by Market Overview:
The extended warranty market comprises products that provide coverage for repair, replacement and maintenance services for various consumer goods such as smartphones, wearables, computers, and automobiles. These protection plans help reduce the financial burden on consumers for repairing or replacing goods that suffer technical failures or accidental damages beyond the time period of the original manufacturer warranty.
Market key trends:
One of the major trends fueling growth in the extended warranty market is the increasing adoption of internet-connected devices. Modern consumer electronics and automobiles are being integrated with internet connectivity features which has increased their susceptibility to technical faults, crashes or accidental damages. The risk of malfunction or damage is further accentuated by the sophistication of new technologies integrated into such products. This has driven up demand for extended warranty plans as consumers seek financial protection against unexpected repair costs on expensive electronics and automobiles with growing Internet-of-Things (IoT) capabilities. Such protection plans provide customers with peace of mind for the useful life of their networked devices.
Segment Analysis
The extended warranty market is segmented by type, distribution channel, application, and geography. By type, standalone extended warranty segment dominated the market and accounted for more than 45% market share in 2023. Standalone extended warranties are largely preferred by customers as they offer focused coverage for certain components or systems of products without bundling with other services. By distribution channel, direct sales channel is the largest segment as most of the OEMs and insurers sell their extended warranty plans through their websites and authorized retailers. By application, consumer electronics is the major segment owing to rising sales of smartphones, laptops, desktops, and other consumer electronics which experience failures and malfunctions after the end of the original manufacturer warranty period.
Key Takeaways
The Global Extended Warranty Market Demand is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing consumer demand for prolonged protection coverage of expensive products.
Regional analysis: North America dominated the extended warranty market and accounted for over 35% of the global market share in 2023 owing to high adoption of extended warranties for electronics products in the US. Europe is expected to witness fastest growth during the forecast period.
Key players: Key players operating in the extended warranty market are ASSURANT INC., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Edel Assurance, SquareTrade, Inc., and Others. ASSURANT INC. accounted for largest market share of around 14% in 2023 owing to strong portfolio of extended warranty plans for various product categories
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
