Protecting Investments: Trends in the Extended Warranty Market

Extended Warranty Market Growth & Trends

The global Extended Warranty Market size was estimated at USD 133.6 billion in 2023 and is projected to grow at a CAGR of 10.8% from 2024 to 2030 owing to the surge in sales of consumer electronics and home appliances. With the increasing penetration of smartphones, laptops, smart home devices, and kitchen appliances globally, the demand for extended warranties has grown significantly. These products often represent a significant investment for consumers, who seek the reassurance of coverage beyond the standard manufacturer warranty, especially in the case of repairs or replacements. As electronic devices become more sophisticated and prone to technical malfunctions, customers are increasingly purchasing extended warranties for peace of mind.

There has been a significant rise in consumer awareness regarding the benefits of extended warranties. Manufacturers, retailers, and third-party providers have improved their marketing strategies to educate consumers about the financial protection offered by these plans. The proliferation of e-commerce platforms has also facilitated the easy bundling of extended warranty packages with products, further driving their adoption. As more consumers recognize the value of protecting their investments, extended warranty uptake has steadily increased.

The rise of online retail has supported the extended warranty market by creating more opportunities for providers to offer coverage directly to consumers. E-commerce platforms allow retailers to upsell extended warranties while purchasing of products, making it convenient for consumers to opt into these plans. Online comparison tools and platforms that specialize in extended warranty products have also gained popularity, enabling consumers to make more informed decisions about coverage options.

Companies are leveraging extended warranties as a tool for customer retention. Offering extended warranties creates an ongoing relationship between the customer and the product or brand, which can lead to increased customer loyalty. Many manufacturers and retailers bundle warranties with loyalty programs or offer perks to consumers who purchase extended coverage. This focus on retention is particularly important in highly competitive markets, where retaining customers can provide a strategic advantage.

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Extended Warranty Market Report Highlights

• The standard protection plan segment accounted for the largest market share, over 60% in 2023.  The surge in sales of mid-range electronics, appliances, and other consumer goods is a major driver of the standard protection plan segment.
• The manufacturers segment accounted for the largest market share of nearly 45% in 2023.  The rising cost of repairs and replacements is compelling consumers to seek additional protection beyond standard manufacturer warranties.
• The consumer electronics segment accounted for the largest market share, over 33% in 2023.  Many extended warranty providers now offer installment-based payment options or bundle warranty costs into device financing plans.
• The individuals segment accounted for the largest market share, over 68% in 2023.  Extended warranty providers are increasingly offering flexible payment plans, allowing individual consumers to spread out the warranty cost over time.
• The extended warranty market in North America held a share of around 36% in 2023. The market in North America is characterized by high adoption rates across consumer electronics, automotive, and home appliances.

Extended Warranty Market Segmentation

Grand View Research has segmented the global extended warranty market report based on coverage, distribution channel, application, end use, and region. 

• Coverage Outlook (Revenue, USD Billion, 2018 - 2030)

• Standard Protection Plan
• Accidental Protection Plan

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

• Manufacturers
• Retailers
• Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Automobiles
• Consumer Electronics
• Home Appliances
• Mobile Devices and PCs
• Others

• End-Use Outlook (Revenue, USD Billion, 2018 - 2030)

• Individuals
• Business

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)
• North America

• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Latin America
• Brazil
• Middle East & Africa
• U.A.E
• Kingdom of Saudi Arabia
• South Africa 

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