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Mobile field service management market in the US to grow at 22% by 2025

The market size of the US Mobile Field Service Management market is estimated to be USD 600 Million in 2018 and is expected to record CAGR growth rate of 22% and is expected to reach a market size of USD 2.41 Billion in 2025.

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Definition / Scope

Field Service Management constitutes the management of company’s resource employed at or en route to the property of clients, rather than on company property. Some Examples of Field Service Management includes locating vehicles, managing worker activity, scheduling and dispatching work, ensuring driver safety, and integrating the management of such activities with inventory, billing, accounting and other back-office systems.

FSM most commonly refers to companies managing installation, service or repairs of systems or equipment. It can also refer to software and cloud-based platforms that aid in Field Service Management.

Mobile Field Service Management

Companies are adopting mobile computing to improve communication with the field, increase productivity, streamline work processes, and enhance customer service and loyalty. Field service software can be used for scheduling and routing optimization, automated vehicle location, remote vehicle diagnostics, driver logs and hours-of-service tracking, inventory management, field worker management and driver safety.

Mobile software may use databases containing details about customer-premises equipment, access requirements, and parts inventory. Some field service management software integrates with other software such as accounting programs.

Mobility can

  • Provide real-time analysis of mobile work status
  • Increase first-time-fix rate
  • Reduce overhead or administration costs of paper-based field service management and data entry
  • Preserve e-audit trail for full regulatory compliance
  • Increase productivity
  • Shorten billing cycles
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Market Overview

The US Mobile Field Service Management market continues to evolve as technology is becoming more powerful and customer expectations are becoming more demanding. Mobilization has become a key trend in the past decade, transforming the previously desktop-bound FSM into a real-time solution that tracks and locates field workers, optimizes dispatch, captures and transmits data to and from a worker’s mobile device, integrates with backend systems and automates work processes.

It is forecasted that the US Mobile Workforce Management market (a larger solution category that encompasses Mobile FSM) to reach USD 4.16 Billion in 2025 from a market size of USD 1 Billion in 2018

The market size of the US Mobile Field Service Management market is estimated to be 600 Million in 2018 and is expected to reach a market size of USD 2.41 Billion in 2025 growing at a CAGR of 22%

The US Cloud Field Service Management is expected to reach a market size of USD 1.09 Billion in 2025 from a market size of USD 357.26 Million in 2018 growing at a CAGR of 17.3%.

The revenue forecast and the estimated CAGR of 22% is predicted on the belief that this market’s predictive analytics capabilities will grow in n sophistication. Until recently predictive analytics focused upon calculating individual field worker travel, arrival, and completion times. Now, however, cutting-edge mobile FSM vendors are harnessing the power of remote M2M monitoring and analytics to change the very nature of the field service ecosystem.

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Key Metrics

Metrics Value Explanation
Base Year 2018 Researched through internet


Market Risks

Security concerns with respect to access to confidential data

With the increase in mobile device capabilities, the use of mobile devices in the workplace has skyrocketed. This is even true for labor-intensive jobs like construction, electrical and HVAC services, as mobile devices can keep employees in contact with the home office when out on the field. While field service software with mobile capability can serve as an incredible productivity booster for most companies, an improperly designed one can introduce even more problems.

Many mobile devices have fewer security features than computers, especially when it comes to connecting to Wi-Fi networks. Connecting your mobile devices to these Wi-Fi networks can leave your devices prone to malware and cyberattacks. While many quality field service management software companies design mobile apps with built-in safeguards against such attacks, low-cost software can come with apps without such protections. Using such an application can result in an employee’s device unintentionally leaking confidential financial or identifying information about your business and its customers, opening the door for financial and security losses.

Legal Ramifications

For many businesses, their status with regulatory and licensing agencies depends on their performance and the security of customer data. Many companies can lose their licensing if it is proven that they mishandled secure client information. Even if they manage to maintain their licenses, they can still end up being sued by affected customers.

Top Market Opportunities

Increasing Demand for Enterprise Mobility

Safer practices, real-time weather feeds, optimized routes, access to supply systems, automation. Mobility and analytics are at the heart of each of these aspirations and will continue to drive significant productivity gains, improve worker effectiveness and safety, and eliminate errors by capturing data directly from the work source, while integrating real-time data input from the cloud.

IoT enablement and work order APIs

There is so much hype around the Internet of Things, it can be a challenge to cut through the noise and determine the strategy necessary to make all these sensors and systems work together. Leading FSM solutions incorporate any and all relevant information from smart connected devices into the algorithms used to schedule and manage the execution of work.

Social communication

Social communication is paramount for field service organizations who are focused on delivering a superior customer experience, as well as increasing efficiency. Field service leaders need to consider communication between field service professionals to help troubleshoot problems while on site at the customer and improve first time fix. Leaders also need to consider how social communication to customers can drive customer lifetime value by eliminating friction in scheduling and fulfilling customer appointments.

Wearables

Whether a smart watch, glasses or head-mounted camera, wearables have many practical applications for field service. While it is still early days for wearable adoption in the enterprise, leading FSM solutions have POC’s in place that will enable field service professionals to change their status via a smart watch gesture, or to leverage Augmented Reality and get instructions and schematics overlaid on equipment as they are standing in front of it.

Market Drivers

Hard Dollar Business Impacts of Mobilizing FSM

Enterprises are experiencing a very interesting mix of hard-dollar financial impacts combined with softer benefits around engagement and competitive standing. A significant proportion of large users are reporting:

  • A stronger competitive advantage
  • Improved customer engagement
  • New revenue streams
  • Faster trouble ticket resolution
  • Increased billing accuracy
  • Decreased labor costs
  • Expedited cash flow
  • Reduced paperwork

End-customers are demanding a higher level of visibility and access

Customers are demanding, speed, convenience and control when interacting with service businesses. For field service organizations, meeting customer expectations means a growing focus on improving customer communication through self-service tools. One of the biggest trends in field service solution is the proliferation of self-service solutions to meet these needs, from live chats, to social media based support, online communities and customer portals.

Investment in new technologies

Investment in new technologies such as machine learning, augmented reality and predictive analytics offer field service organizations a competitive edge. The architecture of FSM software solutions is an exemplary management framework that connects people, processes, and technologies. As society becomes increasingly connected by digital technologies, and both service providers and receivers rely increasingly on machines, the demand for more efficient and accurate field service rises.

Customers now want to be more connected to their devices and service organizations than ever before. This new customer expectation, driven by the digital transformation wave, is a wake-up call for the FSM software vendor community. FSM software providers need to offer more value-added functionality to reduce total service costs and improve the customer experience.

Packaged Solutions

Packaged Solutions are more affordable and easier to deploy, use and manage, requiring fewer internal resources on the field service organisation’s part. Packaged solutions are a direct response to customers demanding faster, lower cost, and higher value software implementations. Packaged solutions involve software and/or services tailored to achieve a specific scope of work.

For example, a packaged solution for FSM might consist of pre-configured software, related implementation services, and training bundled together as a single unit. Packaging creates a repeatable solution that produces consistent results. Packaged solutions consist of fixed price bundles, each of which includes some combination of packaged software and related, pre-defined professional services. In addition, bundles contain pre-built content to help with training, integration, rapid configuration, and so on. Each bundle covers implementation of a specific software product or business process.

Field employees want the convenience of mobile access

Employees want the access to mobile devices for updates on real-time information, guidance and support. Companies that want to compete in the new field service landscape need to find new ways to keep employees connected. They need tools that allow them to connect seamlessly with other employees, the back office, and other data collection systems.

Technology advancements mean more real-time communication through smartphones, mobile apps, GPS devices, and more. Field technicians can now get updated schedules, urgent notifications, and important data wherever they are, resulting in a more interconnected workforce with real-time communications that was almost unthinkable just a few years ago.

Market Restraints

Cost Concerns

Cost concerns regarding devices, customisation, back-office integration continue to stall deployment of mobile FSM. Budget directives demand that every field service manager make a profit for the business while maintaining a balance between quality of service and number of employees. For larger businesses with more employees, underused resources can quickly compromise the bottom line. SMBs have to keep a close watch on performance, even while operating with a smaller team.

According to research conducted by The Service Council, the average first-time fix rate for an organization is around 77 percent. That means field technicians have to do at least one follow-up visit for about 23 percent of all service calls. These repeat visits affects cost, asset availability, and in some cases, response time.

Anticipated back-office system integration difficulties

“Field service” refers to any service performed out in the field, as opposed to on company property. Field service typically involves dispatching workers or contractors to specific locations (often to a customer location) to install, repair, or maintain equipment or systems. Field service practitioners, or field workers, are often technicians who deliver skilled services to commercial or industrial clients. This may involve specialized or even proprietary.

FSM software and mobile apps are designed to streamline communication, scheduling, dispatching, and general information-sharing between field workers and the back office. The Difficulties encountered with the back-office integration especially with the need to integrate. vast amount of Infrastructure restraints the Mobile FSM market.

Lack of usability

The Lack of Usability due to poor design or development may cause worker resistance. Bad usability lengthens the time it takes to perform the task, and increases the number of errors. There are, in other words, products in which usability is very much not just important but critical.

Where it gets more complicated is with the design of everyday things. I expect you're asking about software and Websites specifically. In that realm, usability can be everything from a competitive advantage to not important at all

Worries about corporate and customer data vulnerabilities

The issue of Data Security persist with prospective users, especially regarding cloud based solutions. With cloud services becoming a regular part of business processes, enterprises have to deal with newer security issues such as loss of control over sensitive data. The problem here is that when using third-party file sharing services, the data is typically taken outside of the company’s IT environment, and that means that the data’s privacy settings are beyond the control of the enterprise.

And because most cloud services are designed to encourage users to back up their data in real-time, a lot of data that wasn’t meant to be shared can end up being viewed by unauthorized personnel as well. The best way to avoid such a risk is by ensuring you’re your provider encrypts your files during storage, as well as transit, within a range of 128 to 256-bit.

Industry Challenges

Heavy Reliance on Scheduled Maintenance

Scheduled maintenance is also known as planned maintenance or planned preventive maintenance and is driven by triggers such as time-based triggers, event-based triggers, or other indicators that maintenance is necessary before a breakdown occurs. Following triggers, routine maintenance is performed, which may include various tasks. The reliance on Scheduled Maintenance which depends on triggers being produced for the activities is time consuming and hence affects productivity.

Poor Visibility into Field Force Activities

As per industry research, failure rate of field force apps is as high as 60%, primarily due to low adoption. limited access by workers in the field to important information in legacy systems often leads to inefficient work execution, which not only degrades service quality but also increases operational costs. Furthermore, sub-optimal work scheduling and intra-day routing can result in stranded capacity in the field, while limited visibility into third-party labor can prevent companies from optimally leveraging these workers and controlling the quality of their work.

Technology Trends

The Internet of Everything (IoE)—A Connected and “Smart” Field

The Internet of Things (IoT) may be a relatively new concept, but the essence of it—machine-to-machine (M2M) technology—is a century-old industry doctrine. The simplest example of M2M technology, used in US in the early 20th century, is the earliest telemetry sensors, which monitored and transmitted weather and snow-depth data. Wireless sensors and devices are now (unprecedentedly) more affordable than ever before.

IoT has permeated all facets of our work and personal lives, from industrial equipment, to office printers, to home appliances and personal items. It has become the Internet of Everything (IoE).

By using an array of connected wireless sensors, beacons, and devices, coupled with predictive analytics applications, field service organizations can do more than monitor in real time the status of individual machine parts, equipment, and devices. They can also predict equipment or device failure before downtime occurs. We can expect to see predictive analytics automating traditional field service processes in the future.

For example, a sensor in an individual piece of equipment automatically triggers a service request when it “senses” that something is wrong. Or simply enough, a service request is initiated when the preconfigured maintenance due time as stipulated by the equipment specifications has been reached.

Predictive analytics

Predictive analytics is another weighty topic that can proliferate benefits across the service chain. From using predictive traffic to create more efficient routes, to predictive job durations to create a more accurate schedule, even leveraging data to predict when a machine will need preventative maintenance in order to prevent system failure, leading FSM solutions are enabling their customers to do all this and more.

Augmented reality (AR) and virtual reality (VR)

Augmented reality (AR) and virtual reality (VR) technologies bring specific value to field service by helping to improve training and real-time service efficiency. AR and VR can either supplement reality by overlaying critical service digital contents (e.g., service instructions, schematics tutorials) or immerse a technician in an entirely digitally constructed environment.

Field technicians can use AR and VR technologies to view and explore digitally constructed replicas of the service site, and to look inside the faulty device or component. Corporate field service knowledge now becomes on-demand, real-time training or work guidance displayed on the technician’s mobile device or head-mountable device.

The use AR and VR technology, therefore, empowers technicians who may not have the requisite skill sets/know-how for a job with the specific information they need to complete the job—at the first service visit. Supplementation with these technologies helps service companies overcome and bridge the field service skills gap that exists among their technicians.

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Regulatory Trends

Legal compliance generally is only a concern for specialized field service industries – maid services or a garage door repair service don’t have much to worry about. But for the industries that do have a high risk of legal issues, the penalties for non-compliance can be extremely high. Examples of industries where regulatory bodies have substantial influence include the following:

  • Commercial Pest Control: Particularly for companies who deal with food processing plants, restaurants, and public buildings; commercial pest control companies need to document their usage of pesticides and chemicals per environmental agency guidelines.
  • Exhaust System Cleaning: For companies that clean exhaust systems for restaurants, they need to be able to provide documents of what they did and when for their customers. Restaurants that do not have proof of exhaust cleaning can be closed by the board of health, and put the exhaust system cleaning company on the hook for liability.
  • Medical Device Repair: The FDA has strict guidelines for companies that deal with the repair and installation of equipment in hospitals. For companies providing these services and the hospitals with this equipment, they need to have full records of the equipment maintenance history. Per the UDI Compliance mandate, every piece of equipment that touches a patient must have a barcode that identifies it, and every work order must be linked to a serial number.

Other Key Market Trends

This field service revolution is driven by larger changes in how, where, and when we work. The U.S. mobile workforce is projected to grow from 96.2 million to 105.4 million from 2015 to 2020 —accounting for nearly 75% of the total U.S. workforce.

Market Size and Forecast

  • USD 1 Billion – The estimated market size of the US Mobile Workforce Management market in 2018
  • 22.6% - The expected CAGR growth rate of the US Mobile Workforce Management market in the forecast period 2018 to 2025
  • USD 4.16 Billion – The expected market size of the US Mobile Workforce Management market in 2025
  • USD 600 Million - The estimated market size of the US Mobile Field Service Management market in 2018
  • 22% - The expected CAGR growth rate of the US Mobile Field Service Management market in the forecast period 2018 to 2025
  • USD 2.41 Billion - The expected market size of the US Mobile Field Service Management market in 2025
  • USD 357.26 Million – The estimated market size of the US Cloud Field Service Management market in 2018
  • 17.3% - The expected CAGR growth rate of the US Cloud Field Service Management market in the period 2018 to 2025
  • USD 1.09 Billion - The expected market size of the US Cloud Field Service Management market in 2025
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Market Outlook

The Mobile Field Service Management market is a Growing Market which according to a survey has indicated that over half of today’s businesses have implemented Mobile Field Service Management Solutions to atleast some extent.

It is forecasted that the US Mobile Workforce Management market (a larger solution category that encompasses Mobile FSM) to reach USD 4.16 Billion in 2025 from a market size of USD 1 Billion in 2018

The market size of the US Mobile Field Service Management market is estimated to be 600 Million in 2018 and is expected to reach a market size of USD 2.41 Billion in 2025 growing at a CAGR of 22%

The US Cloud Field Service Management is expected to reach a market size of USD 1.09 Billion in 2025 from a market size of USD 357.26 Million in 2018 growing at a CAGR of 17.3%.

The revenue forecast and the estimated CAGR of 22% is predicted on the belief that this market’s predictive analytics capabilities will grow in n sophistication. Until recently predictive analytics focused upon calculating individual field worker travel, arrival, and completion times. Now, however, cutting-edge mobile FSM vendors are harnessing the power of remote M2M monitoring and analytics to change the very nature of the field service ecosystem.

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Technology Roadmap

GIS integration

According to Gartner, GIS integration is one of the most commonly used functions, with 45% of field service organization surveyed leveraging this function from their FSM provider. The ability to see where assets, customers, and field service professionals are in relation to each other drives significant benefits for routing, dispatching unplanned and emergency work, and for field service professionals to have visibility into where assets are on a job site, as well as other work they can be performing around their scheduled job.

Multi-tenant SaaS and upgrades

According to Gartner, cloud adoption among new FSM deployments has increased by over 45% from 2018, and now more than 38% are being deployed in a multitenant “public” cloud. Leading FSM vendors are no doubt leveraging the power of the cloud to offer customers seamless upgrades, reduced TCO, improved accessibility, and much more. But they are also offering their solutions on-premises for those organizations who are not yet ready to move to the cloud.

Distribution Chain Analysis

The Field Services is defined as a set of applications which help the organizations of different levels, to manage work tasks of any kind that need to be completed on any location. Field service aligns tasks to agent skills, assignments based on geographic territory and inventory available in the company. Agents then do the work and track their travel and work time consequently.

Field services provide functionality for reorganizing the way tasks are termed as eligible and dispatched and the ways the parts are sourced. Additional automated features enable the dispatchers to route and dispatch tasks swiftly, using precise geo-location to make appropriate schedules.

Field service management is valid in several industries, some of them are explained below:

  • In telecommunications and cable industry, there are technicians that install the cable system or install the phone lines into residences or business establishments.
  • In healthcare domain, there are mobile nurses that provide necessary home care for elderly or disabled people.
  • In gas utilities, engineers or professionals are dispatched to scrutinize and fix the suspected leaks in the households and establishments.
  • In heavy engineering, extraction, mining, industrial and manufacturing, technicians are dispatched for preventative maintenance of the system and break fix the process.
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Competitive Landscape

The competitive landscape of the global field service management market is consolidated in nature. This is mainly because of the presence of a handful established players in the market. The competition is estimated to intensify with passing time as players in the global field service management market are struggling to outdo each other. Some of the predominant players operating in the global field service management market are ClickSoftware Technologies Ltd., Oracle Corporation, SAP SE, IFS AB, Microsoft Corporation, Astea International Inc., Coresystems AG Praxedo, and Retriever Communications Pty Ltd

Competitive Factors

Enhanced customer satisfaction

Customer experience and customer engagement have become buzz phrases of recent times amongst senior executives within almost all organisations and the good news for field service professionals is that this shift of focus on service has meant an increased importance on ensuring field service management teams are able to deliver their service programs as efficiently, and effectively as possible. Service indeed has now become the core differentiator within industry and field service is an excellent opportunity to make the service standards shine. However, customer experience can also be enhanced through the implementation of FSM solutions in other ways than by empowering the field service engineer. For example, many modern FSM systems also allow you to provide dashboards to your customers to offer greater visibility into how their assets are performing and how your service organisation is performing against any set SLAs. Such transparency is very much valued in today’s digital economy where such metrics are becoming increasingly less of a USP and more of an expectation.

Reducing Operational Costs

From automating back-office operations to streamlining workflows and reducing hardcopy paperwork, field service management software can help save money across the board. Think about the money used to spend on paper and printing along with filing, scanning, storage, mailing—all things document management related. Simply moving to a fully paperless contract system for the clients can help save a good chunk of change. FSM software can also help trim travel costs. With more efficient routes and fewer return trips to the office as a result of smart scheduling, gas and maintenance expense can be saved. Sales and outreach costs can also be reduced since field service providers will be able to communicate directly with clients and customers, typically while still on site, about things like billing, scheduling, and satisfaction.

Key Market Players

ClickSoftware Technologies is a privately held company, headquartered in Burlington, Massachusetts that offers automated mobile workforce management and service optimization solutions for enterprise and small businesses, both for mobile and in-house resources.

Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood Shores, California. The company specializes primarily in developing and marketing database software and technology, cloud engineered systems, and enterprise software products—particularly its own brands of database management systems. In 2018, Oracle was the third-largest software maker by revenue, after Microsoft and Alphabet. The company also develops and builds tools for database development and systems of middle-tier software, enterprise resource planning (ERP) software, customer relationship management (CRM) software, and supply chain management (SCM) software.

SAP SE is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. SAP is headquartered in Walldorf, Baden-Württemberg, Germany with regional offices in 180 countries.

IFS AB (Industrial and Financial Systems) is a multinational enterprise software company headquartered in Linköping, Sweden. The company develops and delivers enterprise software for customers around the world who manufacture and distribute goods, maintain assets, and manage service-focused operations. IFS has 3,500 employees that supports 10,000 customers worldwide from a network of local offices and ecosystem of partners. Microsoft Corporation (MS) is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.

Astea International is a global provider of end-to-end service management software solutions that offer all the cornerstones of service lifecycle management, including customer management, depot repair, service management, asset management, warranty management, forward and reverse logistics management and mobile workforce management and optimization.

Coresystems AG is a software developing company, headquartered in Switzerland, and a provider of field service managementsolutions for technicians.

Retriever Communications Pty Ltd. provides mobility cloud services. Its products include RADE, a product for mobile application development; Retriever, a mobile enterprise application platform for B2B, B2E, or B2C environments; Formbuilder, a standalone tool for creating device agnostic electronic forms; and dispatch and scheduling, a multi-user Web-based solution that utilizes WIFI technology for scheduling of jobs, workers, and equipment in electrical, engineering, environmental, gaming, HVAC, industrial, mechanical, medical, oilfield, and utilities industries.

Strategic Conclusion

The market size of the US Mobile Field Service Management market is estimated to be USD 600 Million in 2018 and is expected to record CAGR growth rate of 22% and is expected to reach a market size of USD 2.41 Billion in 2025.

The major challenges pricking the growth of the US Mobile Field Service Management market includes Heavy Reliance on Scheduled Maintenance, Poor Visibility into Field Force Activities

The growth of the market is restrained by factors such as Cost Concerns, Anticipated back-office system integration difficulties, Lack of usability, Worries about corporate and customer data vulnerabilities

The growth of the US Mobile Field Service Management market is augmented by driving factors such as are Hard Dollar Business Impacts of Mobilizing FSM, Demand for a higher level of visibility and access, Investment in new technologies, Offering Packaged Solutions, Field employees want the convenience of mobile access

Further Reading

Appendix

  • FSM - Field Service Management
  • USD - US Dollar
  • CAGR - Compounded Annual Growth Rate
  • IoT - Internet of Things
  • API - Application Programming Interface
  • POC - Proof of Concept
  • GPS - Global Positioning Satellite
  • M2M - Machine-to-Machine
  • IoE - Interet of Everything
  • AR - Augmented Reality
  • VR - Virtual Reality
  • SaaS - Software as a Service
  • TCO - Total Cost of Ownership


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