PUBLISHER: Grand View Research | PRODUCT CODE: 1588437
PUBLISHER: Grand View Research | PRODUCT CODE: 1588437
The global extended warranty market size was estimated at USD 133.6 billion in 2023 and is projected to grow at a CAGR of 10.8% from 2024 to 2030 owing to the surge in sales of consumer electronics and home appliances. With the increasing penetration of smartphones, laptops, smart home devices, and kitchen appliances globally, the demand for extended warranties has grown significantly. These products often represent a significant investment for consumers, who seek the reassurance of coverage beyond the standard manufacturer warranty, especially in the case of repairs or replacements. As electronic devices become more sophisticated and prone to technical malfunctions, customers are increasingly purchasing extended warranties for peace of mind.
There has been a significant rise in consumer awareness regarding the benefits of extended warranties. Manufacturers, retailers, and third-party providers have improved their marketing strategies to educate consumers about the financial protection offered by these plans. The proliferation of e-commerce platforms has also facilitated the easy bundling of extended warranty packages with products, further driving their adoption. As more consumers recognize the value of protecting their investments, extended warranty uptake has steadily increased.
The rise of online retail has supported the extended warranty market by creating more opportunities for providers to offer coverage directly to consumers. E-commerce platforms allow retailers to upsell extended warranties while purchasing of products, making it convenient for consumers to opt into these plans. Online comparison tools and platforms that specialize in extended warranty products have also gained popularity, enabling consumers to make more informed decisions about coverage options.
Companies are leveraging extended warranties as a tool for customer retention. Offering extended warranties creates an ongoing relationship between the customer and the product or brand, which can lead to increased customer loyalty. Many manufacturers and retailers bundle warranties with loyalty programs or offer perks to consumers who purchase extended coverage. This focus on retention is particularly important in highly competitive markets, where retaining customers can provide a strategic advantage.
Global Extended Warranty Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global extended warranty market report based on coverage, distribution channel, application, end use, and region.