The Warranty Management System Market was valued at USD 2.87 billion in 2019 and is expected to reach USD 6.24 billion by 2025, at a CAGR of 13.8% over the forecast period 2020 - 2025. The emergence of new technologies and rising competition in the automotive and manufacturing industries have stimulated the world population to automate their warranty claim management processes.
- Due to increasing warranty claim processing issues, organizations around the world lose thousands of dollars in revenue leakage every year. This is acting as a major factor driving the demand for warranty management systems worldwide.
- The warranty management solution, through the automation of warranty claim handling and installed base asset tracking, enables service organizations to create, administer, track, and process warranties, claims, and assets through their full lifecycles.
- As a result, third parties can submit valid claims and receive credits, customer service can verify coverage and initiate recovery, and field technicians can track asset history and replace in-warranty parts. These solutions reduce warranty cost to the minimum, automate warranty claims, streamline warranty management system, and increase service revenue to the maximum. This software benefits all the stakeholders, which include manufacturers, service providers, suppliers, dealers, and end-users.
- Many software solutions offer cross-browser compatibility, as well as has a responsive design. It integrates and automates the warranty management process, including warranty coverage, administrating campaigns, contract management, warranty tracking, and supplier cost recovery.
Scope of the Report
Warranty management includes the management of warranty and post-warranty support. Generally, it includes warranty registration claims submission, claims processing and settlement, fraud detection, returns management, supplier recovery, extended warranty marketing, replacement parts logistics, and inventory management. Warranty analytics is considered under the warranty intelligence, while warranty and contract tracking, and warranty transaction management are considered under service contact type of software.
Key Market Trends
Cloud to Hold Significant Share
- The implementation of the warranty management system on-cloud provides a high intensity of scalability, flexibility, and sharing capabilities with defined authority. The industry players into the warranty management system are penetrating the opportunity to tap the market.
- The proliferation of Connected/Smart devices and sensors that comprise of 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 now migrating their data to the cloud and industry players are offering the cloud-based solution, which is likely to boost the market growth over the forecast period.
- The cloud-based IoT platform enables actions to be taken from the collected data, such as predictive modeling, simulation, test hypothesis, and reporting.
North America to Hold Largest Share in North America
- The North America region is projected to have the largest growth in demand, during the forecast period (2019-2024), which provides a suitable environment for startups and SMEs, in terms of government regulations and compliance.
- Owing to this, enterprises are growing rapidly in the North America region and have a heavy demand for warranty management system market in order to enhance the product quality and customer satisfaction in this region. Therefore, the North American region is to have the highest market share in the warranty management system market.
- The United States dominates the warranty management system market in the region. The country is witnessing healthy growth due to the rising acceptance of security of the data among small- and medium-scale firms.
- The major trends responsible for the growth of warranty management system market in the country include the growing number of smartphone devices and increase in the adoption of smart devices, which contain Audio and Video devices, as well as Wearable's and Smart Home devices, which creates the adoption of warranty management solution to provide the best customer experience.
The warranty management systems market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market shares and profitability.
- February 2019 - TechMahindra announced the acquisition of Dynacommerce Holding B.V. Through this acquisition DynaCommerce will play a key role in further enhancing TechMahindra‘s Customer Experience Strategy.
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