Digital transformation is the driving factor behind FSM software in the field service industry. The field service management software market is expected to grow as demand for cloud-based FSM solutions and services rises. The significant drivers propelling this market are improved product visibility, increased cost-cutting pressure, and a desire for greater control over business operations and processes.
This blog shares insight on the FSM market and identifies several significant factors driving the sector. Let us explore together about the current field service management software trends and what’s pushing this market. Happy reading!
FSM Market and Its Drivers
From 2019 to 2024, it is anticipated that the global field service management (FSM) market will increase at a rate of about 19%. In other words, the market for field service management will increase in size from $3.33 billion in 2019 to $5.19 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%.
What leads to this development:
- Advancement in technologies like IoT, Cloud computing, mobility, AI, and machine learning
- Rise of outcome-as-service model
- Increased cost-cutting pressure
- The desire for better control over business operations and processes
- Deliver better customer experiences,
However, the outbreak of COVID-19 has significantly impacted the FSM market. As businesses scrambled to respond to the global pandemic, many have halted non-essential spending, including FSM software. It has caused a sharp decline in demand for FSM software, and many vendors have been forced to cut prices to stay competitive. In addition, the pandemic’s uncertainty has led many businesses to delay or cancel their FSM projects altogether.
As a result, the COVID-19 pandemic is projected to have a short-term negative impact on the FSM software market. It is worth mentioning, however, that the epidemic has offered some new opportunities for FSM software vendors. For example, when firms adopt remote work models, there is a greater demand for solutions that may assist in managing remote personnel and assets. As a result, the long-term impact of COVID-19 on FSM software market software may be favorable. Only time will tell.
So, the FSM market is expanding due to the next factors.
The Ever-Increasing Demand for Cloud Solutions
If you analyze field service, the shift of enterprises to cloud-based applications is one of the main drivers of future FSM market expansion. Cloud-based FSM software offers various advantages, such as scalability, flexibility, and cost-effectiveness, driving their proliferation among small and medium-sized businesses.
Need for Real-Time Visibility of Field Operations
Another factor in the growth of the FSM market is the need for real-time visibility into field operations. One of the features of FSM software is the ability to track the location of field assets and employees in real time, which helps businesses optimize their operations and increase productivity.
Growing Pressure to Reduce Costs
In today’s increasingly cost-competitive market, organizations increasingly find themselves under pressure to reduce costs due to the size of the field service management market. Field service software solutions can help enterprises automate field operations and improve resource utilization, leading to lower costs.
The Growing Bring Your Own Device (BYOD) Trend
The Bring Your Own Device (BYOD) trend is another growth driver for the FSM market. With BYOD, employees can use their own devices for work, reducing the need for businesses to provide them with separate devices. It not only saves costs but also helps increase employee productivity.
Some key vendors in the field service management market include IBM, Microsoft, Oracle, SAP, ServiceMax, and Workday.
The Growing Need for Customer Satisfaction
In today’s cutthroat economy, businesses are under pressure to deliver superior customer service. FSM solutions can assist enterprises with automating field operations and increase customer satisfaction by enhancing resource usage.
With the help of these technologies, businesses may increase customer happiness, better utilize resources, and cut operating expenses. Additionally, there is a rising need for FSM solutions to manage and track the data produced by connected devices because of the demand for linked devices and services. Throughout the forecast, it is anticipated to fuel the FSM market’s expansion.
FSM Software Market and Its Driver
Field service management software is a critical enabler of digital transformation. However, the field service software market size has some gaps that are not fully thought through, and some really cool capabilities:
- Gaps in the FSM Software Market
The field service software market size is overgrowing, but some problems need to be addressed. These include the lack of standards and the fractured nature of the market.
In addition, the FSM software market is still in the early stages of growth and needs further development to meet the requirements of enterprise customers.
- Capabilities in the FSM Software Market
Despite the challenges, there are still plenty of capabilities in the field service management software market. The secret is to concentrate on creating cutting-edge solutions that can satisfy enterprise customers’ expectations. Additionally, vendors should focus on offering cloud-based solutions to save implementation and maintenance costs.
The FSM software market presents significant growth opportunities for small and medium-sized businesses (SMBs). SMBs are increasingly adopting cloud-based FSM solutions to improve operational efficiency and reduce costs.
Key Vendors in the FSM Software Market
If you perform a field service analysis, you can highlight that some of the key vendors in this market are IBM, Microsoft, Oracle, SAP, ServiceMax, and Workday. These solutions enable enterprises to optimize resource utilization, improve customer satisfaction, and reduce operational costs. Moreover, with the growing demand for connected devices and services, there is an increasing need for FSM solutions. They help manage and track the data generated by these devices. It is expected to drive the growth of the FSM market over the forecast period.
In conclusion, the FSM market is booming and provides exciting new business opportunities. However, the lack of standardization and the fractured nature of the current market are some of the obstacles that need to be addressed.
FAQ
What is the primary driver in the FSM market?
One of the main drivers in the FSM market is the need for connected devices and services. It is expected to fuel the market’s expansion throughout the forecast period.
What will be the growth rate of the field service management market between 2020 and 2030?
The field service management (FSM) market is expected to grow from USD 2.8 billion in 2020 to USD 6.2 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 11.0% during the forecast period (2020–2030).
Which region is expected to lead the global field service management market?
The FSM market is expected to be led by North America. North America’s growth can be attributed to the early adoption of FSM solutions in this region and the presence of key vendors in this market.
