Field Service Management Market size was over USD 6.59 billion in 2024 and is anticipated to exceed USD 40.12 billion by the end of 2037, witnessing over 14.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of field service management is evaluated at USD 7.38 billion.
The growth of the market can be attributed to the increasing adoption of digital technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), to improve the efficiency of field service operations. For instance, estimates indicate that 37% of companies are using AI, while 43% are considering implementing it in the future. Also, 90 percent of leading businesses invest continuously in AI. It is also estimated that 95 million people will work in the AI industry by 2025. The use of AI-based technologies is expected to revolutionize the field service management market by automating manual tasks and increasing efficiency, reducing cost and time, and improving customer satisfaction. AI-based technologies can also help in predictive maintenance and provide higher accuracy in decision making.
In addition to these, factors that are believed to fuel the market growth of field service management include the ever-increasing demand for improved customer service, the need to reduce operating costs, and the availability of technologically advanced solutions are some of the factors driving the growth of the field service management market. In the age range of 16-24, 70% of consumers believe that a quick response from a customer service team can dramatically improve their experience. Furthermore, 88% of customers become brand champions after receiving good customer service. Customers are becoming increasingly demanding when it comes to customer service, wanting fast answers, personalized solutions, and timely responses. Companies are looking for ways to meet these demands, and field service management solutions can help them do that by providing streamlined processes and increased efficiency.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
14.8% |
Base Year Market Size (2024) |
USD 6.59 billion |
Forecast Year Market Size (2037) |
USD 40.12 billion |
Regional Scope |
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Deployment (On-premises, Cloud)
The global field service management market is segmented and analyzed for demand and supply by deployment into on-premises and cloud. Out of these, the on-premise segment is estimated to gain the largest market share of about 37% in the year 2037. The segment's growth can be attributed to the fact that on-premises solutions are more secure, allowing companies to have better control over their data, as well as offering more customized solutions. Additionally, companies may prefer on-premises solutions owing to their scalability and flexibility, as well as the fact that they can be integrated with other existing systems and applications. According to a recent survey IT infrastructures on-premises are still used by 98% of businesses. Furthermore, on-premises solutions generally have a lower total cost of ownership over the long term, making them more attractive to companies when looking to invest in a technology solution. They also provide companies with more control over their data, allowing them to ensure that it is stored securely and is only accessed by authorized personnel.
FSM Type (Scheduling, Dispatch, Route Optimization, Service Contract Management, Work Order Management, Customer Management, Inventory Management, Services)
The global field service management market is segmented and analyzed for demand and supply by FSM type into scheduling, dispatch, and route optimization, service contract management, work order management, customer management, inventory management, services and others. Out of these, the service contract management segment is estimated to gain the significant market share of about 23% in the year 2037. The growth of the segment can be attributed to the need for efficient service contract management and the rising demand for automated solutions. Moreover, the increasing adoption of cloud-based solutions and the growth of the IoT sector are also expected to have a positive impact on the growth of the service contract management segment. The IoT industry is currently valued at approximately USD 780 billion, with 73% of IoT sales revenues coming from enterprise IoT in 2020. IoT devices generate massive amounts of data which needs to be monitored and managed, and this requires a lot of service contracts with various vendors. Additionally, the growth of the service contract management segment is also driven by the increasing need for traceability and visibility within the service contract management process. This helps organizations to identify discrepancies in the contract, which can lead to improved customer satisfaction and higher revenue growth.
Our in-depth analysis of the global market includes the following segments:
By Deployment |
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By Enterprise Size |
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By FSM Type |
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By Industry Vertical |
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North American Market Forecast
The field service management market share in Unites States is projected to be the largest with a share of about 37% by the end of 2037. The growth of the market can be attributed majorly to the increasing demand for optimized operational processes and the growing adoption of digital technologies in the region. Additionally, the growing emphasis on customer service and the increasing number of field service automation and scheduling solutions are also contributing to the growth of the market share in the region. In addition, there is an increased need for field service management as a result of the growing trend of mobile workers in the North America region. In the United States, the number of mobile workers is projected to grow to 94 million by 2024, up from 79 million in 2020. As more organizations in this region are taking advantage of mobile technology to support their workforce, they are faced with the challenge of managing their mobile employees in the field. Field service management software help organizations to better track, manage, and optimize their mobile workers, resulting in improved operational efficiency.
APAC Market Statistics
The Asia Pacific field service management market is estimated to be the second largest, registering a share of about 24% by the end of 2037. The growth of the market can be attributed majorly to the growing demand for real-time tracking and communication technologies for field service management, along with increasing investments by companies in cloud-based platforms. Companies in region are investing in cloud-based platforms to increase the efficiency of their operations, reduce costs, and improve customer service. Cloud-based platforms provide access to real-time data and analytics, which allow businesses to better understand their customers, and make decisions that improve the customer experience. Additionally, they enable companies to better manage their resources and streamline their operations, leading to cost savings.
Europe Market Forecast
Furthermore, the field service management market in Europe is projected to grow at the fastest rate in the other regions by 2037. The growth of the market can be attributed majorly to the rising adoption of the Internet of Things (IoT) and cloud computing technologies that enable organizations to manage their field service activities more efficiently and cost-effectively. Furthermore, the increasing demand for on-site service activities for products and services is another factor driving the field service management market growth in the region. Customers now expect a higher level of service and support from companies. As a result, there has been an increase in demand for on-site service activities, such as maintenance and repairs, installation, and inspection of products and services. This has in turn, caused a surge in the growth of field service management solutions, which help companies meet customer expectations.
The CK Birla Group's Birlasoft Ltd, a global enterprise digital and IT services company, has strengthened its relationship with SAP through its use of RISE with SAP, which enhances the company's digital landscape. This partnership with SAP allows Birlasoft to leverage the power of SAP's cloud-based enterprise technology and gain access to SAP's comprehensive suite of tools and services, which will enable the company to develop and deploy cutting-edge digital solutions for its clients.
A leading hotel company, BWH Hotel Group, has installed Oracle Hospitality Integration Platform in its central reservation system (CRS) to connect to Oracle Hospitality OPERA Cloud property management system (PMS). This will allow all of BWH Hotel Group's hotels to access, manage and share real-time data between their CRS and PMS. This will enable them to better serve their guests and provide them with a more seamless and efficient experience.
Author Credits: Abhishek Verma
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