Extended Warranty Market Is Estimated To Witness High Growth Owing To Increasing Focus on Product Warranty and Protection
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| Extended Warranty Market |
The global Extended Warranty Market is estimated to be
valued at US$ 123.4 million in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period
of 2023-2030, as highlighted in a
new report published by Coherent Market Insights.
Market Overview:
Extended warranty refers to an additional warranty that can be purchased to
provide coverage for repair and replacement costs beyond the standard manufacturer's
warranty. This market primarily caters to consumer electronics, automobiles,
appliances, and other products. Extended warranties provide consumers with
peace of mind and protection against unexpected repair and replacement
expenses. The increasing focus on product warranty and protection, coupled with
the rising demand for high-priced electronic and automotive products, is
driving the growth of the extended warranty market.
Market Key Trends:
One key trend in the extended warranty market is the growing popularity of
third-party extended warranties. Third-party providers offer extended
warranties that are often more affordable and customizable compared to those
offered by manufacturers. This trend is driven by consumers' desire for more
options and competitive pricing. Additionally, third-party providers often
offer better customer service and claim processes, further contributing to
their popularity.
Furthermore, the rise of e-commerce platforms has facilitated the easy purchase
of extended warranties online, contributing to market growth. Online selling
platforms provide consumers with convenient access to a wide range of extended
warranty options, allowing them to compare prices and choose the best option
for their needs.
Overall, the extended warranty market is poised for high growth due to the
increasing demand for product warranty and protection and the popularity of
third-party extended warranties. The market is expected to witness sustained
growth over the forecast period as consumers continue to prioritize the
protection and longevity of their high-value purchases.
PEST Analysis:
Political: The political factors influencing the extended warranty market
include regulations and policies related to consumer protection and warranty
services. Government laws and regulations can impact the market dynamics,
affecting the pricing, terms, and conditions of extended warranty services.
Economic: The economic factors influencing the extended warranty market include
consumer spending power, economic growth, and disposable income. Economic
stability and growth directly impact consumer willingness to invest in extended
warranty services, as well as the overall demand for such services.
Social: The social factors influencing the extended warranty market include
changing consumer preferences and attitudes towards product warranties.
Consumer awareness about the benefits of extended warranties, trust in warranty
providers, and the influence of social media platforms can significantly impact
the market growth.
Technological: The technological factors influencing the extended warranty
market include advancements in product technologies and innovations.
Technological developments can affect the complexity and cost of repairing and
maintaining products, thereby influencing the demand for extended warranty
services.
Key Takeaways:
The
Global Extended Warranty Market Demand is expected to witness high growth,
exhibiting a CAGR of 6.6% over the
forecast period (2023-2030). The
market is driven by increasing consumer awareness about the value and benefits
of extended warranties, coupled with the rise in disposable income and consumer
spending power. As consumers increasingly invest in expensive electronic
devices, appliances, and automobiles, they are seeking protection against
potential damages or malfunctions, driving the demand for extended warranty
services.
In terms of regional analysis, North America is anticipated to be the
fastest-growing and dominating region in the extended warranty market. The
region's strong presence of key market players, coupled with the high adoption
rate of consumer electronics and automobiles, is driving the growth in this
region. Additionally, favorable government regulations and policies related to
consumer protection and warranty services are supporting market expansion.
Key players operating in the Extended Warranty Market include Assurant Inc.,
American International Group, Inc., AXA, AmTrust Financial, Asurion, CARCHEX,
CarShield LLC, Endurance Warranty Services LLC, Edel Assurance, SquareTrade,
Inc., and others. These key players are focusing on strategic partnerships,
acquisitions, and product innovations to strengthen their market position and
cater to the increasing demand for extended warranty services.
Read More:
https://www.pressreleasebulletin.com/extended-warranty-market-growth-forecast-and-demand/
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