Warranty management system market
Warranty Management System Market, By Solution (Service and Software), By WMS Services (System Integration & Consulting, Business Process Outsourcing and Application Maintenance), By WMS Software (On Premises and Cloud Based), By Application (Automotive, Industrial Equipment, Heavy Machinery & Equipment, HVAC, Aerospace & Defense, Food & Beverages, Healthcare, Communication Equipment and Others)and by Region (North America, Europe, Asia Pacific, Latin America) - Size, Share, Outlook, and Opportunity Analysis, 2020 - 2027
- Dec 2020
- CMI4340
- 135 Pages
- Excel & Pdf
- Information and Communication Technology
Market Overview
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
- 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.
- Cost optimization is expected to propel the global warrant management system market growth over the forecast period
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.
Statistics:
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
- High cost of installation is expected to restrain growth of the global warranty management system market during the forecast period
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.
- Low awareness among end users is expected to hinder the global warranty management system market growth over 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.
Warranty Management System Market Report Coverage
Report Coverage | Details | ||
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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 |
Geographies covered: |
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Segments covered: |
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Companies covered: |
Simply Warranty, PTC, Inc., Snap-On Business Solutions, Inc., Oracle Corporation, Zafire Ltd., SAP SE, Pegasystems, Inc., Tavant Technologies, Inc., and Astea International, Inc |
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Growth Drivers: |
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Restraints & Challenges: |
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Market Opportunities
- Harnessing of big data can present lucrative growth opportunities
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.
- Growing demand for mobile and cloud-based solutions can provide major business opportunities
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.
Market Trends
- Outsourcing of warranty management operations
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.
- Integrated warranty management services is another major trend
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.
Competitive Section
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.
Key Developments
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.
Table of Contents
- Research Objectives and Assumptions
- Research Objectives
- Assumptions
- Abbreviations
- Market Purview
- Report Description
- Market Definition and Scope
- Executive Summary
- Market Snippet, By Solution
- Market Snippet, By WMS Services
- Market Snippet, By WMS Software
- Market Snippet, By WMS Application
- Market Snippet, By Region
- Coherent Opportunity Map (COM)
- Report Description
- Market Dynamics, Regulations, and Trends Analysis
- Market Dynamics
- Drivers
- Restraints
- Market Opportunities
- Regulatory Scenario
- Industry Trend
- Merger and Acquisitions
- New System Launch/Approval
- Market Dynamics
- Impact of COVID-19 Pandemic on Warranty Management System Market
- Global Warranty Management System Market, By Solution, 2017-2027 (US$ Billion)
- Introduction
- Market Share Analysis, 2019 and 2027 (%)
- Segment Trends
- Service
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Software
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Introduction
- Global Warranty Management System Market, By WMS Services, 2017-2027 (US$ Billion)
- Introduction
- Market Share Analysis, 2019 and 2027 (%)
- Segment Trends
- System Integration & Consulting
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Business Process Outsourcing
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Application Maintenance
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Introduction
- Global Warranty Management System Market, By WMS Software, 2017-2027 (US$ Billion)
- Introduction
- Market Share Analysis, 2019 and 2027 (%)
- Segment Trends
- On Premises
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Cloud Based
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Introduction
- Global Warranty Management System Market, By Application, 2017-2027 (US$ Billion)
- Introduction
- Market Share Analysis, 2019 and 2027 (%)
- Segment Trends
- Automotive
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Industrial Equipment
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Heavy Machinery & Equipment
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- HVAC
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Aerospace & Defense
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Food & Beverages
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Healthcare
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Communication Equipment
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Others
- Introduction
- Market Size and Forecast, 2020–2027, (US$ Billion)
- Introduction
- Global Warranty Management System Market, By Region, 2017-2027 (US$ Billion)
- Introduction
- Market Share Analysis, By Region, 2019 and 2027 (%)
- North America
- Regional Trends
- Market Size and Forecast, By Solution, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Services, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Software, 2020–2027 (US$ Billion)
- Market Size and Forecast, By Application, 2020–2027 (US$ Billion)
- Market Share Analysis, By Country, 2019 and 2027 (%)
- U.S.
- Canada
- Europe
- Regional Trends
- Market Size and Forecast, By Solution, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Services, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Software, 2020–2027 (US$ Billion)
- Market Size and Forecast, By Application, 2020–2027 (US$ Billion)
- Market Share Analysis, By Country, 2019 and 2027 (%)
- U.K.
- Germany
- Italy
- France
- Russia
- Rest of Europe
- Asia Pacific
- Regional Trends
- Regional Trends
- Market Size and Forecast, By Solution, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Services, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Software, 2020–2027 (US$ Billion)
- Market Size and Forecast, By Application, 2020–2027 (US$ Billion)
- Market Share Analysis, By Country, 2019 and 2027 (%)
- India
- Japan
- ASEAN
- Australia
- South Korea
- Rest of Asia Pacific
- Latin America
- Regional Trends
- Market Size and Forecast, By Solution, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Services, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Software, 2020–2027 (US$ Billion)
- Market Size and Forecast, By Application, 2020–2027 (US$ Billion)
- Market Share Analysis, By Country, 2019 and 2027 (%)
- Brazil
- Argentina
- Mexico
- Rest of Latin America
- Middle East and Africa
- Regional Trends
- Market Size and Forecast, By Solution, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Services, 2020–2027 (US$ Billion)
- Market Size and Forecast, By WMS Software, 2020–2027 (US$ Billion)
- Market Size and Forecast, By Application, 2020–2027 (US$ Billion)
- Market Share Analysis, By Country, 2019 and 2027 (%)
- GCC Countries
- South Africa
- Rest of the Middle East and Africa
- Introduction
- Competitive Landscape
- Company Profiles
- Simply Warranty, PTC, Inc.
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Snap-On Business Solutions, Inc.,
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Oracle Corporation,
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Zafire Ltd.
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- SAP SE
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Pegasystems, Inc.
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Tavant Technologies, Inc.
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Astea International, Inc.
- Company Overview
- Product Portfolio
- Financial Performance
- Key Strategies
- Recent Developments/Updates
- Simply Warranty, PTC, Inc.
- Company Profiles
- Section
- References
- Research Methodology
- About Us and Sales Contact
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