Auto Extended Warranty Market Analysis 2024-2028

The auto extended warranty market size is forecast to increase by USD 14.1 billion at a CAGR of 6.35% between 2023 and 2028.The extended warranty market in North America is witnessing significant growth due to various trends and factors. Flexible pricing schemes are gaining popularity among consumers, enabling them to customize their coverage based on their budget and vehicle usage. Companies are expanding their service portfolios to cater to diverse customer needs, offering additional benefits such as roadside assistance and trip interruption coverage. However, the market faces challenges such as increasing security threats, leading to an increased focus on cybersecurity measures to protect customer data. These trends and challenges are shaping the future of the extended warranty market in North America

For more details about the industry, get the PDF sample report for free

Market Segmentation

End-user

1. Personal
   • Significant growth expected during the forecast period.
2. Commercial
   • Companies provide various programs, including extended service plans, mobile insurance, and protection plans, to businesses, enhancing the value of their products and offering risk management programs.

Geography

1. North America
   • Estimated to contribute 65% to the global market growth during the forecast period.
2. US
   • The leading market for auto extended warranties in North America, driven by major automotive manufacturers like Ford Motor Co. and General Motors Co.
3. Europe
   • Germany
   • UK
4. APAC
   • China
   • Japan
5. South America
6. Middle East and Africa

Market Dynamics

Key Drivers

• Flexible Pricing Schemes: Consumers can customize their coverage based on budget and vehicle usage. These schemes offer benefits like converting fixed costs into variable ones, enabling flexible payment options such as annual, semi-annual, or quarterly payments.

Trends

• Expansion of Service Portfolio: Vendors are diversifying their offerings, including part replacement, value-added services, and targeting both large and small businesses.
• Technological Integration: Advanced technologies such as GPS, telematics, artificial intelligence, and digital platforms are enhancing the customization of extended warranties.

Challenges

• Security Threats: The increasing use of technology in extended warranties raises concerns over data security. Cybersecurity breaches can lead to financial losses, requiring robust cybersecurity measures from warranty providers to maintain consumer trust.

Get more details by ordering the complete report

Key Players

• AAA Warranty Services
• Allianz SE
• AmTrust Financial Services Inc.
• Assurant Inc.
• Asurion LLC
• AXA Group
• Carchex LLC
• CarShield
• Concord Auto Protect
• Corporate Warranties India Pvt. Ltd.
• Edel Assurance LLP
• Endurance Warranty Services LLC
• Hyundai Motor Co.
• Repair Ventures LLC
• Tata Motors Ltd.
• The Allstate Corp.