Allied Market Research

Extended Warranty Market Expected to Reach $169.82 Billion by 2027


Report Code : A04660

quote India is expected to attain significant growth in the upcoming years, owing to growing use of extended warranties among individuals for their automobiles and consumer electronics. Moreover, service providers are adopting several strategies to win & retain their existing customers and maintain brand loyalty for their product offerings, which is the major trend in the country. quote

Pramod Borasi
Research Analyst, BFSI at Allied Market Research

Get 20% Free Customization In This Report
Follow us on Social Media:       

According to a recent report published by Allied Market Research, titled, “Extended Warranty Market by Coverage, Application, Distribution Channel, and End User: Opportunity Analysis and Industry Forecast, 2020-2027,” the global market was valued at $120.79 billion in 2019, and the extended warranty market size is projected to reach $169.82 billion by 2027, growing at a CAGR of 7.4% from 2020 to 2027.

Extended warranty, also known as service agreement or protection plan, provides coverages to increase the length of protection for large purchases. It provides coverages 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 coverages. Furthermore, extended warranty protection plan is a separate agreement purchase by consumers and are designed to provide additional protection for their products. 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, though consumer buy the warranties from retailers, another company handles claim processes.

On the basis of coverage, the standard protection plan segment dominated the 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 coverages, 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.

On the basis of application, the automobiles segment dominated the extended warranty market industry in 2019 and is projected to maintain its dominance during the forecast period. Increase in sales of extended warranty at the time of purchase of vehicles is the major growth factor for extended warranties in the automobile sector. In addition, with selling extended warranty plans after initial purchase of a vehicle, third-party providers are playing vital role in the expansion of extended warranty services in the market.

By region, the global extended warranty market was dominated by North America in 2019, and is expected to maintain this trend during the forecast period. To limit their financial risk for car breakdown, consumers taking protection via extended warranties, thereby becoming major driving factors in the region. For instance, in the U.S., nearly 60% of consumers largely prefer extended warranties, while 62% are active users in the country. Further, in Canada, typically new vehicles carry minimum five years of warranty and thus, customers purchase extended warranties from vehicle dealers in the country. Therefore, adoption for extended warranty insurance has widely increased and is expected to maintain its dominance during the forecast period. 

The extended warranty industry has experienced decline in revenue, owing to complete business shutdowns across the world. However, due to severe disruption in repair & returns services, key players in the market are extending warranties for their products to ensure effective delivery of on-going warranty services. Furthermore, the extended warranty market is expected to regain its position, owing to factors such as implementation of several strategies and supportive government regulations towards key players in the market. 

Key Findings Of The Study

  • By coverage, the standard protection plan segment led the extended warranty market size, in terms of revenue in 2019.
  • By application, the automobile segment accounted for highest extended warranty market share in 2019.
  • By region, North America generated highest revenue in 2019.

The key players profiled in the extended warranty market analysis are ASSURANT, INC., American International Group, Inc., AXA, AmTrust Financial, Asurion. CARCHEX, CarShield, LLC, Endurance Warranty Services, LLC, Edel Assurance, and SquareTrade, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Need More Information

pr-det-talk Talk to David (Europe)

pr-det-talk Talk to Sona Padman (Americas)

5933 NE Win Sivers Drive #205,
Portland, OR 97220 United States

pr-det-phone Toll Free: +1-800-792-5285

pr-det-phone UK: +44-845-528-1300

pr-det-phone Hong Kong: +852-301-84916

pr-det-phone India (Pune): +91 2066346060

pr-det-phone Fax: +1(855) 550-5975



For Media Inquiries, Please Contact

Tushar Nagose
Communications Officer
Allied Market Research
Contact Toll Free: +1-800-792-5285
Drop us an email at


First time buyer?
Check offers and discount on this report
To get this report

Click Here

quote Extended Warranty Market by Coverage (Standard Protection Plan and Accidental Protection Plan), Application (Automobiles, Consumer Electronics, Home Appliances, Mobile Devices & PCs, and Others), Distribution Channel (Manufacturers, Retailers, and Others), and End User (Business and Individuals): Global Opportunity Analysis and Industry Forecast, 2020–2027 quote

View Report
Avenue Video Loading...

Avenue: Entire Library membership of Allied Market Research Reports at your disposal

  • Avenue is an innovative subscription-based online report database.
  • Avail an online access to the entire library of syndicated reports on more than 3,571 niche industries and company profiles on more than 12,953 firms across 11 domains.
  • A cost-effective model tailored for entrepreneurs, investors, and students & researchers at universities.
  • Request customizations, suggest new reports, and avail analyst support as per your requirements.
  • Get an access to the library of reports at any time from any device and anywhere.


Why Allied Market Research?

Infallible Methodology

To ensure high-level data integrity, accurate analysis, and impeccable forecasts

Analyst Support

For complete satisfaction


On-demand customization of scope of the report to exactly meet your needs

Targeted Market View

Targeted market view to provide pertinent information and save time of readers


Featured Readings


Published Date Jan 2021

Surgical Equipment Market

Download Sample

Published Date Nov 2020

Medical Implant Market

Download Sample

Get Fresh content delivered

Get insights on topics that matter to your business. Stay updated on the area that interests you.

Get Industry Data Alerts

Buy Full Version
"Extended Warranty Market"
Purchase Enquiry