The worldwide market for Field Service Management (FSM) solutions is expected to grow at a compounded annual growth rate (CAGR) of 7.8% over the next five years. The market was $364.6 million in 2007 and is forecasted to be over $532 million in 2012, according to a new ARC Advisory Group study.
A number of publicly traded, best-of-breed Field Service management suppliers have been reporting strong revenue growth over the last few years. "The FSM revenues of these three best-of-breed suppliers registered a combined compound annual growth rate of 17% for the 2004-2007 period," according to Clint Reiser (firstname.lastname@example.org), Analyst, Enterprise Applications, the principal author of ARC's "Field Service Management Solutions Worldwide Outlook" (www.arcweb.com/res/fsm). "Solid growth in the FSM market is forecasted to continue. This growth is expected to be driven largely by an increase in maintenance outsourcing and OEM post-sales service to asset intensive manufacturers."
An increase in OEM post-sales service to asset intensive manufacturers is driving sales in the Field Service Management software and services market. FSM software has enabled these service organizations to more effectively administer the complexities associated with managing an overabundance of information and a large, often geographically dispersed, workforce. Equipment OEMs are expanding their product offering with post sales services in an effort to increase revenues and offset decreasing product margins. These services come at an opportune time when many manufacturers face labor constraints due to a limited pool of available skilled workers. A continuing increase in services offered by these organizations is expected to result in an uptick in demand for Field Service Management applications.
Novel technologies, such as mobile wireless, geographic information systems (GIS), and remote asset monitoring are expected to stimulate growth in the FSM market. Mobile wireless is considered an area with a great deal of growth potential. The value of mobile wireless solutions lies in the ability to enable more timely and detailed flow of essential information to and from the field workforce. The ability to exchange information bi-directionally between the back office and the field force further enhances the value proposition of field service solutions. Field Service Management integration with GIS systems offers additional benefits through operational efficiencies obtained from the geographical display of asset locations and the ability to more efficiently manage field operations. Integration with remote asset management technology provides value from the ability to monitor, manage, and control assets from remote locations.
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