EXTENDED WARRANTY MARKET ANALYSIS

Extended Warranty MarketSize and Trends

Global Extended Warranty Market size was valued at US$ 123.4 million in 2023 and 193.7 Mn in 2030 and is anticipated to witness a compound annual growth rate (CAGR) of 6.6% from 2022 to 2030. 

Global Extended Warranty Market Trends:

Increasing adoption of technology

One of the main reasons propelling the expansion of the worldwide extended warranty market is the growing utilization of technology. Technology is being leveraged by extended warranty providers to enhance the client experience.

A lot of suppliers now let clients monitor and file claims online, making it simpler for them to acquire the assistance they want. The effectiveness of extended warranty providers is also being improved via the use of technology. Additionally, technology is being employed to create new extended warranty goods.

For instance, in 2022, Assurant, a global provider of risk management products and services, launched a new AI-powered claims chat bot that can help customers quickly and easily file claims. The chat bot can answer questions about coverage, process claims, and even schedule repairs.

The growing importance of data analytics

The process of gathering, cleaning, and evaluating data in order to derive useful insights is known as data analytics. Analyzing customer demographics, purchase histories, and product usage data can be used to identify customers in the extended warranty market who are at risk of experiencing a product failure. Information examination can be utilized to distinguish fraudulent claims, to decide the seriousness of harm, and to speed up the cases interaction. Products and services are rapidly creating an increasing large amount of data. This data can be used to learn more about how customers behave and make products and services better.

The major players operating in the global extended warranty market are launching new products to gain a competitive advantage in the market. For instance, an extended warranty program that covers eligible products purchased with an American Express card has been developed in collaboration between Geico and American Express. Appliances, electronics, and furniture are just a few of the many items covered by the program. Accidental damage, mechanical breakdown, and labor costs are covered for two years.

Figure 2: Global Extended Warranty Market Share (%), By Coverage, 2022