WARRANTY MANAGEMENT SYSTEM MARKET ANALYSIS

Market Size and Trends

Global warranty management system market is estimated to be valued at US$ 6.13 Bn in 2024 and is expected to reach US$ 15.03 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.7% from 2024 to 2031.

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Global warranty management system market is expected to witness significant growth during the forecast period due to increasing focus on customer relationship management (CRM) and growing investments towards offering enhanced after-sales services. Manufacturing companies are widely adopting warranty management software to digitize warranty claims processing and improve customer experience. The availability of cloud-based warranty management solutions can boost adoption of these systems across small and medium enterprises. Rising need to optimize operational costs associated with warranty transactions can drive the market growth. However, budget constraints of small businesses can hamper the market growth.

Rising use of digitalization in warranty management

With increasing adoption of industry 4.0 technologies across various industries, digitalization is slowly making inroads into the warranty management process of many organizations. The collection and analysis of warranty data has transformed with sensors and IoT incorporated into many products. This data holds valuable insights into potentially failing parts and recurring issues. Leveraging advanced analytics tools, organizations can now better predict failures and manage repair/service activities proactively. Remote diagnostics facilitated through connected devices enables predictive maintenance and significantly reducing downtimes.

The deployment of cloud-based warranty management software has allowed processing warranty claims and services requests from anywhere. Customers can lodge complaints online and track the status conveniently through portals and mobile apps. Field engineers are equipped with tablet devices loading service history and technical documentation directly. Real-time visibility into inventory levels and repair workflows has optimized turnaround times. Automated notifications keeps stakeholders well-informed about schedules. The transition to digital is streamlining previously paper-laden and slow warranty administration systems while delivering higher transparency and improved customer satisfaction.

For instance, in November 2022, Tavant, a digital products and solutions company and a global leader in service lifecycle management, partnered with Daimler Truck AG (DTAG), one of the world's largest commercial vehicle manufacturers, to provide warranty and claim management solutions for DTAG's European brands.

Rising complexity of products and extended warranty offerings

With technological advancements and innovations, there has been increase in complexity of products.  Automobiles have moved way beyond the conventional engines and now contain hundreds of sophisticated electronic control modules, advanced driver-assistance features, and infotainment systems. Household appliances integrate networked functionalities and smart home capabilities. Medical devices rely on blended mechanical and software components. Customers also demand value-added offerings like on-site repairs, consumables/parts replacement, periodical health checks, and upgrades beyond the standard 1–2-year warranty coverage.

Addressing issues and fulfilling claims for intricate products requires extensive technical know-how and diagnostic abilities from the supporting workforce. With warranty obligations stretching into longer durations, historical service data assumes greater importance to recognize developing reliability issues proactively. Detailed documentation and standard operating procedures have to be developed for diverse warranty case procedures. Effective coordination is needed between OEMs and their extended supplier networks as the solutioning becomes multitiered. Those able to optimize these expanded aftermarket demands through dedicated warranty programs and IT systems will be better positioned to bolster customer retention and brand loyalty in the competitive markets.