What is Global Extended Warranty Service Market?
The Global Extended Warranty Service Market is a vast and dynamic sector that offers extended warranties or service contracts for a variety of products and services. These warranties are essentially agreements for a specified period of time that go beyond the standard warranty period offered by the manufacturer. They provide additional coverage for repair, replacement, or maintenance of the product, thereby offering peace of mind to the consumer. The market is driven by a multitude of factors such as increasing product prices, rising disposable incomes, and the growing complexity of products which makes repairs more costly. However, it's not just about the financial aspect. Extended warranties also offer convenience and assurance to consumers, who might otherwise be apprehensive about potential repair or replacement costs after the manufacturer's warranty expires.
Standard Protection Plan, Accidental Protection Plan in the Global Extended Warranty Service Market:
The Global Extended Warranty Service Market offers two main types of plans: Standard Protection Plan and Accidental Protection Plan. The Standard Protection Plan covers the repair or replacement of a product due to failures that occur during normal use, such as mechanical or electrical breakdowns. On the other hand, the Accidental Protection Plan covers accidental damage from handling, like drops, spills, and cracks. These plans are designed to provide consumers with peace of mind, knowing that their investment is protected beyond the manufacturer's warranty. The choice between the two plans depends on the product and the consumer's usage habits. For instance, a consumer who frequently travels with their laptop might opt for an Accidental Protection Plan, while a home-based user might find a Standard Protection Plan sufficient.
Automobile, Consumer Electronics, Home Appliances, Others in the Global Extended Warranty Service Market:
The Global Extended Warranty Service Market finds its application in various sectors including Automobile, Consumer Electronics, Home Appliances, and others. In the Automobile sector, extended warranties cover the cost of repairs and maintenance after the manufacturer's warranty has expired. This is particularly beneficial for high-end cars where repair costs can be exorbitant. In the Consumer Electronics sector, extended warranties are popular for products like smartphones, laptops, and televisions, which have become indispensable in our daily lives and whose repair or replacement can be costly. The Home Appliances sector also sees a significant demand for extended warranties, especially for major appliances like refrigerators, washing machines, and air conditioners. Other sectors where extended warranties are prevalent include the furniture industry, fitness equipment, and even services like plumbing and electrical work.
Global Extended Warranty Service Market Outlook:
The Global Extended Warranty Service Market, as per the latest data, was valued at US$ 106740 million in 2022. It is projected to reach a value of US$ 151420 million by 2029, growing at a Compound Annual Growth Rate (CAGR) of 6.0% during the forecast period of 2023-2029. The market is dominated by five major players - Asurion, American International Group (AIG), Assurant, Allstate (SquareTrade), and Amtrust. These companies collectively held more than 17% of the global market share in terms of value in 2019. This indicates a highly competitive market landscape, with these top players continuously striving to innovate and offer better services to gain a larger market share.
| Report Metric | Details |
| Report Name | Extended Warranty Service Market |
| Accounted market size in 2022 | US$ 106740 in million |
| Forecasted market size in 2029 | US$ 151420 million |
| CAGR | 6.0% |
| Base Year | 2022 |
| Forecasted years | 2023 - 2029 |
| Segment by Type |
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| Segment by Application |
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| By Region |
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| By Company | Asurion, American International Group (AIG), Assurant, Allstate (SquareTrade), Amtrust, American Home Shield, Ally Financial, Allianz Global Assistance, Automobile Protection Corporation (APCO), Endurance Warranty Services, CarShield, CARCHEX, Corporate Warranties India |
| Forecast units | USD million in value |
| Report coverage | Revenue and volume forecast, company share, competitive landscape, growth factors and trends |
