A June 2020 market research report entitled, "Field Service Management Market by Component (Solution, Service), Organization Size (SMEs, Large Enterprises), Deployment Type (On-premises, Cloud), Vertical (Energy and Utilities, Manufacturing, Oil and Gas), and Region - Global Forecast to 2025," explains the field service management market stands to expand its growth from its current $3.0 billion worth up to $5.1 billion by the end of 2025.
These growth numbers, as published by MarketsandMarkets™, suggest the expansion comes at a Compound Annual Growth Rate (CAGR) of 11 percent for the four-and-a-half-year period it forecasts. This covers the period from the third quarter of 2020 through the end of 2025.
Let's take a look at some of the factors driving this growth and what your small- to medium-sized field service-based business can do to be a part of this sector’s growing success.
Field Service Management Will Use More Cloud-Based Solutions
Today, we see that many field service-based companies are using cloud-based solutions for their day-to-day operations. Some of the best reasons for using "the cloud" include the fact that while it may be costly to deploy, it saves tremendous sums in overhead and the overall cost of running a field service business in the long run. FSM software and other solutions depend on the cloud, allowing field service companies to manage their fleet vehicles with electronic logging devices (ELDs), monitor their drivers with fleet GPS tracking, and manage invoicing, billing, and expenses remotely. This accessibility makes it possible for customers to pay on the spot as soon as an appointment has concluded.
In addition, by going to a cloud-based solution for these tasks, field service companies can easily keep an eye on a lot of data. They can forecast earnings, monitor driver safety, and accurately determine where every driver is on their routes throughout the workday.
Cloud-based solutions also offer the ability to see inventory levels on various parts, even when out in the field. This transparency makes everything run more smoothly and therefore increases customer satisfaction, as technicians no longer have to run back and forth to the parts warehouse during appointments to get the parts or tools they need to complete a job.
All of the cloud’s combined advantages are becoming more attractive to even the smallest field service-based companies. They understand the value of cloud-based solutions — and the money they can save and bring in to their operation when more customers pass along their stories of satisfaction to friends and family.
Field Service Companies Will Experience the Greatest Growth in the Asia Pacific (APAC) Region
The APAC region is currently experiencing the most considerable growth for the field service industry based on forecasts from the report mentioned above. Local demand for field services is growing in APAC markets right now, including Australia, China, India, Japan, New Zealand, and Singapore.
The reasons for this are many, but forecasts point to a few specific factors. Field service businesses are now able to provide more of what their customers need in shorter order. This is mostly thanks to advances in field service management software and other solutions that allow technicians to get to customers quickly. Other technologies, such as GPS tracking for fleets, have allowed these businesses to monitor their drivers and technicians more closely. They can even offer drivers contingency routes when regular routes are backed up or experiencing delays. With fleet GPS tracking in place, fleet vehicles can get where they're going faster, again raising the bar on customer satisfaction.
But APAC is not the only place where these advances are taking hold and providing more to the field service businesses that need them. Right here in the US, the same tools have spurred growth in the field service business industry. More customers have come to depend on these providers to meet more of their in-home and business needs. These service needs include construction, HVAC, internet connectivity, cable, waste management, and more.
Enterprise Fleet Businesses Will Fare Best, but There's More to That Story
The forecasting done by Markets and Markets suggests the enterprise fleet-based businesses will continue to hold the lion's share of the market. Yet both small- and medium-sized fleet-based businesses are also on the upward trajectory for the period from 2021 through 2025.
Workforces of all sizes within field services will continue to grow as customer demand grows across the US and the world. More people and businesses are coming to depend on Internet, cable, and other types of communications to maintain connectivity with their clientele, families, and friends across the globe. These people and companies will likely need service technicians to help keep them connected.
In order to be part of the forecasted success, your field service business will need to stay ahead of the technology curve. It needs to move away from paper-based and other legacy management methods that tether you to the past. If you have not yet considered a field service management solution for your field service-based business, have a look at the FSM software Azuga offers to manage every aspect of your operation.
We also provide GPS fleet tracking to monitor and manage your fleet vehicles and drivers, as well as eLogs to help monitor driver behavior, habits, and on- and off-duty hours of service (HoS) logging. To learn more about how Azuga can help meet the needs of your growing field service company, visit us today at www.azuga.com.