An auto extended warranty is a service contract that provides additional coverage for vehicle repairs and maintenance after the manufacturer's warranty expires. It is typically offered by automakers, third-party providers, or dealerships. The main purpose of an extended warranty is to protect vehicle owners from unexpected and often costly repair bills once the original factory warranty ends. It offers financial security and peace of mind by covering specific parts and systems of the vehicle.
The auto extended warranty market consists of revenues generated by entities (organizations, sole traders, and partnerships) that offer extended warranty services for vehicles. These services are designed to provide additional protection against unexpected repair costs that may arise after the expiration of the manufacturer's standard warranty.
The global auto extended warranty market was valued at $26,318.00 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 4.00%.
Growing Automotive Leasing
During the historic period, the growing automotive leasing supported the growth of the auto extended warranty market. Automotive leasing, typically lasting 2-4 years, leads to higher vehicle turnover compared to traditional ownership. To mitigate unexpected repair costs, many lessees opt for extended warranties, ensuring coverage throughout the lease period. Leasing companies often incorporate maintenance packages and extended warranties into their terms, presenting them as cost-effective solutions to minimize out-of-pocket expenses. As leasing continues to gain popularity, the demand for these protection plans grows accordingly. For example, in 2023, according to the BDL (the Federal Association of German Leasing Companies), a Berlin-based umbrella organization that represents the interests of the German leasing industry, in 2023, the Germany automotive leasing market generated investments of nearly 90.13 USD (83.5 billion euros), with a 19.5% growth rate. Therefore, the growing automotive leasing drove the growth of the auto extended warranty market.
The Rise Of Lifetime Powertrain Warranties In Vehicle Protection
Companies operating in the auto extended warranty market are focusing on developing innovative powertrain warranties to provide extended coverage for critical components, enhance vehicle reliability, and offer customers greater peace of mind. These warranties help attract buyers and build long-term brand loyalty. For instance, in July 2024, Segway Powersports, a US-based company that offers extended warranty options for their vehicles, introduced a lifetime powertrain warranty called Next-Gen Protection. It covers internal engines and transmission components for all 1000cc and above engines throughout the original owner's lifetime. It also includes labor costs but is non-transferable and excludes normal wear items such as clutch components, driveshafts, axles, and front differential components. Additionally, Segway Powersports offers a 12-month limited commercial warranty for fleet vehicles covering manufacturing defects, but all vehicles are excluded from their Lifetime Powertrain Warranty.
The global auto extended warranty market is fragmented, with large number of small players operating in the market. The top ten competitors in the market made up to 8.95% of the total market in 2023.
Auto Extended Warranty Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global auto extended warranty market as it emerges from the COVID-19 shut down.
Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Where is the largest and fastest-growing market for auto extended warranty? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The auto extended warranty market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider auto extended warranty market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by product, by vehicle age, by distribution channel, by appication.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth- Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by product, by vehicle age, by distribution channel and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for auto extended warranty providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Product: Powertrain Warranty; Component Warranty; Bumper-To-Bumper Warranty; Other Products
- 2) By Vehicle Age: New Vehicle; Used Vehicle
- 3) By Distribution Channel: Auto Dealers Or Manufacturers; Third-Party Providers
- 4) By Application: Passenger Vehicles; Commercial Vehicles
- Companies Mentioned: Endurance Warranty Services LLC; Assurant Inc; Allstate Insurance Company; Zurich Insurance Group Ltd; Tata AIG General Insurance Company
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; auto extended warranty indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.