Auto Extended Warranty Market Report 2026

The auto extended warranty market size has grown strongly in recent years. It will grow from $34.93 billion in 2025 to $37.26 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to increasing vehicle ownership duration, rising repair and maintenance costs, expansion of used vehicle sales, growing awareness of vehicle protection plans, increased penetration of third-party warranty providers.

The auto extended warranty market size is expected to see strong growth in the next few years. It will grow to $47.94 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to growing adoption of electric and connected vehicles, rising use of data-driven pricing models, expansion of subscription-based warranty services, increasing demand for personalized coverage, growing integration with digital auto platforms. Major trends in the forecast period include increasing adoption of digital warranty platforms, rising demand for flexible coverage plans, growing use of predictive maintenance analytics, expansion of extended warranties for used vehicles, enhanced focus on customer experience.

The increasing demand for automotive production is expected to drive the growth of the auto extended warranty market in the coming years. Automotive refers to the design, development, manufacturing, and maintenance of motor vehicles such as cars, trucks, motorcycles, and others. Auto extended warranties support automotive production by boosting consumer confidence in vehicle purchases, strengthening brand loyalty, and encouraging higher manufacturing quality, as manufacturers work to reduce warranty claims and ensure long-term customer satisfaction. For example, in March 2025, according to the European Automobile Manufacturers' Association (ACEA), a Belgium-based automobile industry association, global car sales reached 74.6 million units in 2024, reflecting a 2.5% increase compared to 2023. During the same year, global car production stood at 75.5 million units. China maintained its position as the world’s largest car producer with a 35.4% market share, recording a 5.2% increase. Additionally, South American car production grew by 1.7% in 2024 compared to 2023, driven largely by Brazil, which posted a 6.3% rise, producing approximately 1.9 million cars. Therefore, the growing demand for automotive production is fueling the expansion of the auto extended warranty market.

Major companies operating in the market are increasingly focusing on innovative auto extended warranty offerings to drive revenue growth. An anytime warranty package generally refers to a type of warranty or service contract that allows customers to purchase extended coverage at any stage, regardless of when the vehicle was originally purchased or whether the standard warranty period has ended. For instance, in February 2023, Skoda Auto a.s., a Czech Republic-based automobile manufacturer, launched an innovative anytime warranty package to enhance customer satisfaction and ownership experience in India. This one-year or 20,000-kilometer warranty package is designed for older generations and models such as Kodiaq, Superb, Octavia, Yeti, and Rapid, and it is transferable to the next owner. The anytime warranty applies to Skoda vehicles that are up to seven years old and have been driven less than 130,000 kilometers, and it is also available to customers whose previous warranty contracts have expired.

In February 2023, Reynolds and Reynolds Company, a US-based software provider, acquired American Guardian Warranty Services Inc. for an undisclosed amount. Through this acquisition, Reynolds and Reynolds aims to offer dealers a more streamlined approach to selling aftermarket auto warranty products. American Guardian Warranty Services Inc. is a US-based automotive insurance company that offers vehicle service contracts, auto extended and limited warranties, along with additional finance and insurance products and services.

Major companies operating in the auto extended warranty market are Endurance Warranty Services LLC, American Auto Shield LLC, CARCHEX, Warranty Direct, Corporate Warranties India Pvt. Ltd., Autoguard Warranties Ltd., CarSure, Concord Auto Protect Inc., CarProtect Insurance Services Ltd., AAA Warranty Services, Repair Ventures LLC, AXA S.A., Allstate Insurance Company, Zurich Insurance Group Ltd., MAPFRE ESPANA S.A., Porto Seguro S.A., Allianz SE, HDI Global SE, AmTrust Financial Services Inc., Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, Oman Insurance Company P.S.C., Hyundai Motor Company, Tata Motors Ltd., Ally Financial Inc., China Ping An Insurance (Group) Co. Ltd.

North America was the largest region in the auto extended warranty market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the auto extended warranty market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the auto extended warranty market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The auto extended warranty market includes revenues earned by entities through extended warranty plans and claims processing fees. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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