United States Auto Extended Warranty Market Report and Forecast 2024-2032

United States Auto Extended Warranty Market Report and Forecast 2024-2032

United States Auto Extended Warranty Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the United States auto extended warranty market size reached a value of USD 17.65 billion in 2023. Aided by the growing popularity of the flexible extended warranty plans and increasing adoption of electric vehicles, the market is projected to further grow at a CAGR of 6.1% between 2024 and 2032 to reach a value of USD 30.36 billion by 2032.

Auto extended warranties, often referred to as vehicle service contracts, provide additional coverage beyond the standard warranty period offered by manufacturers. These warranties cover various mechanical and electrical breakdowns, helping consumers manage the costs of repairs and replacements of vehicle parts.

The rising cost of vehicle repairs is a significant factor driving of the United States auto extended warranty market growth. With advancements in automotive technology, the cost of repairing or replacing vehicle components has increased substantially. As a result, consumers are increasingly seeking extended warranties to protect themselves from the financial burden of unexpected repairs.

Furthermore, the growing awareness of the benefits of extended warranties is contributing to market growth. Consumers are becoming more informed about the potential savings and peace of mind that extended warranties can offer. This is particularly relevant for individuals purchasing used vehicles, which are more prone to mechanical issues compared to new cars. Extended warranties provide an added layer of protection for these consumers, enhancing the appeal of used vehicles.

The increasing complexity of modern vehicles is another factor driving the demand for extended warranties. Today's vehicles are equipped with advanced electronic systems, complex engine components, and sophisticated safety features. While these innovations enhance the driving experience, they also increase the likelihood of malfunctions and the associated repair costs. Extended warranties offer a safeguard against these potential issues, making them an attractive option for vehicle owners while increasing the United States auto extended warranty market share.

The increasing cost of vehicle repairs is a primary driver for the extended warranty market. As automotive technology advances, the components used in vehicles become more complex and expensive to repair or replace. This trend is particularly evident in the electronics and safety systems of modern vehicles, where repairs can be prohibitively costly without warranty coverage.

The average lifespan of vehicles has increased significantly, with many cars remaining on the road for over a decade. As vehicles age, the likelihood of mechanical issues rises, making extended warranties an attractive option for owners looking to avoid large out-of-pocket expenses for repairs. The used vehicle market in the United States is expanding, driven by factors such as affordability and a wide selection of available models. Extended warranties play a crucial role in this market, providing buyers with confidence in their purchase and protection against potential future repairs.

As per the United States auto extended warranty market analysis, consumers are becoming more educated about the benefits of extended warranties, including cost savings and the convenience of having repair costs covered. This increased awareness is driving demand, as more vehicle owners seek the peace of mind that comes with extended warranty coverage. As vehicles continue to evolve with advanced technologies such as electric powertrains, autonomous driving capabilities, and sophisticated infotainment systems, the demand for extended warranties is expected to rise. These technologies, while enhancing the driving experience, also increase the potential for costly repairs, making extended warranties a valuable investment for consumers.

The integration of telematics and connected car technologies is expected to revolutionize the auto extended warranty market in United States. Telematics can provide real-time data on vehicle performance and maintenance needs, allowing warranty providers to offer more personalized and proactive services. This can enhance the customer experience and improve the overall value of extended warranties. The growing popularity of eco-friendly vehicles, such as electric and hybrid cars, is another trend influencing the market. Extended warranties tailored to the unique needs of these vehicles, including coverage for battery replacement and electric drivetrain components, are expected to see increased demand.

Market Segmentation

The market can be divided based on coverage, vehicle age, application, distribution channel and region.

Market Breakup by Coverage

• Powertrain Coverage
• Stated Component Coverage
• Exclusionary Coverage

Market Breakup by Vehicle Age

• Used Vehicle
• New Vehicle

Market Breakup by Application

• Personal
• Commercial

Market Breakup by Distribution Channel

• Auto Dealers/Manufacturers
• Third Party Providers

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the United States auto extended warranty market. Some of the major players explored in the report by Expert Market Research are as follows:

• 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

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.