About Extended Warranty
An extended warranty refers to service agreement or a service contract which extends the warranty period on products for additional years. It generally provides protection against normal wear and tear and product defects. When new consumer electronics are offered with a manufacturer’s warranty many consumers buy an extended warranty to cover the repair costs after their initial warranty has expired. Consumers have the option to buy an extended warranty at any time, even after the expiry of the original manufacturer’s warranty.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are exploring the market by adopting expansions, investments, new service launches and collaborations as their preferred strategies. Key players are exploring new geographies through expansions and acquisitions across the globe to avail competitive advantage through combined collaborations. Analyst at AMA Research estimates that United States Vendors will contribute the maximum growth to Global Extended Warranty market throughout the forecasted period. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Allianz Global Assistance (Germany), CARCHEX (United States), Amtrust Financial Services, Inc. (United States), Warranty-Centric Company (United States), Advanced American Auto Warranty Services LLC (United Arab Emirates), Assurant, Inc. (United States), Corporate Warranties India Pvt. Ltd (India), The Warranty Group (United States) and Endurance Warranty (United States) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Asurion LLC, Chubb Limited (United States), German Auto Tech (Germany), Edel Assurance (India), Automobile Protection Corporation (United States) and AA Auto Protection (United States).
Segmentation Overview
AMA Research has segmented the market of Global Extended Warranty market by Type (Standard Protection Plan and Accidental Protection Plan) and Region.
On the basis of geography, the market of Extended Warranty has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Tenure, the sub-segment i.e. 1 Year will boost the Extended Warranty market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Linked Products , the sub-segment i.e. Automobiles will boost the Extended Warranty market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by End-Users, the sub-segment i.e. Retail will boost the Extended Warranty market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
High Consumer Awareness
Market Growth Drivers:
Increasing consumers demand to extend the warranty coverage validity
Challenges:
Effective recall management and insurance of risks
Restraints:
Extended warranties are expensive and Don't cover all repairs
Opportunities:
Increasing demand of automobiles and electronic devices in emerging countries
Market Leaders and their expansionary development strategies
In November 2023, An independent warranty provider partnered with a network of repair shops to offer on-demand repair services and faster claim resolution for its customers.
In October 2023, Best Buy launched its Total Tech Support + membership program, providing extended warranties for all electronics within the household, along with tech support services and other benefits.
Key Target Audience
Automotive Manufacturers, Manufacturer of Electronic devices, Wholesalers, distributers and retailers of Automobile and Electronic Devices, Financial Services and Governmental bodies
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.