Increased demand for processes to improve product life cycle management and increase overall revenue of companies has led to the demand for improved warranty management systems.
Albany, NY -- (SBWIRE) -- 11/09/2016 -- The global manufacturing industry is consistently facing challenges to produce and deliver good quality products with less or no defects. Warranty management systems are used to monitor and manage the manufacturing process and are an essential part of the product life cycle management (PLM) system. Transparency Market Research (TMR), in a new research report, finds that companies operating in the global warranty management systems market are striving to deliver technologically advanced products and are also expanding their product line to meet the rising demand of end users. Manufacturers of warranty management systems are also entering into strategic mergers and acquisitions.
The key players in the market are Oracle Corporation, PTC Inc., SAP SE, Astea International Inc., Tavant Technologies Inc., Pegasystems Inc., Snap-On Business Solutions Inc., Simply Warranty, and Zafire Ltd. among others.
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In 2015, the global warranty management systems market was valued at US$13.1 bn and is estimated to rise to US$30.8 bn by the end of 2022. Based on application, healthcare emerged dominant in 2013 and is anticipated to retain its lead until 2022. It is projected to touch a valuation of US$6.5 bn by 2022. The integration of warranty management systems has impelled the healthcare industry to optimize their existing front and back office operations and fulfill regulatory requirements. The need to enhance quality and make swift decisions related to delivery are further expected to drive the adoption of warranty management systems in the healthcare industry. Moreover, warranty management systems also help in delivering mission critical services along with fulfillment of customer demand. Thus, the consumption of warranty management systems is further expected to intensify over the forthcoming years.
North America to Surge Ahead Owing to Large-scale Deployment across Industries
Region-wise, the global warranty management systems market is segmented into North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. Owing to the progress of the manufacturing sector, North America dominated the global warranty management systems in 2013 and is likely to maintain a strong hold over the market during the forecast period. The growth of the warranty management systems market in North America can be attributed to the incorporation of advanced technologies across several end-user industries in the region. Sectors such as defense, aerospace, healthcare, and automotive are the key consumers of warranty management systems in North America.
Cost Optimization to Act as Key Growth Driver
Warranty management systems still remain as an underutilized resource across several industries. According to a TMR analyst, "If utilized efficiently, warranty management systems can yield benefits such as improved cash flow, cost saving, improved quality of products, and enhanced customer satisfaction." As manual warranty management is a time-consuming and labor-intensive process, many industries are shifting towards the adoption of warranty management systems. Furthermore, the rise in the number of products manufactured every year has stirred the global warranty management systems market. The progress of the market is directly proportional to the number of units produced per year. Enhanced awareness among consumers regarding the benefits of warranty management systems is further expected to drive their adoption across the globe.
High Installation Cost to Impede Sales
Although warranty management systems are gaining popularity across several sectors, their deployment is still slow due to the high initial cost incurred during purchase and installation. The initial investment cost ranges from US$150,000 to US$1 mn. In addition, a lack of skilled labor to operate the systems is expected to challenge the growth of the market over the next couple of years. However, manufacturers of warranty management systems can make the most out of the popularly accepted benefits of warranty management systems, such as customization of lengthy data.