Growing adoption of smart electronic devices to offer new growth possibilities for the global extended warranty service market

The value of the Extended Warranty Service market is projected to grow to USD 294.7 billion with an estimated CAGR of 9.77 % by 2030

Covid-19 Impact & Market Status

The COVID-19 had a severe impact on the growth and development of various business companies and IT sectors. Due to lockdown, many companies had to stop their work due to the unavailability of infrastructure, labourers, transportation, and other services. Among these organizations, the extended warranty service market also experienced a severe downfall as the manufacturing of electronic devices stopped due to the unavailability of infrastructure and transport services. With this, the revenue generation capability of the extended warranty service market decreased and its market value experienced a great downfall.

To cope with this situation, the extended warranty service market extended its domain to online electronic services also. This helped it to regain its initial position by allotting new resources and service patterns that are trending in the online market. After the lockdown, the extended warranty service market boosted its growth and progress.

The automobile service market is the largest contributor to the global extended warranty service market.

The parts of automobiles require many electronic devices of various types. For this, many electronic devices are required in bulk and are very costly, here, the extended warranty scheme helps the automobile domain to maintain its budget by ensuring the products would be of high quality and reliable. In case of any fault under the warranty policies and period, the services and replacement would be free of cost, hence, this deal benefits both the organizations by providing them organized strategic flow. In this way, the extended warranty market can extend its growth by manufacturing various devices and equipment that are required by automobiles. This scheme has flourished the automobile and extended warranty market.

The developing countries ad technology advancements are driving the global extended warranty market.

The increase in the usage of electronic devices is due to an increase in job opportunities, advancing technologies, and the digitalization of the whole market. Hence, there is an increase in the demand for these electronic devices that are used widely and regularly. With this, the pace of development and digitalization of the whole world is increasing at a fast rate that would benefit the global market.

Generally, the cost of these electronic devices, e.g., headphones, chargers, laptops, smartphones, etc. is high. Hence, there is a warranty associated with these items that cover the charges in case of any accidental damage to the device within the warranty period. In this way, people can take maximum advantage of their purchases and enjoy the service provided by these devices. The extended warranty market, thus, offers a great deal of budget management and saving to the customers so that they can buy many goods and enjoy the services for a longer duration without any interruption.

The Compound Annual Growth Rate (CAGR) of the global extended warranty service market is expected to be 8.1% with increased market size of USD 103.18 billion

The extended warranty market ensures that the product is ready for launch before its packaging is done. It ensures that the product functions properly according to the description, product safety is checked, and many other features are cross-verified. After this, based on the product cost, services, etc. the warranty is allocated. It keeps track of the working, safety, and services provided by the product. In case of any fault, the warranty card can be used to get the required service done.

Apart from this, the extended warranty covers only specific policies related to a particular device and doesn't cover all the damage fees or faults of a device. Hence, before claiming for any warranty, one should ensure that the particular damage is covered by the warranty applied to the particular device. This warranty may vary from device to device and from model to model of a particular device as different companies have different policies and rules. Therefore, you should read the warranty card careful before claiming it and ensure that you don’t go beyond the service duration or cost limit.

Also, many developing countries are seeking partnerships with multinational companies so that they can expand their business. For this, they undertake various projects that require manufacturing and production of the latest electronic devices, their marketing, policy updates, and much more. Among all these tasks, the warranty establishment is one of the crucial tasks that is considered after all the security checks and demo of the working of the final product. This provides a lead authority to the developing countries by providing them with a significant role in the project led by the multinational organization. Hence, this increases their market value and CAGR of the global extended warranty market by the end of the forecast period.

The automobile section and space research centres are growing rapidly and they require various types of electronic devices. This is one of the major application fields of the extended warranty market. These centres required electronic devices throughout their operational period, hence, their demand for these devices increases continuously. Considering this, the extended warranty market has the highest scope in automobile and space research fields as it can provide them with various electronic devices that have a warranty associated with them.

Along with this, the warranty ensures the high-quality, proper functioning, high security, and reliability of the product. Hence, it contributes a major portion of the total revenue generated by the organization that counts for the market growth of the company. For this, many potential companies are trying to increase the production of electronic goods that serve complex operations and generate high revenue.

Among all the regions, the Asia-Pacific region is dominant in the global extended warranty market due to the availability of advanced tools and techniques that help in the production of advanced and sophisticated devices.

Irrespective of these benefits, the global extended warranty market has a few restrictions that include the high cost of device manufacturing and transportation. To cope with this, many potential companies are looking for feasible solutions that could help in feasible manufacturing and transportation of electronic devices.

The major players of the global extended warranty service market are SquareTrade Inc., Assurant Inc., Edel Assurance, American International Group Inc., Endurance Warranty Services LLC, AXA, CarShield LLC, AmTrust Financial, CARCHEX, Protect My Car, Liberty Bell Auto Protect, Corporate Warranties India Pvt. Ltd., Allianz Global Assistance, Advanced American Auto Warranty Services LL, and Asurion.

Latest Innovations in the Global Extended Warranty Service Market: a Snapshot

• In May 2021, Mahindra and Mahindra have announced new developments in extended warranty services in the wake of the pandemic. Other auto companies such as Volkswagen, Mercedes, and Audi have also announced their programs of extended warranty plans. 

Extended Warranty Service Market Scope

Key Segments of the Global Extended Warranty Service Market

Coverage Overview, 2018-2028 (USD Billion)

• Standalone Protection Plan
• Accidental Protection Plan

Application Overview, 2018-2028 (USD Billion)

• Automobiles
• Consumer Electronics
• Home Appliances
• Mobile Devices & PCs
• Others

Distribution Channel Overview, 2018-2028 (USD Billion)

• Manufacturers
• Retailers
• Others

End-User Overview, 2018-2028 (USD Billion)

• Business
• Individual

Regional Overview, 2018-2028 (USD Billion)

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

The Middle East and South Africa