Warranty Management System Market Size

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.