Extended Warranty Market by Distribution Channel (Manufacturers, Retailers, and Others), by Coverage Type (Standard Protection Plan and Accidental Protection Plan), by Application (Automobiles, Consumer Electronics, Home Appliances, Mobile Devices and PCs, and Others), and by End User (Individuals and Businesses)- Global Opportunity Analysis and Industry Forecast 2023-2030

Extended Warranty Market

Industry:  Consumer Goods | Publish Date: May 2023 | No of Pages:  N/A | No. Tables:  N/A | No. Figures:  N/A

Market Definition

The Extended Warranty Market size was valued at USD 130.9 billion in 2022 and is predicted to reach 252.4 by 2030 with a CAGR of 8.8% from 2023-2030.

An extended warranty is a service contract or maintenance agreement, which is a legally binding agreement between a consumer and a manufacturer or retailer that provides additional coverage for a product beyond the manufacturer's standard warranty period. This type of warranty typically covers repair and replacement costs for defects or malfunctions that occur after the manufacturer's warranty period has expired.

Extended warranties can be purchased at the time of product purchase or within a specified period of time following the initial purchase. They can be offered by the manufacturer or by a third-party provider, and they can be purchased for a variety of products including home appliances, electronics, vehicles and more.

An extended warranty primarily offers coverage for electrical or mechanical breakdown and may also cover accidental damage. However, it excludes coverage for mechanical failure of commodities due to owner abuse, and malicious destruction.

Market Dynamics and Trends

The escalating costs of repairing electronics have driven consumers towards adopting extended warranty services. As repair expenses for appliances and electronics continue to rise, consumers are increasingly choosing extended warranty coverage to safeguard themselves against these costs. This coverage is particularly vital for high-end or expensive products like smartphones, laptops, and home appliances, which can be costly to repair or replace. The advancement of technology has resulted in more complex and feature-rich products, making them more challenging and expensive to repair.

For instance, modern smartphones include features such as facial recognition, wireless charging, and water resistance, increasing their repair complexity compared to previous models. Similarly, modern home appliances and electronics like smart home devices, home theater systems, and gaming consoles have also become more intricate.

Consequently, the likelihood of breakdowns and associated repair costs has increased, causing stress and financial burden for consumers. By offering extended warranties, manufacturers provide customers with peace of mind, relieving them from the burden of paying for expensive repairs or replacements. This can foster greater customer loyalty and satisfaction towards both the product and the manufacturer or retailer.

Furthermore, extended warranties often provide additional benefits like accidental damage protection, covering damages resulting from drops or spills that are not covered by standard manufacturer warranties. These combined factors contribute to a growing consumer demand for extended warranty coverage, consequently driving market growth.

However, low awareness about the extended warranty in underdeveloped regions restraining the growth of the Extended Warranty market. On the other hand, introduction of AI and other technology in extended warranty claims has opened up numerous opportunities in the market. One significant benefit is the enhanced customer experience through AI-driven chatbots and virtual assistants.

These intelligent tools offer prompt and efficient service, making it easier for customers to file claims. Moreover, AI enables personalized services by analyzing customer data, allowing market players to recommend suitable warranty options and provide tailored support, which is expected to create ample opportunities in the market.


Market Segmentation and Scope of Study

The global Extended warranty market is segmented on the basis of distribution channel, coverage type, application, end-user, and geography. Based on distribution channel, the market is classified into manufacturers, retailers, and others. Based on the coverage type, the market is segmented into standard protection plan and accidental protection plan. On the basis of application, the market is categorized into automobiles, consumer electronics, home appliances, mobile devices and pcs, and others. On the basis of end users, the market is categorized into, individuals and business. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.


Geographical Analysis

North America dominates the global Extended Warranty market and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the increasing demand for warranty coverage for consumer electronics such as smartphones, laptops and home appliances. Due to the persistent escalation in product prices, consumers are progressively opting for extended warranties as a means of safeguarding themselves against exorbitant repair expenses.

The United States is the largest market for extended warranties in North America, followed by Canada. The growth in the region is also driven by the increasing adoption of connected devices and the Internet of Things (IoT) technology in various end-use industries such as automotive, healthcare, and consumer electronics. Such technological advances have increased the sophistication of consumer electronics and it has significantly increased the repair cost, in turn driving the growth of the market.

Moreover, the market is also being driven by the increasing adoption of extended warranty services by manufacturers and retailers to retain customers and increase revenue. In addition. the North America extended warranty market is highly competitive, with a large number of players operating in the market which is further driving the growth of the market. Key players in the market include Assurant, Inc., Square Trade, Inc., Warrantech Corporation, and AIG Warranty.

On the other hand, Asia Pacific is estimated to witness substantial growth during the forecast period, which primarily driven by factors such as the rapid growth of the e-commerce industry and rising awareness about warranty benefits. The thriving e-commerce sector has facilitated convenient online purchase options for consumer electronics, thereby increasing the demand for extended warranties as consumers seek to protect their online purchases and ensure a seamless post-sales experience. The convenience, accessibility, and wide product range offered by e-commerce platforms contribute to the rising popularity of extended warranties in the region.


Competitive Landscape

The extended warranty market includes several market players such as American International Group Inc., Assurant Inc., Allstate Corporation, HDFC Ergo, AXA XL, Asurion, Amtrust Financial Services, Allianz Partners SAS, Endurance Warranty Services, and Zurich Insurance Group among others. These market players are adopting various strategies such as expansion and partnership to maintain their dominance in the global extended warranty market.

For instance, in February 2023, AmTrust Financial Services, Inc., a global specialty property casualty insurer, is expanding its international extended warranty and protection business in South Korea.

Moreover, in January 2021 Assurant partnered with The London Electric Vehicle Company (LEVC) to enter into the extended warranty market for electric vehicles. By collaborating with LEVC, Assurant will offer comprehensive warranty coverage for LEVC's electric vehicles, providing customers with added peace of mind and protection against unexpected repairs and expenses. This strategic partnership demonstrates Assurant's commitment to expanding its presence in the growing extended warranty market for electric vehicles.


  • The report provides quantitative analysis and estimations of the extended warranty market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

  • The study comprises a deep dive analysis of the extended warranty market including the current and future trends to depict prevalent investment pockets in the market.

  • Information related to key drivers, restraints, and opportunities and their impact on the extended warranty market is provided in the report. 

  • Competitive analysis of the players, along with their market share is provided in the report.

  • SWOT analysis and Porters Five Forces model is elaborated in the study.

  • Value chain analysis in the market study provides a clear picture of roles of stakeholders.


By Distribution Channel

  • Manufacturers

  • Retailers

  • Others

By Coverage Type

  • Standard Protection Plan

  • Accidental Protection Plan

By Application

  • Automobiles            

  • Consumer Electronics        

  • Home Appliances    

  • Mobile Devices and PCs            

  • Others

By End user

  • Individuals

  • Business

By Geography

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • UK        

    • Germany        

    • France        

    • Spain        

    • Italy        

    • Netherlands        

    • Denmark        

    • Finland        

    • Norway        

    • Sweden        

    • Russia        

    • Rest of Europe

  • Asia-Pacific

    • China        

    • Japan        

    • India

    • Australia

    • South Korea    

    • Thailand    

    • Singapore

    • Rest of Asia-Pacific    

  • RoW

    • Latin America

    • Middle East        

    • Africa


  • American International Group Inc.

  • Assurant Inc. 

  • Allstate Corporation 

  • HDFC Ergo 

  • AXA XL

  • Asurion 

  • Amtrust Financial Services 

  • Allianz Partners SAS.

  • Endurance Warranty Services

  • Zurich Insurance Group