Press release
What Is the Future Outlook for the Extended Warranty Market and Its Global Expansion?
Extended Warranty Market Graph
The global extended warranty market reached USD 147.1 billion in 2024 and is projected to grow to USD 239.0 billion by 2033, expanding at a CAGR of 5.5% during 2025-2033. This growth is fueled by rising consumer demand for financial protection against unexpected product defects, increasing sales of high-value electronics and automobiles, and the growing complexity of modern appliances. Extended warranties provide peace of mind by covering repair costs beyond standard manufacturer guarantees, making them a key factor in purchasing decisions. Additionally, digital sales channels and AI-driven claims processing are enhancing customer accessibility and efficiency, further accelerating market expansion.
Study Assumption Years
• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Years: 2025-2033
Extended Warranty Market Key Takeaways
✔ The extended warranty market was valued at USD 147.1 billion in 2024 and is projected to reach USD 239.0 billion by 2033, growing at a CAGR of 5.5%.
✔ Automobiles dominate the market by application due to rising vehicle sales and high repair costs.
✔ North America leads regionally, driven by high consumer electronics and automobile adoption.
✔ Manufacturers hold the largest share in distribution channels, leveraging brand trust for warranty sales.
✔ Standard protection plans are the most popular coverage type, offering cost-effective repair solutions.
✔ AI and digital platforms are transforming warranty management with faster claims and personalized plans.
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What Are the Key Growth Factors in the Extended Warranty Market?
Rising Demand for Financial Protection Against Product Failures
Consumers are choosing longer warranties to protect pricey buys such as smartphones, laptops, and luxury cars. As repair fees grow, extended warranties lessen financial dangers and boost consumer trust. Take BMW's Repair Inclusive program, for example, which provides up to six years of coverage for long-term vehicle safety. Similarly, Lenovo's Motorola recently introduced a four-year warranty in China, setting a fresh standard in the market. This pattern shows a larger change towards cautious consumer attitudes, especially in the electronics and car markets.
Growth in High-Value Electronics and Automobile Sales
There's been a spike in luxury gadgets like iPhones and smart home devices along with upscale vehicles, driving the market. In 2023, Apple led smartphone sales, with their iPhones taking seven out of the top ten places. Since consumers are putting more money into durable products, having extended warranties becomes vital against breakdowns. Moreover, deals like iA Financial Group's $10M investment in Clutch Canada demonstrate how online vehicle sales now combine warranties easily.
Digital Transformation and AI in Warranty Management
AI is changing the game in extended warranties through smart analysis, virtual assistants, and fraud prevention. For instance, Tavant and Daimler Truck North America teamed up to use AI in warranty oversight, which boosts dealer efficiency and compliance. Digital shopping channels also improve access by letting consumers buy bundled warranties at the checkout. This tech-focused method enhances user experience and cuts down costs for providers.
Market Segmentation
Breakup by Coverage:
• Standard Protection Plan - Basic coverage extending manufacturer warranties, covering defects and malfunctions.
• Accidental Protection Plan - Includes accidental damage (e.g., spills, drops) beyond standard coverage.
Breakup by Application:
• Automobiles - Largest segment due to high repair costs and vehicle sales.
• Consumer Electronics - Driven by premium smartphone and laptop purchases.
• Home Appliances - Rising demand for smart appliances with complex tech.
• Mobile Devices and PCs - Growth fueled by increasing device reliance.
• Others - Includes niche categories like medical devices.
Breakup by Distribution Channel:
• Manufacturers - Largest segment, offering warranties directly at point of sale.
• Retailers - Third-party sellers providing add-on warranties.
• Others - Includes online platforms and independent providers.
Breakup by End User:
• Individuals - Largest segment, driven by personal electronics and auto purchases.
• Business - Includes corporate device and fleet vehicle coverage.
Breakup by Region:
• North America (U.S., Canada)
• Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, U.K., Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East & Africa
Which Region Dominates the Extended Warranty Market?
North America stands out with the largest market share. High acceptance of gadgets, luxury cars, and sophisticated digital warranty systems drive this growth. The U.S. alone generated USD 48.4 billion in 2024, with a projected annual growth rate (CAGR) of 9.2% until 2033. Important reasons for this include solid retail partnerships, consumer knowledge, and AI-based claims handling, making it the most developed warranty market globally.
What Are the Recent Developments in the Extended Warranty Market?
New advances include AI-based warranty management, like Daimler Truck's alliance with Tavant for streamlined claims processing. Also, Lenovo's Motorola has rolled out a four-year warranty, outdoing rivals in China. The increase in e-commerce-based warranties, such as Clutch Canada's vehicle sales platform, is altering how consumers shop. These improvements signal a trend toward digital solutions, longer coverage periods, and smooth online integration.
Who Are the Key Players in the Extended Warranty Market?
• Allianz Assistance (Allianz SE)
• American International Group Inc.
• AmTrust Financial
• Assurant Inc.
• Asurion LLC
• Axa S.A.
• Carchex
• CarShield LLC
• Chubb
• Edel Assurance LLP
• Endurance Warranty Services LLC
• SquareTrade Inc. (The Allstate Corporation)
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
Ask Analyst for Customization: https://www.imarcgroup.com/request?type=report&id=5197&flag=C
IMARC Group
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IMARC Group is a global management consulting firm that helps the world's most changemakers to create a lasting ambitious impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, considerations studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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