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U.S. Auto Extended Warranty Market By Coverage (Powertrain Coverage, Stated Component Coverage, and Exclusionary Coverage), Distribution Channel (Auto Dealers/Manufacturers and Third Party Providers), Vehicle Age (New Vehicle and Used Vehicle), and Application (Personal and Commercial): Opportunity Analysis and Industry Forecast, 2021–2030

A15995

Pages: 104

Charts: 25

Tables: 35

U.S. Auto Extended Warranty Market Outlook – 2030 

The U.S. auto extended warranty market size was valued at $18.36 billion in 2020, and is projected to reach $24.48 billion by 2030, growing at a CAGR of 2.9% from 2021 to 2030. 

Auto extended warranty is an insurance policy intended to cover expense of vehicle maintenance or damage post manufacturer’s warranty period. It is an optional warranty offered by manufacturers, dealerships, and independent providers at an extra cost beyond purchase price of a product. Furthermore, auto extended warranty provides protection on certain mechanical and electrical components, which are not covered under general auto warranty services, including powertrain, electrical system, and air conditioning systems. Moreover, auto extended warranty providers focus on improving consumer awareness toward benefits of extended warranty plan and educate them about available products and services, which fuel the U.S. auto extended warranty market growth. 

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Rise in incidences of road accidents in the U.S. damages vehicle parts and their repair and/or replacement is expensive. Thus, auto extended warranty covers repair bills. This is an important factor that boosts the growth of the U.S. auto extended warranty market. However, lack of knowledge about coverage included in auto extended warranty and high additional cost of purchasing auto extended warranty limit the market growth. On the contrary, increase in usage of advanced technology among auto extended warranty providers is expected to provide lucrative growth opportunities for the U.S. auto extended warranty industry in future. 

The report focuses on growth prospects, restraints, and trends of the U.S. auto extended warranty market analysis. 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, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the U.S. auto extended warranty industry.

[COVERAGEGRAPH]

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Segment Overview

The U.S. auto extended warranty market is segmented on the basis of coverage, distribution channel, vehicle age, and application. Depending on coverage, it is fragmented into powertrain coverage, stated component coverage, and exclusionary coverage. On the basis of distribution channel, it is divided into auto dealers/manufacturers and third-party providers. As per vehicle age, it is bifurcated into new vehicle and used vehicle. By application, it is classified into personal and commercial. 

[DISTRIBUTIONCHANNELGRAPH]

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Competitive Analysis

The key players profiled in the U.S. auto extended warranty market report are AmTrust Financial, ASSURANT INC., AXA, CARCHEX, CarShield, LLC, Concord Auto Protect, Endurance Warranty Services, LLC, Repair Ventures, LLC dba olive, Protect My Car, and Infinite Auto Protection. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.

[VEHICLEAGEGRAPH]

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COVID-19 Impact Analysis

COVID-19 pandemic negatively impacted the U.S. auto extended market pertaining to lockdown and travel ban imposed by the U.S. government, which declined sale of vehicles. However, as vehicles were not in use, chances of vehicle breakdown increased and thus, market players started offering services for those owners. This factor helped to increase sales of auto extended warranty in the U.S. Conversely, social distancing norms and work from home trends reduced the demand for vehicles, which negatively impacted the market.  

[APPLICATIONGRAPH]

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Top Impacting Factors

Rise in Number of Road Accidents in the U.S.

Rise in demand for auto extended warranty, due to accidents, including traffic collision, physical damage or bodily injury, theft, and fire increases pressure on warranty companies to invest and develop products that have less proliferation, high coverage, and that provide financial security in the form of medical injury or any other damages. Accidents are increasing in the U.S., in terms of road crashes, traffic injuries, drunk driving, and distracted driving for speeding, which further propels the U.S. auto extended warranty market opportunity. Several vehicle owners depend on auto extended warranty to protect themselves from future financial losses, including injuries to drivers, passengers, or pedestrians. 

In addition, auto warranty companies incorporate coverage to compensate beyond the warranty tenure to help maintain the vehicle for a longer period of time. Therefore, damage caused to vehicles, owing to rise in number of accidents in the U.S. encourage vehicle owners to purchase endurance extended warranty to cover any damage caused to the vehicle in case of a road accident post manufacturer’s warranty period. Therefore, rise in number of road accidents in the country drives the demand for extended car warranty.  

Lack of Awareness Regarding Auto Extended Warranty

Several vehicle owners in the country are unaware of the auto extended warranty, due to the fact that they rely on manufacturer’s warranty and pay later for any damage. Moreover, several vehicle consumers who are aware about auto extended warranty do not purchase it, considering it as an additional cost. Also, many consumers neglect purchasing auto extended warranty for their vehicles and are unaware of its benefits. Hence, this is a major factor that hampers the growth of the U.S. auto extended warranty market.

Key Benefits For Stakeholders 

  • The study provides in-depth analysis of the U.S. auto extended warranty market share along with current & future trends to illustrate the imminent investment pockets.
  • Information about key drivers, restrains, & opportunities and their impact analysis on the U.S. auto extended warranty market forecast are provided in the report.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the U.S. auto extended warranty market.
  • An extensive analysis of the key segments of the industry helps to understand the U.S. auto extended warranty market trends.
  • The quantitative analysis of the U.S. auto extended warranty market size from 2021 to 2030 is provided to determine the market potential.

Key Market Segments

  • By Coverage
    • Powertrain Coverage
    • Stated Component Coverage
    • Exclusionary Coverage
  • By Distribution Channel
    • Auto Dealers/Manufacturers
    • Third Party Providers
  • By Vehicle Age
    • New Vehicle
    • Used Vehicle
  • By Application
    • Personal
    • Commercial
  • By Key Market Players
    • AmTrust Financial
    • ASSURANT INC.
    • AXA
    • CARCHEX
    • CarShield, LLC
    • Concord Auto Protect
    • Endurance Warranty Services, LLC
    • Infinite Auto Protection
    • Protect My Car
    • Repair Ventures, LLC dba olive

CHAPTER 1:INTRODUCTION

1.1.Report description
1.2.Key benefits for stakeholders
1.3.Key market segments
1.4.Research methodology

1.4.1.Secondary research
1.4.2.Primary research
1.4.3.Analyst tools & models

CHAPTER 2:EXECUTIVE SUMMARY

2.1.Key findings

2.1.1.Top impacting factors
2.1.2.Top investment pockets

2.2.CXO perspective

CHAPTER 3:MARKET OVERVIEW

3.1.Market definition and scope
3.2.Key forces shaping U.S. auto extended warranty market
3.3.Market Dynamics

3.3.1.Drivers

3.3.1.1.Rise in costly repair bills in the U.S.
3.3.1.2.Rise in number of road accidents in the U.S.

3.3.2.Restraint

3.3.2.1.Lack of awareness regarding auto extended warranty

3.3.3.Opportunity

3.3.3.1.Implementation of technologies in existing product and service lines

3.4.COVID-19 Impact Analysis on U.S. Auto Extended Warranty Market

3.4.1.Impact on U.S Auto Extended Warranty Market Size
3.4.2.Change in End-user trends, Preferences, and Budget Impact, Due to COVID-19
3.4.3.Regulatory Framework for Solving Market Challenges Faced by Companies Providing Auto Extended Warranty in the Country
3.4.4.Economic Impact on Auto Extended Warranty Providers in the Country
3.4.5.Key Players Strategies to Tackle Negative Impact in the Industry
3.4.6.Opportunity Analysis for Companies Providing Auto Extended Warranty

CHAPTER 4:U.S. AUTO EXTENDED WARRANTY MARKET, BY COVERAGE

4.1.Overview
4.2.Powertrain Coverage

4.2.1.Key Market Trends, Growth Factors, and Opportunities
4.2.2.Market size and forecast

4.3.Stated Component Coverage

4.3.1.Key Market Trends, Growth Factors, and Opportunities
4.3.2.Market size and forecast

4.4.Exclusionary Coverage

4.4.1.Key Market Trends, Growth Factors, and Opportunities
4.4.2.Market size and forecast

CHAPTER 5:U.S. AUTO EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL

5.1.Overview
5.2.Auto Dealers/Manufacturers

5.2.1.Key Market Trends, Growth Factors, and Opportunities
5.2.2.Market size and forecast

5.3.Third Party Providers

5.3.1.Key Market Trends, Growth Factors, and Opportunities
5.3.2.Market size and forecast

CHAPTER 6:U.S. AUTO EXTENDED WARRANTY MARKET, BY VEHICLE AGE

6.1.Overview
6.2.New Vehicles

6.2.1.Key Market Trends, Growth Factors, and Opportunities
6.2.2.Market size and forecast

6.3.Used Vehicles

6.3.1.Key Market Trends, Growth Factors, and Opportunities
6.3.2.Market size and forecast

CHAPTER 7:U.S. AUTO EXTENDED WARRANTY MARKET, BY APPLICATION

7.1.Overview
7.2.Personal

7.2.1.Key Market Trends, Growth Factors, and Opportunities
7.2.2.Market size and forecast

7.3.Commercial

7.3.1.Key Market Trends, Growth Factors, and Opportunities
7.3.2.Market size and forecast

CHAPTER 8:COMPETITIVE LANDSCAPE

8.1.Introduction

8.1.1.Market player positioning, 2020

8.2.Competitive dashboard

8.2.1.Top winning strategies

CHAPTER 9:COMPANY PROFILES

9.1.AMTRUST FINANCIAL

9.1.1.Company overview
9.1.2.Company snapshot
9.1.3.Product portfolio
9.1.4.Key strategic moves and developments

9.2.ASSURANT INC.

9.2.1.Company overview
9.2.2.Company snapshot
9.2.3.Operating business segments
9.2.4.Product portfolio
9.2.5.Business performance
9.2.6.Key strategic moves and developments

9.3.AXA

9.3.1.Company overview
9.3.2.Company snapshot
9.3.3.Operating business segments
9.3.4.Product portfolio
9.3.5.Business performance

9.4.CARCHEX

9.4.1.Company overview
9.4.2.Company snapshot
9.4.3.Product portfolio
9.4.4.Key strategic moves and developments

9.5.CARSHIELD, LLC

9.5.1.Company overview
9.5.2.Company snapshot
9.5.3.Product portfolio

9.6.CONCORD AUTO PROTECT

9.6.1.Company overview
9.6.2.Company snapshot
9.6.3.Product portfolio

9.7.ENDURANCE WARRANTY SERVICES, LLC

9.7.1.Company overview
9.7.2.Company snapshot
9.7.3.Product portfolio
9.7.4.Key strategic moves and developments

9.8.INFINITE AUTO PROTECTION

9.8.1.Company overview
9.8.2.Company snapshot
9.8.3.Product portfolio

9.9.PROTECT MY CAR

9.9.1.Company overview
9.9.2.Company snapshot
9.9.3.Product portfolio

9.10.REPAIR VENTURES, LLC

9.10.1.Company overview
9.10.2.Company snapshot
9.10.3.Product portfolio
9.10.4.Key strategic moves and developments

LIST OF TABLES

TABLE 01.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY COVERAGE, 2021-2030 ($MILLION)
TABLE 02.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR POWERTRAIN COVERAGE SEGMENT, 2021–2030 ($MILLION)
TABLE 03.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR STATED COMPONENT COVERAGE SEGMENT, 2021–2030 ($MILLION)
TABLE 04.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR EXCLUSIONARY COVERAGE SEGMENT, 2021–2030 ($MILLION)
TABLE 05.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY DISTRIBUTION CHANNEL SEGMENT, 2021-2030 ($MILLION)
TABLE 06.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR AUTO DEALERS/ MANUFACTURERS SEGMENT, 2021–2030 ($MILLION)
TABLE 07.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR THIRD PARTY PROVIDERS SEGMENT, 2021–2030 ($MILLION)
TABLE 08.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY VEHICLE AGE, 2021-2030 ($MILLION)
TABLE 09.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR NEW VEHICLES SEGMENT, 2021–2030 ($MILLION)
TABLE 10.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR USED VEHICLES SEGMENT, 2021–2030 ($MILLION)
TABLE 11.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY APPLICATION, 2021-2030 ($MILLION)
TABLE 12.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR PERSONAL SEGMENT, 2021–2030 ($MILLION)
TABLE 13.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE FOR COMMERCIAL SEGMENT, 2021–2030 ($MILLION)
TABLE 14.AMTRUST FINANCIAL: COMPANY SNAPSHOT
TABLE 15.AMTRUST FINANCIAL: PRODUCT PORTFOLIO
TABLE 16.ASSURANT, INC.: COMPANY SNAPSHOT
TABLE 17.ASSURANT, INC.: OPERATING SEGMENTS
TABLE 18.ASSURANT, INC.: PRODUCT PORTFOLIO
TABLE 19.AXA: COMPANY SNAPSHOT
TABLE 20.AXA: OPERATING SEGMENTS
TABLE 21.AXA: PRODUCT PORTFOLIO
TABLE 22.CARCHEX.: COMPANY SNAPSHOT
TABLE 23.CARCHEX: PRODUCT PORTFOLIO
TABLE 24.CARSHIELD, LLC: COMPANY SNAPSHOT
TABLE 25.CARSHIELD, LLC: PRODUCT PORTFOLIO
TABLE 26.CONCORD AUTO PROTECT: COMPANY SNAPSHOT
TABLE 27.CONCORD AUTO PROTECT: PRODUCT PORTFOLIO
TABLE 28.ENDURANCE WARRANTY SERVICES, LLC: COMPANY SNAPSHOT
TABLE 29.ENDURANCE WARRANTY SERVICES, LLC: PRODUCT PORTFOLIO
TABLE 30.INFINITE AUTO PROTECTION: COMPANY SNAPSHOT
TABLE 31.INFINITE AUTO PROTECTION: PRODUCT PORTFOLIO
TABLE 32.PROTECT MY CAR: COMPANY SNAPSHOT
TABLE 33.PROTECT MY CAR: PRODUCT PORTFOLIO
TABLE 34.REPAIR VENTURES, LLC: COMPANY SNAPSHOT
TABLE 35.REPAIR VENTURES, LLC: PRODUCT PORTFOLIO

LIST OF FIGURES

FIGURE 01.KEY MARKET SEGMENTS
FIGURE 02.U.S. AUTO EXTENDED WARRANTY MARKET SNAPSHOT, BY SEGMENTATION, 2021–2030
FIGURE 03.U.S. AUTO EXTENDED WARRANTY MARKET: TOP IMPACTING FACTOR
FIGURE 04.TOP INVESTMENT POCKETS
FIGURE 05.MODERATE BARGAINING POWER OF SUPPLIERS
FIGURE 06.MODERATE POWER OF BUYERS
FIGURE 07.MODERATELY HIGH THREAT OF SUBSTITUTES
FIGURE 08.MODERATE THREAT OF NEW ENTRANTS
FIGURE 09.HIGH COMPETITIVE RIVALRY
FIGURE 10.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY COVERAGE, 2020–2030 ($MILLION)
FIGURE 11.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY DISTRIBUTION CHANNEL SEGMENT, 2020–2030 ($MILLION)
FIGURE 12.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY VEHICLE AGE, 2020–2030 ($MILLION)
FIGURE 13.U.S. AUTO EXTENDED WARRANTY MARKET REVENUE, BY APPLICATION, 2020–2030 ($MILLION)
FIGURE 14.MARKET PLAYER POSITIONING, 2020
FIGURE 15.COMPETITIVE DASHBOARD
FIGURE 16.COMPETITIVE DASHBOARD
FIGURE 17.COMPETITIVE HEATMAP OF KEY PLAYERS
FIGURE 18.TOP WINNING STRATEGIES, BY YEAR, 2019–2021
FIGURE 19.TOP WINNING STRATEGIES, BY DEVELOPMENT, 2019–2021
FIGURE 20.TOP WINNING STRATEGIES, BY COMPANY, 2019–2021
FIGURE 21.ASSURANT, INC.: NET REVENUE, 2019–2021 ($MILLION)
FIGURE 22.ASSURANT, INC.: REVENUE SHARE, BY SEGMENT, 2021 (%)
FIGURE 23.ASSURANT, INC.: REVENUE SHARE, BY REGION, 2021 (%)
FIGURE 24.AXA: NET REVENUE, 2019–2021 ($MILLION)
FIGURE 25.AXA: REVENUE SHARE, BY SEGMENT (2020)

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