Global Service Lifecycle Management Application Market

Service Lifecycle Management (SLM) Application Market Outlook & Key Findings

• Service lifecycle management application market to grow at over 18% as COVID-19 impels organizations to go remote
• Implementation of service lifecycle management application in manufacturing industries to increase 2.6x in of its current market value by 2030
• In terms of solutions, field service management to register a CAGR of 7.0%, closely followed by customer contact & support from 2020 to 2030
• The automotive & transportation segment is expected to remain dominant throughout the forecast period surging at 1.8x of its current market value during the forecast period

Saving on Service Cost Favors Service Lifecycle Management Application Market

Implementing service lifecycle management application ensures cost reduction for end users by improving first time fix rate, increasing technician productivity, enabling fast time to dispatch, and efficient inventory & parts management. Furthermore, this also increases monitoring and measurement capability of the organization, thus assisting end users to capitalize on the multitude of benefits by integrating this application.

Service lifecycle management application providers offer advanced reverse logistics management, warranty management, and field service management solutions, which results in product remanufacturing and replacement cost reduction. Collectively, these factors create a positive functional environment for service lifecycle management application implementation, thus bolstering growth of the global service lifecycle management application market.

Traditional Concepts of Customer Satisfaction and Loyalty Accentuate SLM Service Providers Growth

Service lifecycle management application provides an opportunity to improve customer relationship by ensuring timely field service to customers, closing of service orders, handling of customer queries, fast product delivery and effective warranty management, thereby helping in developing effective customer relationships and loyalty.

It helps end users by providing service management solutions to clients, enabling a faster response to product issues, handling customer queries through customer contact, and support solutions such as providing invoices for services that are covered under warranty. Such prompt customer service is expected to win end users of SLM services long-term customer relations, thereby contributing to market growth.

For instance, in December 2019, Saudi Telecom Company (STC) opted for IFS Service Management, a global enterprise applications company, to increase process efficiency, improve margins, and facilitate improved customer satisfaction. IFS Service Management has since take on the challenge of replacing legacy business systems while improving operational efficiency.

Integration of real-time cloud-based solutions and data analytics driven applications have enabled in-depth knowledge-based data repositories. This helps in cross-selling and up-selling products and services to customers by prompting field technicians regarding potential opportunities such as warranty expiration, ageing of equipment, product damage, add-ons and product change management of customers, thereby ensuring increasing revenue for organization without increasing cost.

Service lifecycle management application solutions such as warranty, repair management, and knowledge management will provide opportunity to field technicians and customer care and support team to increase revenue of the organizations by up-selling and cross-selling products.

Download a Comprehensive Report Snapshot

The figure highlights some of the key attributes of the market such as value proposition, third party technologies, large capital intensive assets and competitiveness with impression of regional variance of the same.

In terms of third platform technologies, North America and Europe have reached the maturity curve by being the foremost adopter of third platform technologies such as mobile computing, cloud computing, Big Data, and others.

As vast number of technologies and functions are being virtualized, the cloud-based software is anticipated to charge ahead, resulting in 3.5x growth of the segment by the end of 2030. This growth is mostly concentrated in small and medium size enterprises, as adoption of cloud based solutions is increasing significantly in such companies.

Service lifecycle management application solutions are integrated across different sectors in different regions resulting in increase in complexity in terms of understanding and coding. A strategic approach to service lifecycle management application provides solution; delivering the right combination of analytics, process, people, and enabling technology to create new opportunities for the companies and solve these challenges. Thus service lifecycle management application provides scalable, global regulatory resource at a cost reduction of 30-40%, and improved compliance.

How will Service Lifecycle Management Application Market Tackle COVID-19?

Along with major fluctuations across global economy and stock markets, manufacturing sector is impacted highly by COVID-19 outbreak. Almost 75% of manufacturing companies witnessed supply chain disruptions due to pandemic outbreak.

Amidst pandemic companies also experience squeezed profit margins on manufactured goods. Under theses fragile market environment enterprise need to opt for sources of additional revenue, and product service is one of such activity area.

Thus, companies are implementing technologies that can help businesses to modernize their operations and mitigate the economic impact of the COVID-19 crisis.

Remote work culture will is expected to make businesses adopt Software-as-a-Service (SaaS) design to prevent crucial downtime. As with cloud technology data is stored in a centralized location, which can be accessed by the authorized users regardless of their individual location.

In addition, with SaaS subscription model number of seats can be scaled up or down and new users can be added with system up and running in minutes as per the requirements. Thus, these models are anticipated to recover from the decline in the growth of the service lifecycle management application market by Q3-Q4 of 2020.

Service Lifecycle Management Application: Regional Market Analysis

North America holds the largest share in service lifecycle management application market, with the U.S. playing the disruptor, controlling around 75% regional market share in 2019. Demand for service lifecycle management application is extremely high in North America, as most of the heavy equipment requiring extensive repair and after-market service are in aviation and healthcare industry in the U.S. Furthermore, the markets in North America and Europe are estimated to collectively account for 3/5^th value share by 2020 end and are expected to expand at moderate growth rates over the forecast period.

Factors such as rising adoption of service lifecycle management application in automotive, high tech, and medical equipment industries are expected to fuel growth of the service lifecycle management application market in the Asia Pacific region. Increasing adoption of service lifecycle management applications in telecommunications industry for spare parts management of equipment and repair management in countries such as Japan, China and India is expected to drive growth of the APAC service lifecycle management application market during the forecast period.

Service Lifecycle Management Application Market: Competitive Landscape

Companies are consolidating their market position by enhancing their existing service lifecycle management application solutions portfolio and are launching new digital and cloud-based technology products to increase market share.

For instance, in June 2019, PTC announced enhancement of lifecycle management platform with integrated software management and systems engineering capabilities at digital transformation conference. This enhancement enables designers to identify dependencies, view design progress, and understand improvements and exceptions.

The service lifecycle management application market has a handful of key players. Some of these market leaders include,

• PTC, Inc.
• Tech Mahindra Limited
• Tata Consultancy Service Limited
• Atos SE
• Siemens AG
• Wipro Limited

The following promising players are estimated to showcase a quick growth trend and grab opportunities over the coming years:

• Astea International, Inc.
• IBM Corporation
• Dassault Systems

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with competition deep dive available in the report

Service Life Cycle Management Application: Way Forward

Disconnected service applications across different departments result in delays, less coordination and mismanagement, which leads to non-scalability of service management in the organization. Thus, organizations are focusing on integration of end-to-end SLM application solutions, which provides a competitive advantage by keeping track of different processes from a single system and improving information accuracy within the organization.

Service lifecycle management application offers a holistic approach that covers complete service lifecycle of the product. Thus, players are integrating enhanced capabilities of SLM application solutions that connects planning, delivery, and analysis for a better output.

Connected infrastructure is expected to create new value-added offerings by managing the service data in a real-time environment and providing end users a single view of service management. Thus, cloud-based software helps users in redefining the service models by facilitating end users and manufacturers with real-time information about products.

Connected cloud-based field service solutions enable remote access to customer’s information and provides field technicians with accurate information of the service event. This ensures the issue is solved in quickly and efficiently. Efforts to achieve operational efficiency and continuity will define the progress of the global service lifecycle management application market through the forecast period.

Some players are also focusing on entering partnerships with other solution providers to offer new and upgraded connected field based models. Collaboration will remain critical to this market in the coming years as businesses will try to expand to newer markets and upgrade their technological prowess.