Warranty Management System Market- Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Warranty Management System Market- Growth, Trends, COVID-19 Impact and Forecasts (2022 - 2027)

Warranty Management Systems Market size is valued at USD 2,468.8 Million in 2021 and is projected to reach USD 5,429.5 Million by 2027 at a CAGR of 14% during the forecast period (2022-2027). The emergence of new technologies and rising competition in automotive and manufacturing industries have stimulated the world population to automate their warranty claim management processes. Warranty management systems reinvent the contract and warranty management operations by offering integrated software to automate and standardize warranty-related procedures.

Key Highlights

• The global Warranty Management System (WMS) market study provides precise and high-quality industry data, revenue projections, and business geographic landscape. Manufacturers operating in the warranty management system market are striving to keep their wheels turning during the global financial crisis due to forced lockdowns and businesses shutting down. Companies are attempting to re-establish their businesses by implementing creative solutions to deal with uncertainties and hurdles in the worldwide warranty management software market.
• Through the automation of warranty claim handling and installed base asset tracking, the warranty management solution enables service organizations to create, administer, track, and process warranties, claims, and assets through their lifecycles. Next-gen warranty management systems (WMS) are integrated with artificial intelligence (AI) and machine learning (ML) capabilities to ensure customer satisfaction. For instance, California-based software company Tavant Technologies is promoting its end-to-end warranty management system that helps organizations reduce warranty costs and improve aftermarket experience. Thus, AI and ML innovations in warranty lifecycle management solutions drive the market.
• Manufacturers in various industries utilize warranty management system software as a marketing tool to standardize and automate warranty management procedures. With this software, manufacturers may better concentrate on features that increase customer base and offer visibility into a product's warranty lifespan. By strengthening connections with suppliers, distributors, channel partners, and customers, the software also assists firms in making prompt decisions. Speridian Technologies claims that warranty management software streamlines the procedure and cuts the claim cycle by 18%, eliminates duplicate cases, boosts profit by up to 20% by cutting out or reducing shipping costs, and offers more accurate and thorough reporting, necessitating the use of the warranty management system.
• The global market for warranty management systems is expanding due to expansion in the manufacturing and automotive industries. One of the attractive industries for warranty management systems is the automotive sector. So the development of the automotive industry is accelerating the market's growth.
• The outbreak of COVID-19 pandemic has affected a wide range of businesses. The automotive & transportation industry is one of the most affected verticals due to disruption in the supply chain and product demand in the automotive sector. The need for commercial and passenger vehicles was slowed down due to the shutdown of all non-essential services. However, the economy is recovered slowly and gradually increased, which might assist the business with returning to its feet as quickly as time permits which will grow the demand for warranty management systems.

Key Market TrendsCloud Has Significant Share In The Market.

• The increasing demand and popularity of cloud services across enterprises are expected to boost the global warranty management system market in the upcoming years. Innovations and improved infrastructure for establishing businesses and growth in information and technology services drive the global market.
• Implementing the warranty management system on-cloud provides high scalability, flexibility, and sharing capabilities with defined authority. The industry players in warranty management systems are penetrating the opportunity to tap the market. Vendors have started using artificial intelligence(AI) and cloud-based technologies in the warranty management system to maintain product quality and increase productivity.
• Furthermore, the warranty management software can easily integrate with other software such as involuntary management software, accounting software, etc. As a result, they can use a single software to streamline many processes, which enhances the demand for cloud-based warranty Management solutions.
• The proliferation of Connected/Smart devices and sensors that comprise the Internet of Things (IoT), as well as the amounts of metadata generated by different machine-to-machine (M2M) communications networks, would offer manufacturers a new level of insight needed to intelligently update the warranty claims process and deliver seamless customer experience.
• The companies are migrating their data to the cloud, and industry players are offering the cloud-based solution, which is likely to boost market growth over the forecast period. The cloud-based IoT platform enables actions from the collected data, such as predictive modeling, simulation, test hypothesis, and reporting.

United States Has Largest Share In The Market.

• The United States dominates the global warranty management system market. The country is witnessing healthy growth due to the rising acceptance of data security among small- and medium-scale firms.
• The major trends responsible for the growth of the warranty management system market in the country include the growing number of smartphone devices and an increase in the adoption of intelligent devices, which contain Audio and Video devices, as well as Wearable and Smart Home devices, which creates the adoption of a warranty management solution to provide the best customer experience.
• The strong presence of well-established and technologically advanced regional players has played a crucial role in market growth. The high growth rate of gross domestic product (GDP) and good economic stability of countries in the area, especially the U.S., supports the manufacturing sector and product development across various industries. With increased production, original equipment manufacturers (OEMs) work toward maintaining the balance between supply and demand while maintaining product quality. Hence, OEMs are increasingly adopting warranty management systems across their supply chain.
• Therefore, the proliferation of digital services and technological advancements, coupled with the early adoption of the latest technologies in various sectors, supplement the region's growth. The country is also experiencing many investments and technological advancements in the warranty management system. The adoption of the warranty management system in the retail space is also emerging, as there is a considerable shift to organized retail to improve customer behavior experience through the application of analytics.
• As the demand for the warranty management system is directly related to the sales of automobile products sales of IoT devices, therefore, the country is expected to dominate the market over the forecast period.

Competitive Landscape

The Warranty Management System Market is Highly Fragmented due to the presence of many players in the market. Some key players in the Market include IBM, Oracle, and SAP. Some of the recent developments in the market are

• In August 2022, Valtra, an agricultural machinery manufacturer based in Finland and the leading tractor manufacturer in the Nordics, partnered with Advian Solutions to improve their product development process to cut field costs related to tractor warranty claims.
• In June 2022, FrogData helped dealerships meet the commitments made when selling warranties during the vehicle delivery process with the launch of WarrantyMind, a data platform for warranty claims processing designed to solve critical warranty administration problems at dealerships.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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