The global Extended warranty market was valued at USD 147.1 Billion in 2024 and is forecasted to reach USD 239.0 Billion by 2033, growing at a CAGR of 5.5% during 2025-2033. The market growth is driven by rising consumer demand for financial protection against unforeseen product defects, increasing sales of high-value items, and the growing complexity of products in electronics, appliances, and automobiles. The market is further strengthened by the availability of customizable warranty options and expanding online sales channels.
Study Assumption Years
Base Year: 2024
Historical Years: 2019-2024
Forecast Period: 2025-2033
Extended Warranty Market Key Takeaways
The global extended warranty market size was USD 147.1 Billion in 2024.
The market is expected to grow at a CAGR of 5.5% from 2025 to 2033.
The forecast period for market projection is 2025-2033.
Major drivers include rising consumer demand for product protection beyond standard warranties and increasing sales of high-value electronics and appliances.
Customizable warranty options and online purchase convenience contribute significantly to market growth.
North America holds the largest market share due to high consumer electronics and automobile sales.
Manufacturers lead as the dominant distribution channel, offering extended warranties directly at points of sale.
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Market Growth Factors
The extended warranty market is primarily driven by rising consumer demand for product protection beyond the standard manufacturer's warranty. This increase is supported by growing sales of high-value electronics and appliances, where consumers seek to minimize expensive repair costs. The availability of customizable warranty options adds convenience in managing risks related to costly repairs, fostering market expansion. Businesses also utilize extended warranties as competitive tools to enhance customer satisfaction and loyalty. Moreover, growth in online shopping has facilitated easier purchases of extended warranties at the point of sale, boosting adoption rates.
Increasing product complexities in consumer electronics, appliances, and automotive vehicles are a significant growth factor. Advanced software, intricate components, and integrated systems increase the likelihood of technical issues and costly repairs. For example, Allianz Partners introduced new roadside assistance products in the UK in 2024, offering breakdown and accident cover customizable for various business needs. Such developments encourage consumers to opt for extended warranties to mitigate financial risks associated with repairs.
Consumers' growing desire for financial protection against unforeseen defects or malfunctions further fuels the market. High-value products like premium smartphones, luxury cars, and premium laptops represent substantial investments that require protection from unexpected breakdowns and repair costs. The BMW Repair Inclusive package, offering extended warranty coverage for up to six years with unlimited mileage, exemplifies this trend. These warranties assure customers of peace of mind and safeguard them from expensive repair bills, influencing purchase behavior positively.
Market Segmentation
Breakup by Coverage:
Standard Protection Plan: This largest segment extends warranty periods beyond the original manufacturer's warranty, covering parts and labor costs for repairs, protecting consumers from unexpected expenses. It provides basic coverage for a reasonable price but may not cover all issues.
Accidental Protection Plan
Breakup by Application:
Automobiles: The biggest segment offering coverage tailored to vehicles, addressing mechanical and electrical failures. Includes new vehicle extended warranties for brand-new cars and used vehicle extended warranties for pre-owned cars with similar terms.
Consumer Electronics
Home Appliances
Mobile Devices and PCs
Others
Breakup by Distribution Channel:
Manufacturers: The largest segment, where manufacturers offer extended warranty programs directly to consumers at purchase points, leveraging brand trust and offering additional benefits like priority service.
Retailers
Others
Breakup by End User:
Individuals: The dominant end-user segment consisting of private consumers purchasing products for personal use. Extended warranties provide financial coverage and peace of mind, influenced by product value and reliability.
Business
Regional Insights
North America holds the largest share of the extended warranty market, driven by major manufacturers and retailers. The region benefits from rising consumer awareness about their rights and increased demand for high-value products. The adoption of advanced consumer electronics further supports market growth in North America.
Recent Developments & News
In 2023, Allianz S.p.A. acquired Tua Assicurazioni S.p.A. from Assicurazioni Generali S.p.A. for 280 million euros, enhancing its position in Italy's Property and Casualty insurance sector by about 1 percentage point. This acquisition leverages Tua Assicurazioni's profitable portfolio and distribution network to consolidate Allianz's market share. Additionally, CarShield renewed its sponsorship of NASCAR driver Ross Chastain in 2023, with CarShield’s logo featured during his NASCAR Gander Outdoors Truck Series playoff campaign.
Key Players
Allianz Partners
Allstate Insurance Company
American International Group, Inc.
AmTrust Financial
Assurant Inc.
Asurion
Carchex
CarShield LLC
Domestic & General Group Limited
Edel Assurance
Endurance Warranty Services, LLC
Likewize
MAPFRE
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