India Consumer Electronics Extended Warranty Market Statistics: 2031
The India consumer electronics extended warranty market size was valued at $305.42 billion in 2021, and is projected to reach $1,502.38 billion by 2031, growing at a CAGR of 17.5% from 2022 to 2031.
Extended warranty is also known as service contract, which provides warranty in addition to the standard warranty for several products & services. It is provided for various consumer electronics products including TVs, wearables, laptops, tablets, computers, electronic & electrical appliances, and mobile devices. Extended warranties provide device protection on certain mechanical & electrical components, which are not covered by manufacturer’s warranty and typically exclude routine maintenance such as wear & tear of the products, re-gassing, normal maintenance, and damage by computer viruses, accidental damage, and others.
Increased awareness for extended warranty and rise in sale of televisions, refrigerators, and washing machines drive the growth of the India consumer electronics extended warranty market. However, decline in sales of PCs hamper the market growth. In addition, expansion of products and services and untapped potential of emerging economies are expected to provide numerous opportunities for the growth of the market. Moreover, developing economies, like India, offer significant opportunities for insurers to expand their business by strengthening policies to support the development of consumer electronics extended warranty, which is aiding the market growth over the forecast period.
Depending on the coverage type, the standard protection plan segment dominated the consumer electronic extend warranty market share in 2022 and is expected to continue this trend during the forecast period, owing to the increasing adoption of consumer electronics and home appliances. As more and more consumers purchase these products, there is a growing need for basic protection plans that can provide peace of mind and protection against defects and failures. However, the accidental protection plan segment is expected to witness the highest growth in the upcoming years, as it protects against drops & spills, for new and store-purchased items. Primarily, this protection plan provides coverage for laptops, GPS devices, MP3 players, cameras, and other portable electronics.
The report focuses on growth prospects, restraints, and analysis of the India consumer electronics extended warranty market trends. 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, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the India consumer electronics extended warranty market share.
The India consumer electronics extended warranty market is segmented on the basis of product type, distribution channel, and coverage type. By product type, it is segmented into laptops & PCs, mobiles & tablets, home entertainment devices, heating & cooling equipment, kitchen equipment, and others. The kitchen equipment segment is further segregated into refrigerators and kitchen appliances. On the basis of distribution channel, it is segmented into manufacturers, retailers, and others. In terms of coverage type, it is bifurcated into a standard protection plan and accidental protection plan.
The report analyzes the top consumer electronics extended warranty companies operating in the market such as AmTrust Financial, Amazon.com, Inc., Flipkart, ACKO General Insurance Limited, Servify, Zopper, AXA, Onesitego, Securranty and OnPoint Warranty. These players have adopted various strategies to increase their market penetration and strengthen their position in the consumer electronics extended warranty industry.
Top impacting factors
Increased awareness for extended warranty
Consumer electronics extended warranty provides customers with an additional layer of protection against unexpected repair costs that can arise from product defects or accidental damage. As consumers become more aware of this, they are more likely to opt for extended warranties, thereby driving the India consumer electronics extended warranty market growth. In addition, as consumers are often worried about the safety of their electronic products post-expiry of seller’s warranty, thus coverage for extended warranty has surged among the consumer electronics & mobile devices segment.
Furthermore, current technological changes such as blockchain technology have led to innovations and new trends in the extended warranty industry. Moreover, providing an extended warranty also helps in building customer loyalty. In addition, consumers purchase an extended warranty plan for consumer electronics that generally comes down to whether it makes sound financial sense, and depends on a variety of factors, including the cost of the plan and the price of the purchase. Thus, increased awareness of extended warranty propels market growth. The availability of extended warranties for consumer electronics can increase the consumer's confidence in the product they are purchasing. When consumers are confident that they can rely on their products for a longer period, they are more likely to make the purchase. This increased confidence can further drive the growth of the extended warranty market.
As the demand for high-end consumer electronics products increases, so does the need for extended warranties. High-end products often come with a higher price tag, and consumers are more likely to want to protect their investment with an extended warranty. The extended warranty market for consumer electronics is highly competitive. With several companies offering similar products, the growing awareness of extended warranties has created an opportunity for new players to enter the market, further driving its growth.
Rise in the sale of televisions, refrigerators, and washing machines
With the increase in the usage of televisions, refrigerators, washing machines, and other brown goods, the protection for these goods has grown at a faster rate in the India consumer electronics extended warranty Market.
Therefore, the provision of extended warranty for these items has increased market competition. Moreover, the rise in prices of spare parts continues to imply pressure on the profit margins of manufacturers and retailers of consumer electronic products. As more households in India are able to afford televisions, refrigerators, and washing machines, the overall ownership of these products is increasing. With more products in use, the need for extended warranties also rises, which drives the growth of the extended warranty market.
Furthermore, extended warranty solutions for these goods are continuously evolving and are expected to maintain their dominance during the forecast period. The standard warranty period for many consumer electronics products is usually one year. With the increasing lifespan of such products, consumers are opting for extended warranties to ensure that they have coverage for a longer period, especially for high-value products like televisions, refrigerators, and washing machines. In addition, electronic item makers continue to attract customers during the festive season. For instance, in India, the festive season lasts from August to November, hence there’s a continuous rise in the use and sale of televisions, refrigerators, washing machines, and other brown goods which fuel the market growth. Overall, the rise in the sale of televisions, refrigerators, and washing machines is a key driver for the growth of the extended warranty market in the country.
The Indian consumer electronics extended warranty market has seen significant growth in recent years, driven by increasing demand for electronics products and a growing awareness of the benefits of extended warranties. The market has also been influenced by the increasing adoption of digital technologies and capabilities, which have helped to improve the customer experience and streamline the warranty claims process. Some of the key digital capabilities that are being leveraged by Indian consumer electronics extended warranty providers include online purchase and renewal, digital claims processing, and data analytics. Extended warranty providers offer the option to purchase and renew warranties online, which makes it more convenient for customers to access their services. This has also helped to reduce the paperwork and administrative burden associated with traditional warranty sales and renewals.
Furthermore, extended warranty providers are also leveraging digital technologies to streamline the claims process. Customers can now file claims online and track the status of their claims in real time. This has helped to reduce the time and effort required to file and process claims, improving the overall customer experience, which is driving the growth of the market. in addition, with the help of data analytics, extended warranty providers are able to gain insights into customer behavior and preferences. This can be used to personalize marketing and sales efforts, as well as to develop more targeted product offerings. Overall, the digital capabilities of the Indian consumer electronics extended warranty market are helping to improve the customer experience and streamline the claims process. As more consumers adopt electronics products and become aware of the benefits of extended warranties, the market is likely to continue to grow and evolve, with new digital capabilities being developed to meet customer needs.
By Product Type
Mobile & Tablets segment accounted for the highest market share in 2021.
The Indian consumer electronics extended warranty market has been seeing significant growth in recent years due to various factors, including an increased awareness of the benefits of extended warranties, rising disposable income, and a growing demand for consumer electronics products. However, end-user adoption of extended warranties in India still varies across different consumer segments and product categories. Such factors influencing the end-user adoption of the Indian consumer electronics extended warranty market owing to the adoption of extended warranties vary significantly across different consumer electronics product categories. Products such as mobile phones, laptops, and home appliances are more likely to be covered by extended warranties than other products like cameras and gaming consoles.
Furthermore, the cost of the extended warranty is a crucial factor in the end-user adoption of extended warranties. For instance, in India, customers are generally price-sensitive, and extended warranties can sometimes be considered an additional cost that may not be worth the investment. Moreover, the experience of customers during the purchase and claims process can also impact the end-user adoption of extended warranties. A seamless and hassle-free claims process can lead to a positive experience for the customer, leading to higher adoption rates. Overall, while the Indian consumer electronics extended warranty market is growing, the end-user adoption of extended warranties is influenced by various factors, including product category, awareness, cost, brand reputation, and customer experience. As more end-users become aware of the benefits of extended warranties and the market continues to evolve, the adoption rates are expected to increase.
The Indian government has launched several initiatives to support the growth of the consumer electronics extended warranty market in the country. These initiatives aim to improve the regulatory framework, increase consumer awareness, and promote the adoption of extended warranties. Here are some of the key government initiatives for the Indian consumer electronics extended warranty market:
Bureau of Indian Standards (BIS): The BIS has introduced a certification scheme for electronic products that meet certain quality standards. This has helped to improve the quality of electronic products and build trust among consumers, leading to an increase in the demand for extended warranties.
Consumer Protection Act (CPA): The CPA provides a legal framework for the protection of consumer rights, including the right to fair treatment, information, and redressal. The act has been recently amended, which now provides more powers to consumers in case of faulty products, including the ability to claim compensation.
By Distribution Channel
Retailers segment accounted for the highest market share in 2021.
Digital India: The Digital India initiative aims to transform India into a digitally empowered society and knowledge economy. This has helped to increase the adoption of digital technologies, including digital claims processing, mobile apps, and chatbots, in the consumer electronics extended warranty market.
Make in India: The Make in India initiative aims to promote domestic manufacturing and boost the production of electronic products in India. This has helped to increase the availability of quality products and extended warranty services, leading to a more competitive market.
Pradhan Mantri Fasal Bima Yojana (PMFBY): Although not directly related to consumer electronics, the PMFBY is an insurance scheme for farmers that provides protection against crop losses due to natural calamities. The success of this scheme has helped to increase awareness among consumers regarding the benefits of insurance and the importance of protecting their investments.
Overall, the Indian government has taken several initiatives to support the growth of the consumer electronics extended warranty market in the country. These initiatives have helped to improve the regulatory framework, increase consumer awareness, and promote the adoption of extended warranties.
By Coverage Type
Standard Protection Plan segment accounted for the highest market share in 2021.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the India consumer electronics extended warranty market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on India consumer electronics extended warranty market trends is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the India consumer electronics extended warranty market from 2022 to 2031 is provided to determine the market potential.
India Consumer Electronics Extended Warranty Market Report Highlights
By Product Type
By Distribution Channel
By Coverage Type
Key Market Players
AXA, Onesitego, Securranty, Amazon.com, Inc., ACKO General Insurance Limited, Zopper, Flipkart, OnPoint Warranty, Servify, AmTrust Financial
According to CXOs perspectives of the leading companies, India consumer electronics extended warranty market is expected to grow at a promising rate during the forecast period.
These days, customer electronics, home appliances, and wearables are the major products on which extended warranty coverage is provided, as it offers additional protection against defects and damage. Insurance companies, therefore, have adopted significant prospects to enhance the current plans and increase their product offerings across emerging economies.
Furthermore, businesses that provide extended warranty services are keen to expand existing product offerings and provide their clients with customized warranty coverages. Overall, a combination of rise in demand for electronic device protection, growing knowledge of the benefits of extended warranties, the availability of affordable options, surge in competition among service providers, and a move toward online channels drives the growth of India consumer electronics extended warranty market.
In addition, a considerable number of companies have remained under the perception that they have minimum consumer electronics extended warranty exposure. However, this scenario has changed and 2020 witnessed an increase in sales of consumer electronics extended warranty policies owing to higher awareness of extended warranty and increase in penetration of laptops, smartphones, tablets, and other brown goods among the consumers. These aforementioned factors further contribute toward the market growth in India.
The key providers of the India consumer electronics extended warranty markets, are Flipkart, Amazon.com, Inc., and AXA. These companies account for a significant market share in the
Indian market due to rise in e-commerce companies sector and availability of broad range of extended warranty programs. With larger requirements for scalability and security, various companies have launched enhanced versions of their products to provide greater flexibility in terms of extended warranties. For instance, in December 2022, Flipkart launched Home
Product Services on its app for customers to meet product repair, maintenance, and installation service requirements. In addition, customers can now obtain convenient repair, maintenance, and installation services on the Flipkart app under the category "Repair & More" in addition to shopping on the dependable app. These application developments are projected to drive the growth of the market.
In addition, with surge in demand for extended warranty solutions, various companies have expanded their current product portfolio to continue with the rise in demand in the market. For instance, in October 2022, Servify launched Protect+ with Applecare services in India. The plan provides limitless repairs or replacements across the globe to safeguard customer’s items from various types of accidental damage and mechanical breakdowns. These developmental initiatives are expected to create future growth opportunities.