The extended warranty market overview:
Extended warranty or service contract is an optional feature provided by OEMs or third-party vendors that extends the standard manufacturer's warranty. It provides coverage for repairs and replacement costs if the product breaks down due to normal wear and tear, manufacturing defects, or accidental damage from handling post the expiration of the original warranty period. Consumer electronics, automobiles, heavy machinery, and household appliances commonly offer extended warranty programs. It provides customers with peace of mind knowing that their high investments are protected well beyond the original term. The rising costs of repairs and parts have made extended warranties an attractive value proposition.

The Global Extended Warranty Market is estimated to be valued at US$ 140.23 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 To 2031.

Key Takeaways
Key players operating in the extended warranty market are ASSURANT INC., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Edel Assurance, SquareTrade, Inc., and Others.
Some of the major opportunities in the extended warranty market include higher attachment rates through online purchases and services for niche and customized offerings. Companies are exploring innovative after-sales service models and partnering with online retailers to gain traction in digital channels.
Technological advancements like AI and IoT enable remote monitoring of products, predictive maintenance, and data-driven pricing of policies. Telematics-based usage-based insurance models are gaining popularity in automotive extended warranties. Real-time diagnostics help defer maintenance costs.

Market drivers
One of the key driver for the Extended Warranty Market Growth is the increasing life expectancy of products. With rapid technological changes, consumers replace electronic gadgets like smartphones frequently. However, other appliances last longer. Extended warranties provide multi-year coverage and safeguard significant investments. Secondly, rising affordability led by flexible payment options makes extended warranties accessible to average customers. Installment plans, EMI facilities are attracting younger buyers. Lastly, strong marketing campaigns by manufacturers emphasize post-purchase value which boosts the sales of add-on cover plans.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)