A safety net for our gadgets and gizmos is expanding across the globe. In 2023, the global extended warranty market was valued at USD 133.6 billion, and it's projected to grow at a brisk 10.8% CAGR from 2024 to 2030, largely fueled by the ever-increasing appetite for consumer electronics and home appliances. As smartphones, laptops, smart home devices, and kitchen appliances become more ubiquitous, the desire for extended protection beyond the manufacturer's standard guarantee has surged. These products often represent a significant outlay, and consumers seek the reassurance of coverage against unexpected repairs or replacements. With electronics becoming increasingly complex and susceptible to technical hiccups, peace of mind is driving the purchase of extended warranties.More and more consumers are recognizing the value proposition of extended warranties. Savvier marketing by manufacturers, retailers, and third-party providers is educating consumers about the financial security these plans offer. The boom of e-commerce platforms has also made it seamless to bundle extended warranties with product purchases, further boosting their adoption. As consumers increasingly appreciate the protection of their investments, the uptake of extended warranties has steadily climbed.
Detailed Segmentation
Coverage Insights
The standard protection plan segment accounted for the largest market share, over 60% in 2023. The surge in sales of mid-range electronics, appliances, and other consumer goods is a major driver of the standard protection plan segment. While premium products often come with more comprehensive warranty offers, mid-range products are usually come with standard protection plans. Consumers who purchase these items are more likely to seek protection that covers potential repairs, but they may not require the extensive coverage offered by more premium options.
Distribution Channel Insights
The manufacturers segment accounted for the largest market share of nearly 45% in 2023. The rising cost of repairs and replacements is compelling consumers to seek additional protection beyond standard manufacturer warranties.
Application Insights
The consumer electronics segment accounted for the largest market share, over 33% in 2023. Many extended warranty providers now offer installment-based payment options or bundle warranty costs into device financing plans.
End Use Insights
The individuals segment accounted for the largest market share, over 68% in 2023. Extended warranty providers are increasingly offering flexible payment plans, allowing individual consumers to spread out the warranty cost over time.
Regional Insights
The extended warranty market in North America held a share of around 36% in 2023. The market in North America is characterized by high adoption rates across consumer electronics, automotive, and home appliances.
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