Extended warranties begin after the expiration of the manufacturer's warranty, and provide repair for failed products, inclusive of parts and labor. Some extended warranties are called Date of Purchase (DOP) contracts that wrap around a manufacturer's warranty, providing services which 'uplift' the manufacturer's warranty. Furthermore, it provides an additional feature such as configuration or food loss protection from the first day of the manufacturer's warranty, or simply extending the parts and labor coverage offered by the manufacturer for additional periods of time, from monthly subscriptions, to annual contracts.
Extended warranties are much like insurance products. They are underwritten, often by the same large insurance companies from whom consumers and businesses purchase life and property insurance. The insurers must 'reserve' funds to pay for forecasted claimable events, such as the failure of an appliance.
It covers the cost of replacement, repair, breaking down of the product, and undertakes other coverages as per terms specified in extended warranty plans. Moreover, extended warranty can be offered by retailers, manufacturers, and other warranty administrators. As it is a prolonged warranty offered to consumers, in addition to standard warranty on new items, extended warranties cost extra based on percentage of the item's retail price.
The U.S. extended warranty market is expected to exhibit robust growth during the forecast period. The key factors impacting the growth of the market include increased awareness for extended warranty, rise in penetration of laptops, smartphones, and tablets. In addition, rise in need for advanced promotional strategies, and growth associated with e-commerce industry drives the growth of the U.S. extended warranty market. Furthermore, decline in sale of PCs is the major restraint that hinder the growth of the market. Moreover, innovative services offered by major extended warranty players, and rise in demand for extended warranty coverage in automobiles are expected to boost the market growth in the future. However, each of these factors is anticipated to have a definite impact on the overall market growth during the forecast period.
The U.S. market is segmented into coverage type, distribution channel, end user, device type, service type and region. On the basis of coverage type, it is classified into standard protection plan, and accidental protection plan. On the basis of distribution channel, the market is categorized into manufacturers, retailers, and others. As per end user, it is segregated into business, and individuals. By device type, the market is bifurcated into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. On the basis of service type, the market is bifurcated into home warranty, auto warranty, enterprise equipment warranty and others.
The market players operating in the U.S. extended warranty market include ASSURANT INC., American International Group Inc., AmTrust Financial, Asurion. CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Liberty Bell Auto Protect, Protect My Car, and SquareTrade Inc.
Extended warranties are much like insurance products. They are underwritten, often by the same large insurance companies from whom consumers and businesses purchase life and property insurance. The insurers must 'reserve' funds to pay for forecasted claimable events, such as the failure of an appliance.
It covers the cost of replacement, repair, breaking down of the product, and undertakes other coverages as per terms specified in extended warranty plans. Moreover, extended warranty can be offered by retailers, manufacturers, and other warranty administrators. As it is a prolonged warranty offered to consumers, in addition to standard warranty on new items, extended warranties cost extra based on percentage of the item's retail price.
The U.S. extended warranty market is expected to exhibit robust growth during the forecast period. The key factors impacting the growth of the market include increased awareness for extended warranty, rise in penetration of laptops, smartphones, and tablets. In addition, rise in need for advanced promotional strategies, and growth associated with e-commerce industry drives the growth of the U.S. extended warranty market. Furthermore, decline in sale of PCs is the major restraint that hinder the growth of the market. Moreover, innovative services offered by major extended warranty players, and rise in demand for extended warranty coverage in automobiles are expected to boost the market growth in the future. However, each of these factors is anticipated to have a definite impact on the overall market growth during the forecast period.
The U.S. market is segmented into coverage type, distribution channel, end user, device type, service type and region. On the basis of coverage type, it is classified into standard protection plan, and accidental protection plan. On the basis of distribution channel, the market is categorized into manufacturers, retailers, and others. As per end user, it is segregated into business, and individuals. By device type, the market is bifurcated into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. On the basis of service type, the market is bifurcated into home warranty, auto warranty, enterprise equipment warranty and others.
The market players operating in the U.S. extended warranty market include ASSURANT INC., American International Group Inc., AmTrust Financial, Asurion. CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Liberty Bell Auto Protect, Protect My Car, and SquareTrade Inc.
U.S. Extended Warranty Market Key Segments
By Coverage
- Standard Protection Plan
- Accidental Protection Plan
By Distribution Channel
- Manufacturers
- Retailers
- Others
By End User
- Business
- Individuals
By Device Type
- Automobiles
- Consumer Electronics
- Home Appliances
- Mobile Devices & PCs
- Others
By Service Type
- Home Warranty
- Auto Warranty
- Enterprise Equipment Warranty
- Others
Key Market Players
- ASSURANT INC.
- American International Group Inc.
- AmTrust Financial
- Asurion
- CARCHEX
- CarShield LLC
- Endurance WarrantyServices LLC
- Liberty Bell Auto Protect
- Protect My Car
- SQUARETRADE Inc.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: U.S. EXTENDED WARRANTY MARKET, BY TYPE
CHAPTER 5: U.S. EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: U.S. EXTENDED WARRANTY MARKET, BY END USER
CHAPTER 7: U.S. EXTENDED WARRANTY MARKET, BY DEVICE TYPE
CHAPTER 8: U.S. EXTENDED WARRANTY MARKET, BY SERVICE TYPE
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILE
List of Tables
List of Figures
Companies Mentioned
- ASSURANT INC.
- American International Group Inc.
- AmTrust Financial
- Asurion
- CARCHEX
- CarShield LLC
- Endurance Warranty Services LLC
- Liberty Bell Auto Protect
- Protect My Car
- 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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