Extended Warranty

Global Extended Warranty Market to Reach US$223.3 Billion by 2030

The global market for Extended Warranty estimated at US$145.7 Billion in the year 2024, is expected to reach US$223.3 Billion by 2030, growing at a CAGR of 7.4% over the analysis period 2024-2030. Standard Protection Plan, one of the segments analyzed in the report, is expected to record a 8.8% CAGR and reach US$148.0 Billion by the end of the analysis period. Growth in the Accidental Protection Plan segment is estimated at 4.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$39.7 Billion While China is Forecast to Grow at 11.8% CAGR

The Extended Warranty market in the U.S. is estimated at US$39.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$47.8 Billion by the year 2030 trailing a CAGR of 11.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.6% and 7.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.9% CAGR.

Global Extended Warranty Market – Key Trends & Drivers Summarized

Why Is the Extended Warranty Model Gaining Momentum Across Consumer and Commercial Sectors? Extended warranties—also known as service contracts or protection plans—are gaining significant momentum globally as consumers and businesses seek added assurance, value, and longevity for their purchases in an era of high product complexity and rising repair costs. Traditionally viewed as optional add-ons, extended warranties have evolved into strategic offerings that cover repairs and replacements beyond the standard manufacturer’s warranty period. With products such as electronics, appliances, vehicles, industrial machinery, and mobile devices becoming more advanced and expensive to repair, the appeal of extended coverage has grown substantially. Additionally, consumers are increasingly conscious of total cost of ownership and are more inclined to invest in services that mitigate post-purchase financial risk. For businesses, especially those managing fleets or critical infrastructure, extended warranties help reduce downtime and ensure predictable maintenance budgets. The proliferation of subscription-based consumption and flexible ownership models has further normalized the concept of ongoing service coverage. Retailers, OEMs, and third-party warranty providers are capitalizing on this demand by bundling extended warranties into financing options and loyalty programs. In a competitive marketplace, extended warranties are no longer an afterthought—they are becoming integral to product offerings, customer experience strategies, and post-sale value propositions across diverse sectors. How Are Digital Platforms and Predictive Analytics Transforming Extended Warranty Services? Digital transformation is redefining the extended warranty landscape by streamlining processes, improving personalization, and enhancing transparency for end users. Online platforms and mobile apps now allow consumers to purchase, register, and manage warranty coverage in real time, reducing paperwork and improving convenience. At the backend, warranty providers are leveraging big data and predictive analytics to assess product reliability, usage behavior, and risk profiles, enabling more accurate pricing models and proactive service offerings. These insights allow providers to shift from reactive to preventive maintenance strategies, often alerting customers about potential issues before they escalate into costly repairs. Artificial intelligence and machine learning algorithms are being deployed to automate claims processing, fraud detection, and customer support, significantly cutting operational costs and turnaround times. The integration of extended warranty platforms with point-of-sale systems and e-commerce channels is also enabling seamless upselling opportunities and real-time coverage customization. Blockchain technology is emerging as a tool for warranty validation and contract transparency, particularly for high-value assets like vehicles and luxury electronics. Together, these digital innovations are not only increasing efficiency but also improving customer trust and engagement, making extended warranty programs more attractive and scalable for a wide range of stakeholders. What Consumer Behavior Trends and Market Conditions Are Expanding Demand Globally? Shifting consumer behavior and macroeconomic conditions are expanding the demand for extended warranties across geographies and product categories. In uncertain economic climates, such as those shaped by inflation, supply chain disruptions, and global slowdowns, consumers are more inclined to protect their investments with extended service plans. Millennials and Gen Z consumers, in particular, are showing higher adoption rates, viewing extended warranties as smart, risk-reducing purchases—especially for smartphones, laptops, wearables, and home appliances that are central to their lifestyles. The rise of e-commerce has also boosted visibility and accessibility of extended warranties, with online retailers prominently offering them at checkout or via subscription models. In the automotive sector, growing interest in electric vehicles (EVs) and connected cars is pushing demand for extended warranties that cover complex software and battery systems. Meanwhile, in the B2B space, enterprises are increasingly purchasing extended warranties for IT hardware, industrial equipment, and fleet vehicles to ensure business continuity and cost predictability. Regional trends also show growth: in North America and Europe, mature markets are emphasizing customization and digitization of warranty offerings, while in Asia-Pacific and Latin America, growing middle-class populations and rising consumer durables adoption are fueling first-time purchases of extended warranty services. These behavioral and economic dynamics are broadening the relevance and appeal of extended warranties across the global landscape. What Are the Key Drivers Powering the Growth of the Extended Warranty Market Worldwide? The growth in the extended warranty market is driven by several factors related to product complexity, consumer demand for value-added services, digital enablement, and global economic shifts. One of the most significant drivers is the rising cost and complexity of repairing high-tech consumer electronics, automobiles, and industrial systems, which makes extended protection plans more appealing to mitigate financial risk. The increasing adoption of connected devices and smart appliances—with integrated hardware, software, and connectivity—requires comprehensive coverage that extends beyond basic manufacturer warranties. Retailers and OEMs are also leveraging extended warranties as a revenue stream and loyalty tool, often bundling them with financing, upgrades, or concierge services to enhance customer retention. On the technology front, innovations in AI, IoT, and predictive maintenance are making extended warranty programs more proactive and user-centric, enabling early fault detection and remote troubleshooting. Regulatory developments in consumer protection are standardizing warranty practices in various regions, fostering transparency and confidence among buyers. Additionally, the rise of digital-native warranty providers and insurtech platforms is lowering entry barriers, allowing smaller players and niche markets to participate. The growing penetration of extended warranties in sectors such as healthcare equipment, EVs, and subscription-based consumer products is expanding the market’s footprint. These interconnected drivers are collectively fueling the robust, sustained growth of the global extended warranty market and reshaping it as a critical element of post-purchase service ecosystems.SCOPE OF STUDY:

The report analyzes the Extended Warranty market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Coverage (Standard Protection Plan, Accidental Protection Plan); Sales Type (Point of Sale, After Sale); Distribution Channel (Manufacturers, Retailers, Other Distribution Channels); Application (Automobiles, Consumer Electronics, Home Appliances, Mobile Devices & PCs, Other Applications); End-Use (Individuals, Business)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Allianz Global Assistance
• American International Group, Inc. (AIG)
• AmTrust Financial Services, Inc.
• Assurant, Inc.
• Asurion LLC
• AXA S.A.
• CARCHEX, LLC
• CarShield, LLC
• Chubb Limited
• Consumer Priority Service Corp.
• Endurance Warranty Services, LLC
• Extend
• Global Warranty
• Liberty Mutual Insurance
• Likewize
• Mulberry
• Protect My Car
• PROTECTALL USA, LLC
• SquareTrade, Inc.
• Worth Ave. Group

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