WMS helps organizations digitally manage warranty processes throughout the product lifecycle. Manufacturers leverage WMS to reduce costs associated with warranty services and drive customer satisfaction. It enables them to efficiently process claims, minimize fraud, and enhance uptime for equipment through predictive maintenance. Key functionalities of a WMS include claim registration, approval workflows, parts management, and reporting. It integrates with other systems such as ERP, CRM, and connected devices to automate various tasks.
The global Warranty Management System Market is estimated to be valued at US$ 36255.81 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Higher equipment uptime demands is expected to fuel the growth of the warranty management system market during the forecast period. With industry 4.0 taking shape and Internet of Things becoming pervasive, equipment is increasingly being connected and monitored digitally. This allows original equipment manufacturers to gain real-time visibility into asset health and detect faults early using predictive diagnostics. They can then proactively schedule maintenance and repairs to minimize downtime. A WMS supports such condition-based maintenance strategies by facilitating automated warranty claim registration, remote diagnostics, and coordinated spare part distribution. It streamlines communication between manufacturers and their dealers/partners to resolve issues swiftly. The integration of WMS with IoT solutions thus improves uptime assurance, strengthening brand reputation and customer satisfaction – a key driver discussed in the heading.
Another major factor pushing the adoption of WMS is the need for warranty cost optimization. Legacy paper-based processes are inefficient and error-prone, opening opportunities for wastage and fraud. A digital WMS brings transparency and controls over the entire service lifecycle. It enables proactive spend management using tools like claim trend analysis and configurable approval workflows. Automated validation of eligibility and entitlements prevents unwarranted payouts. Overall, WMS helps lower total warranty expenses through reduced turnaround times, accurate auditing and parts consumption optimization.
Segment Analysis
The global warranty management system market is segmented by Component, Deployment type, Organisation size and Vertical. By Component, the market is divided into Solution and Services. The solution segment is dominating the market and is expected to witness high growth due to the increasing need to streamline warranty processes. By Deployment type, the market is classified into On-premises and Cloud. The cloud segment is dominating currently and is expected to witness highest growth due to benefits like scalability, mobility and low cost of deployment. By Organisation size, the market is segmented into Large Enterprises and Small & Medium Enterprises. Large enterprises segment holds major market share due to the advanced IT infrastructure. By Vertical, the market is divided into Manufacturing, Automotive, Healthcare, Supply chain and Food & Beverages. The automotive segment dominates currently due to the complex nature of vehicle warranties.
PEST Analysis
Political: Governments of various countries are supporting digitization of processes which is positively impacting the warranty management system market. Economic: Increasing GDP and disposable income is increasing spending on durable goods requiring warranty claims processing. Social: Rising consumer awareness about warranties and service contract benefits is driving demand for effective warranty management. Technological: Adoption of cloud, IoT, analytics is driving innovation in warranty management systems for improved customer experience.
Key Takeaways
The global warranty management system market is expected to witness high growth during the forecast period owing to the growing need for streamlining complex warranty processes across industries. Regionally, North America dominates currently due to presence of developed economies and early technology adoption. Europe is expected to witness significant growth due to stringent regulations regarding customer experience.
Key players operating in the warranty management system market are Oracle, SAP, IBM, Astea International, Tech Mahindra, Wipro and Infosys.
Key players operating in the warranty management system market are Oracle, SAP, IBM, Astea International, Tech Mahindra, Wipro and Infosys. The automotive segment dominates currently due to the complex nature of vehicle warranties. Key players are focusing on developing industry specific customized solutions to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn