Global Extended Warranty Market Is Estimated To Witness High Growth Owing To Rising Consumer Electronics Sales and Increasing Demand for After-Sales Services

The global extended warranty market is estimated to be valued at US$ 123.4 Million In 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Extended warranty refers to a service contract offered to consumers to extend the coverage period of a product beyond the manufacturer’s warranty. It provides additional protection against repairs and replacement costs, ensuring peace of mind for consumers. These warranties are gaining traction due to the increasing sales of consumer electronics, automobiles, and appliances, as well as the rising demand for after-sales services. Extended warranties offer several benefits such as coverage for accidental damage, technical support, and easy claim settlement, which drive their popularity among consumers.

Market Dynamics:
The extended warranty market is driven by two key factors. Firstly, the continuous growth in the consumer electronics market is resulting in a higher number of product purchases, which in turn increases the demand for extended warranty services. Secondly, the rising complexity and cost of repairs and replacements for electronic devices and appliances are driving consumers to opt for extended warranties. These warranties provide financial protection and peace of mind to customers, reducing the risk of hefty repair bills. Additionally, advancements in technology and the increasing consumer awareness about the benefits of extended warranties are further contributing to market growth. Overall, the extended warranty market is expected to witness significant growth in the coming years.

SWOT Analysis:

Strength: The Extended Warranty Market is expected to witness high growth in the forecast period due to increasing consumer demand for protection against expensive repairs and replacements. Moreover, the availability of a wide range of extended warranty plans and easy accessibility through online platforms will further drive market growth.

Weakness: Despite the potential growth opportunities, the extended warranty market also faces certain challenges. One of the weaknesses is the consumer perception of extended warranties being unnecessary or expensive, leading to lower adoption rates. Another weakness is the presence of fraudulent practices by some providers, which can erode consumer trust in the market.

Opportunity: The extended warranty market presents opportunities for growth and innovation. The increasing sales of electronic devices, appliances, and automobiles create a favorable market for extended warranty offerings. Additionally, partnerships with manufacturers and retailers can help providers expand their customer base and offer personalized warranty plans based on specific product requirements.

Threats: The extended warranty market is not without its threats. One of the threats is the rising competition from third-party warranty providers, emphasizing affordability and flexible coverage options. Another threat is the possibility of regulatory changes and legal complexities that can impact the operations and profitability of players in the market.

Key Takeaways:

The global extended warranty market is expected to witness high growth, exhibiting a CAGR of 6.6% over the forecast period from 2022 to 2030, driven by increasing consumer demand for protection against expensive repairs and replacements. The North American region is anticipated to be the fastest-growing and dominating region in the extended warranty market due to a well-established consumer base, high disposable incomes, and extensive usage of electronic devices and automobiles.

Key players operating in the extended warranty market include ASSURANT INC., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield LLC, Endurance Warranty Services LLC, Edel Assurance, SquareTrade, Inc., and others. These key players offer a wide range of extended warranty plans and have established partnerships with manufacturers and retailers to expand their customer base.

Read More : https://www.rapidwebwire.com/future-prospects-of-the-extended-warranty-market/

16 thoughts on “Global Extended Warranty Market Is Estimated To Witness High Growth Owing To Rising Consumer Electronics Sales and Increasing Demand for After-Sales Services”

Leave a Comment