by Extended warranty services provide protection against faulty components and parts in electronic products such as smartphones, laptops, wearables and home appliances after the expiry of the original manufacturer warranty, thereby reducing post-purchase maintenance costs. The demand for extended warranties has been on the rise owing to burgeoning sales of smartphones, laptops and other electronic gadgets.
The global Extended Warranty Market is estimated to be valued at US$ 123.04 Mn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising preference for post-purchase services: Extended warranties have gained increased popularity as they provide security against unexpected repair costs after the expiry of the original device warranty. As consumers keep devices for extended period of time, they are inclined to opt for additional warranty plans for coverage of repairs arising from normal use over the coverage term. This growing demand can be attributed to rising preference for hassle-free post-purchase services among consumers. With evolving buying patterns and increasing dependence on electronic devices, the need for protection plans has increased substantially.
SWOT Analysis
Strength: Extended warranties provide peace of mind to customers as they protect against costs of unexpected repairs and replacements. It also helps manufacturers increase customer satisfaction and loyalty.
Weakness: Extended warranties add to the upfront cost of products. Many customers also feel that extended warranties are unnecessary since modern products last longer.
Opportunity: Growth of consumer electronics and automotive sectors provide opportunities for increased extended warranty sales. Emerging markets also offer untapped potential.
Threats: Increased usage of refurbished and second-hand products reduces potential customer base. Shift to more reliable and longer lasting products pose a threat.
Key Takeaways
Global Extended Warranty Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The growing demand for consumer electronics and automotive is driving the need for extended warranty programs.
Regional analysis- North America dominates the extended warranty market currently due to high adoption of extended service plans across various sectors. However, Asia Pacific is expected to grow at the fastest pace led by countries like China and India. Increasing disposable incomes and growing middle class population are key factors propelling market expansion in the region.
Key players operating in the extended warranty market are Xilinx Inc. (AMD Corporation), Intel Corporation, Quicklogic Corporation, GOWIN Semiconductor Corporation, Microchip Technology Incorporated, Lattice Semiconductor Corporation, Efinix Inc. and Achronix Semiconductor Corporation. Extended warranty providers are focusing on offering customized and flexible programs to drive further sales. They are also investing in digital platforms to enhance customer experience. Partnerships with OEMs remain an important strategic approach for major players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
