The global Extended Warranty Market is estimated to be valued at US$ 123.4 Mn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Extended warranty provides coverage for electronics, vehicles, appliances, and other products beyond the manufacturer warranty period, usually for a certain period of time such as 1-3 years from the purchase date. It protects consumers from unforeseen repair costs of covered products by paying for repairs, replacement or refunds if anything goes wrong. This type of warranty is usually purchased by customers along with the original durable goods to extend the overall protection timeline. The scope of coverage depends on the actual warranty policy but usually includes mechanical or electrical breakdown coverage.
Market key trends:
One of the major trends in the extended warranty market is the rising adoption of digital platforms for purchasing and managing policies. Major players are investing in developing mobile applications and online portals to provide a seamless digital experience to customers. This allows warranty buyers to review plans, purchase policies, track claims status, and interact with customer support virtually. Identification of fraudulent activities is also easier through digital records. Surging internet and smartphone penetration globally is driving this digital transformation of extended warranty offerings.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as extended warranty market requires huge investment and established distribution channels.
Bargaining power of buyers: Buyers have moderate bargaining power. Brand reputation and additional coverage attract buyers to some established players.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of multiple options. Switching cost is low for buyers.
Threat of new substitutes: Threat from substitutes is low as extended warranties provide extra coverage and peace of mind to buyers.
Competitive rivalry: Competition is high among major players to attract more buyers through product differentiation and alliance with OEMs.
Key Takeaways
The Global Extended Warranty Market Demand is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period 2023 to 2030, due to increasing penetration of durable goods and consumer electronics. Extended warranties provide comprehensive coverage and help reduce repair costs.
Regional analysis: North America dominates the extended warranty market followed by Europe. Increased adoption of consumer electronics and automotive sector growth drives demand in these regions. Asia Pacific is expected to grow at fastest pace due to rising disposable income and expanding middle class population in countries like India and China.
Key players: Key players operating in the extended warranty market are ASSURANT INC., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Edel Assurance, SquareTrade, Inc., and Others. Players are focusing on custom plans, online portals for claim management and tie-ups with retailers to strengthen their presence.
Read More:
https://www.marketwebjournal.com/extended-warranty-market-trends-size-and-share-analysis/
Refurbished phones are a good choice in recent times, available at a low price than the original but with great quality.
The Digify provides refurbished Phones extended warranty on every product for an entire year.
