Global Extended Warranty Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Extended Warranty Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Extended warranty, sometimes referred to as service agreement, service contract or maintenance agreement, is a long-term warranty beyond the standard warranty for new products.

Market Overview:

The latest research study on the global Extended Warranty market finds that the global Extended Warranty market reached a value of USD 133728.7 million in 2022. It’s expected that the market will achieve USD 208619.81 million by 2028, exhibiting a CAGR of 7.69% during the forecast period.

Influence of COVID-19 Outbreak on Extended Warranty Industry Development

The COVID-19 pandemic has a certain negative impact on the extended warranty market. In particularly, sales of automobiles and consumer electronics have fallen sharply. The pandemic has dealt a severe blow to the European automobile industry. Data shows that passenger car registrations in Europe fell by 57% in May. Due to the epidemic in the first quarter, Apple's sales fell sharply. Affected by the COVID-19 epidemic, sales of digital home appliances such as ultra-thin TVs in Japan fell by 8% in March from the same period last year. Since the consumption tax increase in October 2019, it has shown negative growth for six consecutive months. The sharp decline in sales of automobiles and consumer electronics has led to a decline in downstream buyers' demand for extended warranty.

At the same time, due to the COVID-19 pandemic, many automakers are extending service schedules and warranties for customers' vehicles, such as Jaguar Land Rover. Electronic product manufacturers have also extended the basic warranty period. For example, Apple and Huawei.

Strength

With the increasing price of automobiles and electronic products, consumers are becoming more aware of extended warranty, and more and more consumers require extended warranty coverage.
The continuous development of extended warranty programs drives market demand.
The rising penetration rate of smartphones, laptops, home appliances and other such commodities has driven the growth of the extended warranty market.

Weakness

Extended warranty is expensive. At the same time, the coverage of the extended warranty at different prices is different, the wider the coverage, the more expensive the extended warranty.

Opportunities

The growing demand for automobiles and electronic equipment in emerging countries will be an opportunity for growth in the extended warranty market.
Emerging countries adopt enhanced policies to support the development of extended warranty in the region.
The growth of extended warranty in the used car market will become an opportunity for market development.

Threat

There is no uniform law to regulate extended warranty products, and the regulatory laws in different regions are different.
The COVID-19 pandemic has a certain negative impact on the extended warranty market.

Region Overview:

Geographically, North America held the largest market share – 36.95% in 2022.

Company Overview:

Asurion is one of the major players operating in the Extended Warranty market, holding a share of 3.5% in 2023.

Asurion

Asurion, LLC provides wireless handset insurance services. The Company offers replacement of lost, stolen, damaged, and malfunctioning devices, as well as roadside assistance programs, technical support, mobile security devices, and electronics protection. Asurion serves customers worldwide.

American International Group (AIG)

American International Group, Inc. is an international insurance organization serving commercial, institutional and individual customers. AIG provides property-casualty insurance, life insurance, and retirement services.

Segmentation Overview:

By type, Protection Plan segment accounted for the largest share of market in 2022.

Protection Plan

Protection Plan refers to the standard protection plan. Protection Plan generally protects against normal wear and tear and product defects — things like a part failing because it’s a lemon or due to heat, humidity, or dust.

Accidental Protection Plan

Accidental Protection Plan usually includes everything in a standard plan but also protects your product against damage sustained in an accident. The additional coverage of the Accidental Protection Plan is more expensive than the standard plan.

Application Overview:

In the Extended Warranty market, 52.6% of the total value was generated through the Consumer Electronics segment by application in 2022.

Key Companies in the global Extended Warranty market covered in Chapter 3:

GoWarranty
Fortegra
Warranty Plus
Allstate (SquareTrade)
American Home Shield
Domestic & General
Corporate Warranties India
Endurance Warranty Services
Allianz Global Assistance
SONY
InfyShield
American International Group (AIG)
Asurion
CarShield
Bajaj Finserv
Assurant
Onsitego
Advanced American Auto Warranty Services LLC
Chubb Limited
Ally Financial
CARCHEX
Amtrust
Reliance Digital
Samsung
Automobile Protection Corporation (APCO)

In Chapter 4 and Chapter 14.2, on the basis of types, the Extended Warranty market from 2018 to 2029 is primarily split into:

Protection Plan
Accidental Protection Plan

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Extended Warranty market from 2018 to 2029 covers:

Car
Consumer Electronics
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)