Consumer Electronics Extended Warranty Market Expected to Reach $198.99 Billion By 2030

According to a recent report published by Allied Market Research, titled, “Consumer Electronics Extended Warranty Market By Product Type, Distribution Channel, and Coverage Type: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global consumer electronics extended warranty market size was valued at $48.65 billion in 2020, and is projected to reach $198.99 billion by 2030, growing at a CAGR of 15.2% from 2021 to 2030.

Consumer electronics extended warranty protection plan is a separate agreement purchase by consumers and are designed to provide additional protection for their products. Extended warranty, also known as service agreement or protection plan, provides coverage to increase the length of protection for consumer electronics. It provides coverage for multiple types of products & brands, ranging from appliances to electronics, wearables, computer equipment, mobile products, and others.

In addition, manufacturers tend to deal with limited product & brand set to provide extended warranty as the licensing & credentialing requirements largely differ from other insurance coverage. However, consumers face several challenges while dealing with extended warranties. For instance, retailers that do not repair in the store, generally sell extended warranties, which are third-party policies. Therefore, another company handles claim processes, though consumer buys the consumer electronics warranties from retailers.

On the basis of coverage, the standard protection plan segment dominated the consumer electronics extended warranty market in 2019 and is projected to maintain its dominance during the forecast period. Standard protection plan largely covers mechanical & electrical breakdown and several other coverage, which are not covered by manufacturer’s warranty in the market. In addition, this plan is not valid for any products that are either refurbished or purchased by a customer and are largely sold with standard terms & conditions, which is thus, expected to grow at a significant CAGR during the forecast period.

By region, the consumer electronics extended warranty market was dominated by North America in 2019, and is expected to maintain this trend during the forecast period. The extended warranty market for consumer electronics in North America is led by the strong growth in the sales of mobile devices, televisions, washing machines, and others. The segment comprising smartphones and tablets, accounted for over 50% of the overall value generated in the market Therefore, adoption for consumer electronics extended warranty insurance has widely increased and is expected to maintain its dominance during the forecast period.

The consumer electronics extended warranty industry has experienced a moderate impact of COVID-19 pandemic. Key players in the market are extending warranties for their products to ensure effective delivery of on-going warranty services due to severe disruption in repair & returns services. Furthermore, the consumer electronics extended warranty market is expected to regain its position, owing to factors such as implementation of several strategies and supportive government regulations toward key players in the market.

Key Findings of the Study

• By distribution channel, the retailers segment led the highest consumer electronics extended warranty market share, in terms of revenue in 2020.
• By coverage type, the accidental protection plan segment is expected to exhibit the fastest consumer electronics extended warranty market growth rate during the forecast period.
• By region, North America generated the highest revenue in 2020.  

The key players operating in the consumer electronics extended warranty market analysis include Amazon.com, Inc., AmTrust Financial, ASSURANT, INC., Asurion, AXA, Go Warranty & Services LLP, OneAssist Consumer Solutions Pvt. Ltd., OnPoint Warranty, Securranty, and SquareTrade, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.