Extended warranty provides repair or replacement services of products for an additional period after the expiration of the original manufacturer’s warranty. It plays an important role for protecting expensive electronics including smartphones, laptops, wearables, and home appliances. The global extended warranty market is highly concentrated in developed regions where the purchasing power of consumers is higher. Extended warranty is prominently sold with white goods, consumer durables, automobiles, and consumer electronics. Growing adoption of expensive technological devices accompanied with hectic lifestyles has increased the demand for extended warranty protection plans.
The global extended warranty Market is estimated to be valued at US$ 123.04 Mn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising demand for providing higher protection to expensive equipment is a primary driver for stimulating growth of the extended warranty market. Extended warranty protects the owner from costs associated with unexpected repairs or replacements resulting from normal usage, manufacturing defects, or accidental damages. Furthermore, rapid technological advancements and short replacement cycles make expensive electronic devices more vulnerable to hardware failures and software glitches. This is increasing the importance of extended warranties as a risk mitigation strategy. Growing sale of expensive consumer electronics like smartphones, laptops, wearables and home appliances across developed economies is expected to boost adoption of extended warranty plans over the forecast period.
Segment Analysis
The extended warranty market is segmented into products, distribution channels and end-users. Among products, consumer electronics is the dominating sub segment holding around 35% market share in 2024, owing to high adoption of electronic devices like smartphones, laptops, tablets etc and desire of consumers to protect against potential malfunctions and repairs at an affordable cost.
PEST Analysis
Political: Government regulations for consumer protection have mandated provisions for extended warranty especially in automotive and electronics sector across major markets, driving demand.
Economic: Growth in the disposable income of consumers has increased spending on extended warranties to safeguard high value purchases against unforeseen repairs.
Social: Rising awareness about advantages of extended warranties and growing trend of regular smartphone, laptop and electronics upgrades propels the market.
Technological: Innovations in electronics and automotive technologies have shortened product life cycles, necessitating extended warranty schemes for preventive maintenance.
Key Takeaways
Global Extended Warranty Market Size is expected to witness high growth at a CAGR of 8.9% during the forecast period of 2023 to 2030.
Regional analysis- North America dominates the market currently owing to the presence of key players and high spending on consumer goods eligible for warranties. However Asia pacific region is expected to grow at the fastest pace due to the expanding middle class population and their increasing expenditure.
Key players related content comprises Key players operating in the extended warranty market are Xilinx Inc. (AMD Corporation), Intel Corporation, Quicklogic Corporation, GOWIN Semiconductor Corporation, Microchip Technology Incorporated, Lattice Semiconductor Corporation, Efinix Inc. and Achronix Semiconductor Corporation. Consumer electronics extended warranty options are widely available through the key players present both online and through retail stores and electronics stores. Extended warranties for automotive are commonly provided through manufacturers as well as independent third party insurers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it