Warranty management software or also referred to as a warranty management system helps to process, track, and manage warranties and related claims through their lifecycle. This information plays a crucial role in warranty claims and to reorganize the established warranty management system present in the PLM system.
The global warranty management system market is estimated to account for US$ 62,582.8 Bn in terms of value by the end of 2027.
Market Dynamics- Drivers
Expansion of global warranty management systems market is directly proportional to the output of manufacturing industries, i.e. how much products they yield annually. Furthermore, the automotive industry is the most lucrative sector for WMS solutions. According to Coherent Market Insights’ analysis, the global motor vehicle production (car and commercial) increased to 84,100,167 units in 2012 from 61,791,868 in 2009 at a CAGR of 10.8%. This increase in production of vehicles has led to significant growth of finances across this industry. Hence, these factors are expected to drive growth of the global warranty management system market in the near future.
Warranty management system offers numerous over manual warranty management including enhanced cash flow, cost-saving, improved quality, and increased customer satisfaction. Besides, manual warranty management is labor-intensive and time-consuming. It is observed that those companies using manual processes for its warranty management make 12 to 15 different documents and enters redundant information multiple times. This process requires about 2.5 hours to 2.75 hours to make a single invoice. On the contrary, warranty management system reduces the time to around 30 minutes. Furthermore, it reduces expenses related to warranty claims and processing by around 25%. Hence, these factors are expected to propel the market growth over the forecast period.
North America held dominant position in the global warranty management system market in 2019, accounting for 37.1% share in terms of value, followed by Europe, Asia-Pacific and RoW respectively.
Figure 1: Global Warranty Management System Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
Initial adoption cost of the warranty management system is significantly high. According to Coherent Market Insights’ analysis, the average cost of implementation ranges from US$ 150,000 to US$ 1 million. Although cost varies based on the depth and scope of the integration process, the overall infrastructure needed is still expensive. Low availability of skilled personnel and high cost of installation is expected to restrain growth of the global warranty management system market during the forecast period.
Despite its numerous advantages, the majority of end users are still unaware of this software. These end users typically rely on manual warranty management, especially small and medium-sized enterprises. As a result of this, the adoption of WMS is being hindered. Hence, these factors are expected to hinder the global warranty management system market growth over the forecast period.
|Base Year:||2019||Market Size in 2019:||US$ 20,947.1 Bn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||14.7%||2027 Value Projection:||US$ 62,582.8 Bn|
Simply Warranty, PTC, Inc., Snap-On Business Solutions, Inc., Oracle Corporation, Zafire Ltd., SAP SE, Pegasystems, Inc., Tavant Technologies, Inc., and Astea International, Inc
|Restraints & Challenges:||
A large amount of structured and unstructured data is generated daily from various business operations known as big data. Manufacturing sectors have data spread across numerous departments. Thus collection and conversion of this big data which is spread across entire operations and quantifying it to efficiently handle quality management and reserve management among others become a tedious task. With existence of complex systems, manufacturers are challenged by limitation of existing techniques to understand data coming in from multiple sources and handling them in order to take timely decisions.
Warranty management system vendor’s aim towards improving the competitive and financial position of businesses, prioritizing operational enhancement areas, and leverage IT to deliver differential results. Manufacturers are increasingly adopting mobile and cloud-based warranty management systems that help them cut down on infrastructure costs. These warranty management systems can be accessed at the customer’s convenience and bring ease of operation and flexibility of managing warranty claims into the system. Moreover, warranty management solutions that are available online can replace high cost licensed solutions.
Figure 2: Global Warranty Management System Market Value (US$ Bn), 2017 - 2027
The global warranty management system market was valued at US$ 20,947.1 Bn in 2019 and is forecast to reach a value of US$ 62,582.8 Bn by 2027 at a CAGR of 14.7% between 2020 and 2027.
OEMs are facing various challenges in adoption of WMS solutions, owing to a lack of skilled personnel and inadequate technical expertise. Furthermore, manufacturers are seeking to reduce overall warranty processing time and operational costs by outsourcing their warranty operation services to third party vendors. Moreover, OEMs are increasingly outsourcing their warranty related processes, in order to make optimum use of resources for their core processes. For instance, manufacturers of communication devices and equipment, vehicles, and automotive parts, healthcare devices expand their in house servicing by outsourcing repair of items (personal computers, hard drive, etc.) which hold certain warranty clauses.
In the recent past, original equipment manufacturers have faced numerous challenges regarding manual and time-consuming practices for claims entry, shortage of data related to warranty management practices, an increasing number of fraudulent claims. In such cases, integration is required amongst warranty systems of OEMs such as supplier ecosystem and management systems of dealers. Integrated warranty management services that cater to multiple channel interactions are closed-loop systems that help in integration of different applications and software to work as a unified system. It helps manufacturers to enhance cost savings by better management of warranty claims.
Global Warranty Management System Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on the growth of Warranty Management System Market. As manufacturing operations are temporarily suspended across many countries to contain the coronavirus. Due to this there is shortage of Warranty Management System in the market caused by less production of consumer electronic devices. Many manufacturing companies such as Samsung, Xiaomi, OPPO and LG Display among others have suspended their manufacturing operations in China, India, South Korea and in European countries. For instance, in May 2020, OPPO Company has shut down its operations in Noida as six employees test coronavirus positive. Additionally, due to this pandemic, the demand for warranty management system market is exacerbated by lockdown imposed in several countries.
Key players operating in the global 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.
Major companies are focused on product launches, in order to enhance the market presence. For instance, in February 2017, Tavant Technologies, Inc. launched next advanced version of its warranty management solution ‘Tavant Warranty On-Demand 1.5’ on Salesforce AppExchange.
Warranty management system (WMS) is a component of product life cycle management system that is used to capture and analyze historical production data. WMS is used by many organizations to process, track and manage warranties and claims in the product lifecycle. Warranty management system helps OEMs to overcome various challenges such as to identify the product that has defective component, identify the reason behind failure, bad design, or bad material, and to identify people who worked on the batch. The major sectors which have gained considerable revenue in in warranty management systems market worldwide are healthcare, food and beverages, industrial manufacturing, automotive, and communication equipment industry.
North America is expected to drive market growth over the forecast period that provides a suitable environment for SMEs and startups. Enterprises are growing rapidly in North America and increased the demand for warranty management system in order to enhance product quality and customer satisfaction in this region. The U.S. country has dominated the market and witnessing high growth due to rising security concerns of the data among small and medium enterprises. Moreover, the growing demand for smartphone devices and increasing adoption of smart devices creates the demand for a warranty management solution to provide the best solution or service to the customers.
Increased output of manufacturing industries is expected to drive growth of the global warranty management system market during the forecast period. Expansion of global warranty management systems market is directly proportional to the output of manufacturing industries, i.e. how much products they yield annually. Furthermore, the automotive industry is the most lucrative sector for WMS solutions. According to Coherent Market Insights’ analysis, the global motor vehicle production (car and commercial) increased to 84,100,167 units in 2012 from 61,791,868 in 2009 at a CAGR of 10.8%. This increase in production of vehicles has led to significant growth of finances across this industry. Hence, these factors are expected to drive growth of the global warranty management system market in the near future
This report segments the global warranty management system market on the basis of solution, WMS services, WMS software, application and region. On the basis of solution, the global warranty management system market is segmented into service and software. On the basis of WMS services, the global warranty management system market is segmented into system integration & consulting, business process outsourcing and application maintenance. On the basis of WMS software, the global warranty management system market is segmented into on premises and cloud based. On the basis of application, the global warranty management system market is segmented into automotive, industrial equipment, heavy machinery & equipment, HVAC, aerospace & defense, food & beverages, healthcare, communication equipment and others. On the basis of region, the global warranty management system market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.
Key features of the study:
*Browse all the market data tables and figures on “Global Warranty Management System Market- Forecast to 2027”
Joining thousands of companies around the world committed to making the Excellent Business Solutions.View All Our Clients