United States Auto Extended Warranty Market Report and Forecast 2025-2034

United States Auto Extended Warranty Market Outlook

The United States auto extended warranty market size reached approximately USD 17.65 billion in 2023. The market is estimated to grow at a CAGR of 6.1% in the forecast period of 2024-2032, reaching a value of around USD 30.36 billion by 2032.

Key Trends in the Market

Auto extended warranty is a prolonged warranty or service contract which is offered by manufacturers, auto dealers, and independent providers to cover the cost of labour charges and repair works to the vehicle after the expiration of the warranty.

• The burgeoning popularity of flexible extended warranty plans, which offer different types of coverages, is one of the crucial United States auto extended warranty market trends. It allows car owners to avail the maximum benefits of an extended warranty without any unnecessary spending.

• Several auto dealers and manufacturers in the United States are offering the provision of value-added services such as roadside assistance and emergency tows, along with their auto extended warranty plans.

• With the increased adoption of electric vehicles in the country, market players are also offering extended warranties that cover specific parts of electric vehicles such as electric motors, batteries, charge ports, onboard chargers, and inverter units, among others, which further contributes to the United States auto extended warranty market growth.

Market Analysis

Based on coverage, the market is divided into powertrain coverage, stated component coverage, and exclusionary coverage. On the basis of vehicle age, the market is bifurcated into used vehicle and new vehicle. Based on application, the market is classified into personal and commercial.

The United States auto extended warranty market segmentation, on the basis of distribution channel, includes auto dealers/manufacturers and third party providers. The major regional markets of auto extended warranty in the United States include New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States auto extended warranty market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Mercedes Benz Group AG  

• Volkswagen AG 

• BMW AG  

• Renault–Nissan–Mitsubishi Alliance  

• Repair Ventures, LLC  

• ForeverCar LLC 

• Concord Auto Protect  

• AXA Partners Holding SA  

• AmTrust Warranty & Specialty Risk  

• Endurance Warranty Services, LLC   

• Others

Market Share by Coverage

Powertrain coverage occupies a significant portion of the United States auto extended warranty market share as it constitutes essential parts required for a vehicle’s operation. The extended warranty covers the cost of repair and replacement of the essential and most expensive mechanical components of a vehicle.

Similarly, component coverage is also expected to witness sizeable growth in the forecast period due to the growing demand for extended coverage on specific components of a vehicle.

Market Share by Distribution Channel

As per the United States auto extended warranty market analysis, auto dealers/manufacturers account for a substantial share of the market. Manufacturers offer extended warranty services to ease the minds of customers and build trust between them and the auto dealers, providing a positive market outlook. Some auto dealers also offer additional benefits such as rental car reimbursements, emergency roadside service, and travel expenses in case a vehicle breaks down miles from home.

Competitive Landscape

Mercedes Benz Group AG is a multinational automotive company, established in 1926 and based in Stuttgart, Germany. The company is known for its high-end passenger cars, car subscriptions, car rental, and fleet management services.

Volkswagen AG, incorporated in 1937, is a global automotive corporation, with its headquarters in Berlin, Germany. The company promotes sustainability by reducing the usage of raw materials in its vehicles and abiding by environmental compliance.

BMW AG, founded in 1916, is a major manufacturer of luxury vehicles, headquartered in Munich, Germany. It is a major automaker of motorcycles and high-end sports sedans and contributes to the circular economy through the recycling of its vehicles.

Other United States auto extended warranty market players include Renault–Nissan–Mitsubishi Alliance, Repair Ventures, LLC, ForeverCar LLC, Concord Auto Protect, AXA Partners Holding SA, AmTrust Warranty & Specialty Risk, Endurance Warranty Services, LLC, among others.

Key Highlights of the Report