Warranty Management System Is Estimated To Witness High Growth Owing To Surge In Automotive Sector
A warranty management system (WMS) software is a cloud-based platform that helps businesses to manage warranty claims, processes, customers, and suppliers in a systematic manner. The WMS software provides end-to-end control over entire warranty process from registration of products to claims approval and other functions. It helps organizations improve customer satisfaction, optimize operational costs, and gain real-time insights into warranty trends.
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:
The Warranty Management System market is witnessing high growth owing to the surge in the automotive sector globally. According to OICA, around 87.4 million vehicles were produced in the year 2019. This significant rise in vehicle production has led to an increase in warranty claims and costs for OEMs. Thus, automakers are adopting warranty management software to streamline their claims management processes and reduce operational costs associated with warranties. In addition, investments by governments in public transportation infrastructure are creating opportunities for warranty management of public transport fleets such as buses and trains. For instance, the Union Budget of India 2022-23 allocated Rs. 1,900 crore for metro rail projects in cities such as Delhi, Chennai, and Bangalore. Moreover, stringent emission norms by regulatory bodies have forced OEMs to provide longer warranty periods of 5-8 years on electric vehicles to boost customer confidence, thereby fueling adoption of WMS. However, the high installation and maintenance cost of WMS solutions may hamper the small and medium enterprises from availing these services.
SWOT Analysis
Strength: Warranty management systems track and manage warranty claims, providing better visibility. This helps reduce costs and improves customer satisfaction. Warranty management also enables identifying issues early to initiate corrective actions. Centralized data access allows manufacturers to spot trends and prevent future failures.
Weakness: Initial implementation of a warranty management system requires high investment. Maintaining and upgrading the system over time also incurs additional costs. There are also integration challenges to connect the warranty system with other platforms like ERP, CRM, etc. Data security is another concern as warranty details contain sensitive customer and product information.
Opportunity: Increasing sales of consumer electronics and automobiles is driving the need for efficient after-sales service and warranty administration. Warranty management solutions help organizations scale their post-sales operations. The growing emphasis on predictive maintenance also opens opportunities to develop more advanced analytical capabilities.
Threats: Open-source and low-cost warranty trackers from startups pose pricing pressures. Economic slowdowns can impact warranty claim volumes. Strict data privacy regulations differ globally, raising compliance issues. Technology changes fast, so warranty solutions must frequently upgrade to remain relevant.
Key Takeaways
The global Warranty Management System Market Share is expected to witness high growth over the forecast period of 2024 to 2031. The market size for 2024 is projected to be US$ 41766.7 Mn growing at a CAGR of 5.4% through 2031.
Regional analysis: North America currently dominates with the largest share due to high vehicle sales and widespread adoption of warranty management among manufacturers. Asia Pacific is expected to grow the fastest owing to the rapidly expanding automotive industry in China, India, and Southeast Asian countries.
Key players: Key players operating in the Warranty Management System market include 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. The market has many small players offering niche solutions while larger ERP vendors are also entering the space.
Explore more related article on this topic: https://www.newswirestats.com/the-global-warranty-management-system-market-growth/
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