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Predicting Field Service Management Business Market in 2023

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In 2022, there was an exponential surge in interest in field service management due to a noticeable uptick in requests from both customers and businesses alike. Customers adored the newfound ease of ordering essential services online, while field service businesses seized the chance to refine their customer service and augment sales.

2023, however, presents its own set of challenges for field service management businesses. As talks of a recession resurface, field service companies must prepare for a potential drop in market demand. Companies should be collaborative, understanding, and flexible to the evolving times.

Despite the forecasted 19.2% global CAGR of the field service management market to reach $29.9 billion by 2031, this should not discourage field service management businesses from making their mark in present-day markets, even with recessionary pressure.

With the rise of technology and Field Service Technology (FST) solutions, Field Service Management businesses must take advantage of the available tools to make their processes more streamlined and efficient. 2023 brings with it a set of new technology trends that field service businesses must capitalize on to stay ahead of the competition.

Here are some of the key emerging technology trends for field technicians in 2023 that will shape the field service management market this year.

#1 Embrace Automation and IoT

Automation and the Internet of Things (IoT) are making a big impact on the field service industry. Technicians use automated systems, sensors, and devices for monitoring, diagnosing problems, and preventive maintenance. According to Field Service News, 52% of field service organizations consider IoT as an important part of service delivery, resulting in superior service, minimized downtime, and better customer experience.

IoT devices gather real-time data to understand an equipment’s condition, eliminating monthly routine maintenance. Tasks are assigned based on accurate diagnostics received from IoT hardware sensors. IoT systems automate inventory management and maintain a zero-stock inventory, reducing instances of over or understocking.

While IoT identifies equipment malfunctions without human intervention, manual intervention is still required for repairs.

#2 Focus on Data and Analytics

As field service organizations look for ways to streamline and enhance their operations, the emphasis on data and analytics keeps growing exponentially.

By scrutinizing data from diverse sources, including equipment sensors and customer feedback, technicians can gain better insights into the underlying causes of issues and implement more efficient solutions. This leads to a more proactive service delivery approach and improved first-time fix rates, leading to greater customer satisfaction.

#3 The Rise of Augmented Reality (AR) and Virtual Reality (VR)

AR and VR technologies are gaining prominence in field service, allowing technicians to remotely diagnose and troubleshoot issues without on-site visits. The AR market will grow at a CAGR of 31.3% from 2020 to 2025, with virtual troubleshooting becoming more cost-effective, leading to significant cost savings for organizations.

VR is also being used to train technicians who cannot receive field training, providing a safe and controlled learning environment. Future advancements will allow for accurate simulations of field environments, preparing untrained technicians for job complexities without exposure to danger.

The upcoming technology trends that will impact the field service management market this year are outlined below, with a focus on their implications for field service businesses.

#1 Increase in Outsourcing and BPO

With an uncertain market ahead, field service management companies are turning towards outsourcing and Business Process Outsourcing (BPO) to streamline their operations and increase cost savings. Field service businesses must understand the customer’s needs and what can be provided to make their operations more efficient.

When done correctly, outsourcing can be a great way to reduce costs and create streamlined processes. Field service management businesses should understand all aspects of their operations in order to properly delegate tasks to the right parties.

#2 The Use of Contingent Labor is On the Rise

In the age of economic unpredictability and ever-increasing wages, service management businesses have sought contingent labor markets or short-term agreements to meet their growing demand for technicians. As an alternative to taking on 500 new employees simultaneously, field service management organizations may instead rely on contingent labor as a buffer while they bring in only a select few.

What this means is that organizations should be prepared for an increase in contingent labor. This could require field service businesses to update their onboarding and hiring processes to accommodate this influx of new technicians and bring them up to speed rapidly.

#3 Growing Adoption of Artificial Intelligence

The field service management market is increasingly adopting artificial intelligence (AI) and automation to better streamline processes and operations. A study by Salesforce revealed that nearly 80% of high-performing field service organizations use AI, which only goes to show how field service management businesses are using AI to their advantage.

AI advancements are being incorporated into field service technology solutions such as autonomous robots, virtual agents, automated scheduling systems, and more. However, to properly utilize and optimize their operations, field service management organizations must understand how these technologies work and how these tools elevate the existing experience.

Wrapping Up

By understanding the technology trends for field technicians in 2023 and implementing them into their operations, field service management businesses can remain competitive and profitable even in this difficult economic climate. You mustn’t let a recessionary pressure dampen your spirit; instead, take the opportunity to leverage technology and optimize your field service operations.

Field service technology solutions, such as Zuper Field Service Management Software, are gearing up to meet the evolving business and customer demands. If you are looking for ways to keep up with trends and embrace automation to scale your business, Zuper can help!

Made with fast-growing field service businesses in mind, Zuper is the most customizable and flexible field service management platform that will help you stay on top of your service requests, keep an eye on the field workforce, and exceed customer expectations consistently.

Book a call or demo with our team today to learn more about how field service management software can help your business thrive in 2023.

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