Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Service lifecycle management is an all-inclusive method that covers the complete service lifecycle of a product. This includes numerous complex processes such as service parts management, repair management, aftersales support, sales & marketing in collaboration with companies to optimize ROI of the concerned company. Furthermore, service lifecycle management is comprised of several processes including knowledge management, center management, warranty management and analytics, reverse logistics management, spare parts management, contract management, field service management, parts planning and forecasting, and return management. Heavy equipment and consumer electronics goods manufacturers in high technology, automotive and transportation, and aerospace and defense are focused towards complete lifecycle monitoring of their products.
The global Service Lifecycle Management Application Market was accounted for US$ 165,103,4024.0 Mn in terms of value in 2019 and is expected to grow at CAGR of 7.8% for the period 2020-2027.
Market Dynamics- Drivers
- Low service cost for SLM providers is expected to drive growth of the global service lifecycle management application market during the forecast period
Adoption SLM application ensures cost reduction for end users by enhancing first-time fix rate, enabling fast time to dispatch, increasing technician productivity, and parts and inventory management. Moreover, it increases monitoring and measurement capability of the enterprise, thus preference for SLM has increased significantly among end-use industries. Furthermore, SLM providers offer advice on reverse logistics management, field service management solutions, and warranty management, which reduces replacement and product manufacturing cost production. Hence, these factors are expected to drive growth of the global service lifecycle management application market during the forecast period.
- Competitive advantage over-discharged technology is expected to propel the global service lifecycle management application market growth over the forecast period
Service lifecycle management application covers the complete service lifecycle of the product throughout its life. It also provides integrated view of service that connects delivery, planning, and analysis. Furthermore, disconnected service applications across different departments lead to less coordination, delays, and mismanagement. The integrated end to end service lifecycle management solution provides a competitive advantage by keeping track of different processes from a single system and improving information accuracy in the organization. Therefore, these factors are expected to propel the market growth over the forecast period.
Service Lifecycle Management Application Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 Pandemic have adversely affected the economies of various countries around the globe. According to the International Monetary fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Due to the reduction in the size of global economy the spending or purchasing power of people also decreases. As the sales volume of companies are expected to decrease, the expenditure of companies on new product development is also expected to decrease. Now companies are trying to retain its market share with the existing products.
North America held dominant position in the global Service Lifecycle Management Application market in 2019, accounting for 34.7% share in terms of value, followed by Europe and Asia Pacific respectively
Figure 1: Global Service Lifecycle Management Application Market Share (%) in terms of Value, By Region, 2019
Market Dynamics- Restraints
- Complexity of application due to introduction of new technology platforms is expected to restrain growth of the global service lifecycle management application market during the forecast period
Introduction of cloud and its public, private, and hybrid variants have provided numerous options for deployment of service lifecycle management applications to end users. However, the management of these applications and variants can increase the complexity of SLM applications. Although cloud-based platforms enhance efficiency by providing real-time infrastructure, it also has the potential to add complexity in areas such as resources, management data, and applications spread across various cloud variants. Furthermore, SLM application’s integrated solutions across different sectors in different regions result in increase in software complexity in terms of understanding and coding. Hence, these factors are expected to restrain growth of the market during the forecast period.
- Data security threat with real-time solutions is expected to hinder the global service lifecycle management application market growth over the forecast period
Cloud computing has become a mainstay for many software and technology companies. However, it also comes with numerous disadvantages with the data security risk. It also includes illegal invasion with cloud-based platforms, which prevents numerous organizations from implementing cloud-based platforms for service lifecycle management applications across the world. Furthermore, the risk of data accessibility and data control exists since the data outsourced on the cloud are not in direct control of the owner and are outsourced to third-party vendors, thus making it difficult to maintain data integrity and privacy, support data and service availability and demonstrate compliance. Hence, these factors are expected to hinder the market growth in the near future.
Service Lifecycle Management Application Market Report Coverage
||Market Size in 2019:
||USD 165,1034,024.0 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 294,378,7332.4 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Service Based Models: (Dealer-based Model, Performance-based Model, Depot-based Model And Field-based Model)
- By Solutions: (Customer Contact & Support, Field Service Management , Warranty & Service Management, Service Parts Information Management)
- By Software Type: (Cloud-based Software and Web-based Software)
- By End-use Industry: (Automotive & Transportation, Aerospace & Defense, Medical Equipment, High Technology , Industrial Machinery & Equipment and Telecommunication)
Dassault Systems, PTC, Inc., IBM Corporation, Tech Mahindra Limited, Astea International, Inc., Wipro Limited, Oracle Corporation, Siemens AG, Tata Consultancy Service Limited, and Atos SE.
- Low service cost for SLM providers
- Competitive advantage over-discharged technology
|Restraints & Challenges:
- Complexity of application due to introduction of new technology platforms
- Adoption of artificial intelligence for SLM can present lucrative growth opportunities
Artificial intelligence technology has wide scope in real-time applications as it extracts what is required from the colossal amount of information. Predictive analytics, the application of artificial intelligence is the growing practice in service lifecycle management application and aftermarket support services, providing a consistent method to extract data captured by connected devices, thereby reducing the variability humans bring to problem-solving and decision-making processes. It ensures companies react faster to technical issues related to the product, ensures product availability, and customer query resolution.
- Increasing use of SLM applications in the metal manufacturing industry to pose major business opportunities
Service lifecycle management application is witnessing increasing adoption, particularly with metal consuming original equipment manufacturers such as aerospace and defense, automotive and transportation, etc. However, metal companies that manufacture steel and aluminum primarily focus on product-centric approaches rather than service-centric approaches. Aftersales service component is outside the domain of many metal companies. SLM applications would help in tracking the performance and providing after-sales services such as welding and maintenance and repair of metals after sale.
Figure 2: Global Service Lifecycle Management Application Market Value (US$ Mn), 2017 - 2027
The global Service Lifecycle Management Application market was valued at US$ 165,103,4024.0 Mn in 2019 and is forecast to reach a value of US$ 294,378,7332.4 Mn by 2027 at a CAGR of 7.8% between 2020 and 2027.
- Increasing partnership and collaboration activities is a major trend
Key players in the market are focused on partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in May 2016, Siemens PLM partnered with TCS to provide the best-in-class PLM-SLM suite with TCS data analytics support. May 2016, Comptel partnered with IBM and Juniper Networks in an IBM Cloud-Based architecture to provide digital service lifecycle management, technology, and expertise. Moreover, in May 2015, PTC partnered with ServiceMax to introduce the first Connected Field Service.
- Research and development activities to innovate novel products
Key companies in the market are focused on research and development activities, in order to gain a competitive edge in the market. For instance, in April 2016, Oracle launched the Oracle Field Service Cloud, known as TOA Technologies, which improves response time and customer satisfaction. Moreover, in January 2015, Tech Mahindra launched an aftermarket platform for predictive maintenance in the automotive industry.
Major companies operating in the global service lifecycle management application market are Dassault Systems, PTC, Inc., IBM Corporation, Tech Mahindra Limited, Astea International, Inc., Wipro Limited, Oracle Corporation, Siemens AG, Tata Consultancy Service Limited, and Atos SE.
- Major companies in the market are focused on contracts and agreements, in order to enhance the market presence. For instance, in April 2020, IBM Corporation entered into an agreement with Fenergo to collaborate on solutions that can help clients address various financial risks.
- Key players in the market are involved in product launches, in order to expand the product portfolio. For instance, in February 2019, Tech Mahindra Limited introduced netOps.ai to accelerate 5G adoption for communication service providers.