Global Extended Warranty Market Expected to Reach USD 239.0 Billion by 2033 - IMARC Group

November 22, 2024 | Other Reports

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Global Extended Warranty Market Statistics, Outlook and Regional Analysis 2025-2033

The global extended warranty market size was valued at USD 147.1 Billion in 2024, and it is expected to reach USD 239.0 Billion by 2033, exhibiting a growth rate (CAGR) of 5.5% from 2025 to 2033.

Extended Warranty Market

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The global extended warranty market is witnessing the growing integration of artificial intelligence (AI) to streamline operations and enhance customer experiences. AI-powered tools are being utilized for predictive analytics, enabling companies to assess potential risks and offer personalized warranty plans. For instance, in June 2024, Tavant and Daimler Truck North America partnered to modernize DTNA's service operations with AI-driven solutions, including extended warranty management. This GenAI-powered platform enhances dealer productivity, customer engagement, and regulatory compliance, aligning with DTNA's goals for innovation and efficiency. Additionally, chatbots and virtual assistants simplify customer support by resolving queries and processing claims swiftly, while AI algorithms detect fraudulent claims, reducing costs and ensuring profitability. As AI adoption expands, the extended warranty sector is undergoing a transformation, delivering data-driven, tailored solutions that build trust and foster competitive differentiation. This trend underscores the industry's commitment to leveraging advanced technology to stay ahead in a dynamic market.

The global extended warranty market is driven by rising consumer awareness of product protection and increasing adoption of electronic devices, appliances, and automobiles. The proliferation of high-value goods, such as smartphones and luxury vehicles, has amplified the demand for coverage beyond standard warranties. For instance, in June 2024, Lenovo’s Motorola unveiled the Moto S50 Neo alongside the Razr 50 and Razr 50 Ultra in China. The Moto S50 Neo will be the first smartphone globally to offer a 4-year warranty, consisting of a standard 1-year warranty plus a complimentary 3-year extension. This sets a new benchmark in the industry, surpassing the 2- or 3-year warranties previously seen with brands like Xiaomi and Meizu. Advancements in digital platforms facilitate seamless extended warranty purchases and claims processing, enhancing customer experience. Additionally, the growing e-commerce sector offers bundled warranty services, driving market expansion. Increasing disposable incomes and a greater focus on safeguarding investments in durable goods also contribute to the market's growth, particularly in emerging economies where warranty adoption is on the rise.

Global Extended Warranty Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include 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. According to the report, North America accounted for the largest market share on account of robust advanced digital platforms, consumer awareness, and high-value goods adoption.

North America Extended Warranty Market Trends:

North America holds a leading position in the global extended warranty market, fueled by advanced digital platforms and high consumer awareness of product protection. The region's strong adoption of premium electronics, appliances, and vehicles drives demand for extended warranties. For instance, in July 2024, iA Financial Group invested $10 million in Clutch Canada, an online platform for buying and selling vehicles. The partnership allows iA Financial to expand its online sales expertise and offer Clutch customers seamless access to extended warranty and guaranteed asset protection products in a single transaction. Additionally, collaborations between retailers and warranty providers have streamlined the purchase and claims processes, enhancing customer convenience. The market benefits from a well-established retail infrastructure and a focus on offering personalized warranty solutions. Moreover, a mature consumer base prioritizing product longevity contributes to North America's significant role in shaping the global extended warranty landscape.

Asia-Pacific Extended Warranty Market Trends:

The Asia Pacific extended warranty market is driven by increasing adoption of consumer electronics, rising disposable incomes, and growing awareness of product protection. The expansion of e-commerce platforms and tailored warranty offerings further enhance market growth across this fast-evolving region.

Europe Extended Warranty Market Trends:

The Europe extended warranty market is influenced by growing consumer preference for comprehensive protection plans, driven by increasing adoption of premium electronics and appliances. Advancements in digital platforms and a strong focus on customer-centric services further enhance market growth across the region.

Latin America Extended Warranty Market Trends:

The Latin America extended warranty market is growing due to increasing awareness of product protection, rising adoption of consumer electronics, and expanding e-commerce platforms. Emerging middle-class incomes and collaborations between retailers and warranty providers further support market expansion across the region.

Middle East and Africa Extended Warranty Market Trends:

The Middle East and Africa extended warranty market is witnessing growth due to rising consumer electronics adoption, increasing disposable incomes, and expanding retail sectors. Enhanced awareness of product protection and partnerships between warranty providers and retailers further drive demand across these emerging markets.

Top Companies Leading in the Extended Warranty Industry

Some of the leading Extended Warranty market companies include 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), among many others. In July 2024, AXA IM Alts announced plans to fully acquire CAPZA by 2026, strengthening its alternative investment portfolio. This acquisition expands AXA IM Alts’ expertise in private debt and equity, aligning with its strategy to deliver enhanced solutions for global institutional and private wealth clients.

Global Extended Warranty Market Segmentation Coverage

On the basis of the coverage, the market has been categorized into standard protection plan and accidental protection plan, wherein standard protection plan represents the leading segment. The segment is driven by offering comprehensive coverage for repairs and replacements. Its cost-effectiveness, widespread availability, and suitability across diverse products, including electronics and appliances, make it the preferred choice for consumers seeking reliable and straightforward warranty solutions.
Based on the application, the market is classified into automobiles, consumer electronic, home appliances, mobile devices and PCs, and others, amongst which automobiles dominate the market. This is attributed to their increasing vehicle sales, rising repair costs, and consumer demand for comprehensive protection. Extended warranties provide coverage for mechanical failures, enhancing vehicle longevity and reducing ownership costs, making them a preferred option for automobile buyers.
On the basis of the distribution channel, the market has been divided into manufacturers, retailers, and others. Among these, manufacturers accounts for the majority of the market share. This leading segment leveraging direct sales to offer integrated warranty solutions. Their position enables seamless product-warranty bundling, enhancing customer trust and convenience while driving warranty adoption through exclusive offers and tailored coverage options directly linked to product purchases.
Based on the end user, the market is segregated into individuals and business, wherein individuals represent the leading segment. This leading segment reflects the growing consumer awareness of product protection. Moreover, extended warranties offer personal users’ cost-effective solutions for safeguarding electronics, appliances, and vehicles, ensuring longevity, reducing repair expenses, and enhancing the overall value of their purchases.

Report Features	Details
Market Size in 2024	USD 147.1 Billion
Market Forecast in 2033	USD 239.0 Billion
Market Growth Rate 2025-2033	5.5%
Units	Billion USD
Scope of the Report	Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment: Coverage Application Distribution Channel End User Region
Coverages Covered	Standard Protection Plan, Accidental Protection Plan
Applications Covered	Automobiles, Consumer Electronics, Home Appliances, Mobile Devices and PCs, Others
Distribution Channels Covered	Manufacturers, Retailers, Others
End Users Covered	Individuals, Business
Regions Covered	Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered	United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered	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) etc.
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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Global Extended Warranty Market Expected to Reach USD 239.0 Billion by 2033 - IMARC Group

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