Field Service Management Market in High Gear – Are You Prepared?
The press for improvements in operational efficiency and the need to enable real-time collaboration among field technicians has the field service management technologies market poised to outpace broader IT spending and rocket past the $3 billion mark worldwide, according to the latest industry research.
The new Field Service Management Market – Global Forecasts to 2019 report from research firm MarketsandMarkets estimates the Global FSM market will jump from $1.58 billion last year to more than $3.5 billion by 2019. FSM is enjoying a compound annual growth rate in excess of 17 percent at a time when IT spending worldwide is inching ahead at less than 3 percent annually.
Innovation among purveyors of FSM tools is driving the trend, the researchers found. Also at work is a general dissatisfaction with the way legacy enterprise management tools handle the intricacies of scheduling and dispatching, inventory management, customer and work order management, reporting, and mobile field execution.
“Field service management is at its growing stage and is expected to rise exponentially due to enhancement of technology in this sector,” the MarketsandMarkets researchers wrote. “Today, companies are demanding real-time based solutions for the field workers, so that they can accomplish their task without any delay or interruption.
“Also, organizations are in need of solutions that can solve their specific demands that CRM and ERP failed to do,” they said.
Demand for robust FSM solutions is spreading beyond the enterprise and major verticals such as construction, oil and gas, transportation and health care and into the SMB space, the research found. The need to differentiate services, boost customer satisfaction, lower labor costs and improve overall efficiency and productivity transcends business size, particularly in highly competitive markets.
“The adoption of cloud-based FSM solution is expected to be extensive among SMBs due to reduced upfront cost and superior management of operations,” the report states.
Recognition of the benefits of purpose-built FSM platforms is evident in the trajectory of the market, but obstacles to adoption remain, the MarketsandMarkets analysts point out. The chief hurdle among those polled? Lack of awareness. Many organizations still cling to large, legacy enterprise resource planning or customer relationship management platforms to handle the management of their field workers. While such inertia still exists, the tide is beginning to turn, the report notes.
“In previous years, the legacy CRM and ERP solution providers had an upper hand, as they offered these solutions to service companies for enhancing productivity through automation of process and optimization of resources,” The MarketsandMarkets analysts said. “However, the failure of these solutions to cater to the specific needs of service operations led to the surfacing and significant adoption of FSM solutions.”
In addition to the cloud, the researchers see mobility and the integration of advanced business analytics as the significant near-term trends driving continued FSM adoption and market growth. Also on the horizon, tighter integration of M2M connected services as organizations look to leverage the Internet of Things in their strategic efforts.