USD 134.2 billion
Report ID:
SQMIG45B2212 |
Region:
Global |
Published Date: March, 2025
Pages:
196
|Tables:
115
|Figures:
69
Extended Warranty Market size was valued at USD 134.2 billion in 2023 and is poised to grow from USD 149.36 billion in 2024 to USD 351.73 billion by 2032, growing at a CAGR of 11.3% during the forecast period (2025-2032).
The growing adoption of the cloud technology in the automotive industry, owing to several benefits such as the scalability, reduced costs, and improved collaboration between globally located teams, designers, and manufacturing units to access and share data in real time, is driving innovation and faster product development cycles. Such advantages are further expected to drive the adoption of cloud-based warranty management solutions. The adoption of industry cloud in the automotive sector is on the rise, offering enterprises an opportunity to reconstruct their value chains.
Key trends in the extended warranty market include the rising emphasis on digital sales channels enhancing customer purchase convenience and accessibility. There is a notable shift towards personalized warranty offerings especially tailored to individual needs and their product usage patterns. The market is also witnessing a significant growth in sectors such as automobiles and household electronics, because of the rising consumer awareness.
The demand for protection of laptops, smartphones, tablets, and other brown goods has increased at a faster rate in the market. As a result, the availability of an extended warranty for these products has increased competition in the market. Extended warranty solutions for these goods are undergoing constant development and are anticipated to dominate the market over the forecast period. The continuous rise in the adoption and accumulation of laptops, smartphones, tablets, and other consumer electronics is driving the growth of service contracts in the market.
For instance, the entrance of PCs, cell phones, and tablets should be visible in the training area. Recently, there has been a critical expansion in the utilization of innovation in schools and colleges, with PCs, cell phones, and tablets becoming fundamental devices for understudies and educators.
Market snapshot - 2025-2032
Global Market Size
USD 134.2 billion
Largest Segment
Standard Protection Plan
Fastest Growth
Accidental Protection Plan
Growth Rate
11.3% CAGR
To get more reports on the above market click here to Buy The Report
Global Extended Warranty Market is segmented by Type, Coverage, Distribution Channel, Duration, End User and region. Based on Type, the market is segmented into Consumer Electronics, Home Appliances, Automotive Parts, Medical Equipment and Construction Materials. Based on Coverage, the market is segmented into Basic, Extended, Premium and Comprehensive. Based on Distribution Channel, the market is segmented into Retailers, Manufacturers, Online Marketplaces and Independent Service Providers. Based on Duration, the market is segmented into 1-2 Years, 3-5 Years, 6-10 Years and 10+ Years. Based on End User, the market is segmented into Individuals, Businesses, Government Agencies and Non-Profit Organizations. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
What Key Factors Contribute to the Standard Protection Plan Segment's Market Dominance?
As per the global extended warranty market outlook, the standard protection plan segment accounted for the largest market share, over 65% in 2024. The surge in sales of mid-range electronics, appliances, and other consumer goods is a major driver of the standard protection plan. While premium products often come with more comprehensive warranty offers, mid-range products usually come with standard protection plans. Consumers who purchase these items are more likely to seek protection that covers potential repairs, but they may not require the extensive coverage offered by more premium options. This trend highlights the growing consumer preference for cost-effective warranty solutions that balance affordability with essential coverage.
How Are Advanced Technologies Enhancing Growth in the Retailers Segment of the Extended Warranty Market?
As per the global extended warranty market analysis, the retailers segment is anticipated to grow at a significant CAGR over the forecast period. The integration of advanced technologies such as artificial intelligence (AI), machine learning, and data analytics has revolutionized how retailers market extended warranties. AI-powered tools allow retailers to provide personalized warranty offerings based on customer purchase history and preferences. By using predictive analytics, retailers can target potential buyers with extended warranty options at the optimal time, increasing conversion rates. This technological advancement not only enhances customer experience but also helps retailers optimize sales strategies, ultimately driving higher revenue in the extended warranty market.
To get detailed analysis on other segments, Request For Free Sample Report
How is the Extended Warranty Market Evolving in North America?
North America holds a dominant share in the extended warranty market, driven by a high penetration of consumer electronics, automobiles, and home appliances. The region benefits from well-established regulatory frameworks that ensure transparency and consumer protection. Companies are leveraging artificial intelligence (AI) and machine learning (ML) to automate claims processing and enhance fraud detection. Subscription-based warranty models and embedded warranties have gained popularity, allowing consumers to enjoy hassle-free coverage. The growing adoption of electric vehicles (EVs) in North America has also fueled demand for extended warranties covering EV batteries and other critical components.
In the United States, the extended warranty market is well-established, covering automobiles, consumer electronics, and home appliances. Companies like SquareTrade and After, Inc. have introduced direct-to-consumer models, making warranties more transparent and accessible. The market benefits from strong regulatory oversight, with state insurance commissioners playing a key role. The U.S. market holds a significant share of 30%, with continued growth driven by AI-powered claims processing and subscription-based protection plans.
In Canada, the market closely follows U.S. trends, particularly in the automotive and consumer electronics sectors with a market share of 6.0%. Canadian companies are focusing on flexible warranty terms and digital integrations to cater tech-savvy consumers. Innovations such as mobile-friendly warranty management platforms and AI-driven risk assessments have enhanced customer experience, ensuring seamless claim processing and improved service quality.
How is the Asia-Pacific Region Driving Digitalization in Extended Warranties?
As per global extended warranty market forecast, Asia-Pacific is witnessing rapid growth in the extended warranty market, fueled by increasing smartphone penetration, rising e-commerce sales, and strong demand for consumer electronics. The region is embracing mobile-first warranty solutions, where digital platforms allow users to manage warranties, track claims, and access support seamlessly. IoT-enabled devices and AI-driven risk assessment tools are revolutionizing warranty services, offering proactive maintenance and reducing claim disputes. The automotive sector, particularly in Japan and South Korea, is seeing a surge in demand for extended warranties for electric and hybrid vehicles, driven by advancements in battery technology and predictive diagnostics.
Japan, known for its technological advancements, is integrating IoT and AI into extended warranty services with a market share of 7% in 2032. IoT-enabled home appliances and electronics now come with real-time monitoring systems that detect potential failures and notify service providers before an issue arises. AI-powered chatbots and automated claims processing have also streamlined warranty services, reduced wait times and improved efficiency. Japan’s automotive sector is another major driver, with extended warranties for electric and hybrid vehicles becoming increasingly sophisticated, covering battery health monitoring and predictive maintenance.
South Korea’s extended warranty market is heavily influenced by its strong electronics and automotive industries with a market share of 4.8%. Companies are leveraging AI-driven risk assessment tools to offer personalized warranty plans based on usage data. Smart warranty solutions integrated with IoT devices enable proactive maintenance, helping consumers avoid unexpected breakdowns. Additionally, blockchain-based digital warranty certificates are being introduced to enhance transparency and eliminate fraudulent claims. South Korea’s focus on digital transformation has positioned it as a leader in warranty automation and customer-centric solutions.
Singapore’s extended warranty market is evolving rapidly, with a strong emphasis on digitalization. Mobile app-based warranty management has become the norm, allowing users to access coverage details, submit claims, and track repairs in real-time. Retailers and e-commerce platforms are integrating extended warranties directly into their online checkout processes, making them more accessible. AI-driven customer support chatbots are also being deployed to handle warranty inquiries, improving service efficiency and reducing operational costs.
Indonesia’s growing middle class and high smartphone penetration are driving the demand for extended warranties, particularly in the consumer electronics sector. Warranty providers are focusing on mobile-first solutions, offering seamless warranty registration and claim filing through apps. With the rise of online shopping, e-commerce platforms are increasingly bundling extended warranties with purchases to enhance customer trust. Additionally, partnerships between local insurers and global warranty providers are expanding coverage options, making warranties more accessible to a broader audience.
What are the Key Innovations Shaping the Extended Warranty Market in Europe?
Europe’s extended warranty market is heavily influenced by sustainability regulations and consumer protection laws. The focus on the "right to repair" movement has led to warranty providers emphasizing repair-first policies instead of replacements. Digital transformation is a major trend, with blockchain-based warranty management and AI-powered predictive maintenance gaining traction. Embedded warranties integrated at the point of sale are becoming more common, improving accessibility and customer retention. Europe’s automotive sector also plays a crucial role, with extended warranties for electric and hybrid vehicles seeing increased demand.
The UK extended warranty market is valued at approximately £1 billion annually with a market share of 2.8%. Following concerns raised by the Office of Fair-Trading regarding competition and pricing transparency, regulatory reforms have been implemented to improve consumer protection. Innovations such as embedded warranties where coverage is automatically included at the point of sale have gained traction, making warranties more accessible and seamless for consumers. The UK market is also seeing a rise in AI-powered customer support solutions that expedite claims processing and enhance user experience.
Germany’s extended warranty market is largely driven by its robust automotive and electronics industries. With a strong focus on sustainability, companies are promoting repair-first warranty models to reduce electronic waste. Blockchain-based warranty management solutions have been introduced to enhance transparency and minimize fraud. In the automotive sector, predictive maintenance powered by IoT and AI is being integrated into extended warranty plans, enabling real-time monitoring and proactive servicing of vehicles.
France has introduced strict regulations to encourage sustainability in the extended warranty sector. The government has implemented policies promoting the right to repair, requiring manufacturers to provide spare parts for several years. Warranty providers are adapting by offering extended coverage for refurbished products and incentivizing repairs over replacements. AI-driven diagnostics tools are also being used to assess the repairability of electronics before approving claims, reducing unnecessary waste.
Spain’s extended warranty market is growing, particularly in consumer electronics and household appliances. The rise in embedded warranties, where coverage is automatically included with purchases, has improved customer retention and satisfaction. Spanish retailers are partnering with insurance companies to offer extended warranties as part of their e-commerce and in-store sales strategies. Additionally, mobile app-based warranty management platforms are becoming more popular, allowing consumers to store digital receipts, track coverage, and file claims with ease.
Italy’s extended warranty market is undergoing digital transformation, with companies introducing app-based warranty management and automated claims processing. In the automotive sector, extended warranties for electric vehicles (EVs) and hybrid cars are seeing increased demand. Italian insurers are also leveraging big data and AI to personalize warranty plans based on customer usage patterns. For instance, Generali uses AI algorithms to predict potential risks associated with electronic appliances, automobiles, and home systems. By monitoring data points like driving habits for car warranties or usage patterns for household devices, the insurer can offer personalized coverage plans that align with individual customer needs. This shift toward digital solutions is enhancing customer experience and operational efficiency in the industry.
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Rising Consumer Demand for Product Protection
Technological Advancements Enhancing Warranty Services
High Cost and Limited Consumer Awareness
Regulatory and Compliance Challenges
Request Free Customization of this report to help us to meet your business objectives.
The global extended warranty industry is highly competitive, with established players, insurance providers, and digital-first startups driving innovation. Leading companies such as Assurant, SquareTrade (an Allstate company), American International Group (AIG), AmTrust Financial Services, and AXA dominate the market by offering comprehensive coverage for consumer electronics, home appliances, and automobiles. These firms leverage their expertise in risk management, claims processing, and customer support to maintain their stronghold. However, the industry is witnessing disruption from digital-first and insurtech startups like Upsie, Mulberry, and Extend, which focus on automation, transparency, and AI-driven predictive maintenance.
How is AI Transforming the Extended Warranty Market?
AI is revolutionizing the extended warranty market by enhancing personalization, automating claims processing, and improving risk assessment. Through AI-driven data analytics, companies can tailor extended warranty plans based on consumer behavior and preferences, making them more appealing and relevant. Additionally, AI streamlines claim management by automating verification and fraud detection, significantly reducing processing time and operational costs while improving customer satisfaction. Predictive analytics further enhances risk assessment by forecasting product failures, allowing companies to set more accurate pricing and optimize underwriting. As AI continues to advance, it is making extended warranties more efficient, cost-effective, and customer centric.
Which Startups are Driving Innovation in the Extended Warranty Market?
Startups in the extended warranty market are revolutionizing the sector with innovative solutions such as AI-driven claims processing, digital platforms for seamless customer experiences, and flexible coverage options. These companies are enhancing transparency, reducing processing times, and improving customer engagement. By leveraging data analytics and automation, these startups are reshaping the extended warranty landscape to offer personalized and efficient services.
Wisedrive: Founded in 2022, Wisedrive is a Bengaluru-based startup offering extended warranties for used cars. Their coverage includes both engine and transmission components, and they provide free PAN India Roadside Assistance to warranty holders. Wisedrive has partnered with authorized service centers of major brands like Honda, Hyundai, and Maruti, aiming to build trust in the used car market by ensuring transparency in vehicle maintenance.
Servify: Established in 2015, Servify is a device management platform headquartered in Mumbai, India. It offers services such as product diagnosis, queue management, and warranty and protection plans for consumer electronics and appliances. Servify has collaborated with brands like Apple, OnePlus, and Samsung, and has expanded its operations globally, including North America and Europe. The company has also acquired startups like iService and 247Around to strengthen its service network.
Upsie: Founded in 2015 by Clarence Bethea and is headquartered at 370 Wabasha Street North, Saint Paul, Minnesota. Catering to Gen Z and millennial consumers, Upsie offers digital-first extended warranty services for various electronics and appliances. Their subscription-based model provides transparent pricing and easy-to-understand coverage plans, appealing to tech-savvy customers seeking straightforward warranty solutions.
Which Emerging Technologies are Set to Transform the Extended Warranty Market in the Coming Years?
The extended warranty market is evolving rapidly, driven by emerging technologies that enhance efficiency, transparency, and customer experience. In the short term, AI and automation are streamlining claims processing and fraud detection. Mid-term advancements in IoT and blockchain will enable proactive maintenance, and secure transparent transactions. Looking ahead, long-term innovations like predictive maintenance and digital twin technology will revolutionize how warranties are structured and managed. These technologies will transform extended warranties from reactive to proactive solutions, offering greater value to both consumers and providers.
Short-Term: Artificial intelligence (AI) and automation will continue to enhance claims processing, fraud detection, and customer support. AI-powered chatbots and predictive analytics will streamline operations, reducing costs and improving customer satisfaction.
Mid-Term: The Internet of Things (IoT) will enable real-time monitoring of devices, allowing proactive maintenance and risk assessment for extended warranties. Blockchain technology will enhance transparency and security in warranty claims, reducing fraud and improving trust between consumers and service providers.
Long-Term: Advanced predictive maintenance, powered by AI and machine learning, will further refine warranty offerings by anticipating failures before they occur. Digital twin technology will simulate real-world product performance, enabling dynamic warranty adjustments and improving overall efficiency in the extended warranty market.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the rise of online retail has supported the extended warranty by creating more opportunities for providers to offer coverage directly to consumers. E-commerce platforms allow retailers to upsell extended warranties while purchasing of products, making it convenient for consumers to opt into these plans. Online comparison tools and platforms that specialize in extended warranty products have also gained popularity, enabling consumers to make more informed decisions about coverage options. Companies are leveraging extended warranties as a tool for customer retention. Offering extended warranties creates an ongoing relationship between the customer and the product or brand, which can lead to increased customer loyalty. Many manufacturers and retailers bundle warranties with loyalty programs or offer perks to consumers who purchase extended coverage. This focus on retention is particularly important in highly competitive markets, where retaining customers can provide a strategic advantage.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 134.2 billion |
Market size value in 2032 | USD 351.73 billion |
Growth Rate | 11.3% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
|
Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
|
Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Extended Warranty Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Extended Warranty Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Extended Warranty Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Extended Warranty Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Extended Warranty Market size was valued at USD 133.6 Billion in 2023 and is poised to grow from USD 148.03 Billion in 2024 to USD 336.25 Billion by 2032, growing at a CAGR of 10.8% in the forecast period (2025-2032).
The global extended warranty industry is highly competitive, with established players, insurance providers, and digital-first startups driving innovation. Leading companies such as Assurant, SquareTrade (an Allstate company), American International Group (AIG), AmTrust Financial Services, and AXA dominate the market by offering comprehensive coverage for consumer electronics, home appliances, and automobiles. These firms leverage their expertise in risk management, claims processing, and customer support to maintain their stronghold. However, the industry is witnessing disruption from digital-first and insurtech startups like Upsie, Mulberry, and Extend, which focus on automation, transparency, and AI-driven predictive maintenance. 'Assurant', 'SquareTrade (Allstate)', 'American International Group (AIG)', 'AmTrust Financial Services', 'AXA', 'Upsie', 'Mulberry', 'Extend', 'Domestic & General', 'The Warranty Group', 'Allianz Partners', 'Asurion'
With increasing reliance on expensive consumer electronics, home appliances, and automobiles, consumers are seeking extended warranties to safeguard their investments. The fear of unexpected repair costs and the rising complexity of modern products have fueled demand for extended warranty services. Companies are responding by offering customized and flexible plans that cater to various customer needs, from smartphones to electric vehicles (EVs). The growing e-commerce sector has further boosted warranty adoption, as online retailers integrate extended protection plans at the point of sale. This trend is particularly strong in developed markets such as North America and Europe, where consumers prioritize long-term product reliability.
How is the Extended Warranty Market Evolving in North America?
Want to customize this report? This report can be personalized according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time. We offer $1000 worth of FREE customization at the time of purchase.
Feedback From Our Clients
Report ID: SQMIG45B2212
[email protected]
USA +1 351-333-4748