Extended Warranty Market Analysis 2026–2034: Standard vs Accidental Plans by Region

The global extended warranty market size reached USD 155.3 Billion in 2025 and is projected to reach USD 246.4 Billion by 2034, exhibiting a CAGR of 5.30% during 2026-2034. Growth is driven by increasing demand for financial protection against unforeseen defects or malfunctions, rising sales of high-value items, and complex consumer products such as electronics, appliances, and automobiles.

Study Assumption Years

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034

Extended Warranty Market Key Takeaways

• The global extended warranty market size was USD 155.3 Billion in 2025.
• The market is expected to grow at a CAGR of 5.30% between 2026 and 2034.
• The forecast period for the market is 2026-2034.
• Rising consumer demand for product protection beyond standard warranties is a key driver.
• Increasing sales of high-value electronics and appliances are expanding market demand.
• Manufacturers and retailers offer customizable warranty options enhancing consumer convenience.
• The online shopping trend boosts accessibility and purchase of extended warranties.

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Market Growth Factors

The market for extended warranties is generally based on a growing need of consumers to protect their purchases beyond the basic manufacturer warranty period, particularly in the cases of high-cost electronic devices and appliances in order to minimize the cost of repairs to their products. Customizable extended warranties are commended for providing a way to control the risks of costly repairs. The development and sale of extended warranties can be a strategy for customer satisfaction and loyalty. Increasingly, consumers are offered extended warranties and service plans in a market where e-commerce makes this a more convenient process.

Another factor driving the phenomenon of planned obsolescence is the increasing complexity of consumer products, such as electronics, household appliances, and automobiles. Many of these products now depend on advanced software and complex systems that may fail. These complexities also increase repair costs, which drives consumers to purchase extended warranties. In 2024, Allianz Partners announced the launch of new roadside assistance plans with a variety of coverage options geared towards the needs of its business partners and its customers. This has helped drive the market's growth.

Growth in the market is being supported by the growing sale of high-value products globally due to increased disposable income and changing consumer behavior. High-value products that consumers want to cover include iPhones, luxury cars and expensive laptop computers, which in turn leads to demand for additional warranty products. Because of the perceived protective nature of these warranties, they serve to provide a feeling of security and assurance of being protected from unforeseen repair costs, hence the prevalence of the availability of extended warranties by many manufacturers and retailers as an option to purchase.

Market Segmentation

By Coverage:

• Standard Protection Plan: This represents the largest segment and typically extends the warranty period beyond the original manufacturer's warranty. It covers parts and labor costs for repairs, offering basic protection against defects and malfunctions for an additional period at a reasonable price.
• Accidental Protection Plan: (Only mentioned as a segment; no detailed data provided.)

By Application:

• Automobiles: Account for the majority market share. Extended warranties here cover vehicles and their components against mechanical and electrical failures. This includes new vehicle warranties from dealerships and used vehicle warranties for pre-owned cars.
• Consumer Electronics: (Only listed; no specific details provided.)
• Home Appliances: (Only listed; no specific details provided.)
• Mobile Devices and PCs: (Only listed; no specific details provided.)
• Others: (Only listed; no specific details provided.)

By Distribution Channel:

• Manufacturers: Hold the largest market share by directly offering extended warranty programs at the point of sale. These programs complement standard warranties and often include additional benefits like priority service and dedicated support.
• Retailers: (Only listed; no specific details provided.)
• Others: (Only listed; no specific details provided.)

By End User:

• Individuals: Represent the largest segment. Individuals purchase extended warranties to protect various personal-use products and seek peace of mind with financial coverage against unexpected repair costs.
• Business: (Only listed; no specific details provided.)

Regional Insights

North America dominates the global extended warranty market, maintaining the largest market share. This dominance stems from the presence of key manufacturers and retailers and heightened consumer awareness about their rights. The region benefits from increasing demand for high-value products and the adoption of advanced consumer electronics, fostering a positive market outlook.

Recent Developments & News

In 2023, Allianz S.p.A. acquired Tua Assicurazioni S.p.A. from Assicurazioni Generali S.p.A. for 280 million euros, boosting its position in Italy's Property and Casualty insurance market by approximately 1 percentage point through leveraging Tua Assicurazioni's profitable portfolio and network. Also in 2023, CarShield renewed its sponsorship of NASCAR driver Ross Chastain, whose strong performance secured a playoff spot, amplifying CarShield's brand presence on the #45 Silverado truck as he vies for the championship.

Key Players

• Allianz Partners
• Allstate Insurance Company
• American International Group, Inc.
• AmTrust Financial
• Assurant Inc.
• Asurion
• Carchex
• CarShield LLC
• Domestic & General Group Limited
• Edel Assurance
• Endurance Warranty Services, LLC
• Likewize
• MAPFRE

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