Extended warranty, also known as a service agreement, service contract, or a maintenance agreement, refers to policy that extends the warranty period of consumer durable goods beyond what is provided by manufacturers to consumers on purchase of new items. If the damage is caused by manufacturing faults or low quality, it often covers the expenses of repair or replacement of the product. Extended warranty is generally provided for automobile and electronic & electrical appliances, and is usually offered by the manufacturer, retailer, or third-party service provider.
Increased awareness of extended warranty policies among consumers has led to the development of extended warranty in the insurance market. In addition, surge in adoption of smartphones, computers, home appliances, and other products has increased the use of extended warranty coverage for the repair or replacement of parts of the expensive items, which in turn, propels the market growth.
However, the considerable decline in shipments of personal computers (PCs) worldwide, is one of the key factors restraining the growth of the extended warranty market. On the contrary, the expansion of complex and sophisticated product and service are fostering the demand for additional warranty coverage, which is likely to pave growth opportunities for the global market. In addition, the untapped potential of emerging economies is providing lucrative opportunities for the market growth during the forecast period.
The extended warranty market is segmented based on coverage, application, distribution channel, end user, and region. By coverage, the market is bifurcated into standard protection plan and accidental protection plan. By application, the market is divided into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. By distribution channel, the market is segregated into manufacturers, retailers, and others. By end user, the market is divided into business and individuals. By region, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
The key players profiled in the extended warranty market analysis are Assurant, Inc., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield, LLC, Endurance Warranty Services, LLC, Edel Assurance, and SquareTrade, Inc. These players have adopted various strategies, including partnership, collaboration, product launch, and developments to increase their market penetration and strengthen their position in the industry.
Standard Protection Plan
Accidental Protection Plan
By Distribution Channel
Manufacturers
Retailers
Others
By Application
Automobiles
Consumer Electronics
Home Appliances
Mobile Devices & PCs
Others
By End User
Individuals
Business
By Region
North America
US
Canada
Europe
Germany
UK
France
Italy
Spain
Netherlands
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key market players
ASSURANT, INC.
American International Group, Inc.
AXA
AmTrust Financial
Asurion
CARCHEX
CarShield, LLC
Endurance Warranty Services, LLC
Edel Assurance
SquareTrade, Inc.
Increased awareness of extended warranty policies among consumers has led to the development of extended warranty in the insurance market. In addition, surge in adoption of smartphones, computers, home appliances, and other products has increased the use of extended warranty coverage for the repair or replacement of parts of the expensive items, which in turn, propels the market growth.
However, the considerable decline in shipments of personal computers (PCs) worldwide, is one of the key factors restraining the growth of the extended warranty market. On the contrary, the expansion of complex and sophisticated product and service are fostering the demand for additional warranty coverage, which is likely to pave growth opportunities for the global market. In addition, the untapped potential of emerging economies is providing lucrative opportunities for the market growth during the forecast period.
The extended warranty market is segmented based on coverage, application, distribution channel, end user, and region. By coverage, the market is bifurcated into standard protection plan and accidental protection plan. By application, the market is divided into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. By distribution channel, the market is segregated into manufacturers, retailers, and others. By end user, the market is divided into business and individuals. By region, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
The key players profiled in the extended warranty market analysis are Assurant, Inc., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield, LLC, Endurance Warranty Services, LLC, Edel Assurance, and SquareTrade, Inc. These players have adopted various strategies, including partnership, collaboration, product launch, and developments to increase their market penetration and strengthen their position in the industry.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the extended warranty market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the extended warranty market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the extended warranty market from 2023 to 2032 is provided to determine the market potential.
Key Market Segments
By CoverageStandard Protection Plan
Accidental Protection Plan
By Distribution Channel
Manufacturers
Retailers
Others
By Application
Automobiles
Consumer Electronics
Home Appliances
Mobile Devices & PCs
Others
By End User
Individuals
Business
By Region
North America
US
Canada
Europe
Germany
UK
France
Italy
Spain
Netherlands
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key market players
ASSURANT, INC.
American International Group, Inc.
AXA
AmTrust Financial
Asurion
CARCHEX
CarShield, LLC
Endurance Warranty Services, LLC
Edel Assurance
SquareTrade, Inc.
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Key Market Segments
By Covergae
- Standard Protection Plan
- Accidental Protection Plan
By Distribution Channel
- Manufacturers
- Retailers
- Others
By Application
- Automobiles
- Consumer Electronics
- Home Appliances
- Mobile Devices and PCs
- Others
By End User
- Individuals
- Business
By Region
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Assurant, Inc.
- American International Group, Inc.
- Asurion
- CARCHEX
- Endurance Warranty Services, LLC
- Edel Assurance
- AXA
- AmTrust Financial
- CarShield
- SquareTrade, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: EXTENDED WARRANTY MARKET, BY COVERGAE
CHAPTER 5: EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: EXTENDED WARRANTY MARKET, BY APPLICATION
CHAPTER 7: EXTENDED WARRANTY MARKET, BY END USER
CHAPTER 8: EXTENDED WARRANTY MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Extended Warranty Market," the extended warranty market size was valued at $122.89 billion in 2021, and is estimated to reach $274.94 billion by 2031, growing at a CAGR of 8.6% from 2022 to 2031.In addition, the use of AI and machine learning to manage questions and claims via chat, phone, and online forms drive the up demand for extended warranties among businesses and people. This contributes to the market's expansion. The market is predicted to develop due to manufacturers' increasing efforts to prioritize customer service while giving an extended warranty through various different programs. To increase consumer loyalty, manufacturers are making extended warranty schemes more transparent in terms of duration and coverage. As a result, the demand for extended warranties has increased. Furthermore, industry growth is expected to be fueled by the personalization of extended warranties with details relevant to consumers' products. Moreover, the leading companies are digitizing extended warranty processes for consumers to file claims for their products with just a click, which eliminates the use of receipts while generating faster and more efficient responses. The rise in demand for technical assistance with an extended warranty is leading companies to provide product installation and remote diagnosis in consumer electronics. These factors, as a result propelling the extended warranty market growth.
On the basis of coverage, the standard protection plan segment is the highest growing segment. This is attributed to the fact that standard protection plan provides coverage for an additional two to three years of coverage against product failure. Furthermore, these extended warranty plans are mainly suitable for consumers looking for an uncomplicated usage experience and longer life for their devices.
By region, North America attained the highest growth in 2021. This is attributed to limit financial risk for car breakdowns, consumers take protection via extended warranties, which boosts the market growth in the region. Further, in Canada, typically new vehicles carry minimum five years of warranty from dealers, which further promotes customers to purchase extended warranty from same vehicle dealers in the country.
The substantial drop in sales of automobiles and consumer electronics during COVID-19, has moderately affected the extended warranty market trends. However, in several regions, customers avail offers of warranty extension for products purchased from authorized offline and online platforms. As a result, the extended warranty market has experienced significant expansion.
Key Findings of the Study
- By distribution channel, the manufacturers segment led the extended warranty market in terms of revenue in 2021.
- By end user, the individuals segment accounted for the highest extended warranty market share in 2021.
- By region, North America generated the highest revenue in 2021.
- The key players profiled in the extended warranty market analysis are ASSURANT, INC., American International Group, Inc., AXA, AmTrust Financial, Asurion. CARCHEX, CarShield, LLC, Endurance Warranty Services, LLC, Edel Assurance, and SquareTrade, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the extended warranty industry.
Companies Mentioned
- Assurant, Inc.
- American International Group, Inc.
- Asurion
- CARCHEX
- Endurance Warranty Services, LLC
- Edel Assurance
- AXA
- AmTrust Financial
- CarShield
- SquareTrade, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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