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

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

A home warranty is a service contract that helps protect homeowners from unexpected repair costs for major systems and equipment that fail due to normal wear and tear. Home warranties can cover service, repair or replacement of major home systems and appliances. The Home Warranty Providers market refers to the market for companies that offer home warranty services.

Market Overview:

The latest research study on the global Home Warranty Providers market finds that the global Home Warranty Providers market reached a value of USD 8424.11 million in 2022. It’s expected that the market will achieve USD 12895.36 million by 2028, exhibiting a CAGR of 7.35% during the forecast period.

Influence of COVID-19 Outbreak on Home Warranty Providers Games Industry Development

Since the outbreak began, 6.37 million people have died globally, and the toll continues to rise. At present, the global economy continues to recover, but due to supply chain disruptions, the uncertainty of the epidemic has increased, the uncertainty of global economic recovery has increased, and the recovery momentum has weakened. It's the worst global recession in decades, despite huge efforts by governments to fight it, backed by fiscal and monetary policy. But in the longer term, a severe recession triggered by the pandemic is expected to lead to a prolonged downturn in the economy by reducing investment. The recession could get worse if the COVID-19 outbreak continues, if restrictions on liquidity are extended or reintroduced, or if economic activity is disrupted for a prolonged period. Businesses may struggle to service their debts, increased risk aversion could lead to higher borrowing costs, and bankruptcies and defaults could lead to financial crises in many countries.

For industry companies, the operating results and financial performance of industry companies have been adversely affected by the COVID-19 pandemic as a result of the COVID-19 outbreak. First, Home Warranty Providers sales can be sold through the real estate sales channel approach. Affected by the epidemic, the real estate channel Home Warranty Providers has been affected. Industry companies continue to experience an increase in appliance claims compared to pre-pandemic levels, primarily as customers spend more time at home in response to COVID-19, resulting in increased usage. At the same time, due to the disruption of the global supply chain caused by the epidemic, challenges in the supply of parts and components across the industry have caused increased cost pressures. Costs are further increased due to the lack of spare parts supply. The lack of supply of parts also affects the customer experience of downstream customers, which may have an impact on the renewal rate of customers. In general, the epidemic has brought challenges to the development of industry companies.

Pros of Home Warranty Providers

Home warranties cover service, repair or replacement of major home systems and appliances. It can provide a financial buffer in the event of a big-ticket item failure, and it can extend the protection of the manufacturer's warranty after the warranty period expires. A home warranty is part of an overall home protection plan. If there is a problem with the equipment or system specified in the contract, the customer can submit a service request and the home warranty company will dispatch a contractor to diagnose, repair, and possibly replace the item. Therefore, a home warranty can minimize out-of-pocket costs of repairing or replacing expensive items that customers may not have the budget for. Meanwhile, a home warranty may be worthwhile if the appliance no longer has a manufacturer's warranty, and if the customer wants to reduce the out-of-pocket cost of repairing or replacing expensive items like a refrigerator or stove. In general, home warranties have the advantage of covering old appliances, reducing out-of-pocket costs for repairs or replacements. The advantages of Home Warranty Providers are one of the factors driving the industry.

Home Warranty Providers offer a limited range of services

While the list of things covered by Home Warranty Providers may seem extensive, the list of things not covered by a Home Warranty can be even longer. Home Warranty Providers do not cover pre-existing conditions, such as appliances that were damaged before the warranty began. A typical home warranty also doesn't cover appliances that are improperly installed, misused, and not properly maintained. But what is correct maintenance being very subjective, so this clause often becomes a point of contention between customers and warranty companies. Also, most home warranties do not cover modifications or changes to new equipment. Second, Home Warranty Providers do not cover the cost of secondary damage. For example, if the dishwasher fails, the home warranty company will likely cover the cost of repairs, or in some cases, the cost of replacing the appliance. However, if the dishwasher breaks so that it leaks and floods the kitchen floor, secondary damage to the home's structure won't be covered. The limited range of services offered by Home Warranty Providers is one of the reasons that restrain the growth of the industry.

Maintenance of old customers

For downstream customers in the industry, the required Home Warranty Providers service is not a one-time service. The maintenance and repair of household appliances is one of the unavoidable expenses in the whole product use process. With the long-term use of various household products, some problems may occur. Generally speaking, customers and industry companies usually sign one-year contracts. After the contract expires, the customer re-selects whether to purchase the service and sign a new contract. Therefore, improving the renewal rate of existing old customers is an important opportunity for the development of industry companies. It is harder for a company to develop a new customer than to re-consume an old one. Therefore, the maintenance of old customers is very important. The maintenance of old customers runs through the whole process of pre-sale, in-sale and after-sale. The purpose is not only to achieve cooperation, but also to make customers feel good service and product added value, so as to form a stable and loyal customer group. Recording customers by category and understanding the specific situation of each frequent customer, refining the classification of old customers, understanding the needs and preferences of different customers, and targeted marketing and services will be an opportunity for the development of the industry.

Region Overview:

Geographically, United States held the largest market share – 43.5% in 2022.

Company Overview:

Frontdoor Inc. is one of the major players operating in the Home Warranty Providers market, holding a share of 20.53% in 2023.

Frontdoor Inc.

Frontdoor is a company dedicated to making buying a home easy. The company is committed to transforming the home services industry. The company's line of brands includes American Home Shield, HSA, Landmark and OneGuard.

Cinch Home Services, Inc.

Due to normal wear and tear, the Cinch Home Warranty Program covers parts for more than 20 home systems and appliances. The company's home warranty coverage is packaged as a device-only plan, a system-only plan, or a combination plan that combines the best of both plans into a single, comprehensive service agreement. No home inspection is required.

Segmentation Overview:

As for product types, the Heating and Air Conditioning Warranties segment held the largest market share in 2022.

General Appliance and Other Warranties

Mainly for the warranty service of various General Appliances. Generally, it includes refrigerators, garbage disposal equipment, etc.

Heating and Air Conditioning Warranties

Refers to the warranty service for Heating and Air Conditioning.

Main Electrical Panel and Wiring Warranties

Refers to the warranty service for the electrical system.

Application Overview:

In the Home Warranty Providers market, 76.04% of the total value was generated through the Residential segment by application in 2022.

Key Companies in the global Home Warranty Providers market covered in Chapter 3:

Choice Home Warranty
Select Home Warranty
Fidelity National Home Warranty
Frontdoor Inc.
2-10 Home Buyers Warranty
ServicePlus Home Warranty
Old Republic Home Warranty
Cinch Home Services, Inc.
First American Home Warranty
AFC Home Club

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

General Appliance and Other Warranties
Heating and Air Conditioning Warranties
Main Electrical Panel and Wiring Warranties
Others

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

Commercial
Residential

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)