Dublin, Aug. 28, 2023 (GLOBE NEWSWIRE) -- The "Extended Warranty Market by Distribution Channel, by Coverage Type, by Application, and by End User - Global Opportunity Analysis and Industry Forecast, 2023-2030" report has been added to ResearchAndMarkets.com's offering.
Having commenced its journey at USD 130.9 billion in 2022, the global Extended Warranty market is destined for substantial growth, predicted to ascend to USD 252.4 billion by 2030. The market's upward trajectory is sustained by an impressive Compound Annual Growth Rate (CAGR) of 8.8% spanning from 2023 to 2030.
Protection for Precious Investments
In an era where electronics are increasingly intricate and costly to repair, the extended warranty market has flourished, driven by mounting repair expenses. Consumers are increasingly recognizing the value of safeguarding their investments through extended warranties. As the price of repairs continues to climb, the significance of these warranties amplifies, making them an attractive proposition for consumers.
E-Commerce Propels Market Momentum
The growth of the e-commerce sector is a linchpin in the accelerated adoption of extended warranty services. The convenience and accessibility of online shopping platforms have effectively facilitated the exploration and acquisition of extended warranty options for electronics. The synergy between rising repair costs and the convenience of e-commerce has significantly fueled the momentum of the extended warranty market.
Navigating Challenges and Grasping Opportunities
While the market thrives, it is not without its challenges. Underdeveloped countries require heightened trust in service providers, lack the necessary infrastructure and resources to support extended warranties, and face cultural and societal factors. However, opportunities gleam on the horizon. Artificial Intelligence (AI)-based systems fortified with fraud detection capabilities are poised to inject a new wave of opportunities into the market.
Market Composition: A Comprehensive Glimpse
The global extended warranty industry unveils a multifaceted landscape defined by distribution channels, coverage types, applications, end-users, and regions. The spectrum includes manufacturers, retailers, and other distribution channels. Coverage options encompass standard protection plans and accidental protection plans. In terms of application, the market caters to automobiles, consumer electronics, home appliances, mobile devices & PCs, and more. The end-user base spans individuals and businesses. Geographically, North America, Europe, Asia-Pacific, and the Rest of the World (RoW) constitute the market's domains.
North America: Forerunner in Market Dominance
North America takes the lead, projected to maintain its dominance through 2030. The region's burgeoning demand for warranty coverage for consumer electronics such as smartphones, laptops, and home appliances is a key driving force. The region, particularly the U.S., harnesses connected devices and IoT technology across sectors like automotive, healthcare, and consumer electronics. As sophistication in consumer electronics escalates, repair costs follow suit, positioning North America as a torchbearer in the extended warranty market.
Powerhouses Steer the Market
The market's evolution and transformation are powered by industry giants including:
- American International Group, Inc.
- Assurant, Inc.
- Allstate Corporation
- HDFC Ergo
- AXA XL
- Asurion
- AmTrust Financial Services
- Allianz Partners SAS.
- Endurance Warranty Services
- Zurich Insurance Group
Innovations Shape the Market's Path
Recent developments underscore the market's dynamic progression. Embarking on a path of expansion, innovation, and enhancing customer experience, these developments signify the industry's commitment to excellence:
- AmTrust Financial Services, Inc.'s international extended warranty expansion in South Korea, targeting substantial and high-potential markets in the Asia-Pacific region.
- Assurant, Inc.'s partnership with electric scooter brand Okinawa Autotech to introduce an extended warranty initiative in India, covering key powertrain components.
- Allianz's announcement to launch Allianz Direct, a digital platform simplifying the insurance process and increasing accessibility to consumers.
For more information about this report visit https://www.researchandmarkets.com/r/blbaes
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