India Consumer Electronics Extended Warranty Market is projected to reach $1,502.38 million by 2031

India Consumer Electronics Extended Warranty Market is projected to reach $1,502.38 million by 2031

According to a new report published by Allied Market Research, titled, “India Consumer Electronics Extended Warranty Market by Product Type, Distribution Channel, Coverage Type: global opportunity analysis and industry forecast, 2021–2031,” The India Consumer Electronics Extended Warranty market was valued at $305.42 million in 2021, and is projected to reach $1,502.38 million by 2031, registering a CAGR of 17.5% from 2022 to 2031.

Consumer electronics extended warranty protection plan is a separate agreement purchased by consumers and is designed to provide additional protection for their products. An extended warranty, also known as service agreement or protection plan, provides coverage to increase the length of protection for consumer electronics. A consumer can purchase an electronic extended warranty to extend the manufacturer's warranty on an electronic device. Moreover, electronic equipment extended warranties frequently cover the same issues as the original manufacturer's warranty, such as flaws in the materials or workmanship. In addition, extended warranties can be purchased for a variety of electronic products, such as computers, cellphones, televisions, & household appliances, and are often provided by independent businesses or retailers.

Increased awareness of extended warranties and the rise in sales of televisions, refrigerators, & washing machines drive the growth of the India consumer electronics extended warranty market. However, the decline in sales of PCs hampers the market growth. On the other hand, expansion in terms of demand potential related to products and services and the untapped potential of emerging economies are expected to provide numerous opportunities for the growth of the market. Moreover, developing economies, such as India, offer significant opportunities for insurers to expand their business by strengthening policies to support the development of the consumer electronics extended warranty market, which is expected to foster market growth during the forecast period.

By product type, the mobile & tablet segment led the India electronics extended warranty market in 2022 and is projected to maintain its dominance in the future as mobile phones and tablets are among the most widely used electronic devices owing to the fact that they are more essential for work, communication, and entertainment. In addition, these devices are more prone to damage or malfunction due to their regular usage, which boosts the market growth. Furthermore, the kitchen equipment segment is expected to witness the fastest growth owing to an increase in the need for smaller kitchen appliances such as coffee makers and blenders, which could be more vulnerable to harm or malfunction as a consequence of regular use, further propelling the growth of the India electronics extended warranty market.

The COVID-19 pandemic has had a significant impact on the electronic industry and it further influenced the Indian consumer electronics extended warranty market. Due to lockdowns and restrictions on movement, there has been a significant increase in demand for electronic devices such as laptops, tablets, and smartphones, as people adapt to remote work and online learning. As a result, the demand for extended warranties for these devices has also increased. At the same time, the pandemic has disrupted supply chains and led to shortages of certain electronic components, which has resulted in longer wait times for repairs and replacements. This has led to frustration among some consumers who have purchased extended warranties but are unable to get the devices repaired or replaced in a timely manner. In addition, the economic impact of the pandemic has also led some consumers to be more cautious about spending money on extended warranties, as it prioritizes spending on essential items. 

On the other hand, the pandemic has created new opportunities for growth in the market, as companies seek to respond to the challenges posed by the pandemic and improve their resilience in the face of future crises. This is attributed to the increased demand for damage repair services and the expansion of the market for automatic home appliances, which have contributed to the growth of the market. In conclusion, the overall impact of the COVID-19 pandemic on the Indian consumer electronics extended warranty market size has been mixed.  However, the ultimate size of the market will depend on how well companies are able to respond to the challenges posed by the pandemic and take advantage of new opportunities for growth.  

KEY FINDINGS OF THE STUDY

• By distribution channel, the others segment accounted for the India consumer electronics extended warranty market share in 2021.
• On the basis of product type, the mobile & tablet segment generated the highest revenue in 2021.

The major players operating in the India consumer electronics extended warranty market are AmTrust Financial, Amazon.com, Inc., Flipkart, ACKO General Insurance Limited, Servify, Zopper, AXA, Onesitego, Securranty, and OnPoint Warranty. These market players have adopted various strategies to increase their market penetration and strengthen their position in the industry.