Extended Warranties Service Market Report 2025

The extended warranties service market size has grown rapidly in recent years. It will grow from $116.98 billion in 2024 to $129.54 billion in 2025 at a compound annual growth rate (CAGR) of 10.7%. During the historic period, growth was driven by rising sales of consumer electronics, increasing demand for after-sales support, greater adoption of high-value home appliances, expansion in automobile sales, and growing consumer confidence in brand protection programs.

The extended warranties service market size is expected to see rapid growth in the next few years. It will grow to $192.24 billion in 2029 at a compound annual growth rate (CAGR) of 10.4%. In the forecast period, growth is expected to be driven by the rising popularity of subscription-based warranty plans, increasing sales of connected smart devices, greater adoption of e-commerce channels for warranty services, expansion of warranty offerings in emerging markets, and growing demand for extended coverage on refurbished products. Key trends during this period include advancements in warranty management platforms, innovation in predictive maintenance services, development of mobile app-based warranty claims, investment in automated claims processing systems, and the use of AI-powered customer support for warranty services.

The growing demand for product protection is expected to drive growth in the extended warranties service market. Product protection safeguards purchased goods against defects, malfunctions, or accidental damage during a defined coverage period. Rising purchases of high-value electronics, coupled with concerns about costly repairs and inflation, are increasing consumer demand for extended coverage. Extended warranties provide protection beyond standard manufacturer warranties, covering repair or replacement costs and enhancing consumer confidence. For example, Get Mulberry reported in February 2022 that 38% of shoppers were unwilling to purchase from websites without product protection plans, up from 32% in 2021. This rising need for product protection is boosting demand for extended warranty services.

Companies in the extended warranties service market are focusing on strategic partnerships to enhance technology integration and expand market reach. Strategic partnerships combine resources and expertise to develop innovative solutions and improve customer service. In September 2023, India-based Reliance General Insurance partnered with Ola Electric Mobility to launch an extended warranty for Ola’s S1 electric scooters. The coverage includes up to 50,000 km or five years for critical components such as the battery and motor, supported by hassle-free claims through Ola’s network of over 400 service centers, providing long-term assurance and cost savings for customers.

In June 2023, Domestic & General Group, a UK-based warranty and insurance services provider, acquired After Inc., a US-based extended warranty and product protection company, for an undisclosed amount. The acquisition enables Domestic & General to strengthen its presence in the U.S. market and enhance capabilities in warranty analytics, marketing, and customer experience technology, expanding its overall service offerings.

Major players in the extended warranties service market are Samsung Electronics Co. Ltd., Allianz SE, Ford Motor Company, Hyundai Motor Company, Sony Corporation, LG Electronics Inc., American International Group Inc., The Allstate Corporation, Haier Group, Nissan North America Inc., Delta Electronics Inc., Assurant Inc., AmTrust Financial Services Inc., Asurion LLC, Best Buy Co. Inc., Consumer Priority Service Inc., Omega Warranty Services LLC, OneAssist Consumer Solutions Pvt. Ltd., Carchex LLC, Worth Ave. Group LLC, Get Mulberry.

North America was the largest region in the extended warranties service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in extended warranties service report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the extended warranties service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the retail and wholesale sector, particularly in sourcing, inventory management, and pricing strategies. Higher duties on imported consumer goods including electronics, apparel, furniture, and packaged foods have raised procurement costs for retailers and wholesalers, compelling many to either increase prices for end consumers or absorb losses. Small and mid-sized businesses with limited pricing power are especially vulnerable, often facing squeezed margins and reduced competitiveness. Inventory cycles are also disrupted as firms grapple with delays and uncertainty in international supply chains. Additionally, retaliatory tariffs in foreign markets have curtailed export opportunities for U.S. brands, limiting revenue growth. In response, companies are shifting toward domestic and regional suppliers, investing in supply chain resilience, and adopting data-driven demand forecasting to navigate cost volatility and maintain customer satisfaction.

Extended warranty services are agreements that extend coverage beyond a product’s original manufacturer warranty, offering repair, replacement, or maintenance after the initial warranty period. Their primary purpose is to provide financial protection against unexpected repair costs, prolong product lifespan, and ensure reliable ongoing service.

The main categories of extended warranty services include standard protection plans and accidental protection plans. A standard protection plan covers repairs or replacements due to product defects or malfunctions for a specified period beyond the manufacturer’s warranty. These services are provided by manufacturers, retailers, and third-party companies through both online and offline channels. They are applied across industries such as automobiles, consumer electronics, home appliances, and mobile devices, with end-users including individual consumers and businesses.

The extended warranties service market research report is one of a series of new reports that provides extended warranties service market statistics, including the extended warranties service industry global market size, regional shares, competitors with the extended warranties service market share, detailed extended warranties service market segments, market trends, and opportunities, and any further data you may need to thrive in the extended warranties service industry. This extended warranties service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The extended warranties service market includes revenues earned by entities through coverage for repairs, replacement, maintenance, and technical support services for products beyond the standard manufacturer warranty period. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.