Global Extended Warranty Market Report and Forecast 2024-2032

Global Extended Warranty Market Outlook

The global extended warranty market attained a value of about USD 128.74 billion in 2023. The market is further expected to grow in the forecast period of 2024-2032 at a CAGR of 7% to reach nearly USD 237.52 billion by 2032.

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Expensive Maintenance and Repair of Consumer Electronics Boosting the Market for Extended Warranty

As expensive consumer electronics and vehicles are becoming a crucial part of one’s lifestyle, the market for extended warranty is flourishing. The increasing requirement of regular maintenance and repair of smartphones and home appliances can cost a hefty amount of nearly one-fifth of the unit price. This is why consumers are opting for an extended warranty on electronic products to prevent unexpected finances, which is propelling the market growth. In addition, the transferability of extended warranty provided by the leading companies so that the product is covered after being transferred to other owners is also augmenting the industry growth. Moreover, various automotive companies are offering innovative extended warranty solutions to increase their sales and mitigate losses due to the COVID-19 pandemic. This is further invigorating the growth of the extended warranty industry.

The rising demand to extend the product life and get stress-free post-sales experience by value-conscious consumers is increasing the quality of after services offered by many companies. Therefore, companies are providing extended warranty solutions to enhance consumer loyalty, which is significantly contributing to the market growth. As extended warranty can prevent unpredictable financial loss owing to the high costs of repair, it is increasingly adopted by consumers to avoid anxiety. Moreover, additional benefits such as on-site services and hassle-free replacements offered by various companies are augmenting the market growth for extended warranty.

Extended Warranty: Market Segmentation

An extended warranty, variously known as a service contract, is a prolonged warranty that covers the cost of maintenance and repair of a product. It can be offered by manufacturers, retailers, or a third-party service. Extended warranties are generally provided for automobiles and consumer electronics and cover the electronic and mechanical breakdown of the product.

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The major coverages of extended warranty are:

• Standard Protection Plan
• Accidental Protection Plan

The market can be broadly categorised on the basis of its applications into:

• Automobiles
• Consumer Electronics
• Home Appliances
• Mobile Devices and PCs
• Others

Based on distribution channels, the market is divided into:

• Manufacturers
• Retailers
• Others

On the basis of end user, the market is bifurcated into:

• Business
• Individuals

The EMR report looks into the regional markets of extended warranty like North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Improvement of After-Sale Services Through Digitisation to Bolster the Growth of the Extended Warranty Industry

The leading companies are digitising extended warranty processes for consumers to file claims for their products with just a click. This eliminates the use of receipts while generating faster and more efficient responses. The rising demand for technical assistance with an extended warranty is leading companies to provide product installation and remote diagnosis in consumer electronics. This is improving extended warranty services, therefore invigorating the industry growth. Furthermore, the introduction of extended warranty solutions, which offer tech refresh options to allow consumers to exchange their electronic devices for the latest model, is increasing the demand for extended warranty, therefore accelerating the market growth.

The integration of artificial intelligence and machine learning to handle queries and claims by chats, phones, and online forms is increasing the demand for extended warranty among businesses and individuals. This is augmenting the market growth. The increasing attempts by manufacturers to prioritise customer services while offering an extended warranty through various initiatives are expected to propel the market growth. The manufacturers are offering transparency of duration and coverage of extended warranty programs to build customer loyalty. This is increasing the demand for extended warranty, hence invigorating the market growth. Moreover, the personalisation of extended warranty with details relevant to consumers’ products is anticipated to fuel the industry growth.

Key Industry Players in the Global Extended Warranty Market

The report presents a detailed analysis of the following key players in the global extended warranty market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• American International Group, Inc. 
• AmTrust Financial
• Asurion
• CARCHEX
• CarShield, LLC
• Assurant, Inc.
• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

Key Highlights of the Report