Field Service Management Market - By Deployment Model (On-Premises, Cloud), By Enterprise Size (SMEs, Large Enterprises), By Component (Solution, Services), By Industry Vertical (BFSI, Healthcare, Energy & Utilities, Telecom, Retail & Wholesale), Forecast 2023 - 2032

Field Service Management Market - By Deployment Model (On-Premises, Cloud), By Enterprise Size (SMEs, Large Enterprises), By Component (Solution, Services), By Industry Vertical (BFSI, Healthcare, Energy & Utilities, Telecom, Retail & Wholesale), Forecast 2023 - 2032

Field Service Management Market Size

Field Service Management Market was valued at USD 4.2 billion in 2022 and is estimated to register a CAGR of over 15% between 2023 and 2032. Field service applications integrated with asset management functionalities are driving the market growth. They enable businesses to efficiently track, monitor, and manage their assets, ensuring optimal utilization and minimizing downtime.

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For instance, in October 2023, NetSuite unveiled NetSuite Field Service, an innovative application that extended its offerings for service companies. This new application was developed following Oracle's acquisition of Next Technik. It features a robust mobile app, work scheduler, and asset management functionalities, all designed to enhance efficiency and improve the user experience.

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The growing need for workforce optimization is significantly driving the field service management market progress. Field service management solutions enable businesses to streamline workforce scheduling by intelligently assigning tasks based on the skills, location, and the availability of technicians. By optimizing these assignments, companies minimize travel time, enhance productivity, and reduce operational costs. The efficient allocation of resources improves service delivery while enabling higher customer satisfaction, making workforce optimization a key factor fueling the adoption of field service management solutions across industries.

Integration complexities pose significant challenges to the field service management market. Integrating FSM software with the existing business systems, such as Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP), involves intricate processes. Mismatched data formats, incompatible technologies, and varying protocols can hinder seamless integration. This challenge necessitates skilled IT professionals and careful planning to ensure FSM solutions work harmoniously with other tools, ensuring smooth operations and optimal functionality for businesses implementing FSM systems.

COVID-19 Impact

The COVID-19 pandemic negatively impacted the field service management market, disrupting on-site service operations across industries. Lockdowns, travel restrictions, and social distancing measures hindered field technicians' mobility, leading to delays in service deliveries and project completions. Many businesses faced reduced demand, budget constraints, and operational challenges, causing a decline in the adoption of field service management solutions. Economic uncertainties and downturn further hampered investments in technology, affecting market expansion.

Field Service Management Market Trends

Acquiring cloud-based field service management solutions for scalable Software-as-a-Service (SaaS) offerings is catalyzing the market progress. These solutions enable businesses to enhance operational efficiency, reduce costs, and improve customer satisfaction. For instance, in October 2023, WEX, the global commerce platform streamlining business operations, signed a definitive agreement to purchase Payzer, a rapidly growing cloud-based FSM software provider. This acquisition aligns with WEX's growth strategy, enabling product suite expansion and the creation of cross-selling opportunities through a new, scalable SaaS solution.

The rising adoption of mobile devices significantly influences the market. With the ubiquity of smartphones and tablets, field workers can access FSM applications on-the-go. Mobile devices empower technicians with real-time access to job details, inventory information, and customer data. This accessibility enhances communication, speeds up task completion, and boosts the overall efficiency. Mobile devices facilitate seamless integration with GPS and navigation tools, enabling precise location tracking and optimized route planning, further streamlining field operations.

Field Service Management Market Analysis

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Based on component, the market is divided into solution and services. The solution segment accounted for around 77% of the business share in 2022 and is anticipated to grow significantly in the market. The increasing demand for enhanced efficiency and superior customer satisfaction is driving the adoption of solutions in the market. Businesses recognize the pivotal role of streamlined operations and satisfied customers in maintaining competitiveness.

For instance, in October 2023, Oracle acquired Next Technik, a leading provider of field service management solutions customized for NetSuite clients. Through this acquisition, Oracle intends to transform the field service management industry, delivering improved efficiencies and elevating customer satisfaction. As companies prioritize customer experience and operational effectiveness, the market for these solutions will grow to meet the essential business needs.

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Based on industry vertical, the field service management market is categorized into BFSI, healthcare, energy & utilities, telecom, retail & wholesale, construction & real estate, manufacturing, transportation & logistics, and others. The manufacturing segment accounted for a business share of around 18% in 2022 and is anticipated to drive market expansion. The manufacturing industry benefits from field service management solutions by enhancing workforce productivity. These tools optimize scheduling, ensuring skilled technicians are deployed efficiently. By minimizing downtime and idle time, field service management solutions maximize uptime, enabling increased productivity.

Manufacturers can achieve streamlined operations, timely equipment maintenance, and reduced service response times. The heightened efficiency helps meet customer expectations for quick service while significantly improving the overall operational output, making FSM solutions vital for enhancing productivity in the manufacturing sector.

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North America is experiencing growth in the field service management market. The region accounted for a business share of around 30% in 2022 and is expected to register significant growth over the forecast period. In North America, the rising demand for field mobility solutions is propelling the market progression. Industries, such as utilities and telecommunications, require efficient tools to effectively manage the mobile workforce. FSM solutions cater to this need by providing seamless communication, real-time data access, and optimized task management on mobile devices. As businesses prioritize flexibility and agility in their field operations, the adoption of field service management software will grow, boosting the regional market size.

Field Service Management Market Share

The major players operating in the field service management industry are

• IFS
• Microsoft Corporation
• Oracle Corporation
• OverIT
• Salesforce, Inc.
• SAP
• ServiceMax
• ServiceNow
• ServicePower

In the field service management market, intense competition prevails among the major players such as IFS, Oracle Corporation, and Salesforce, Inc. These dominant companies continuously innovate, expanding their products, focusing on customer-centric solutions, and enhancing service quality to maintain their market leadership.

Field Service Management Industry News

• In March 2021, ServiceMax unveiled Engage, a ready-to-use mobile application linking field service management users with customers. This app provides users with real-time insights into their on-field assets and offers a glimpse of the advantages provided by their service contracts.

The field service management market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments

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By Deployment Model, 2018 – 2032

• On-Premises
• Cloud

By Enterprise Size, 2018 – 2032

• SMEs
• Large Enterprises

By Component, 2018 – 2032

• Solution
  • Mobile field execution
  • Service contract management
  • Warranty management
  • Workforce management
  • Customer management
  • Inventory management
  • Others
• Services
  • Implementation
  • Training & support
  • Consulting & advisory

By Industry Vertical, 2018 – 2032

• BFSI
• Healthcare
• Energy & Utilities
• Telecom
• Retail & Wholesale
• Construction & Real Estate
• Manufacturing
• Transportation & Logistics
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

What is the size of the field service management market?

The field service management industry was valued at USD 4.2 billion in 2022 and is estimated to register over 15% CAGR between 2023 and 2032.

How is the manufacturing sector creating demand in field service management industry?

The manufacturing segment accounted for around 18% market share in 2022 and is anticipated to grow significantly through 2032 as field service management solutions enhance workforce productivity.

What factors are boosting the growth of North America field service management industry?

North America field service management market share was around 30% in 2022 and is expected to register strong CAGR through 2032 owing to the rising demand for field mobility solutions in the region.

Who are the key players in the global field service management industry?

IFS, Microsoft Corporation, Oracle Corporation, OverIT, Salesforce, Inc., SAP, ServiceMax, ServiceNow, and ServicePower.