How Advanced Tech is Reshaping the Field Services Software Landscape

The field services software industry may be on the cusp of a technological revolution. Founders who are thinking about an exit should be keeping a sharp eye on the landscape.

Labor- and machine-intensive sectors such as oil & gas, mining, chemicals, and manufacturing are adopting cutting-edge technologies at a rapid clip. This shift has caught the attention of venture capital firms, which are funneling substantial funds into companies that use emerging technologies such as augmented reality (AR), internet of things (IoT), and artificial intelligence (AI). We are now starting to see these technologies trickle into the field services space—and VC is paying attention.

This infusion of capital signals a broader trend that field services software founders should be aware of. Historically, we have observed that typically when venture capital firms invest heavily in a trend, M&A tends to follow suit over the following few years. This pattern could suggest that field services companies focusing on technological innovation may find themselves well-positioned for M&A opportunities in the near future. For founders looking to position their companies for M&A opportunities, now may be the time to consider developing or integrating these advanced technologies into their offerings.

Venture Capital’s Role in Field Services Innovation

Globally, the market for field services management is expected to grow to $29.9 billion by 2031, according to Allied Market Research. Emerging technologies like AI, IoT, and AR have the potential to improve the industry, offering solutions that can help streamline operations, reduce costs, and enhance customer satisfaction.

Venture capital is eager to get ahead of the curve. VC has already heavily invested in high-risk, high-asset-intensive industries that are putting emerging tech to use. Now we are starting to see VC seek out field services software companies that are leveraging or developing technologies to revolutionize field service operations.

Some notable recent VC investments in field services software include:

• FieldPulse, a field service management solution to help companies quickly grow and scale their business operations, raised a $21 million Series B funding round.
• Fyld Limited, a digital platform that automatically transforms video and audio footage into real-time workflows, visual risk assessments, and analytics dashboards, raised £10 million in series A funding in 2021 and £12M in series B funding in April 2024.
• Zuper, a field service management company, secured $32 million in Series B funding.

Emerging Technologies in Field Service Management

Traditionally, field services have been slow to adopt new technologies, thanks to limited budgets and an older workforce. As the costs of some solutions come down, however, that is starting to change. Additionally, the blue-collar workforce is skewing younger, creating a generation of professionals who embrace technology and take its use in the workplace for granted.

Here are just a few examples of how advanced technologies are already transforming the industry:

Smart Scheduling

AI can be used to help optimize scheduling and routing in field services. Praxedo’s SmartScheduler, for example, uses AI to automatically assign the most suitable field service technicians based on factors such as job complexity, technician skills, and travel time. It also optimizes routes in real-time, allowing for efficient reallocation of resources in response to emergencies or delays, thereby improving service delivery and reducing operational costs.

Remote Assistance and Guidance

AR can help enable technicians to identify problems and receive real-time visual assistance from experts remotely. For instance, Fieldbit, a company specializing in AR solutions for field services, allows technicians to locate faulty equipment by scanning the field with a mobile device or smart glasses and to access guidance from remote experts, knowledge banks, and real-time data.

Proactive Maintenance

IoT sensors installed on equipment can monitor performance and detect anomalies in real time. Elevator company Otis, for example, combines cloud technology, machine learning, and IoT to analyze historical maintenance data and sensor readings from elevators. By predicting when components are likely to fail, they can schedule maintenance proactively, reducing downtime and improving service reliability.

Improved Safety

In industries like utilities and telecommunications, drones are being used for remote inspections. Dominion Energy, for example, uses drones to inspect its nuclear power station, reducing the need for dangerous manual inspections while increasing efficiency. Wearable technologies, such as "smart" helmets, watches, glasses, and even fabrics are increasingly being used in the oil & gas and construction industries to monitor vital signs, track worker locations, and alert workers to possible dangers.

Strategic Considerations for Founders

The field services sector is only just beginning to embrace advanced tech solutions, but change is coming. Given that many field services software providers are focused on smaller businesses with limited budgets, we believe that higher-spend industries will embrace these technologies at a faster rate for now. Within a few years, however, we think this could lead to widespread adoption in field services.

Field services SaaS founders should be thinking strategically about positioning their companies for the evolving market and planning for functionalities like these in the future. For example, engage closely with clients to understand their needs and how new technologies can address them, explore strategic partnerships, and create a roadmap for integrating new technologies. Finally, stay informed about M&A trends. By focusing on these areas and staying on top of M&A trends, founders could help develop a competitive edge while potentially positioning their companies as prospective targets in the evolving field services software landscape.

To learn more about trends in field services software, read Increasing Field Service Knowledge Capabilities for M&A Opportunities and How Field Services Software Can Capitalize on the Silver Tsunami.