The global extended warranty market size was US$ 122.8 billion in 2021. The global extended warranty market size is estimated to reach US$ 258.0 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.6% during the forecast period from 2022 to 2030.
An extended warranty is a sort of warranty that extends beyond the manufacturer's guarantee to cover the repair and maintenance of a product. It's more of a service contract than a warranty because it is optional coverage for service-related claims acquired by the buyer. Like expressed warranties, extended warranties have terms and conditions, and coverage can be denied if the buyer breaches the agreement.

Factors Influencing Market Growth

- The rise in the adoption of computers, smartphones, home appliances, and other similar products drives the overall market expansion.
- These items usually come with a bulky price tag at the time of purchase. Thus, to maintain the safety of their electronic products post-expiry of the sellers' warranty, clients largely purchase expanded warranties driving the overall market expansion.
- The rise in awareness concerning the expanded warranty guidelines among customers is propelling the overall market growth.

Effect of the COVID-19 Pandemic

COVID-19 had a severe impact on the overall market expansion. With varying tendencies and buying conduct, companies are focused on improving virtual shopping to deliver an integrated physical experience during the pandemic. Clients are requiring advanced warranty share techniques, numerous extended warranty range options, and self-service videos through online mediums. However, the increase in need and shift in choice drive the overall market expansion.

Regional Analysis

North America dominated the highest growth in 2021. This is due to the restricted economic danger of car breakdowns, clients take protection through vast warranties, which drive the overall market expansion. Also, in Canada, recent automobiles have a minimum of five years of warranty from vendors, which further promotes clients to buy an extended warranty from identical vehicle dealers in the nation.
Leading Competitors
The prominent players in the global extended warranty market are:
- SquareTrade
- Edel Assurance
- Endurance Warranty Services
- CARCHEX
- CarShield
- AmTrust Financial
- American International Group
- ASSURANT
- Asurion
- Others
Segmentation Analysis
The global extended warranty market segmentation focuses on Distribution Channel, Coverage, Application, End User, and Region.
Segmentation on the basis of Distribution Channel
- Manufacturers
- Retailers
- Others

Segmentation on the basis of Coverage
- Standard Protection Plan
- Accidental Protection Plan

Segmentation on the basis of Application
- Automobiles
- Consumer Electronics
- Home Appliances
- Mobile Devices and PCs
- Others

Segmentation on the basis of End User
- Individuals
- Business

Segmentation on the basis of Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- Western Europe
- The UK
- Germany
- France
- Italy
- Spain
- Rest of Western Europe
- Eastern Europe
- Poland
- Russia
- Rest of Eastern Europe
- Asia Pacific
- China
- India
- Japan
- Australia & New Zealand
- ASEAN
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
- South America
- Brazil
- Argentina
- Rest of South America