Market Size of Warranty Management System Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 13.90 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Warranty Management System Market Analysis
The Warranty Management System Market is expected to register a CAGR of 13.9% over the next five years. Owing to the increasing warranty claim processing issues, organizations worldwide lose thousands of dollars in revenue leakage yearly. This has been acting as a major factor driving the demand for warranty management systems worldwide. Moreover, the need to automate warranty claim management processes has increased significantly with the emergence of newer technologies and rising competition in the automotive and manufacturing industries.
- The warranty management system helps service businesses to design, administer, track, and process warranties, claims, and assets through their lifecycles through the automation of warranty claim handling and installed base asset tracking. Innovative warranty management systems (WMS) are linked with AI and machine learning capabilities to guarantee customer satisfaction.
- Through the automation of warranty claim handling and installed base asset tracking, warranty management solutions primarily enable service organizations to create, administer, track, and process warranties, claims, and assets through their full lifecycles.
- As a result, third parties can submit their valid claims and receive credits. Customer service can also verify the coverage and initiate recovery, and field technicians can track asset history and replace the in-warranty parts. These solutions reduce the warranty cost to a minimum, automate warranty claims, streamline the warranty management system, and increase service revenue to the maximum. This software benefits all stakeholders, including manufacturers, service providers, suppliers, dealers, and end-users. This has resulted in significant demand in various end-user industries across the world.
- Modern warranty management systems (WMS) incorporate advanced technologies, machine learning (ML), and artificial intelligence (AI) capabilities to enhance customer satisfaction. As a result, warranty lifecycle management systems have shown strong growth during the assessment period because of AI and ML developments. AI-based systems employ image recognition to quickly and economically identify fraudulent claims. Machine learning algorithms are trained using tens of thousands of photographs, and they can identify actual problems with photoshopped images or old claims.
- The growing production in the automotive sector is a significant factor driving the market growth, as the automotive and supply chain industries account for the largest share in the adoption of warranty software. Moreover, the consumer propensity toward adopting connected vehicles is also expected to influence the global demand for automobiles, thereby driving the market.
- The COVID-19 pandemic significantly impacted the growth of the warranty management system market as manufacturing operations were temporarily suspended across many countries to contain the virus. This increased the need for more warranty management systems in the market, caused by less production of consumer electronic devices. However, with COVID-19, the shift toward automated technologies was significant across the region. The considerable advantages of the adoption mentioned above are luring the customers into the broad adoption of automated warranty management systems with AI and ML and contributing to the market growth.
Warranty Management System Industry Segmentation
Warranty management solutions primarily include the management of warranty and post-warranty support. Generally, the solutions include warranty registration, claim submission, processing and settlement, fraud detection, supplier recovery, returns management, extended warranty marketing, replacement parts logistics, and inventory management.
The Warranty Management System is segmented by Deployment Type (On-premise and Cloud), Software Type (Warranty Intelligence, Claim Management, Service Contract, and Administration Management), Component (Solutions and Services), End-user Industry (Industrial Equipment, Automotive and Transportation, Consumer Durable, Construction/Building Materials, Medical Devices, and Aerospace and Defense), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The market sizes and forecasts are provided in terms of value (USD Billion) for all the above segments.
By Deployment Type | |
On-premise | |
Cloud |
By Software Type | |
Warranty Intelligence | |
Claim Management | |
Service Contract | |
Administration Management |
By Component | |
Solutions | |
Services (Professional and Managed Services) |
By End-user Industry | |
Industrial Equipment (Heavy Equipment and Machinery) | |
Automotive and Transportation | |
Consumer Durable (Major Residential Appliances and HVAC Systems) | |
Construction/Building Materials | |
Other End-user Industries (Medical Devices, Aerospace and Defense, etc.) |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Rest of the World |
Warranty Management System Market Size Summary
The warranty management system market is poised for significant growth, driven by the increasing need to address warranty claim processing challenges and revenue leakage in organizations worldwide. The demand for these systems is further bolstered by the necessity to automate warranty claim management processes, particularly in the automotive and manufacturing sectors, where competition and technological advancements are rapidly evolving. Modern warranty management systems leverage artificial intelligence and machine learning to enhance customer satisfaction by automating claim handling and asset tracking, thereby minimizing costs and maximizing service revenue. These systems benefit a wide range of stakeholders, including manufacturers, service providers, and end-users, leading to their widespread adoption across various industries.
The market is experiencing a surge in interest due to the proliferation of connected devices and the Internet of Things, which offer new insights for improving warranty claims processes. Cloud-based solutions are gaining traction, providing scalability and flexibility, and are expected to drive market growth further. North America leads in the adoption of warranty management systems, supported by a strong presence of major vendors and a growing acceptance of data security among businesses. The region's market growth is fueled by technological advancements and the early adoption of cloud computing, AI, and IoT. The market is moderately consolidated, with key players focusing on expanding their global presence through strategic partnerships and innovative solutions, such as online claims platforms, to enhance customer service and streamline processes.
Warranty Management System Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Intensity of Competitive Rivalry
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1.2.5 Threat of Substitute Products
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1.3 Assessment of the COVID-19 Impact on the Market
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2. MARKET SEGMENTATION
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2.1 By Deployment Type
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2.1.1 On-premise
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2.1.2 Cloud
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2.2 By Software Type
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2.2.1 Warranty Intelligence
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2.2.2 Claim Management
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2.2.3 Service Contract
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2.2.4 Administration Management
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2.3 By Component
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2.3.1 Solutions
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2.3.2 Services (Professional and Managed Services)
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2.4 By End-user Industry
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2.4.1 Industrial Equipment (Heavy Equipment and Machinery)
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2.4.2 Automotive and Transportation
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2.4.3 Consumer Durable (Major Residential Appliances and HVAC Systems)
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2.4.4 Construction/Building Materials
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2.4.5 Other End-user Industries (Medical Devices, Aerospace and Defense, etc.)
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2.5 Geography
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2.5.1 North America
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2.5.2 Europe
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2.5.3 Asia-Pacific
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2.5.4 Rest of the World
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Warranty Management System Market Size FAQs
What is the current Warranty Management System Market size?
The Warranty Management System Market is projected to register a CAGR of 13.90% during the forecast period (2024-2029)
Who are the key players in Warranty Management System Market?
Oracle Corporation, Wipro Limited, Pegasystems Inc., IBM Corporation and Tavant are the major companies operating in the Warranty Management System Market.