According to the latest report by IMARC Group, the global extended warranty market size reached US$ 121.5 Billion in 2021. It is projected to reach a value of US$ 182.3 Billion by 2027, exhibiting a CAGR of 6.70% during 2022-2027.
What is an Extended Warranty?
An extended warranty or a service contract is a policy that extends the warranty duration to customers on new items. It usually covers the cost of replacing or repairing the product if the harm is caused due to manufacturing defects or poor quality. It is generally provided by retailers, manufacturers, or third-party service providers for electronics, electrical appliances and automobiles. An extended warranty provides coverage against various product defects or general wear and tear after the one-year warranty expiration. Routine maintenance and accidental damages, including liquid spillage, thefts, or cracked screens, are also covered under extended warranty plans.
Key factors driving the global extended warranty market:
The market is primarily driven by the rising concerns of the consumers regarding the safety of their electronic devices after the original warranty expires. Extended warranty plans are being widely adopted by value-conscious customers as additional protection which is not offered by the original warranty, such as mechanical and electronic breakdown of products, are covered under an extended warranty.
Moreover, the escalating sales of high-end vehicles and consumer electronics, such as laptops, smartphones, tablets and wearables, are escalating the product demand. Additionally, the value-added services offered by the leading players, such as hassle-free replacements and on-site services and digitizing extended warranty processes for faster claim settlements, are creating a positive market outlook. Other factors catalyzing the market growth are the rising inclination toward prolonged life and value of goods, inflating disposable incomes, and high repair and maintenance costs.
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Note: We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market.
Allianz SE, American International Group Inc, AmTrust Financial, Assurant Inc., Asurion LLC, Axa S.A., Carchex, CarShield LLC, Chubb Limited, Edel Assurance LLP, Endurance Warranty Services LLC, and SquareTrade Inc (The Allstate Corporation).
The report has segmented the market on the basis of region, coverage, application, distribution channel and end user.
Breakup by Coverage:
- Standard Protection Plan
- Accidental Protection Plan
Breakup by Application:
- Consumer Electronics
- Home Appliances
- Mobile Devices and PCs
Breakup by Distribution Channel:
Breakup by End User:
Breakup by Region:
- North America: (United States, Canada)
- Asia Pacific: (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe: (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America: (Brazil, Mexico, Others)
- Middle East and Africa
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