Warranty Management System Market to be US$ 62,582.8 Billion

The Global 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) - Global Forecast to 2027, is expected to be valued at US$ 62,582.8 billion by 2027, exhibiting a CAGR of 14.7% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.

Overview

Warranty management system provides integrated software to automate and standardize the warranty related processes. A warranty management system helps OEMs to overcome various challenges such as identify the product that has defective component, identify the reason behind failure, bad design, or bad material, and identify the people worked on the batch. The major sectors in warranty management systems market which have gained considerable revenue worldwide are healthcare, food and beverages, industrial manufacturing, automotive, and communication equipment industry.

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 Drivers

Increasing awareness about the benefits of WMS is expected to boost the global warranty management system market growth over the forecast period

WMS aid manufacturers in laying emphasis on functionality, which provides visibility into the warranty lifestyle of a product. Furthermore, warranty management systems aim to provide seamless communication among partners, dealers, suppliers to quantify and use the data available with each of them. Hence, these factors are expected to drive growth of the global warranty management system market during the forecast period. For instance, in 2015, warranty vendors started focusing on the improvement of warranty based analytical programs and key performance indicators (KPI) to monitor the overall production process to maintain product quality.

Market Opportunity

Merger and acquisition activities among major market players present lucrative opportunities

Research and development activities among market players, in order to enhance the market presence. For instance, in March 2013 Oracle Corporation launched the Supplier Warranty Management solution for its Oracle E-business suite. In June 2015, Tavant Technologies, Inc. launched Tavant On-Demand Old V 1.0, a warranty application that offers solutions for the complete management of the warranty life cycle to minimize warranty reserves and costs, enhance supplier recovery, and improve forecasting accuracy.

Market Restraint

Inconsistent business semantics is expected to hamper the global warranty management system market growth over the forecast period

Business semantics management includes technology, methodology, and culture that brings business stakeholders together collaboratively to work together. However, there are major inconsistencies regarding semantics. Thus, such factors are expected to hamper the global warranty management system market growth over the forecast period.

Market Trends

Mergers and acquisitions among major market players is a major trend

Key companies in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in September 2011, PTC, Inc. acquired 4C Solutions, Inc., a service life cycle management (SLM) and warranty management software, developer. Furthermore, in 2013, SAP SE acquired Camilion, a company that offers product life cycle management and product development for Aito parts and healthcare equipment.

Automating warranty claims process is another major trend

Manufacturers have to spend a considerable amount of time and effort in the manual filing, submitting, and managing of warranty claims. This additional expenditure creates an unnecessary burden on manufacturers. This has led to the automation of the warranty claims process to become the top priority of companies involved in warranty chain worldwide. Automated warranty management systems offer the ability to OEMs to process warranty claims electronically. This system is known for the fast capture of data across repair orders, warranty contracts, and others and transmits data electronically to the manufacturers from its customers.

Global Warranty Management System Market - Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The automotive & transportation industry is amongst the most exposed verticals due to ongoing COVID-19 outbreak. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to slow down due to shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months.

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

Segmentation

Market Taxonomy: