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Field Service Management Market Analysis

The Field Service Management Market size is estimated at USD 4.94 billion in 2024, and is expected to reach USD 8.59 billion by 2029, growing at a CAGR of 11.70% during the forecast period (2024-2029).

Field service management firms are experiencing immense pressure to effectively lead teams and ensure safety compliance with the outbreak of COVID-19, where the risks are running high. There is no space for miscommunication or distrust. According to Harvard Business Review, before the pandemic, the U.S. average for organizational trust was only 70%. Seeing as stressful situations exacerbate fear and distrust, it is even more critical at this point to focus on developing confidence within the organization.

• Vendors implement various pricing strategies to survive in the competitive market environment. The software vendors are adopting customer-centric pricing strategies enabled by technological advancements. Several vendors in the FSM industry are focusing on providing value-based pricing models depending on the customers' needs and value perceptions. The software solution pricing is based on the differentiating characteristics of the solution and the value-added features given to the customers.
• The preference for software-as-a-service (SaaS) over traditional on-premise software is set to increase considerably during the forecast period, aided by the growing demand for better and faster service. With the growth of cloud computing in the field service management market, many enterprises are switching to cloud-based FSM solutions. These solutions ease the burden on the I.T. department and allow the external service providers to offer support and maintenance to their users.
• The vendors in the market are expanding their services, which results in increasing their visibilty and growth opportunities in the market. For instance In May 2022, ServicePower, a leading Field Service Management (FSM) software company, has announced that its services are now available in France. 
• The field service management specialist confirms its expansion in Europe and its ambition to assist retailers, insurance companies, consumer electronics companies, and home service companies in providing tailored first-class experiences to their customers while achieving significant operational efficiencies.
• The original equipment manufacturers are adopting the industrial Internet of things (IIoT) for new services, which require a modern FSM system to manage the field service delivery leading to an increased demand for FSM solutions. Additionally, machine learning provides new sources of competitive advantage. The successful execution of this requires modern FSM solutions. There has been an increasing adoption of field service management solutions, as it improves workforce productivity and streamlines the business process without increasing the size of the field-based workforce.
• Also, the field service management industry has witnessed rapid growth over the last few years, buoyed by the increasing demand for time and cost-effective solutions. Several studies have revealed that there would be a shortage of field service workforce in mature markets such as the U.S. and Europe due to the prevalent demographic conditions, which has, in turn, led to organizations placing a higher emphasis on back-end automation and the use of advanced technologies to enable remote monitoring.

Field Service Management Market Trends

Service Contract Management to Hold Significant Market Share

Field Service Management Industry Segmentation

Field service management (FSM) software enables firms to manage field-based staff by optimizing their placement, availability, and skill sets as labor resources. FSM software to control scheduling, assignment, route planning, resource allocation, and task training for on-site field workers. Employees bring FSM software with them to provide updates on productivity, task completion, arrival/departure timings, and technical support for any unique challenges faced on the job.

The field service management (FSM) market is segmented by deployment (on-premises, cloud), organization size (small and medium enterprises, large enterprises), FSM software and service type (scheduling, dispatch, and route optimization, service contract management, work order management, customer management, inventory management, services), end-user (allied FM, IT and telecom, healthcare and life sciences, energy and utilities, oil and gas, manufacturing), and geography (North America, Europe, Asia Pacific, and Rest of the World). The market sizes and forecasts are provided for a value of USD for all the above segments.