The Warranty Management System Market is estimated to be valued at US$ 36255.81 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Warranty management system helps companies efficiently manage warranty claims, ensure warranty compliance, and gain insights into product failures. It helps companies automate all aspects of warranty processes from initial registration to claims resolution. It provides features like claims processing, contract and coverage management, returns management, and reporting. Warranty management system helps reduce operating costs, enhance customer satisfaction, and gain insights to improve product quality.
Market Dynamics:
The growing adoption of extended Global Warranty Management System Market Size by OEMs to boost after-sales service and competitive differentiator is a key driver for the warranty management system market. Extended warranty programs help companies increase customer loyalty and generate additional revenue streams. Furthermore, the demand to reduce operational costs associated with warranty administration and claims processing is also fueling the adoption of warranty management systems across industries. Warranty management systems automate manual tasks, reduce paperwork errors, speed up claims processing, and allow remote warranty administration – thereby helping companies lower warranty costs significantly.
The increasing use of predictive analytics by warranty management solutions to identify failure-prone components is another factor propelling the market growth. By leveraging production data, usage patterns, failure records, and other service data, predictive warranty analytics helps OEMs effectively manage recall risks, prioritize preventive maintenance initiatives, and optimize spare part inventory levels. This enhances customer satisfaction and equipment uptime.
Segment Analysis
The warranty management system market is dominated by the software segment as warranty management has become more digitized over the years. The software segment deals with developing and delivering warranty management software and associated services to help organizations effectively manage product warranties and service contracts. With the growing need to streamline complex warranty processes and operations, most companies are opting for warranty management software to digitally manage claims processing, obligations tracking, and reporting among other tasks.
PEST Analysis
Political: Governments across major countries are promoting initiatives to improve transparency in product warranties which is fueling demand for warranty management systems.
Economic: The growth of the manufacturing and automotive industries globally is driving the warranty management system market as warranties play a major role in after-sales service activities.
Social: Increased product complexity and longer warranty periods have boosted awareness among consumers about warranty validity and coverage details pushing companies to invest in digital solutions.
Technological: Adoption of advanced technologies like AI, ML and analytics is allowing warranty management systems to offer predictive maintenance capabilities and data-driven claims management.
Key Takeaways
Global Warranty Management System Market is expected to witness high growth, exhibiting 14% CAGR over the forecast period, due to increasing digitization across organizations. The market size for 2023 is US$ 36255.81 Bn.
Regional analysis: North America dominates the warranty management system market currently owing to stringent regulations regarding product warranties in the region. Asia Pacific is expected to experience the highest growth during the forecast period due to the booming manufacturing industry in major countries like China and India.
Key players: Key players operating in the warranty management system market are Simply Warranty, PTC, Inc., Snap-On Business Solutions, Inc., Oracle Corporation, Zafire Ltd., SAP SE, Pegasystems, Inc., Tavant Technologies, Inc., and Astea International, Inc. These players are focusing on developing advanced warranty analytics capabilities and cloud-based solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
