Canada Extended Warranty Market Outlook – 2031

The Canada Extended Warranty Market was valued at $7,853.44 million in 2021, and is projected to reach $22,274.36 million by 2031, registering a CAGR of 11.3% from 2022 to 2031.

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 an 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. Extended warranties are most commonly available on high-value items such as cars, electronics, and appliances. Although sold by the retailer, the manufacturer is responsible for executing the extended warranty on behalf of the customer.

The rise of the Canada extended warranty market is fueled by increased adoption of smartphones, computers, home appliances, and other similar products. These items usually come with a hefty price tag at the time of purchase. Therefore, to maintain safety of their electronic products post expiry of sellers’ warranty, consumers largely purchase extended warranties. As a result, these factors propelling the Canada extended warranty market growth. In addition, increased awareness regarding the extended warranty policies among the consumers are some of the factors propelling the market growth.

However, unit shipment for personal computers (PC) have been on the decline and thus, the decline in sales of PCs have lowered the demand for extended warranty policies. On the contrary, developing economies offer significant opportunities for insurers to expand their business by strengthening policies to support the development of extended warranty.  In addition, extended warranty provides a huge potential for expanding existing products and services, and the insurers have numerous opportunities such as to offer value added services to customers and expand product & service offerings by executing partnerships. Therefore, these factors are expected to provide lucrative growth opportunities to the Canada extended warranty market in the coming years.

The report focuses on growth prospects, restraints, and trends of the Canada extended warranty market outlook. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the Canada extended warranty market analysis.

[COVERAGEGRAPH]

Segment Overview

The Canada Extended Warranty Market is segmented on the basis of coverage, application, distribution channel, and end user. By coverage, it is segmented into standard protection plan and accidental protection plan. By application, it is classified into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. By distribution channel, it is segregated into manufactures, retailers, and others. By end user, the market is divided into business and individuals.

[DISTRIBUTIONGRAPH]

By coverage, the standard protection plan segment acquired the largest Canada extended warranty market size in 2021. This is attributed to the fact that these extended warranty plans are mainly suitable for consumers looking for an uncomplicated usage experience and longer life for their devices. This extended warranty plan largely covers mechanical and electrical defects provided by manufacturer’s warranty in the market.

Competitive Analysis

The report analyzes the profiles of key players operating in the Canada extended warranty market such as Assurant, Inc., American International Group, Inc., AutoPair Warranty Inc., AXA, Amtrust Financial, Asurion, Endurance Warranty Services, LLC, Ensurall, GuardTree Inc., and Toronto Appliances Service Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the Canada extended warranty market.   

[APPLICATIONGRAPH]

COVID-19 Impact Analysis

The pandemic has a moderate impact on the Canada extended warranty industry as several countries have imposed travel ban; policyholders were filing claims, demanding further extension of extended warranty coverage; and there were changes in terms of policies in the Canadian market. This has led insurers to freeze sales of new coverages for extended warranty in the market. Although the COVID-19 outbreak negatively impacted the growth of the Canada extended warranty market, the industry has recovered quickly. This is attributed to increase in government support & initiatives toward the insurance industry and increase in purchasing power of customers to buy extended warranty in the country.

[ENDUSERGRAPH]

Top Impacting Factors

Surge in Awareness For Extended Warranty Coverage in Canada

Many electronic are expensive and have delicate framework; hence, awareness about extended warranty for those products have increased tremendously among consumers. According to a survey conducted by AmTrust, 51% of the respondents are aware of the extended warranty contracts. In addition, as consumers are often worried about safety of their electronic products post expiry of seller’s warranty; thus, coverage for extended warranty has increased among the consumer electronics & mobile devices segment. Furthermore, awareness for extended warranty, especially for used cars has increased among consumers owing to increased product launches by key players in the countries. For instance, in May, 2021, GuardTree, a Canadian subscription-based direct-to-consumer warranty company for used cars, was officially launched in Ontario with the goal of enabling customers to quickly and conveniently buy and activate affordable warranty protection for their used cars, online. Moreover, current technological changes such as blockchain technology has led to innovations and new trends in the extended auto warranty industry. In addition, providing extended warranty helps in building customer loyalty. Thus, rise in awareness for extended warranty in Canada propels the market growth.   

Rise in Penetration of Laptops, Smartphones, and Tablets 

Smart phone and gadgets have become an internal part of everyone’s life, this has created a need to protect these devices against damage and extending the lifetime value. Therefore, provision of extended warranty for these goods have fostered market competition. Moreover, rise in prices of raw materials continue to imply pressure on profit margins of manufacturers and retailers of consumer electronic products. Furthermore, extended warranty solutions for these goods are continuously evolving and are expected to maintain their dominance during the forecast period. Thus, continuous rise in use and adoption of laptops, smartphones, tablets, and other brown goods fuel the growth of Canada extended warranty market.

Increase in Incidents of Accidental Damage, Phone Thefts, virus Infection, and Device Malfunction

Rise in demand for extended warranty coverage on events such as mechanical breakdown, liquid damage, theft, and unauthorized usage is propelling the growth of the Canada extended warranty market. In addition, the insurance companies are increasingly providing full coverage with advanced services to the customers in their extended warranty portfolio. In recent years, there has been an increase in the number of accidents, in terms of accidental damage from handling and loss protection, which resulted in an increase in the need for extended warranty plans among the consumers. For instance, a study conducted by ASSURANT, INC., a global extended warranty coverage provider, stated that in 2019, around 34% consumers purchased extended warranty for more than two years for their appliances. Hence, these aforementioned factors are expected to boost the Canada extended warranty market share in the future.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Canada extended warranty market forecast from 2021 to 2031 to identify the prevailing market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities of Canada extended warranty market overview.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
•  In-depth analysis of the Canada extended warranty market segmentation assists in determining the prevailing Canada extended warranty market opportunity.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes an analysis of the regional as well as Canada extended warranty market trends, key players, market segments, application areas, and market growth strategies.

 Key Market Segments

• By Coverage
  • Standard Protection Plan
  • Accidental Protection Plan
• By Distribution Channel
  • Manufacturers
  • Retailers
  • Others
• By Application
  • Automobiles
  • Consumer Electronics
  • Home Appliances
  • Mobile Devices & PCs
  • Others
• By End User
  • Individuals
  • Business
• By Key Market Players
  • Assurant, Inc.
  • American International Group, Inc.
  • AutoPair Warranty Inc.
  • AXA
  • Amtrust Financial
  • Asurion
  • Endurance Warranty Services, LLC
  • Ensurall
  • GuardTree Inc.
  • Toronto Appliances Service Ltd.

CHAPTER 1:INTRODUCTION

1.1.Report description
1.2.Key benefits for stakeholders
1.3.Key market segments
1.4.Key market segments
1.5.Research methodology

1.5.1.Secondary research
1.5.2.Primary research
1.5.3.Analyst tools & models

CHAPTER 2:EXECUTIVE SUMMARY

2.1.Key findings

2.1.1.Top impacting factors
2.1.2.Top investment pockets

2.2.CXO perspective

CHAPTER 3:MARKET OVERVIEW

3.1.Market definition and scope
3.2.Key forces shaping Canada extended warranty market
3.3.Market dynamics

3.3.1.Drivers

3.3.1.1.Surge in awareness for extended warranty coverage in Canada
3.3.1.2.Rise in penetration of laptops, smartphones, and tablets
3.3.1.3.Increase in incidents of accidental damage, phone thefts, virus infection, and device malfunction

3.3.2.Restraint

3.3.2.1.Decline in sales of PCs

3.3.3.Opportunities

3.3.3.1.Expansion of products and services
3.3.3.2.Untapped potential of emerging economies

3.4.COVID-19 impact analysis on Canada extended warranty market

3.4.1.Impact on Canada extended warranty market size
3.4.2.Change in consumer trends, preferences, and budget impact, owing to COVID-19
3.4.3.Framework for market challenges faced by extended warranty providers and policy adopters
3.4.4.Economic impact on extended warranty insurers
3.4.5.Key player strategies to tackle negative impact on the industry
3.4.6.Opportunity analysis for extended warranty policy providers

CHAPTER 4:CANADA EXTENDED WARRANTY MARKET, BY COVERAGE

4.1.Overview
4.2.Standard protection plan

4.2.1.Key market trends, growth factors, and opportunities
4.2.2.Market size and forecast

4.3.Accidental protection plan

4.3.1.Key market trends, growth factors, and opportunities
4.3.2.Market size and forecast

CHAPTER 5:CANADA EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL

5.1.Overview
5.2.Manufacturers

5.2.1.Key market trends, growth factors, and opportunities
5.2.2.Market size and forecast

5.3.Retailers

5.3.1.Key market trends, growth factors, and opportunities
5.3.2.Market size and forecast

5.4.Others

5.4.1.Key market trends, growth factors, and opportunities
5.4.2.Market size and forecast

CHAPTER 6:CANADA EXTENDED WARRANTY MARKET, BY APPLICATION

6.1.Overview
6.2.Automobiles

6.2.1.Key market trends, growth factors, and opportunities
6.2.2.Market size and forecast

6.3.Consumer electronics

6.3.1.Key market trends, growth factors, and opportunities
6.3.2.Market size and forecast

6.4.Home appliances

6.4.1.Key market trends, growth factors, and opportunities
6.4.2.Market size and forecast

6.5.Mobile devices & PCs

6.5.1.Key market trends, growth factors, and opportunities
6.5.2.Market size and forecast

6.6.Others

6.6.1.Key market trends, growth factors, and opportunities
6.6.2.Market size and forecast

CHAPTER 7:CANADA EXTENDED WARRANTY MARKET, BY END USER

7.1.Overview
7.2.Individuals

7.2.1.Key market trends, growth factors, and opportunities
7.2.2.Market size and forecast

7.3.Business

7.3.1.Key market trends, growth factors, and opportunities
7.3.2.Market size and forecast

CHAPTER 8:COMPETITIVE LANDSCAPE

8.1.Introduction

8.1.1.Market player positioning, 2021

8.2.Competitive Dashboard

8.2.1.Top winning strategies

CHAPTER 9:COMPANY PROFILES

9.1.ASSURANT, INC.

9.1.1.Company overview
9.1.2.Company snapshot
9.1.3.Operating business segments
9.1.4.Product portfolio
9.1.5.Business performance
9.1.6.Key strategic moves and developments

9.2.American International Group, Inc.

9.2.1.Company overview
9.2.2.Company snapshot
9.2.3.Operating business segments
9.2.4.Product portfolio
9.2.5.Business performance

9.3.AutoPair Warranty Inc.

9.3.1.Company overview
9.3.2.Company Snapshot
9.3.3.Product portfolio
9.3.4.Key strategic moves and developments

9.4.AXA

9.4.1.Company overview
9.4.2.Company snapshot
9.4.3.Operating business segments
9.4.4.Product portfolio
9.4.5.Business performance
9.4.6.Key strategic moves and developments

9.5.AmTrust Financial

9.5.1.Company overview
9.5.3.Company snapshot
9.5.4.Product portfolio

9.6.ASURION

9.6.1.Company overview
9.6.2.Company snapshot
9.6.3.Product portfolio

9.7.Endurance Warranty Services, LLC

9.7.1.Company overview
9.7.2.Company snapshot
9.7.3.Product portfolio

9.8.Ensurall

9.8.1.Company overview
9.8.2.Company snapshot
9.8.3.Product portfolio

9.9.GuardTree Inc.

9.9.1.Company overview
9.9.2.Company snapshot
9.9.3.Product portfolio
9.9.4.Key strategic moves and developments

9.10.Toronto Appliances Service Ltd.

9.10.1.Company overview
9.10.2.Company Snapshot
9.10.3.Product portfolio

LIST OF TABLES

TABLE 01.CANADA EXTENDED WARRANTY MARKET, BY COVERAGE, 2021-2031 ($MILLION)
TABLE 02.CANADA EXTENDED WARRANTY MARKET FOR STANDARD PROTECTION PLAN, 2021-2031 ($MILLION)
TABLE 03.CANADA EXTENDED WARRANTY MARKET FOR ACCIDENTAL PROTECTION PLAN, 2021-2031 ($MILLION)
TABLE 04.CANADA EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL, 2021-2031 ($MILLION)
TABLE 05.CANADA EXTENDED WARRANTY MARKET FOR MANUFACTURERS, 2021-2031 ($MILLION)
TABLE 06.CANADA EXTENDED WARRANTY MARKET FOR RETAILERS, 2021-2031 ($MILLION)
TABLE 07.CANADA EXTENDED WARRANTY MARKET FOR OTHERS, 2021-2031 ($MILLION)
TABLE 08.CANADA EXTENDED WARRANTY MARKET, BY APPLICATION, 2021-2031 ($MILLION)
TABLE 09.CANADA EXTENDED WARRANTY MARKET FOR AUTOMOBILES, 2021-2031 ($MILLION)
TABLE 10.CANADA EXTENDED WARRANTY MARKET FOR CONSUMER ELECTRONICS, 2021-2031 ($MILLION)
TABLE 11.CANADA EXTENDED WARRANTY MARKET FOR HOME APPLIANCES, 2021-2031 ($MILLION)
TABLE 12.CANADA EXTENDED WARRANTY MARKET FOR MOBILE DEVICES & PCS, 2021-2031 ($MILLION)
TABLE 13.CANADA EXTENDED WARRANTY MARKET FOR OTHERS, 2021-2031 ($MILLION)
TABLE 14.CANADA EXTENDED WARRANTY MARKET, BY END USER, 2021-2031 ($MILLION)
TABLE 15.CANADA EXTENDED WARRANTY MARKET FOR INDIVIDUALS, 2021-2031 ($MILLION)
TABLE 16.CANADA EXTENDED WARRANTY MARKET FOR BUSINESS, 2021-2031 ($MILLION)
TABLE 17.ASSURANT, INC.: COMPANY SNAPSHOT
TABLE 18.ASSURANT, INC.: OPERATING SEGMENTS
TABLE 19.ASSURANT, INC.: PRODUCT PORTFOLIO
TABLE 20.AMERICAN INTERNATIONAL GROUP, INC.: COMPANY SNAPSHOT
TABLE 21.AMERICAN INTERNATIONAL GROUP, INC. OPERATING SEGMENTS
TABLE 22.AMERICAN INTERNATIONAL GROUP, INC.: PRODUCT PORTFOLIO
TABLE 23.AUTOPAIR WARRANTY INC.: COMPANY SNAPSHOT
TABLE 24.AUTOPAIR WARRANTY INC.: PRODUCT PORTFOLIO
TABLE 25.AXA: COMPANY SNAPSHOT
TABLE 26.AXA: OPERATING SEGMENTS
TABLE 27.AXA GROUP: PRODUCT PORTFOLIO
TABLE 28.AMTRUST FINANCIAL: COMPANY SNAPSHOT
TABLE 29.AMTRUST FINANCIAL: CORPORATION: PRODUCT PORTFOLIO
TABLE 30.ASURION: COMPANY SNAPSHOT
TABLE 31.ASURION: PRODUCT PORTFOLIO
TABLE 32.ENDURANCE WARRANTY SERVICES, LLC: COMPANY SNAPSHOT
TABLE 33.ENDURANCE WARRANTY SERVICES, LLC: PRODUCT PORTFOLIO
TABLE 34.ENSURALL: COMPANY SNAPSHOT
TABLE 35.ENSURALL: PRODUCT PORTFOLIO
TABLE 36.GUARDTREE INC.: COMPANY SNAPSHOT
TABLE 37.GUARDTREE INC.: PRODUCT PORTFOLIO
TABLE 38.TORONTO APPLIANCES SERVICE LTD.: COMPANY SNAPSHOT
TABLE 39.TORONTO APPLIANCES SERVICE LTD.: PRODUCT PORTFOLIO

LIST OF FIGURES

FIGURE 01.CANADA EXTENDED WARRANTY MARKET, 2021–2031
FIGURE 02.TOP IMPACTING FACTORS
FIGURE 03.TOP INVESTMENT POCKETS
FIGURE 04.MODERATE TO HIGH POWER OF SUPPLIERS
FIGURE 05.MODERATE TO HIGH BARGAINING POWER OF BUYER
FIGURE 06.MODERATE TO HIGH THREAT OF SUBSTITUTES
FIGURE 07.MODERATE TO HIGH THREAT OF NEW ENTRANTS
FIGURE 08.MODERATE TO HIGH COMPETITIVE RIVALRY
FIGURE 09.CANADA EXTENDED WARRANTY MARKET, BY COVERAGE, 2021-2031 ($MILLION)
FIGURE 10.CANADA EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL, 2021-2031 ($MILLION)
FIGURE 11.CANADA EXTENDED WARRANTY MARKET, BY APPLICATION, 2021-2031
FIGURE 12.CANADA EXTENDED WARRANTY MARKET, BY END USER, 2021-2031 ($MILLION)
FIGURE 13.MARKET PLAYER POSITIONING, 2021
FIGURE 14.COMPETITIVE DASHBOARD
FIGURE 15.COMPETITIVE DASHBOARD
FIGURE 16.COMPETITIVE HEATMAP OF KEY PLAYERS
FIGURE 17.TOP WINNING STRATEGIES, BY YEAR, 2019–2022
FIGURE 18.TOP WINNING STRATEGIES, BY DEVELOPMENT, 2019–2022
FIGURE 19.TOP WINNING STRATEGIES, BY COMPANY, 2019–2022
FIGURE 20.ASSURANT, INC.: REVENUE, 2019–2021 ($MILLION)
FIGURE 21.ASSURANT, INC.: REVENUE SHARE, BY SEGMENT (2021)
FIGURE 22.ASSURANT, INC.: REVENUE SHARE, BY REGION (2021)
FIGURE 23.AMERICAN INTERNATIONAL GROUP, INC.: REVENUE, 2019–2021 ($MILLION)
FIGURE 24.AMERICAN INTERNATIONAL GROUP, INC.: REVENUE SHARE, BY SEGMENT (2021)
FIGURE 25.AMERICAN INTERNATIONAL GROUP, INC.: REVENUE SHARE, BY REGION (2021)
FIGURE 26.AXA: REVENUE, 2019–2021 ($MILLION)
FIGURE 27.AXA: REVENUE SHARE, BY SEGMENT (2021)
FIGURE 28.AXA: REVENUE SHARE, BY REGION (2021)