A warranty management system helps manage product warranties and repair requests systematically. It tracks warranty claims, repair cost, and turnaround time for quick resolution of issues. The system enables companies to monitor the performance of products and identify failure prone parts to improve quality. It automatically notifies customers for warranty expiration and allows online claim registration for a hassle-free experience.
The global warranty management system market is estimated to be valued at US$ 1.2 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the warranty management system market is the increasing use of product warranties in the e-commerce industry. According to Commerce Department, US online retail sales in 2021 were US$ 920 Bn, up 14.1% year-over-year. As e-commerce purchases are growing rapidly, product warranties are playing a crucial role in building customer trust for online sellers. A warranty management system allows e-retailers to manage large volumes of warranty claims efficiently and maintain high customer satisfaction levels. This is encouraging more companies to adopt such systems.
SWOT Analysis
Strength: Warranty management systems provide an automated process to manage warranty claims that can reduce costs and improve customer service. They allow companies to digitally track warranty records and transactions in one centralized system. This streamlines the process and makes it easier to spot trends.
Weakness: Implementing a new warranty management software can be an expensive upgrade and require extensive training for staff. Some smaller companies may not have the budgets for these systems. Additionally, it will take time for workers to get accustomed to the new software.
Opportunity: As more products are sold online and through e-commerce channels, warranty management needs to keep up with the growing digital transactions. Integrating warranty registration and claims directly into e-commerce sites allows for a seamless customer experience. There is also an opportunity to upsell extended warranty plans during the purchase process.
Threats: New entrants into the warranty management system market offer additional options but also increase competition. Customers have more choices which can lower prices but also make selection more complex. Reliability and security of data on the systems becomes critical to avoid losing business and brand trust.
Key Takeaways
The Global Warranty Management System Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global warranty management system market is estimated to be valued at US$ 1.2 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.
Regional analysis shows that North America currently dominates the market due to strict warranty compliance standards and an emphasis on customer satisfaction programs. However, Asia Pacific is poised to be the fastest growing region as more manufacturers provide after-sales support to customers.
Key players operating in the Warranty Management System market are IDS Scheer, Tech Mahindra, Oracle, Astea International, Tavant Technologies, Wipro, Zafire, intellectual, Infosys, and Pegasystems. These companies provide a variety of warranty management software as well as implementation and support services. While larger multinational firms have the resources for customized on-premise solutions, SMBs are increasingly drawn to cloud-based offerings for their lower upfront costs and subscription models.
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