How Big Is the Extended Warranty Market | Size, Growth & Future Outlook 2025

Q: What is the size of the extended warranty market?

The extended warranty market is expected to exceed USD 66.9 billion by 2031 due to rising product maintenance costs and digital service adoption.

Q: Which sectors are driving demand for extended warranties?

Consumer electronics, home appliances, and automotive sectors are the top contributors, driven by rising product complexity and high replacement costs.

Q: How are partnerships influencing market expansion?

Collaborations between OEMs, retailers, and third-party warranty providers are expanding coverage options and enhancing service accessibility for end-users.

Q: Who are the key players shaping the extended warranty market?

Leading players include Assurant, AmTrust Financial, SquareTrade (an Allstate company), AIG, and Carchex, all competing through tech-enabled services and customer-centric offerings.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA6707

Publication Date: Jul 2025

How Big Is the Extended Warranty Market?

According to 6Wresearch internal database and industry insights, the Global extended warranty market was valued at USD 42.1 billion in 2024 and is anticipated to reach over USD 66.9 billion by 2031, advancing at a CAGR of 7.80%.

Rising consumer awareness about post-purchase protection, combined with the increasing cost of repairs for consumer electronics and vehicles, is fuelling this market's expansion. Additionally, growing demand for value-added services in product lifecycle management and partnerships between OEMs and third-party administrators are strengthening market presence.

View Main Report

Schedule Analyst Call

Growth Factors of the Extended Warranty Market

Higher costs for repairs and replacement of consumer goods
Partnerships between poiltcal agencies and third-party providers
Expansion of high-value electronics and automotive aftermarket
Rapid growth of digital platforms allowing easy registration and claims
Consumer interest in long-term product protection

Extended Warranty Market Trends

The extended warranty market is rapidly digitizing with mobile apps and AI-based chat support simplifying claims and renewals. Companies are adopting flexible warranty offerings, including subscription-based and usage-based warranties, to replace departing customer preferences. The emerging connection between retail and e-tail and extended warranties is allowing for real-time offers at the point of sale, resulting in large upticks in purchases.

Emerging Developments in the Extended Warranty Market

Some of the developments in the Extended Warranty Market include the use of predictive analysis to determine warranty risk and create pricing levels. The use of automation is to minimize warranty fraud, provide claims transparency, and generate case turnaround reductions. The advent of personalized warranty plans based on user behavior and device activations is providing companies the opportunity for retention and to stay as a viable option for product satisfaction.