Extended Warranty Market For Consumer Electronics Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2021 To 2029

Growing Penetration of High-end Smartphones, Tablets and Laptops Aiding the Market Growth

Extended warranty market expected to grow at a CAGR of 6.2% from 2021 to 2029 and reach US$ 59.53 Bn in 2029. Growing penetration of high-end smartphones, tablets and laptops among consumers is one of the primary factors governing the growth for extended warranty market for consumer electronics. The high price of these products has compelled consumers to think of extending the usual one year warranty provided by manufacturer. Moreover, by offering value added service like extended warranty, shoppers and retailers can seize opportunity to engage consumers with current advanced technology products and influence buyer’s decision. Extended warranty solutions offer additional warranty period for buyers to protect their costly high-end products. Offering such value added service for high-end devices helps retailers to gain consumer confidence and develop long-term association. In addition, strategic partnerships between retailers and warranty providers is another important factor contributing to the market growth. This strategy has proved to be a win-win solution for banking solution providers, extended warranty solution providers and the customers. In 2019, N26 Group, a banking service provider in Europe formed strategic partnership with Allianz Global Assistance Europe to offer its comprehensive insurance package for premium customer including extended warranty for consumer electronics. Similarly, In March 2014, LetsTango.com, one of the leading online retailer announced its strategic partnership with Allianz Global Assistance to offer extended warranty service for electronics products purchased on their website.

Mobile Phones and Tablets to Contribute Significantly to the Extended Warranty Market Growth in Coming Years

In 2020, the global extended warranty market for consumer electronics was led by the mobile devices segment. The segment comprising smartphones and tablets, accounted for over 50% of the overall value generated in the market. The mobile devices segment growth is primarily governed by the rising penetration of high-end expensive smartphones, especially in countries such as the U.S, U.K., Germany, France China, India, etc. In addition, consistently growing penetration of tablets is another prominent factor supporting the mobile devices segment growth. Due to continually growing penetration of smartphones and tablets, the segment is set to retain its dominant position in the market over the forecast period. Moreover, in Europe, people preferring high-end expensive smartphones constitute over 40% of the overall smartphones consumer base. These users are the prime buyers of related extended warranty contracts, thereby fueling the segment growth.

In 2019, the laptops & PCs segment accounted for the second largest share, in terms of market value, in the overall extended warranty (for consumer electronics) market. Extended warranty for laptops and PCs typically offer coverage in case of drops, spills, display burnout, hard drive crash, connectivity failure, RAM failure, defect in charging ports and few others. However, the declining sales of PCs globally has influenced the market growth negatively.

High Consumer Awareness Pertaining to Benefits of Extended Warranty to Drive Market Growth in North America

North America dominated the global extended warranty market for consumer electronics in 2020 and accounted for more than 55% of the overall market value generated worldwide. The dominance of the region is mostly due to high consumer awareness regarding the benefits of extended warranty. Moreover, the U.S. has a large consumer base of high-end smartphones, laptops and PCs, a factor influencing the extended warranty market for consumer electronics growth positively. Overall consumer electronics market in the U.S. has been witnessing a consistent growth since the last few years. Consumers’ willingness to pay high prices for technologically enhanced products has been driving the consumer electronics market in this region, thereby complimenting the extended warranty market for consumer electronics growth.

Europe is another important market for extended warranty for consumer electronics. U.K. accounts for the largest market size in the region owing to high consumer awareness for extended warranty coupled with high penetration of smartphones and PCs. In addition, growing popularity of smart gadgets and wearable and high cost of consumer electronics have forced the consumers in Europe to procure an extended warranty for their expensive devices. Furthermore, lucrative plans and the promotional proposal offered by the warranty providers have also promoted sales of extended warranty on consumer electronics. Thereby, the trend is expected to continue in proportion with rising prices of consumer electronics and encouragement from the companies to make consumer go for extended warranties.

Strategic Partnerships with E-commerce Retailers to Remain a Vital Strategy for Extended Warranty Service Providers in Coming Years

Some of the leading providers of extended warranty have been engaged in building strategic partnerships with various e-commerce retailers under which they cover the electronics sold over such online portals. Consumers would either have to pay an additional cost or the online retailer bares a portion of the premium cost in order to offer added value to their customers. Extended warranty generally covers normal wear & tear and product defects. However, certain plans also cover accidental damages such as drop damage or user spilling something onto the device. Either of the manufacturer, retailer or warranty administrator provides an extended warranty and the charge is fixed at a percentage of the product's retail price.

Historical & Forecast Period

This research report presents the analysis of each segment from 2019 to 2029 considering 2020 as the base year for the research. Compounded Annual Growth Rate (CAGR) for each respective segments are calculated for the forecast period from 2021 to 2029.

Some of the major players profiled in the report are Allianz Global Assistance, American International Group, Inc., Amtrust Financial Services, Inc., Asurion LLC, Chubb Limited, Assurant, Inc., SquareTrade, Inc., The Warranty Group, Inc., Advanced American Auto Warranty Services LLC and Corporate Warranties India Pvt. Ltd among others.

Key questions answered in this report

• What was the global extended warranty market for consumer electronics size in 2020 and forecast for 2029?
• What are the current market trends in the extended warranty market for consumer electronics?
• What are the various valuable opportunities for the players?
• Which are the bestselling extended warranty coverage plans in the market?
• Which is the largest regional market for extended warranty market for consumer electronics?
• Which region expected to be the fastest growing and why?
• What are new plans launched by the leading extended warranty for consumer electronic providers?
• What are the key strategies adopted by the leading players in market?

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