Auto Dealership CRM Software Market Report 2025

This 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 historic and forecast market growth by geography.

The auto extended warranty market size has grown strongly in recent years. It will grow from $32.76 billion in 2024 to $34.95 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to vehicle longevity, consumer awareness, complexity of vehicle systems, peace of mind, used car market growth.

The auto extended warranty market size is expected to see strong growth in the next few years. It will grow to $43.28 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to rising repair costs, market competition, customized warranty plans, lease and finance structures, regulatory changes. Major trends in the forecast period include integration of technology for claims processing, rise of transferable warranty policies, introduction of wear-and-tear coverage, focus on enhanced customer support services, development of comprehensive maintenance packages, integration of roadside assistance services.

The anticipated surge in automotive production is set to drive the growth of the auto extended warranty market. Automotive production encompasses various aspects, including design, development, manufacturing, and maintenance of motor vehicles such as cars, trucks, and motorcycles. Auto extended warranties play a crucial role in supporting automotive production by fostering consumer confidence, promoting brand loyalty, and encouraging adherence to higher manufacturing standards. Manufacturers, striving to minimize warranty claims and ensure long-term customer satisfaction, benefit from increased consumer trust in purchasing vehicles. For example, in May 2023, the European Automobile Manufacturers Association (ACEA) reported a global production of 85.4 million automotive vehicles in 2022, signifying a 5.7% increase from 2021. Hence, the escalating demand for automotive production is a driving force behind the growth of the auto extended warranty market.

The auto extended warranty market is expected to witness growth due to the rising costs associated with vehicle repairs. Vehicle repairs involve actions taken to fix or restore a vehicle to its proper working condition. As vehicles age, they become more susceptible to breakdowns, making extended warranties valuable for covering repair costs beyond the original manufacturer's warranty. The increasing expense of vehicle repairs, as reported by the Federal Reserve Bank of Minneapolis in October 2023, reflects a 17% rise in 2022. Concerns about car repairs were expressed by around 34% of 584 survey respondents in the same year. Consequently, the escalating costs of vehicle repairs propel the growth of the auto extended warranty market.

The auto extended warranty market faces challenges stemming from consumer perception and trust issues. Consumers often harbor suspicions regarding the value and reliability of extended warranty policies, creating a barrier to adoption. Negative experiences, including misunderstandings about hidden costs, denied claims, or restricted coverage, contribute to diminished consumer faith in the industry. In July 2023, the Federal Trade Commission took legal action against operators engaged in a telemarketing scheme offering fake extended automobile warranties. The proposed court decree barred the accused from participating in outbound telemarketing activities and providing extended automotive warranties. Consequently, consumer perception and trust difficulties pose constraints on the growth of the auto extended warranty market.

Major companies in the market are concentrating on introducing innovative auto extended warranties to drive market revenues. An example is the anytime warranty package, which allows customers to purchase extended coverage for a product at any time, regardless of the original purchase date or standard warranty expiration. Skoda Auto a.s., in February 2023, introduced this innovative anytime warranty package in India, enhancing customer satisfaction and ownership experience. The warranty, applicable to Skoda vehicles within seven years of age and less than 130,000 kilometers, is transferable to the next owner, fostering flexibility and customer benefits.

In February 2023, Reynolds and Reynolds Company acquired American Guardian Warranty Services Inc., a US-based auto insurance company. This acquisition positions Reynolds and Reynolds to streamline the process of selling aftermarket auto warranty products. American Guardian Warranty Services Inc. specializes in providing vehicle service contracts, auto extended and limited warranties, along with additional finance and insurance products and services. Through this acquisition, Reynolds and Reynolds seek to enhance their offerings in the auto extended warranty market.

Major companies operating in the auto extended warranty market report are Industrial and Commercial Bank of China Limited, China Ping An Insurance (Group) Co. Ltd., Axa S.A., Hyundai Motor Company, Allstate Insurance Company, Bradesco Seguros S.A., Zurich Insurance Group Ltd., Tata Motors Ltd., MAPFRE ESPANA S.A., Porto Seguro S.A., Ally Financial Inc., Assurant Inc., 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., Endurance Warranty Services LLC, American Auto Shield LLC, CARCHEX, Warranty Direct, Corporate Warranties India Pvt. Ltd., Autoguard Warranties Ltd., CarSure, Edel Assurance LLP, Concord Auto Protect Inc., CarProtect Insurance Services Ltd., AAA Warranty Services, Repair Ventures LLC.

North America was the largest region in the auto extended warranty market in 2024. 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, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

An auto extended warranty is a form of protection plan that offers coverage for the repair and maintenance of a vehicle beyond the original manufacturer's warranty period. Typically provided by third-party companies or, in some cases, by the vehicle manufacturers themselves, these warranties aim to provide vehicle owners with peace of mind by alleviating the financial burden associated with unexpected repairs.

The primary product types of auto extended warranties include powertrain warranty, component warranty, and bumper-to-bumper warranty. A powertrain warranty specifically covers the major mechanical components of a vehicle's powertrain. These warranties are applicable to vehicles of various ages, including both new and used vehicles. They are distributed through diverse channels such as auto dealers or manufacturers, as well as third-party providers, and find applications in both passenger vehicles and commercial vehicles.

The auto extended warranty market research report is one of a series of new reports that provides auto extended warranty market statistics, including auto extended warranty industry global market size, regional shares, competitors with an auto extended warranty market share, detailed auto extended warranty market segments, market trends, and opportunities, and any further data you may need to thrive in the auto extended warranty industry. This auto extended warranty market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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