Field Service Management Market Size, Share, and Growth Forecast for 2024 - 2031

Field Service Management Market Size and Share Analysis

The global field service management market is estimated to reach a size of US$ 4.58 Bn in 2024. It is predicted to rise at a CAGR of 12.3% through the assessment period to reach a value of US$ 10.31 Bn by 2031.

Solutions for field service management, or FSM, are becoming increasingly popular across a wide range of sectors, including energy and utilities, communications, construction, and oil and gas. With mobile-driven solutions boosting productivity and consumer-led experience, there is a growing need for customer-centric solutions.

Studies indicate that 70 to 80% of companies adopting mobile-driven solutions report improved productivity. Mobile applications enable remote work, real-time communication, and task automation, directly enhancing workforce efficiency.

Technological developments in FSM, such as artificial intelligence and IoT connectivity, are driving market share. Vendors are implementing customer-centric pricing strategies and embracing cloud computing to alleviate IT department burdens. These help enable external service providers for support and maintenance. Services like ServicePower are extending in Europe.

The adoption of IoT and machine learning for new services requires modern FSM solutions. The field service management industry is experiencing rapid growth due to the high demand for time and cost-effective solutions across large enterprises. Large enterprises are estimated to witness a CAGR of 11% from 2024 to 2031.

Key Highlights of the Market

• Demand for real-time visibility in field operations is driving demand for mobile solutions that offer immediate updates and enhance first-time fix rates.
• Companies are embracing automation and digitalization to streamline operations, enhance efficiency, and decrease costs.
• Increasing demand for real-time communication and efficient scheduling has led to the adoption of mobile workforce management solutions.
• Adoption of cloud-based FSM solutions offers companies scalability, flexibility, and cost-effectiveness, making it easier to manage field operations.
• In 2024, software is estimated to attain a market share of 56% due to rising demand across various fields.
• Based on deployment, the cloud segment is projected to account for a market share of 65% in 2024 due to ease in utilization.
• Owing to the rigid telecommunication infrastructure, North America is estimated to attain a market share of 69% in 2024. 
• Europe is anticipated to hold a market share of 36% in 2024 with developments in digital technology.

Market Attributes	Key Insights
Field Service Management (FSM) Market Size (2024E)	US$ 4.85 Bn
Projected Market Value (2031F)	US$ 10.31 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	12.3%
Historical Market Growth Rate (CAGR 2019 to 2023)	10.4%

Robust Telecommunication Infrastructure to Foster Innovation in North America

North America leads the field service management market due to its robust telecommunications infrastructure and extensive mobile coverage. Widespread use of cloud computing platforms like AWS, Microsoft Azure, and Google Cloud is also boosting growth. In 2024, North America accounted for a market share of 69%.

• ServiceNow's Field Service Management and Salesforce's Field Service Lightning are two examples of mobile-driven FSM systems. These are widely used in North America since 99.5% of field service engineers utilize mobile devices for on-site work.
• In July 2024, Salesforce launched AI-powered scheduling and optimization tools to increase operational efficiency and preserve a competitive advantage in the digital age. It streamlined processes, further cutting down on service times and raising customer happiness.

Trend of Digital Transformation in Europe to Create Novel Opportunities

Europe is experiencing a surge in automation in field service management due to technological innovations and increased demand for efficient solutions. The region is estimated to attain a field service management market share of 36% in 2024.

Industries like manufacturing, energy, and utilities are investing in IoT and AI to improve operations. Predictive maintenance solutions using IoT sensors optimize equipment performance and reduce downtime. Cloud-based FSM platforms offer scalable and cost-effective solutions for managing large field teams.

• In March 2024, businesses in Europe started using integrated FSM systems, utilizing real-time data to enhance resource allocation and decision-making.

The trend toward digital transformation in Europe is enhancing operational efficiency and driving growth of the market in industries like logistics and telecommunications. 

FSM Software Leads Owing to Rising Adoption of Cloud-based Systems

The global field service management market is divided into software and services, with software solutions accounting for 56% of the share in 2024. This is due to the rising adoption of FSM software, particularly cloud-based systems, which offer real-time insights and streamlined processes.

The services segment, which includes managed and professional services, is rising, particularly in implementing and maintaining FSM solutions. Services help integrate FSM tools with existing systems, addressing deployment complexities. Growth in the dual-segment expansion of software innovation and support services is driven by increasing demand for resource optimization in the manufacturing and telecom industries.

Organizations Seek Cloud-based Deployment due to High Convenience

In 2024, the cloud segment of the field service management market accounted for 65% of share, indicating a rising preference for cloud solutions over on-premises. Cloud-based systems offer scalability, cost-effectiveness, real-time accessibility, and subscription-based pricing. These help in reducing total costs and enhancing productivity with real-time updates and seamless software maintenance.

SAP SE and ServiceMax are leaders in the global market, offering cloud-based solutions for large enterprises to improve scheduling and resource allocation. The on-premises segment offers customized solutions and enhanced security for sensitive data handling.

The integration of AI and IoT technologies into cloud-based FSM systems is driving industries like manufacturing, transportation, and utilities toward cloud adoption. Substantial market growth in 2024 is predicted across North America and Europe.

Market Introduction and Trend Analysis

Technology breakthroughs and operational requirements have led to the rising use of field service management systems in sectors such as telecommunications, construction, and energy. To increase productivity and customer satisfaction, these technologies take advantage of IoT, Artificial Intelligence, and mobile connections.

Predictive maintenance builds customer trust by lowering expenses and equipment downtime. Cloud-based FSM solutions can efficiently manage remote workers and optimize workflows. For example,

• The COVID-19 pandemic brought to light the necessity of FSM instruments to guarantee productivity and adherence to health rules.
• While AI-powered solutions increased worker productivity by 29% and decreased job delays by 67%, vendors such as ServicePower extended their services across Europe.

Businesses are adapting to labor shortages by incorporating remote services, drone-assisted inspections, and customer-centric features like self-service apps and feedback systems. These are making FSM indispensable in modern service delivery.

Historical Growth and Course Ahead

The global field service management market recorded a CAGR of 10.4% in the historical period from 2019 to 2023. Sales of field service management systems soared because of the rising adoption of automation and the need for high productivity. The market also surged quickly due to constant innovations in technology.

The implementation of cloud technology, which democratizes data and increases usage, is anticipated to drive medium-term market growth. Investments in technologies like IoT, AI, and data analytics, especially in the healthcare sector, are set to propel market expansion. Demand for field service management is estimated to record a considerable CAGR of 12.3% during the forecast period between 2024 and 2031.

Market Growth Drivers

Urgent Need for Real-time Visibility Services to Support Growth

Real-time field service systems are revolutionizing industries by improving operational efficiency and customer satisfaction. These systems connect customers with the nearest service providers, enabling swift responses and stronger relationships. Managers can effectively allocate resources, improve schedules, and respond to emergencies with the help of real-time visibility technologies. For example,

• In March 2021, ORTEC debuted its cloud-based field service platform. It includes real-time scheduling and monitoring tools to improve customer service and problem-solving.

In sectors like utilities, logistics, and telecommunications, real-time FSM systems boost output, decrease downtime, and simplify procedures. For instance,

• Real-time FSM is a vital component of contemporary corporate efficiency. Reports indicate a 25% decrease in delays and a 30% increase in first-time repair rates, which improve customer happiness and operational sustainability.

Rapid Shift toward Mobile Field Services to Propel Innovation in Industry

The implementation of mobile technologies in field service management is improving customer happiness and operational effectiveness. For example,

• While 62% of field service professionals use a ‘bring your own device’ approach, 49% of them communicate using mobile phones.
• Real-time insights from solutions like SAP SE's mServiceOrder enable field personnel to handle activities while on the road and lessen their reliance on paperwork.

By allowing technicians to view schedules, amend statuses, and interact with dispatchers in real-time, mobile-driven FSM apps are transforming the business. To better manage resources and forecast work requirements, these apps also integrate AI.

By providing quicker and more responsive field services, this customer-centric strategy lowers mistakes and enhances service delivery. As mobile penetration rises, it is anticipated that this will increase the market share of FSM providers.

Market Restraining Factors

Lack of Skilled Workforce to Limit Market Growth

According to a poll, around 40% of field service businesses struggle with a lack of skilled workers. It can result in problems like misunderstandings, more repeat visits, and scheduling conflicts. Poor knowledge transfer and insufficient training make this worse, leading to ineffective on-field operations and low customer satisfaction.

Companies are utilizing automation and unique Field Service Management (FSM) solutions to tackle challenges. Modern FSM platforms offer real-time communication, resource allocation optimization, and automated task scheduling. These help in reducing human error, streamlining workflows, and enhancing operational efficiency and employee retention.

• According to 37% of businesses, using automation and digital technologies might be challenging due to issues with user acceptance and change management. These hazards may be reduced, though, with the right guidance and assistance.

Key Market Opportunities

Integration of Remote AR Assistance to Offer On-site Support

By enabling technicians to get hands-free, real-time assistance from distant specialists, remote Augmented Reality (AR) is completely changing field service management. This technology allows for quicker and more precise problem-solving by superimposing digital instructions over the real world. For example,

• Xerox claimed a 20% increase in productivity and a 67% improvement in first-time repair rates. Multi-expert cooperation is made possible by solutions like Vuforia Chalk, which help improve the effectiveness of problem-solving.
• In March 2021, ORTEC launched a cloud-based field service platform that included Augmented Reality (AR) for real-time scheduling and monitoring. This technology helps new technicians retain their expertise and cuts down on training time.

The future of the industry is drastically changing with the incorporation of AR, which not only lowers operating costs but also improves service quality.

Increasing Number of Platforms to Create Opportunities for Innovations

Demand for real-time visibility in field operations is driving developments in mobile solutions, enhancing workflows and first-time fix rates. For instance,

• For real-time job monitoring in the Field Service Management (FSM) business, MHI Vestas used Resco's mobile solutions. These have improved resource allocation, decreased operating costs, and increased efficiency in demanding offshore conditions.
• Mobile applications for inventory management, task scheduling, and real-time updates have been launched by Microsoft Dynamics 365 and Salesforce Field Service. These have helped in improving communication between back-office teams and field personnel.

Similar innovations boost customer happiness and reduce downtime. The industry is anticipated to continue changing because of the integration of AI and predictive analytics.

Competitive Landscape for the Field Service Management (FSM) Market

Start-ups are utilizing field service management systems to develop software solutions that enable precise hourly wage calculations for employees. These platforms offer comprehensive shift management tools, user-friendly schedule creation, and training modules to enhance employee skills and provide clear performance evaluation criteria for professional growth. These robust features adapt to fluctuating workforce availability.

Their automation of scheduling optimizes worker allocation based on availability and workload requirements, ensuring efficient operations and minimal downtime for businesses. Manufacturers are forming strategic partnerships with specialized niche players to reduce carbon emissions and contribute to a clean energy economy. This collaboration is crucial for accelerating environmental goals and fostering a sustainable future, as it focuses on eco-friendly practices and technologies.

Recent Industry Developments

• In October 2024, FieldRoutes, based in the U.S., introduced the Bundles feature at the PestWorld conference. It allows businesses to combine multiple services into bundled packages, improving operational efficiency and growth.
• In October 2024, Zuper, headquartered in Seattle, introduced the 'Projects' project management solution. It offers a simple, job-based approach for managing complex projects across various industries, ensuring profitability and flexibility.
• In August 2024, India-based start-up eDAS introduced FLEETRACK, a GPS-based field tracking system for efficient workforce management across various industries. It combines robust software with an intuitive mobile app for real-time tracking and task management.
• In July 2024, HERE Technologies, headquartered in Amsterdam, partnered with SAP's AI-enabled Field Service Management solution to enhance efficiency, reduce costs, and improve customer experience by integrating HERE Matrix Routing.
• In March 2024, Salesforce, based in California, introduced Einstein 1 Field Service Edition. It helps in enhancing technician productivity and operational efficiency with AI, real-time data, and generative AI. It includes Data Cloud, Appointment Assistant, Slack, and Visual Remote Assistant.
• In March 2024, Workiz, headquartered in California, introduced 'Genius', an AI-powered toolkit for field service management. It helps in enhancing response time, customer satisfaction, and business operations by providing personalized smart messaging and data centralization.

Field Service Management Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Key Market Segments Covered	Component Application Deployment Enterprise Size Vertical Region
Key Companies Profiled in the Report	Comarch SA FieldAware Group Ltd. GEOCONCEPT SAS IFS AB Infor, Inc. Oracle Corporation OverIT S.p.A. PRAXEDO Salesforce.com, Inc ServiceMax, Inc.
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Field Service Management Market Segmentation

By Component

• Software
• Services

By Application

• Work Order Management
• Schedule, Dispatch, and Route Optimization
• Customer Management
• Inventory Management
• Service Contract Management
• Reporting and Analytics
• Others (Resource Management, Technician and Vehicle Tracking)

By Deployment

• On-premises
• Cloud

By Enterprise Size

• Large Enterprises
• Small and Medium Enterprises (SMEs)

By Vertical  

• Banking, Financial Services and Insurance (BFSI)
• IT and Telecom
• Healthcare and Life Sciences
• Manufacturing
• Transportation and Logistics
• Construction and Heavy Equipment
• Energy and Utilities
• Others (Government, Media and Entertainment, Education)

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• Middle East and Africa

To know more about delivery timeline for this report Contact Sales