by Market Overview:
The Extended Warranty Market is estimated to be valued at US$ 123.4 Million In 2022 and is expected to exhibit a CAGR of 6.6% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights. Extended warranties offer an additional protection plan for consumers, providing coverage beyond the manufacturer’s warranty period. These warranties are gaining popularity across various industries, including electronics, automotive, and appliances. The market is driven by the increasing demand for extended warranty services due to the rising complexity and cost of repairs. Additionally, the growing awareness among consumers regarding the benefits of extended warranties, such as peace of mind and financial protection, further contributes to market growth.
Market Dynamics:
The extended warranty market is driven by two key factors. Firstly, the growing consumer preference for expensive and technologically advanced products, such as smartphones, laptops, and cars, has increased the demand for extended warranty services. Consumers are willing to invest in extended warranties to safeguard their valuable assets from unexpected repair costs. Secondly, the rise in disposable income levels among consumers, especially in developing countries, has led to increased spending on consumer durables and automobiles. This trend is anticipated to fuel the demand for extended warranties as consumers seek to protect their investments. The market dynamics indicate a positive outlook for the extended warranty market, with sustained growth expected over the forecast period.
Market Key Trends:
The key trend in the Extended Warranty Market is the increasing adoption of extended warranty plans by consumers. Extended warranties offer additional protection beyond the standard manufacturer warranty and provide peace of mind to consumers. With the rising cost of consumer electronics and automobiles, customers are becoming more conscious about protecting their purchases. Moreover, extended warranties often cover repairs and replacements, which can help save costs in the long run. As a result, there is a growing demand for extended warranty plans across various industries, including electronics, appliances, automotive, and healthcare.
SWOT Analysis:
Strength: The extended warranty market benefits from a strong consumer demand due to the increasing awareness and importance placed on protecting high-value purchases. Additionally, the market benefits from the established presence of key players with expertise in providing warranty services.
Weakness: One of the weaknesses of the extended warranty market is the perception among consumers that extended warranties may be an unnecessary expense, especially for lower-cost products. This can deter some customers from purchasing extended warranty plans.
Opportunity: There is an opportunity for the extended warranty market to expand its presence in emerging markets where consumer spending on electronic goods and automobiles is increasing. Moreover, collaborations with manufacturers and retailers to offer customized warranty plans can attract more customers.
Threats: The extended warranty market faces the threat of regulatory changes that could impact the terms and conditions of warranty plans. Additionally, the market is exposed to the risk of online fraud and counterfeit warranty providers, which can undermine consumer trust.
Key Takeaways:
The global extended warranty market is expected to witness high growth, exhibiting a CAGR of 6.6% over the forecast period (2022-2030). This growth is driven by the increasing adoption of extended warranty plans by consumers, fueled by the need for additional protection for high-value purchases. The market size for 2023 is projected to reach US$ 123.4 million.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the extended warranty market. The region has a well-established consumer electronics and automotive industry, with a high disposable income, which drives the demand for extended warranty plans.
Key players operating in the extended warranty market include ASSURANT INC., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Edel Assurance, SquareTrade, Inc., and others. These key players contribute to the market’s growth through their established presence, expertise, and range of warranty services offered.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
