The global extended warranty market is projected to grow, driven by increased demand for device protection, rising repair costs, and digital onboarding. Key drivers include consumer electronics (8.5% CAGR) and automotive, with 45% of purchases occurring at the point of sale.
Chicago, Feb. 10, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the global extended warranty market was valued at US$ 187.02 billion in 2024 and is projected to hit the market valuation of US$ 426.76 billion by 2033 at a CAGR of 9.6% during the forecast period 2025–2033.
The extended warranty market has significantly broadened its scope, now covering a wide array of products ranging from basic consumer electronics to advanced vehicles. This expansion reflects a growing consumer demand for comprehensive repair and replacement solutions that extend beyond the limited protection offered by standard manufacturer warranties. As technology becomes increasingly integral to daily life, consumers are prioritizing seamless and reliable coverage options that can safeguard their investments against unexpected breakdowns and costly repairs.
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Smartphones, as one of the most commonly used devices worldwide, exemplify the market’s expansion and consumer concerns. According to a well-regarded consumer testing agency, typical repairs for smartphones—such as touchscreen replacements or battery fixes—often exceed US$100 when conducted at authorized service centers. These considerable repair expenses motivate many buyers to purchase supplemental protection plans, which provide financial security and peace of mind.
Artificial Intelligence Revolutionizing Claim Handling in Extended Warranties
Artificial intelligence (AI) is rapidly transforming the claim handling process within the extended warranty market by automating critical steps such as evaluation and settlement. This shift not only streamlines operations but also enhances accuracy and efficiency, resulting in faster resolutions and improved customer satisfaction.
One prominent example comes from a leading appliance insurer that has implemented image-based verification software to detect mechanical faults. This technology is especially valuable for large household appliances like refrigerators, where repairs can be costly—often exceeding US$400. By automating the fault detection process through image analysis, the insurer speeds up claim approvals and reduces the need for in-person inspections.
In the automotive sector, extended warranty providers are increasingly utilizing predictive analytics to improve engine diagnostics. This AI-driven approach enables early identification of potential mechanical issues, allowing for preemptive maintenance that can prevent major overhauls costing US$2,000 or more.
Dominance of Mobile Devices and Personal Computers in the Extended Warranty Market
Mobile devices and personal computers collectively generate more than half of the global extended warranty market revenue. This significant share is driven by their high replacement rates and susceptibility to hardware failures, which make protection plans highly attractive to consumers. As technology advances rapidly, these devices become essential tools in daily life, increasing the demand for warranties that safeguard against costly repairs and replacements.
Consumer research reveals that smartphone owners typically upgrade their devices every 24 months. This relatively short replacement cycle heightens the need for extended coverage, especially against accidental damage such as drops, spills, and screen cracks, as well as for technical support. The frequent turnover of smartphones means consumers are more likely to invest in protection plans to avoid unexpected expenses during the device’s lifecycle, making smartphones a key driver of extended warranty sales.
The surge in remote work has led to a notable increase in personal computer usage, with average daily screen time reaching approximately 7.5 hours among remote workers. This extended use accelerates wear and tear on PC components, raising the likelihood of hardware failures over time. Technicians report a 15% annual increase in motherboard replacements and an 18% rise in cracked laptop screens, reflecting the growing need for financial protection through extended warranties.
Individual Consumers as the Dominant Buyer Segment
Individual consumers currently dominate the extended warranty market, accounting for approximately 74% of total purchases according to recent analyses. This demographic leads the market largely due to a growing trend of acquiring multiple smart devices, which creates overlapping and complex coverage needs.
A key factor fueling individual consumer interest in extended warranties is the widespread ownership of smart devices such as smartphones, tablets, and wearables. Surveys indicate that the average household now contains around four internet-connected devices, each of which is susceptible to accidental damage, technical malfunctions, or performance degradation. This proliferation of gadgets amplifies the risk of costly repairs, making extended warranties an appealing option for consumers seeking to safeguard their investments and mitigate unexpected expenses.
The urgency and scale of individual consumer demand are evident in the sheer volume of warranty contracts sold. More than 5,000 new extended warranty agreements are purchased every hour by individuals aiming to secure peace of mind for their devices and vehicles. This high purchase rate underscores the market’s responsiveness to consumer concerns about product longevity and reliability, as well as the increasing awareness of protection plans as a practical financial safeguard.
North America’s Leading Position in the Extended Warranty Market
North America holds a commanding lead in the extended warranty market, accounting for over 47% of the global share. This dominance is largely due to several key factors, including strong consumer spending habits, widespread ownership of consumer electronics, and a high prevalence of automobiles. These elements combine to create a fertile environment for extended warranty services, making the region a critical market for warranty providers and insurers alike.
Within North America, the United States stands out as the primary revenue generator, contributing more than 70% of the region’s extended warranty market. American consumers frequently prioritize purchasing extended warranties due to the relatively high costs associated with repairing or replacing expensive equipment. This preference reflects a pragmatic approach to managing unexpected expenses, as well as a desire for peace of mind in protecting valuable purchases over time.
Extended warranties for consumer electronics such as laptops, smartphones, and household appliances represent some of the most significant segments driving market growth. The rapid pace of technological innovation and the trend toward frequent hardware upgrades create a consistent demand for protection plans. Consumers recognize the value of extended warranties in safeguarding their investments against malfunctions, accidental damage, and wear-and-tear, which can otherwise lead to costly repairs or replacements.
Global Extended Warranty Market Major Players:
- American International Group Inc.
- AmTrust Financial
- Assurant, Inc.
- Asurion
- AXA
- Axiom Connected
- CARCHEX, LLC
- CarShield LLC
- Centricity
- Chubb
- Consumer Priority Services (CPS)
- Edel Assurance, LLC
- Endurance Warranty Services
- Fortegra
- Guardsman
- Safeware Inc.
- SquareTrade Inc.
- Servify
- Other Prominent Players
Key Segmentation:
By Coverage
- Standard Protection Plan
- Accidental Protection Plan
By Application
- Automobiles
- Consumer electronics
- Mobile devices & PCs
- Home appliances
- Others
By End User
- Individual
- Business
By Distribution Channel
- Manufacturers
- Retailer
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
For more information about this report visit: https://www.astuteanalytica.com/industry-report/extended-warranty-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.
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CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/
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