The extended warranty market provides customers with an optional extension of the original manufacturer's warranty, which offers coverage for repairing or replacing a product after the standard warranty expires. Extended warranties are commonly offered for vehicles, mobile devices, home appliances, consumer electronics, and furniture. They provide consumers with additional peace of mind by protecting them from unexpected costs of repairs that may occur outside the standard coverage period. The growing awareness among consumers about the potential benefits of extended protection plans is projected to fuel the demand for extended warranties in the coming years. 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: 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. Key opportunities: Rising premiums of standard warranty and growth of online retailers are expected to present lucrative growth opportunities for vendors in the extended warranty market. Global expansion: Major players are focusing on partnerships and joint ventures to expand their global footprint and offer customized extended warranty plans for various consumer products sold internationally. Market drivers The increasing prices of consumer electronics and appliances have raised concerns among customers about repair costs after the standard warranty expires. This is a key factor driving the Extended Warranty Market Growth. Additionally, aggressive marketing by insurance companies and retailers promoting the benefits of extended protection is boosting the adoption of extended warranty programs. Online purchases of products have further increased awareness about service plans, thus propelling the market growth.
PEST Analysis Political: Extended warranty market witnessing favorable regulations promoting consumer protection policies and product replacement guarantees. Regulations ensure credibility of claims and customer satisfaction. Economic: Growing disposable incomes and high-value durable purchases fuel demand. Customers attracted to financial security for costly repairs or replacements extending product lifespan. Social: Customers inclined to risk-aversion and long terms savings. Warranties offer post-purchase assurances valued during economic uncertainties or unforeseen repair costs. Technological: Advancements shorten product lifespan. Warranties compensate early obsolescence and maximize utility of pricey electronics. Customers appreciative of support for upgrades to latest innovations. Geographical regions where market in terms of value is concentrated North America holds the largest share in the extended warranty market and is expected to grow steadily during the forecast period. The presence of major players and favorable consumer protection laws drive the market. additionally, customers willingness to pay for continued protection on expensive purchases support ongoing demand. The fastest growing region for the extended warranty market Asia Pacific anticipated to flourish at the most rapid pace. Improving economic conditions, expanding middle class, and manufacturing hub status resulting large durable goods consumption underpin opportunities. Furthermore, increasing consumer awareness about post-purchase services and the protection extended warranties provide fuel regional expansion.
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