Auto Extended Warranty Market by Type (Accidental Protection Plan, Standard Protection Plan), Coverage (Basic (Powertrain), Comprehensive (Bumper-to-Bumper), Customized), Duration, Vehicle Age, Application, Provider Type - Global Forecast 2024-2030

Auto Extended Warranty Market by Type (Accidental Protection Plan, Standard Protection Plan), Coverage (Basic (Powertrain), Comprehensive (Bumper-to-Bumper), Customized), Duration, Vehicle Age, Application, Provider Type - Global Forecast 2024-2030

The Auto Extended Warranty Market size was estimated at USD 47.30 billion in 2023 and expected to reach USD 50.34 billion in 2024, at a CAGR 6.54% to reach USD 73.74 billion by 2030.

An auto-extended warranty is a supplementary plan that comes into effect once the manufacturer's conventional warranty period expires. It aims to offer protection against unexpected and excessive repair costs. This scheme augments or extends the existing warranty coverage, offering essential range and prolonged periods or higher mileage thresholds. These extended warranties offer customers financial security against expensive, unforeseen repairs and often include added services such as roadside assistance. However, fake claims, fraud, and lack of customer knowledge in buying auto-extended warranties may adversely impact the adoption of auto-extended contracts. Moreover, the availability of auto-extended warranty solutions on online platforms and the use of artificial intelligence-based software for generating auto insurance is anticipated to encourage their adoption by auto owners globally.

Regional Insights

The auto extended warranty market is evolving in the Americas, driven by consumers seeking coverage for unanticipated repairs as vehicles continue to rise in complexity and repair costs. The APAC region, which is known for its automobile manufacturers, has witnessed a surge in demand for auto extended warranties due to the increase in disposable income and the consumers' inclination towards maintaining their vehicles in optimum conditions. In the EMEA region, Europe holds a significant share of the auto extended warranty market with the considerable presence of automobile manufacturers and the rise in vehicle adoption rates. Middle Eastern and Africa are witnessing increased demand for auto-extended warranty services due to rising aging vehicle fleets and growing awareness regarding the benefits of auto-extended warranty services. Besides, the auto extended warranty services providers are focusing on providing specific and customized services, which are anticipated to encourage the adoption of auto extended warranty by end-users worldwide.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Auto Extended Warranty Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Increasing number of vehicle ownership worldwide
• Rising consumer awareness toward extended protection of vehicles
• Growing incidence of road accidents and high costs of vehicle maintenance

Market Restraints

• Fake claims, frauds, and lack of customer knowledge in buying auto extended warranties

Market Opportunities

• Potential use of artificial intelligence-based software for generating auto insurance
• Penetration of auto-extended warranty solutions on online platforms

Market Challenges

• Limited coverage and complex claim procedures

Market Segmentation Analysis

• Type: Significant penetration of Standard Protection Plans
• Coverage: Growing popularity of customized auto extended warranty services
• Application: Increasing adoption by commercial vehicle owners
• Provider Type: Proliferation of Third-Party Warranty services

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Auto Extended Warranty Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Auto Extended Warranty Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Warranty Solutions Group launches initiative to save dealers thousands on parts and preparation costs

Warranty Solutions Group (WSG) has recently forged an exclusive alliance with Just Green Parts, revolutionizing the auto industry by offering access to eco-friendly vehicle parts that confer substantial cost savings to its dealer network while addressing the shortage of automotive components. Through Just Green Parts' network of respected recycling centers, dealers affiliated with WSG can tap into a vast repository of sustainable parts, reaping savings up to 70% against new OEM parts. Notably, the use of green parts globally circumvents over 80 billion barrels of oil annually, underscoring these efforts' far-reaching environmental impact.

Assurant launches Promise approved used cars programme with Hyundai Motor UK

Assurant, a leader in providing services that support significant consumer acquisitions, has recently forged a strategic alliance with Hyundai Motor UK to offer an exceptional five-year extended warranty on all qualified pre-owned vehicle purchases, at no additional cost to customers. This initiative is a standout offering in the UK, signifying one of the most extensive coverage periods by an automotive manufacturer for second-hand vehicles. This extensive warranty package, branded as the Hyundai Promise, encompasses a broad spectrum of vehicles, including petrol, diesel, hybrid, and fully electric models. This partnership underscores both companies' commitment to elevating the ownership experience and providing unparalleled peace of mind for a diverse range of consumers.

Kinetic Green Partners with ReadyAssist to offer comprehensive extended warranty for Electric 2-Wheelers

Kinetic Green Energy and Power Solutions has forged a pivotal alliance with ReadyAssist to unveil a robust Comprehensive Extended Warranty programme for its electric vehicles (EVs). This initiative essentially enhances the existing three-year warranty to an impressive five-year coverage period, significantly improving service and reliability for crucial EV components. Initially, the Zing Low-Speed and Zing HSS models will be incorporated into the program.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Auto Extended Warranty Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Auto Extended Warranty Market, highlighting leading vendors and their innovative profiles. These include AAA Club Alliance Inc., Allianz Partners, Allstate Insurance Company, AmTrust Financial, Autopom, AXA Partners Holding SA, Berkshire Hathaway Homestate Companies, CARCHEX, CarShield, Chubb by ACE Ltd., Concord Auto Protect, Continental Warranty Inc., Endurance Warranty Services, LLC., ForeverCar, Government Employees Insurance Company, GWC Warranty., HDFC ERGO General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, Nationwide Mutual Insurance Company, Olive by Repair Ventures, LLC, Omega Auto Care, Protect My Car, Reliance General Insurance Company Limited, Tata AIG General Insurance Company Limited, and Toco Warranty.

Market Segmentation & Coverage

This research report categorizes the Auto Extended Warranty Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Type
• Accidental Protection Plan
• Standard Protection Plan
• Coverage
• Basic (Powertrain)
• Comprehensive (Bumper-to-Bumper)
• Customized
• Duration
• More than 3 Years
• Up to 3 Years
• Vehicle Age
• New Vehicles
• Used Vehicles
• Application
• Commercial Vehicles
• Personal Vehicles
• Provider Type
• Manufacturer Warranty
• Third-Party Warranty
• Region
• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year