The Global Service Lifecycle Management Application Market, 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) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 294,378,7332.4 Million by 2027, exhibiting a CAGR of 7.8% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Service lifecycle management (SLM) application is the practice of aligning service parts management, field service management, technical communication, and product support operations to maximize customer uptime. Service lifecycle management finds applications in various end-use industries including medical equipment, aerospace & defense, high technology, automotive & transportation, telecommunication and industrial machinery & equipment, etc. 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.
Transforming service by creating value through third-platform technology offerings is expected to boost the global service lifecycle management application market during the forecast period
SLM application with third-platform technologies as the support and development platforms is expected to accelerate innovation and real-time connectivity between different solutions of service lifecycle management applications. Cloud allows greater access to service parts visibility and mobile technology, which provides information at the right time to technicians on the field analytics /big data helps organizations to understand how service is performing against service planning and social leads to collaboration of different touch points involved. Therefore, these factors are expected to drive growth of the global service lifecycle management application market during the forecast period.
Service Lifecycle Management Application Market - Impact of Coronavirus (Covid-19) Pandemic
Many companies are laying off people due to the reduced sales volume owing to the COVID-19 pandemic. For instance, In U.S. according to the Coherent Market Analysis, the unemployment rate increased from 5.5% to 14.5% in the period December 2019 to April 2020. As companies are facing losses, it is expected that companies will reduce the expenditure on the new product development and technological advancement during the year 2020. COVID-19 is expected to restrain the market growth during the year 2020.
Major growth opportunities available in cross-selling and up-selling products
Technicians gain access to knowledge-based data responsibilities at every customer interaction when they are in the field, owing to the use of real-time cloud-based solutions and data analytics-driven applications. This, in turn, aid in cross-selling and up-selling products and services to end users by promoting the field technicians associated with potential opportunities such as warranty expiration, product damage, aging equipment, and management of customers. This, in turn, increases revenue generation for enterprises without increasing cost.
Significant investment required for development of SLM application is expected to hamper the global service lifecycle management application market growth over the forecast period
SLM application requires significant investment to manage a technical and organizational aspect of implementation. This is due to the fact that software is implemented across cross-functional departments. Furthermore, there are two types of costs for the organization for implementing SLM applications, which include software configuration, data migration, license fee, and employee training. It also includes ongoing cost, which includes system support, license renewals, and maintenance fee. Thus, these factors are expected to hamper the global service lifecycle management application market growth in the near future.
Major companies in the market are focused on merger and acquisition activities, in order to enhance the market presence. For instance, in October 2016, Pegasystems acquired Antenna Software, which will result in faster time-to-market and improved flexibility in mobile development and mobile backend as a service. In July 2015, Oracle acquired TOA technologies, which is a leading provider of cloud-based field service solutions to track last mile field services for enterprises.
Internet of Things (IoT) and technologies such as augmented reality are transforming service management of products manufactured by various companies. It will not only have a significant impact on processes being used to manage SLM but also change the face of the service industry in the way companies collect data and use that data to make quicker decisions. Companies such as PTC are adopting the IoT technology in combination with best-in-class service solutions to redefine service offerings and value to customers. For instance, in June 2016, PTC introduced new service lifecycle management solutions by leveraging IoT in field service technologies.
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.