U.S., Brazil & India Extended Warranty Market Outlook – 2030
The U.S., Brazil & India extended warranty market size was valued at $26.88 billion in 2020, and is projected to reach $41.51 billion by 2030, growing at a CAGR of 4.6% from 2021 to 2030. Extended warranty or service contracts provide protection on certain mechanical and electrical components, which are covered under general warranty services. However, extended warranties can be expensive and generally excludes routine maintenance such as oil changes and tire replacement. Extended warranty providers are enhancing awareness & benefits of an extended warranty plan and educating buyers about available products and services, which fuels the growth of the U.S., Brazil & India extended warranty market. An in-depth analysis across U.S., India and Brazil has also been included in the report.
Rise in penetration of smartphones, laptops, home appliances, and other such brown goods drive the U.S., Brazil & India extended warranty market growth. These products generally have a hefty price tag associated at the time of purchase. Therefore, to maintain safety of their electronic products post expiry of sellers’ warranty, consumers largely purchase extended warranties. This, as a result propels the U.S., Brazil & India extended warranty market growth.
However, unit shipment for personal computers (PC) have been on the decline globally and thus, the decline in sales of PCs have lowered the demand for extended warranty policies. Conversely, developing economies like India offer significant opportunities for insurers to expand their business by strengthening policies to support the development of extended warranty in the country. In addition, extended warranty providers have numerous opportunities such as they offer value added services to customers and expand product & service offerings by executing partnerships. These factors, therefore, are expected to provide lucrative opportunities during the forecast period.
The report focuses on growth prospects, restraints, and trends of the U.S., Brazil & India 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., Brazil & India extended warranty market outlook.
The U.S., Brazil & India extended warranty market is segmented into coverage, distribution channel, end user, device type, and country. In terms of coverage, it is bifurcated into standard protection plan and accidental protection plan. By distribution channel, the market is divided into manufacturers, retailers, and others. By end user, it is bifurcated into business and individuals. By device type, it is segmented into laptops & PCs, mobiles & tablets, TVs, ACs, washing machines, refrigerators, kitchen appliances, and others. Country-wise, the U.S., Brazil & India extended warranty market is analyzed across U.S., Brazil, and India.
Standard Protection Plan segment will dominate the market during 2021 - 2030
The report analyses top U.S., Brazil & India extended warranty companies operating in the market such as ASSURANT INC., American International Group Inc., AmTrust Financial, Asurion, AXA, CARCHEX, CarShield LLC, Edel Assurance, GO WARRANTY & SERVICES LLP, and SquareTrade Inc. 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.
COVID-19 Impact Analysis
COVID-19 pandemic has a moderate impact on the U.S., Brazil & India extended warranty industry. As lockdown in several regions has severely impacted movement of consumers and disruption of businesses worldwide, customers are, therefore, availing offers of warranty extension for products purchased from authorized offline and online platforms. This, in turn, has become one of the major growth factors for the U.S., Brazil & India extended warranty market during the pandemic situation.
By Distribution Channel
Retailers segment will lead the market throughout the forecast period
Top Impacting Factors
Increased Awareness For Extended Warranty
Many products have a costly price tag associated with them at the time of purchase, hence awareness for extended warranty for those products has increased tremendously. In addition, consumers are often worried about safety of their electronic products post expiry of seller’s warranty, thus there is an increase in the awareness related to consumer electronics & mobile devices coverage for extended warranty.
Furthermore, there is a rise in awareness for extended warranty, especially for used cars. Current technological changes such as blockchain technology have led to innovations and new trends in the extended warranty industry.
By End User
Individuals segment will generate the highest revenue during 2021 - 2030
Moreover, provision extended warranty also helps in building customer loyalty. In addition, U.S. consumers purchase an extended warranty plan 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 for extended warranty propels the market growth.
Decline in Sales of PCs
Personal computer (PCs) is one of the major categories under consumer electronics, which largely purchases extended warranty coverage in the market. However, demand for extended warranty has also declined, with decline in sales of PCs since recent years. Moreover, consumer experiences and adoption of extended warranty remains a primary concern, which needs to be addressed by balancing the sales of PCs and its alternative uses in the market. For instance, HP which is a multinational information technology company reported that year-over-year sales declined by 16% at the end of April 2020 in the U.S. Therefore, these factors limit the growth of the extended warranty premium in the market.
By Device Type
Mobiles & Tablets segment will dominate the market during 2021 - 2030
Expansion of Products and Services
Extended warranty has an immense potential to expand existing products and services in the market. The insurers have numerous opportunities such as to offer value added services to their customers and expand product & service offerings by executing partnerships. In addition, the agreement & partnerships further boost the manufacturers & retailers to gain confidence of buyers and support their profit margins.
Therefore, expansion of existing products & services and enhancement of agreements & partnerships are expected to be opportunistic for extended warranty providers in the upcoming years.
India would exhibit the highest CAGR of 19.0% during the forecast period
Key Benefits For Stakeholders
- The study provides in-depth analysis of the U.S., Brazil & India extended warranty market share along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the U.S., Brazil & India extended warranty market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the U.S., Brazil & India extended warranty market.
- An extensive analysis of the key segments of the industry helps to understand the U.S., Brazil & India extended warranty market trends.
- The quantitative analysis of the U.S., Brazil & India extended warranty market forecast from 2021 to 2030 is provided to determine the market potential.
U.S., Brazil & India Extended Warranty Market Report Highlights
By COVERAGE TYPE
By DISTRIBUTION CHANNEL
By END USER
By DEVICE TYPE
Key Market Players
AMTRUST FINANCIAL, SQUARETRADE, INC., EDEL ASSURANCE, GO WARRANTY & SERVICES LLP, ASURION, CARSHIELD, LLC, CARCHEX, ASSURANT, INC, AMERICAN INTERNATIONAL GROUP, INC., AXA
Extended warranty providers are looking forward to expanding their offerings and provide customized coverage for their customers. In addition, products such as customer electronics, home appliances, and wearables are the major adopters of extended warranty coverage in the market. Therefore, insurers have lucrative opportunities to innovate their existing plans and expand their product offerings in the untapped potential of emerging economies like India.
Nevertheless, a considerable number of companies remain under the perception that they have minimum extended warranty exposure. However, this scenario is changing and 2020 has witnessed an increase in sale of 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 in U.S, India and Brazil.
However, huge gaps between customer expectations and services delivered is one of the biggest challenging factors for the growth of the extended warranty market. Key players profiled in the report include ASSURANT, INC., American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX, CarShield LLC, GO WARRANTY & SERVICES LLP, Edel Assurance, and SquareTrade, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.