According to the latest report by IMARC Group, titled "Extended Warranty Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global extended warranty market reached a value of US$ 121.5 Billion in 2021. An extended warranty is an additional warranty that is generally offered to consumers while purchasing high-value items, including automobiles, electronics, and electrical appliances. It is a service contract that can be claimed by the buyer to cover the repair and maintenance costs of a product. It is offered for an additional charge that covers problems related to the product’s electrical or mechanical parts. In recent years, extended warranty solutions have gained traction across the globe due to the rising adoption of premium smartphones and laptops among the masses, especially young working professionals.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Extended Warranty Market Trends:
The global market is primarily driven by the increasing awareness among the masses regarding extended warranty policies. This is further supported by the shifting preference toward a hassle-free post-sales experience and the growing number of value-conscious buyers. Along with this, the rising inclination for maintaining the safety of high-value products post expiry of sellers’ warranty period is providing a boost to the adoption of extended warranty policies among individuals. Moreover, several leading players are heavily investing in the deployment of innovative approaches, such as on-site services and free replacements, in an attempt to strengthen their market position, thereby catalyzing the market growth on the global level. Other factors, including rapid urbanization and digitization, the escalating demand for prolonged life and value of goods, and the inflating disposable income levels of the masses, are also positively influencing the market. On account of the aforementioned factors,bthe market is anticipated to reach a value of US$ 182.3 Billion by 2027, exhibiting a CAGR of 6.70% during 2022-2027.
- On the basis of the coverage, the market has been categorized into standard and accidental protection plan.
- Based on the application, the market has been classified into automobiles, consumer electronics, home appliances, mobile devices and PCs and others.
- On the basis of the distribution channel, the market has been segmented into manufacturers, retailers and others.
- Based on the end-user, the market has been bifurcated into individuals and business.
- On the basis of the region, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Latin America (Brazil, Mexico and others) and the Middle East and Africa.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market. Some of these players include Allianz SE, American International Group Inc, AmTrust Financial, Assurant Inc., Asurion LLC, Axa S.A., Carchex, CarShield LLC, Chubb Limited, Edel Assurance LLP, Endurance Warranty Services LLC, and SquareTrade Inc (The Allstate Corporation).
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