The latest report by IMARC Group, titled “United States Extended Warranty Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028“, offers a comprehensive analysis of the industry, which comprises insights on the United States extended warranty market share. The market size reached US$ 55.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 81.3 Billion by 2028, exhibiting a growth rate (CAGR) of 6.9% during 2023-2028.
Factors Affecting the Growth of United States Extended Warranty Industry:
- Consumer Electronics Growth:
The proliferation of consumer electronics is a primary driver of the extended warranty market in the United States. As technology continues to advance, consumers are investing in high-value items such as smartphones, laptops, and smart home appliances. These products often come with a standard warranty of the manufacturer, but consumers are increasingly opting for extended warranties to safeguard their investments. Extended warranties offer peace of mind, protecting against unexpected repair costs after the warranty of the manufacturer expires. Moreover, the high cost of repairing or replacing modern electronics has prompted consumers to seek additional protection. This factor has led to a significant rise in extended warranty sales, as consumers perceive them as a smart financial choice in the long run.
- Automotive Industry Evolution:
Another major driver of the extended warranty market is the evolving automotive industry. With the introduction of advanced technology, complex infotainment systems, and electric vehicles, the cost of repairs and maintenance has increased substantially. As a result, car buyers are opting for extended warranties to cover potential repairs and ensure long-term vehicle reliability. Additionally, as cars become more connected and reliant on intricate electronics, extended warranties provide added security against potential technical failures. This trend is set to continue as automakers incorporate more advanced features into their vehicles, further boosting the extended warranty market.
- E-Commerce and Online Retail Boom:
The rapid growth of e-commerce and online retail has had a profound impact on the extended warranty market. With consumers purchasing a wide range of products online, the ease of adding an extended warranty during the checkout process has contributed to its popularity. E-commerce platforms often offer competitive pricing and convenient access to extended warranty options, making it more enticing for consumers to opt for added protection. Furthermore, online marketplaces and retailers frequently partner with third-party warranty providers, expanding the availability of extended warranties for a variety of products. The convenience of online shopping, coupled with the option to protect purchases with extended warranties, has significantly fueled the growth of this market.
For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/united-states-extended-warranty-market/requestsample
United States Extended Warranty Market Report Segmentation:
By Coverage:
- Standard Protection Plan
- Accidental Protection Plan
Standard protection plan dominates the market due to its widespread appeal and comprehensive protection, making it the preferred choice for consumers seeking reliable coverage for their products.
By Application:
- Automobiles
- Consumer Electronics
- Home Appliances
- Mobile Devices and PCs
- Others
Automobiles hold maximum number of shares due to the high prevalence of vehicle ownership and the increasing demand for extended protection plans in the automotive sector.
By Distribution Channel:
- Manufacturers
- Retailers
- Others
Manufacturers represent the largest segment due to their direct access to consumers, enabling them to offer extended warranty plans as an integral part of their product sales, thus capturing a significant market share.
By End User:
- Individuals
- Business
Individuals hold maximum number of shares due to the widespread adoption of extended warranties by consumers seeking to protect their valuable purchases.
Regional Insights:
- Northeast
- Midwest
- South
- West
South’s dominance in the United States extended warranty is attributed to combination of population density, consumer demand, and economic factors.
United States Extended Warranty Market Trends:
The continued trend of homeowners upgrading their kitchen and laundry appliances has contributed to the expansion of the extended warranty market. As individuals invest in high-end refrigerators, washing machines, and other home appliances, they are more inclined to protect these expensive purchases with extended warranties. These warranties provide coverage against unexpected breakdowns or malfunctions, offering homeowners peace of mind and reducing the financial burden of repairs or replacements. Additionally, the increasing demand for healthcare equipment and devices has also driven the extended warranty market. With the aging population and a greater emphasis on home healthcare, individuals are purchasing medical equipment such as, mobility aids, oxygen concentrators, and home monitoring devices. Extended warranties for such equipment are becoming essential, as they ensure uninterrupted access to critical healthcare tools, especially for those with chronic conditions.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
About Us:
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARCs information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
Our offerings include comprehensive market intelligence in the form of research reports, production cost reports, feasibility studies, and consulting services. Our team, which includes experienced researchers and analysts from various industries, is dedicated to providing high-quality data and insights to our clientele, ranging from small and medium businesses to Fortune 1000 corporations.
Contact US:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-631-791-1145 | United Kingdom: +44-753-713-2163