Extended Warranty Service Market Size, Share, Growth, And Industry Analysis, By Type (Standard Protection Plan, Accidental Protection Plan), By Application (Automotive, Consumer Electronics, Furniture, And Mobile Phones), Regional Insights, and Forecast From 2024 To 2031

Extended Warranty Service Market Report Overview

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The global extended warranty service market size was USD 95155.78 million in 2021 and is expected to reach USD 235445.74 million in 2031, at a CAGR of 9.48% during the forecast period.

An extended warranty service is a type of warranty that covers repairs and upkeep of a product beyond the manufacturer's warranty. Because it is an optional coverage for service-related claims obtained by the buyer, it functions more like a service contract than a warranty. Similar to explicit warranties, extended warranties are subject to restrictions and conditions, and coverage may be revoked in the event of a violation by the buyer. Most of the time, extended warranties are offered on expensive things like automobiles, electronics, and appliances. The manufacturer oversees carrying out the extended warranty on behalf of the consumer even though it was sold by the retailer.

COVID-19 Impact: Pandemic Hamper the Demand of Extended Warranty Service to Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the extended warranty service market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The global extended warranty service market has been impacted by COVID-19. Warranty companies now understand the value of a positive client experience. While technology has enabled improved and updated capabilities for better customer experiences, people in sales have also acknowledged the importance of all customers in this pandemic. Additionally, cost structures have altered, moving from offline to online, which has increased profits for businesses that can take advantage of digitization. Additionally, financially strong technological businesses are using these technologies and analytics to excel in administration and sales. However, as the financial institutions change, so does the environment, and insurrect firms are entering the extended warranty industry with increasingly avant-garde and creative concepts.

Latest Trends

"Expanded Awareness of Extended Warranties to Enhance Market Growth"

The market for extended warranty services is growing as pricey consumer goods and vehicles have integrated themselves into people's lifestyles. A significant sum, equivalent to about one-fifth of the unit price, might be spent on the growing need for routine maintenance and repair of cell phones and household appliances. To avoid unforeseen costs, consumers are choosing an extended warranty on electronic items like laptops, smartphones, and tablets, which is fuelling the expansion of the extended warranty service market.

Extended Warranty Service Market Segmentation

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• By Type Analysis

According to type, the extended warranty service market can be segmented into standard protection plan and accidental protection plan.

In terms of type, the standard protection plan is anticipated to be the largest segment during the forecast period.

• By Application Analysis

Based on application, the extended warranty service market can be divided into automotive, consumer electronics, furniture, and mobile phones.

In terms of application, the automotive market is projected to hold the largest market share through 2028.

Driving Factors

"Increasing Demand for Warranty Extensions to Reduce Maintenance Costs to Uplift Market Growth "

Consumers who care about price are driving up post-sale service standards for businesses by demanding longer product lives and comfortable after-sales experiences. As a result, businesses are providing extended warranty serviceoptions to keep customers, which has had a substantial positive impact on the market's expansion. Extended warranties are becoming more popular among consumers as a worry-free option because they can prevent unanticipated financial losses caused by high repair expenses. Additionally, other advantages like on-site service and simple replacement provided by various businesses are promoting the expansion of the extended warranty serviceindustry.

"Rising use of Gadgets in Homes Which Led to Heightened Market Demand "

The rising cost of routine smartphone and home appliance maintenance and repair can reach astronomical heights of almost a quarter of the original unit cost. To avoid unpleasant financial surprises, people choose extended warranties service on electronic items, which is fueling the market's expansion. Additionally, the industry's expansion is being accelerated by the transferability of the extended warranties provided by top businesses, which ensures that the equipment is covered even after it has been sold to new owners.

Restraining Factors

"Low Awareness of the Extended Warranty in Developing Countries is Decline market Growth"

The extended warranty service for items is not widely known among consumers in impoverished areas, and even when they are aware of it, they do not prefer to pay extra for the extended guarantee. Consumers do not choose value-added services in areas with low per capita income and little spending power; instead, they choose to purchase basic goods. As a result, this issue could be a danger to market expansion in emerging countries.

Extended Warranty Service Market Regional Insights

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"The Asia Pacific Region will Dominate Market Due to Consumer Take Protection For their Gadgets "

Due to its rising economies, high maintenance costs, numerous offers & advantages, and superior customer experience offered under extended warranties, Asia Pacific is likely to have considerable growth throughout the forecast period and is expected to continue to hold the top spot. achieved the best extended warranty service overall. This is due to people purchasing extended warranties to protect themselves against car breakdowns, which helps the market growth in the area. Additionally, new cars normally come with a guarantee from the dealer for at least five years, which encourages customers to buy an extended warranty servicefrom the same car dealers across the nation.

Key Industry Players

"Adoption Experiential Marketing Services by Key Players Influencing Market Development"

The top key players in the market are AIG, Asurion, Domestic & General, Allstate (SquareTrade), Allianz, and Fortegra. Most of the top players hold extended warranty service market share in some region. In addition, the strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the extended warranty service market growth in the competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession of market shares by the key players stimulates the extended warranty service.

LIST OF TOP EXTENDED WARRANTY SERVICE COMPANIES

• AIG(U.S.)
• Asurion(U.S.)
• Domestic & General(UK.)
• Allstate (SquareTrade) (UK.)
• Allianz (Germany‎)
• Fortegra(U.S.)
• Amtrust(U.S.)
• Chubb(U.S.)
• Assurant (U.S.)

Report Coverage

This report examines an understanding of the extended warranty service market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.