour to assist them fix small problems during minor repairs and service calls.
The solutions category is expected to contribute more to the FSM market growth throughout the forecast period, based on component.
Field service management solutions ease the job of employees, streamline the workforce in firms, and provide them more time to focus on more important business issues by providing services such as work order administration, inventory management, scheduling, and dispatching. Time and attendance, leave and absence management, workforce analytics, and other solutions, such as fatigue management and task management, are examples of field service management solutions that aid in the management of numerous HR operations and the analysis of data for core business processes. Field service optimization, greater use of remote IoT connectivity, and the rise of AR/VR in field-based sectors including energy and utilities, oil and gas, manufacturing, and construction and real estate are all driving up demand for field service management systems. However, due to the COVID-19 pandemic, these verticals’ output has decreased, affecting production directly. The use of field services has also dropped as a result of this decrease. Containment procedures have forced the closure of several production factories around the world. However, these verticals are now gradually resuming their normal operations.
The scheduling, dispatch, and route optimization category is expected to be a significant contribution to the FSM market throughout the projected period, based on solutions.
In the field service landscape, the scheduling, dispatch, and route optimization solution is gaining traction. It’s utilised to collaborate on workforce management and improve dispatch operations. By distributing jobs to field representatives, the solution allows clients to maximise their output. It assigns jobs to field representatives based on their skills and current location in order to provide services in the shortest period possible. The procedure by which a user dispatches an employee (an engineer, specialist, or technician) to remedy a problem or give a solution is known as dispatching. Customer satisfaction is dependent on the dispatching procedure. This is a critical business requirement in order to maintain existing clients while also satisfying new ones. Field service firms can use the solution to schedule and dispatch resources based on policies they create for clients, organisations, and regulatory needs. The route optimization tool aids in the discovery of the most efficient path between two points. Among the benefits of the system are automated scheduling decisions for real-time collaboration, total visibility, quick service delivery, and improved customer experience. Other reasons driving this segment’s growth are the growing demand for faster service delivery and the need to proactively manage service requests by automating scheduled requests according to business needs.
The implementation and integration sector is expected to contribute more to the FSM market growth throughout the forecast period, based on services.
External sources of support to a corporation are referred to as professional services. System integration and implementation are also included in these services. Technical consultants, dedicated project management teams, and enterprise video experts are among the companies that provide professional services. They specialise in the design and delivery of crucial decision support software, tools, services, and expertise. Integration and installation services are expected to generate significant revenue in the forecasted year, as they help clients deploy and integrate field service management solutions with their existing systems, such as ERP and CRM. These services are offered by trained and technically skilled people who can ensure that field service management solutions are deployed correctly. Because these solutions supply field services in less time and at a lower cost, the market for field service management systems is likely to develop.
Large firms are expected to contribute more to the FSM market growth throughout the forecast period, based on their size.
Organizations can take advantage of FSM’s advantages because of its low cost and significant economies of scale. Large corporations have numerous departments and a dispersed workforce. Large businesses are more likely to use field service management solutions, and this trend is predicted to continue during the forecast period. Huge businesses need field service management systems because they have a large workforce, a lot of paperwork, and a lot of client information to keep track of.
When it comes to assigning work orders to field workers and engineers, large corporations have issues. Work orders that aren’t managed well by large businesses might result in higher expenses and lower productivity. Customer loyalty and market share may be lost as a result of this. Large companies are focused on field service management solutions to centralise their business processes and essential data from their employees and consumers. The expansion of the large enterprise segment is projected to be aided by these factors.
The on-premise category is expected to contribute more to the FSM market growth throughout the forecast period, based on deployment mode.
Because field service enterprises deal with sensitive and confidential data about customers and companies, on-premise deployment field service accounts for a larger market share in the field service management market by deployment type, owing to the security and flexibility provided by them while retrieving data. These businesses employ on-premise field service management solutions to maintain complete control over customer and company information security. On-premise solutions are those that are installed and hosted in a company’s IT infrastructure and are managed by the company’s internal IT employees. They necessitate a large initial investment by enterprises, but do not necessitate incremental costs throughout the course of ownership, as does cloud implementation. They reduce a company’s reliance on third-party applications, which might pose a risk to end users’ sensitive data. When compared to cloud deployment, the simplicity of integration with current IT infrastructure and systems is great.
The manufacturing sector is expected to be a higher contributor to the FSM market growth throughout the forecast period, based on verticals.
Manufacturing companies’ field service management is a booming industry. Manufacturing companies are turning to Industry 4.0 technologies, which include intelligent predictive maintenance and the Internet of Things, to detect irregularities in machinery and send out real-time alarm signals, in order to reduce machine downtime. Manufacturing companies in Southeast Asia may cut equipment downtime in half by 2025 if they apply such technology, according to an industry expert assessment. A field service management (FSM) solution generates work activities based on predictive maintenance or IoT triggers and finds the best-suited field technician to be on-site to complete the work activity in real-time. This is accomplished by intelligent scheduling, dispatching, and optimised algorithms embedded into the system. FSM solutions should provide the field service professional with all of the information and instructions they need to complete the task as quickly as possible. Manufacturers can improve their business efficiency and customer interactions with the help of FSM solutions.
During the predicted period, APAC will have the greatest CAGR.
The APAC area is one of the world’s digital centres. The benefits of tech-enabled marketing solutions as a facilitator of digital transformation have been quickly recognised by businesses in this region. High consumer spending and internet penetration, rising number of business procedures, springing startups with low IT resources, and increasing acceptance of cloud technologies are all factors contributing to the market’s rapid expansion in APAC. Furthermore, due to the region’s low-cost benefits and high availability of the labour, numerous global FSM solution providers, including FieldEz, have established operations in the region, and adoption of FSM solutions is likely to grow substantially in the future across the region. The government has increased its support for the expansion of SMEs in the region, and the retail and e-commerce markets are expanding, driving need for FSM solutions. Furthermore, the region’s industry is being boosted by the adoption of cloud-based solutions and services.