Auto Extended Warranty Market by End-user and Geography - Forecast and Analysis - 2022-2026

The auto extended warranty market is projected to grow by USD 12.05 billion with a CAGR of 5.55% during the forecast period 2021 to 2026.

This auto extended warranty market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the auto extended warranty market segmentation by end-user (personal and commercial) and geography (North America, Europe, APAC, South America, and the Middle East and Africa). The auto extended warranty market report also offers information on several market vendors, including AAA Warranty Services, Allianz SE, The Allstate Corp., AmTrust Financial Services Inc., Assurant Inc., Asurion LLC, AXA Group, Carchex LLC, CarShield, Concord Auto Protect, Corporate Warranties India Pvt. Ltd., Edel Assurance LLP, Endurance Warranty Services LLC, Hyundai Motor Co, Repair Ventures LLC, and Tata Motors Ltd. among others.

What will the Auto Extended Warranty Market Size be During the Forecast Period?

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Auto Extended Warranty Market: Key Drivers, Trends, and Challenges

Flexible pricing schemes are notably driving the auto extended warranty market growth, although factors such as security threats may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the auto extended warranty industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Auto Extended Warranty Market Driver

Flexible pricing schemes are notably driving the auto extended warranty market growth. The pricing scheme for auto extended warranty differs largely from that of traditional auto insurance. Auto extended warranty is based on historical data such as the vehicle type, vehicle use, previous claims, liability limits, and deductibles. Discounts on premiums in the auto extended warranty are provided by combining different parameters such as previous providers of insurance for vehicles, insurance with multiple carriers, and the value of the car. Such kinds of policies make auto extended warranty a highly flexible cost, which can be assessed and paid annually, semi-annually, or on a quarterly basis. The auto-extended warranty enables the conversion of fixed costs to variable costs. It allows the calculation of premiums based on the mileage driven and other rating factors. It is a flexible pricing scheme that allows cost variation depending on driving behavior, which can be tracked using telematics. This type of pricing scheme makes auto extended warranty more individualized and precise, which is expected to drive the growth of the global auto extended warranty market during the forecast period.

Key Auto Extended Warranty Market Trend

The expansion of service portfolios by vendors is the primary trend driving the auto extended warranty market growth. Vendors operating in the market in focus have been significantly adding new services to their portfolios. For instance, vendors are offering services for replacing parts and others related to vehicles. Also, vendors are expanding their service portfolios to cover small and medium-sized commercial enterprises, apart from large enterprises. Thus, owing to the growing demand for extended warranties in the US for various automobiles from both individuals and businesses, it is expected that vendors will expand their service offerings during the forecast period. Therefore, the expansion of service offerings by vendors is expected to drive the growth of the market in focus during the forecast period.

Key Auto Extended Warranty Market Challenge

Security threats are the major challenge impeding the auto extended warranty market growth. The world is becoming digital, and people are using software and going online to avail of diverse benefits, including better-organized data, multi-screen/multi-device access, efficient handling of client data, and ease of management. Technological advancements are encouraging online and on-device data storage. Vendors operating in the global auto extended warranty market have started relying more on technology, including processing systems, online data, and electronic communication, for easy operation and business management. However, technological advancements also make data vulnerable to cybercrime. Organizations can be affected by the misuse of data that is stolen from a device or the cloud. Any cybersecurity failure or misuse of data exposes an organization's information to hackers and results in huge financial losses. The outbreak of COVID-19 in 2020 made it necessary for people to work remotely. This increased cybersecurity and data privacy risks for businesses. Several attempts at exploiting the vulnerabilities in organizations have been observed during the pandemic. This includes the use of automated scanners such as Nmap, Acunetix, and Masscan by attackers. Therefore, such issues can dissuade organizations from adopting auto extended warranty services and, in turn, negatively impact the growth of the market in focus during the forecast period.

This auto extended warranty market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global auto extended warranty market as a part of the global specialized consumer services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the auto extended warranty market during the forecast period.

Who are the Major Auto Extended Warranty Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

• AAA Warranty Services
• Allianz SE
• The Allstate Corp.
• AmTrust Financial Services Inc.
• Assurant Inc.
• Asurion LLC
• AXA Group
• Carchex LLC
• CarShield
• Concord Auto Protect
• Corporate Warranties India Pvt. Ltd.
• Edel Assurance LLP
• Endurance Warranty Services LLC
• Hyundai Motor Co
• Repair Ventures LLC
• Tata Motors Ltd.

 

This statistical study of the auto extended warranty market encompasses successful business strategies deployed by the key vendors. The auto extended warranty market is fragmented, and the vendors are deploying growth strategies such as service features, innovative solutions, pricing, brand recognition, and service portfolio to compete in the market.

Product Insights and News

aaa-warranty.com - The company offers auto extended warranties for cars, used cars, and tire and wheel protection plans.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

The auto extended warranty market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Auto Extended Warranty Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the auto extended warranty market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Auto Extended Warranty Market?

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41% of the market’s growth will originate from North America during the forecast period. The US is the key market for the auto extended warranty market in North America. Market growth in this region will be faster than the growth of the market in other regions.

The high demand for automobiles and the increase in the disposable income of people will facilitate the auto extended warranty market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID-19 Impact and Recovery Analysis

In 2020 and 2021, the outbreak of COVID-19 severely affected North America, particularly the US, Canada, and Mexico. This led to the imposition of lockdowns in several countries in North America, such as the US, Canada, and Mexico. Owing to these lockdowns and stringent social distancing norms, production in the automotive industry was shut down temporarily in North America in 2020 and 2021, which, in turn, adversely affected the global auto extended warranty market during the forecast period. However, after the second wave of the disease in 2021, stringent safety norms were followed, and large-scale governmental vaccination drives were initiated. This led to the resumption of automotive manufacturing operations in the regional market, which resulted in normal business operations. The regional auto extended warranty market witnessed growth in 2021 and is expected to grow during the forecast period.

What are the Revenue-generating End-user Segments in the Auto Extended Warranty Market?

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The auto extended warranty market share growth in the personal segment will be significant during the forecast period. Vendors operating in the market in focus offer auto extended warranty programs, including extended service plans, mobile insurance, and protection plans for various businesses such as retailers and manufacturers. Moreover, increasing automobile ownership among individuals worldwide adds to the demand for auto extended warranties. Thus, owing to the aforementioned factors, the personal segment is expected to drive the growth of the global auto extended warranty market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the auto extended warranty market size and actionable market insights on the post-COVID-19 impact on each segment.

 

Auto Extended Warranty Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 5.55%
Market growth 2022-2026	$12.05 billion
Market structure	Fragmented
YoY growth (%)	4.56
Regional analysis	North America, Europe, APAC, South America, and the Middle East and Africa
Performing market contribution	North America at 41%
Key consumer countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled	AAA Warranty Services, Allianz SE, The Allstate Corp., AmTrust Financial Services Inc., Assurant Inc., Asurion LLC, AXA Group, Carchex LLC, CarShield, Concord Auto Protect, Corporate Warranties India Pvt. Ltd., Edel Assurance LLP, Endurance Warranty Services LLC, Hyundai Motor Co, Repair Ventures LLC, and Tata Motors Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Auto Extended Warranty Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive auto extended warranty market growth during the next five years
• Precise estimation of the auto extended warranty market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the auto extended warranty industry across North America, Europe, APAC, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of auto extended warranty market vendors

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