PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320128
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320128
Vehicle Protection Service Market size was valued at USD 10798.4 Million in 2022, expanding at a CAGR of 8.8% from 2023 to 2030.
Vehicle protection services encompass a range of offerings designed to provide coverage, maintenance, and repair support for vehicles. These services are typically offered through extended warranty programs or vehicle service contracts. Modern vehicles are equipped with advanced technology and complex components, which often result in higher repair costs and the need for specialized expertise. Vehicle Protection Services address these complexities by offering coverage and comprehensive plans that provide owners with peace of mind while minimizing the financial burden.
The growth of the Vehicle Protection Service market is propelled by the increasing number of vehicles on the road. With more individuals owning vehicles, there is a growing demand for services that can protect and maintain their valuable investments. Vehicle owners are actively seeking solutions to mitigate risks, safeguard against unexpected expenses, and ensure the long-term durability of their vehicles. Modern vehicles are equipped with advanced technology and complex components, which often result in higher repair costs and the need for specialized expertise. Vehicle Protection Services address these complexities by offering coverage and comprehensive plans that provide owners with peace of mind while minimizing the financial burden associated with repairs. These programs extend coverage beyond the manufacturer's warranty, offering protection against unforeseen repairs and component failures. As consumers increasingly look for ways to protect their vehicles and avoid costly repair expenses, the appeal of extended warranty programs continues to rise.
The Global Vehicle Protection Service Market is segmented on the basis of Service type, vehicle type, coverage, and Region.
The market is divided into eight categories based on Service type: Extended Warranty, Vehicle Maintenance Plans, Roadside Assistance, Tire and Wheel Protection, Paintless Dent Repair, Theft Protection, GAP (Guaranteed Asset Protection) Insurance and others. Extended warranty dominates the market. Vehicle owners are increasingly favoring extended warranty programs due to their rising popularity. These programs extend coverage beyond the manufacturer's warranty, offering valuable protection against expensive repairs and component failures. In addition to coverage for unexpected repairs, vehicle protection services also include maintenance and repair plans that cover regular service intervals and unforeseen issues. With the escalating costs associated with vehicle maintenance, these plans present a cost-effective solution for owners to maintain the optimal condition of their vehicles.
The market is divided into three categories based on coverage:. Comprehensive, specific component and customizable. Comprehensive segment dominated the global market by coverage. These services typically include extended warranties, maintenance plans, roadside assistance, repair coverage, and other benefits. Vehicle repairs and maintenance can be costly, especially for modern vehicles equipped with advanced technology and complex components. Comprehensive vehicle protection services help owners mitigate the financial burden by covering the expenses associated with repairs, parts replacements, and regular maintenance. This provides peace of mind and allows owners to avoid unexpected out-of-pocket expenses.
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Extended warranty programs have become increasingly popular among vehicle owners due to their ability to provide coverage that extends beyond the manufacturer's warranty. Manufacturers are launching programs that offer valuable protection against expensive repairs and component failures, offering peace of mind to vehicle owners. In addition to coverage for unforeseen repairs, vehicle protection services also include maintenance and repair plans that cover regular service intervals and unexpected issues. As the cost of vehicle maintenance continues to rise, these plans present a cost-effective solution for owners to proactively maintain the condition of their vehicles.
In January 2023, Assurant, Inc a prominent global business services company specializing in supporting, safeguarding, and facilitating major consumer purchases, such as automobiles, has recently entered into a partnership with Altelium, a provider of battery solutions driven by real-time data. The collaboration allows Assurant to utilize Altelium's artificial intelligence (AI)-based battery data and electric vehicle (EV) insights to develop a range of inventive solutions for electric vehicles. These solutions include vehicle service contracts designed to protect EV owners from the expenses associated with battery repairs and replacements.