Home Warranty Services Market

The global home warranty service market size was valued at $7,315.1 million in 2020, and is expected to reach $13,611.2 million by 2030, registering a CAGR of 6.3% from 2021 to 2030. A home warranty is a service contract that, over a period, covers the cost of maintaining the house or equipment. The service covers home systems and appliances as well as pays for repairs and replacements. The service contracts renew each year for home plans and equipment for existing customers who have opted for the home warranty schemes. Home certifications are often advised when buying an old home where information is not readily available on items. These guarantees are different from homeowner's insurance, which cover the loss of a home and its contents as a result of fire or other natural disasters. 

The home warranty service market was hampered during the outbreak of COVID-19 pandemic, owing to restrictions on construction activities, which also affected resales sector. In addition, the home warranty services could not be effectively sold through banks and financial channels.

The growth of the global home warranty service market is majorly driven by protection of expensive appliance such as refrigerators; heating, ventilation, and air conditioning (HVAC) systems; dishwashers; ovens, cook tops; plumbing; and electrical systems. This helps in maintenance and servicing of appliances and systems in home. In addition, rise in awareness for warranty services is driving the market growth in tire 2 and tire 3 cities. This awareness is leading to increase in subscription of home warranty services with services providers. However, hidden charges at the time of actually warranty claim and stringent terms & conditions of service providers restrain the home warranty service market growth. Furthermore, during the outbreak of the COVID-19 pandemic, construction, manufacturing, hotel, and tourism industries were majorly affected. Manufacturing activities were halted or restricted. Construction and transportation activities, along with their supply chains, were hampered on a global level. This led to decline in manufacturing of home warranty service as well as their demand in the market, thereby restraining the growth of the home warranty service market. Conversely, industries are gradually resuming their regular manufacturing and services. This is expected to lead to re-initiation of home warranty service companies at their full-scale capacities, which is likely to help the home warranty service market to recover by mid of 2022.

In addition, increase in expenditure on home services majorly in the developing countries such as China, India, and Brazil is anticipated to open new avenues for the home warranty service market during the forecast period.

The global home warranty service market is segmented into distribution channel, type, sales channel, application, and region. On the basis of distribution channel, the market is fragmented into brokers, agents & branches, and others. Depending on type, it is bifurcated into home systems and appliances. The applications covered in the study include residential and commercial. By sales channel, the market is segregated into renewals, home resale, and direct to consumer. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, Japan, South Korea, India, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

On the basis of distribution channel, in 2020, the brokers segment dominated the home warranty service market, in terms of revenue, whereas the others segment is expected to witness growth at the highest CAGR during the forecast period. As per type, in 2020, the home system segment led the home warranty service market, however, the appliances segment is expected to exhibit highest CAGR in the near future. By application, the residential segment was the major revenue contributor in 2020, and is anticipated to register highest CAGR during the forecast period. As per sales channel, in 2020, the renewals segment exhibited the highest growth, however, the home resale segment is expected to garner the highest CAGR in the near future. Region wise, North America garnered the highest revenue in 2020, however, LAMEA is anticipated to register highest CAGR during the forecast period.

Competition analysis

The major players profiled in the home warranty service market include AFC Home Club, Cinch Home Services, Inc., First American Home Warranty, FNHW (Fidelity National Home Warranty), Frontdoor, Inc., Home Buyers Warranty Corporation, Landmark Home Warranty, Old Republic International Corporation, Oneguard Home Warranties, and Transforms SR Brands LLC. These companies have adopted product launch and business expansion as their key developmental strategies to offer better products and services to customers in the home warranty service market.

Key Benefits For Stakeholders

• The report provides an extensive analysis of the current trends, future estimations, and dynamics of the home warranty service market. 
• In-depth home warranty service market analysis is conducted by estimations for the key segments between 2021 and 2030. 
• Extensive analysis of the market is conducted by following key product positioning and monitoring of top competitors within the market framework.
• A comprehensive analysis of four major regions is provided to determine the prevailing opportunities.
• The home warranty service market forecast analysis from 2021 to 2030 is included in the report.
• The key market players operating in the market are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the market industry.

 Home Warranty Services Market Report Highlights