Home warranty service refers to a service contract that provides homeowners with coverage for the repair or replacement of home systems and appliances that fail due to normal wear and tear. These services are designed to offer financial protection and peace of mind by covering unexpected costs associated with common household breakdowns.
The home warranty service market consists of sales by entities (organizations, sole traders and partnerships) of home warranty service that are used predominantly by homeowners, landlords and property managers to safeguard investments in residential properties and ensure uninterrupted functioning of essential home features. Consumers typically purchase home warranty services either as standalone contracts or bundled with home purchase agreements to mitigate the risks of unforeseen expenses.
The global home warranty service market was valued at $7,909.55 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 2.00%.
Increased homeownership rates fueled the growth of the home warranty service market during the historic period. Homeownership rates refer to the percentage of a population that owns the home or property in which they reside. This metric typically reflects the proportion of individuals or households who have purchased their homes outright or are paying off a mortgage, as opposed to renting or living in other arrangements. A home warranty service supports homeownership by covering repair and replacement costs for essential systems and appliances, providing financial protection, convenience and peace of mind. For instance, in December 2024, according to the Avant Homes, a UK-based housebuilder and real estate developer, as of July 2024, 53% of UK adults are homeowners, representing approximately 27.9 million people nationwide. This marks a 3% increase from 2023, when the homeownership rate stood at 50%.Therefore, increased homeownership drove the growth of the home warranty service market.
Innovative Mobile Applications Enhancing Customer Experience
Leading companies in the home warranty service market are prioritizing the development of innovative solutions, such as mobile applications for home warranty services, to improve customer experience and optimize service processes. Home warranty services mobile applications refer to digital platforms specifically designed to facilitate interactions between home warranty service providers and their customers through mobile devices. For instance, in May 2024, ServicePlus, a New Zealand-based provider of home warranty solutions, launched a mobile application for both Android and iOS, aimed at enhancing access to home warranty services. The app allows users to easily submit service requests, track their application status in real-time and receive instant notifications about updates and appointments. With features such as plan management and online payments, the ServicePlus app significantly improves the convenience and efficiency of managing home warranties, reflecting the company's commitment to leveraging technology for better customer service.
The global home warranty service market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 15.93% of the total market in 2023.
Home Warranty Service Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global home warranty service market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for home warranty service? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The home warranty service market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider home warranty service market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by distribution channel and by application.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the home warranty service market.
- Global Market Size And Growth Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by type, by distribution channel and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for home warranty service providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Home Systems; Appliances; Other Types
- 2) By Distribution Channel: Direct Sales; Agents Or Brokers; Other Distribution Channels
- 3) By Application: Residential; Organization
- Companies Mentioned: First American Home Warranty Corporation; FNHW (Fidelity National Home Warranty); Frontdoor Inc.; 2-10 Home Buyers Warranty Corporation; American Homes 4 Rent, LP (American Home Shield (AHS)
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; home warranty service indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.