Warranty Management System Market Expected to Reach $16.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Warranty Management System Market," The warranty management system market was valued at $3.7 billion in 2022, and is estimated to reach $16.1 billion by 2032, growing at a CAGR of 16.2% from 2023 to 2032.

Warranty management system refers to the software solutions and services that manage warranties for various products and services. These systems are designed to help companies manage the entire warranty process, including creating and tracking warranty claims, managing repairs and replacements, and handling customer inquiries and complaints related to warranties. Moreover, the market for warranty management systems has been growing rapidly in recent years, as more companies recognize the importance of providing reliable warranties and efficient warranty management processes to their customers. In addition, warranty management systems include a variety of software vendors and service providers that offer a range of solutions, from standalone warranty management software to integrated enterprise resource planning (ERP) systems. 

Furthermore, major market players have undertaken various strategies to sustain the intense competition and offer enhanced services to their customers. For instance, in January 2023, Tavant, Silicon Valley's leading digital products and solutions company, successfully implemented an end-to-end guaranteed management solution for GAF, the largest roofing and waterproofing manufacturer in North America. This joint initiative will enhance GAF’s guarantee registration through issuance processes to drive significant improvements in GAF’s external and internal guarantee management experiences. Therefore, such strategies significantly contribute toward the growth of the warranty management system market forecast. 

Depending on component, the software segment registered the highest growth in 2022, as warranty management software has the ability to integrate with other systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) systems, which helps to ensure if the warranty information is shared across the organization, improving collaboration and reducing the risk of errors. In addition, the integration of warranty management systems with other enterprise software solutions, such as CRM and ERP, to provide a seamless customer experience, and the use of blockchain technology to improve data security and transparency leads to the growth of this segment. However, the service segment is expected to exhibit the fastest growth during the forecast period. due to the adoption of cloud-based solutions as these cloud-based warranty management systems offer several advantages, including flexibility, scalability, and cost-effectiveness. Moreover, they provide real-time data analytics and insights that enable companies to optimize their warranty management processes and improve their products. 

Region wise, North America attained the highest growth in 2022 owing to increase in demand for automation in the warranty management process, need for efficient & effective warranty claim processing, and surge in adoption of cloud-based solutions. Moreover, increase in focus on customer satisfaction and retention has led to the adoption of warranty management systems as a tool for enhancing the customer experience in North America, which, in turn, leads to the growth of the warranty management system industry. However, Asia-Pacific is considered to grow at the fastest rate during the forecast period. This is attributed to rapidly expanding e-commerce sector in the region is driving the demand for efficient and automated warranty management systems to handle high volumes of transactions. Furthermore, regulatory requirements and compliance standards by the government pertaining to warranty management system are contributing to the growth of the market in Asia-Pacific, as companies seek to ensure compliance with regulations and avoid potential liabilities.

The COVID-19 pandemic had a positive impact on the warranty management system market. With the global economy facing a downturn, businesses are becoming more cost-conscious and are looking for ways to reduce their expenses. As a result, many companies are cutting back on their investments in warranty management systems, leading to a slowdown in the market growth. On the other hand, the pandemic has also led to an increase in the number of warranty claims, as consumers have become more aware of their rights and are demanding better service. This has led to an increased demand for warranty management systems that can efficiently handle the influx of claims. Additionally, the pandemic has accelerated the adoption of digital solutions in many industries, including warranty management, as businesses have had to adapt to remote work environments. As a result, the market for cloud-based warranty management systems is expected to continue growing in the post-pandemic era. Hence, COVID-19 has moderately impacted the warranty management system market size.

Key findings of the study

• By deployment mode, the on-premise segment led the warranty management system market share in terms of revenue in 2022.
• By industry vertical, the manufacturing segment led the warranty management system market in terms of revenue in 2022.  
• By region, North America generated the highest revenue in 2022.

The key players profiled in the warranty management system market analysis are IBM Corporation, IFS, Mize, Oracle Corporation, Pegasystems Inc., PTC, Salesforce, SAP, Tavant, and Wipro Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the warranty management system industry.