May 18, 2024
Warranty Management System Market

Warranty Management System Market Is Expected To Be Flourished By Growing Demand For Centralized And Streamlined Warranty Operations

A warranty management system enables centralized and streamlined warranty operations. It provides visibility into warranty spending, claims processing, parts management, and contract management. Warranty management systems help companies improve customer satisfaction by reducing claim processing time and fulfillment of claims. It also helps identify systemic issues and fraudulent claims. Various industries such as automotive, electronics, manufacturing, and consumer goods rely on warranty management systems to gain strategic insights into warranty programs.

The global warranty management system market is estimated to be valued at US$ 41766.7 Mn in 2024 and is expected to exhibit a CAGR of 5.4%  over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

One of the key drivers for growth of the warranty management system market is the growing demand from automotive manufacturers and OEMs for centralized and streamlined warranty operations. Automotive warranty programs are expanding in terms of coverage and are becoming more complex. This is creating the need for structured processes and automation to effectively manage warranty claims across multiple dealer networks. Warranty management systems help automotive companies digitally transform warranty processes, reduce operating costs, and enhance customer service levels through real-time claim tracking and notifications.

Additionally, warranty management systems provide strategic benefits such as improved visibility into warranty spending through analytics and reporting tools. This helps companies identify systemic issues, control escalating costs, and take preventive actions. It also prevents fraudulent activities and ensures compliance. Centralized warranty data further aids in contract negotiations and strategic decision making. The above mentioned benefits are driving increased adoption of warranty management systems across end-use industries over the forecast period.

Segment Analysis

The Warranty Management System Market Share comprises the hardware segment, software segment, and services segment. The software segment dominates the market and is expected to witness the highest growth during the forecast period. This is because software-based warranty management helps companies to digitally manage complex warranty processes for products and offers flexibility.

PEST Analysis

Political: Regulations related to warranty and after-sales services are increasingly being implemented which is driving the adoption of warranty management systems for compliance.
Economic: Growth in manufacturing and automotive sectors is increasing the volume of warranty claims which is propelling the need for efficient warranty management systems to optimize costs.
Social: Rising consumer awareness about post-purchase services and warranties is compelling manufacturers to focus on better customer support through digital solutions.
Technological: Advancements in IoT, ML, and cloud computing are enabling the development of more sophisticated warranty management systems with predictive analytics and automated claim processing capabilities.

Key Takeaways

The global warranty management system market is expected to witness high growth during the forecast period owing to factors such as increasing product complexity, stringent regulations, and focus on enhancing customer experience. The global warranty management system market is estimated to be valued at US$ 41766.7 Mn in 2024 and is expected to exhibit a CAGR of 5.4%  over the forecast period 2024 to 2031.

The regional analysis indicates that North America dominates currently due to high technology adoption whereas Asia Pacific is poised to grow at the fastest pace led by industries in China, India, and Japan.

Key players operating in the warranty management system market are Ceec Trucks Industry, Dongfeng Motor, Cheng Li, Curbtender, Cnhtc, Zoomlion, Foton car, Fujian Longma sanitation, Dennis Eagle, Labrie Enviroquip, Faun, McNeilus Truck & Manufacturing, EZ Pack, and Bridgeport Manufacturing.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it