The home warranty service market was valued at $7,315.1 million in 2020, and is expected to reach $13,611.2 million by 2030, registering a CAGR of 6.3% from 2021 to 2030. Home warranty services cover the cost of structural defects in homes caused due to natural calamities or poor construction quality. Homeowners offer policies that involve the construction of up to 10 years of structural defects, which may include flooring, walls, roof, fence, and sheetrock. Housing warranties further include a two-year coverage for electrical and plumbing systems as well as six months of household appliances. The cost of a building warranty policy is often part of the price of a new home. Home warranty providers may deny coverage for any reason. Some already existing damages that are caused before buying the warranty coverage are not covered under the scheme. For this reason, a pre-purchase home inspection reveals damage to other systems or equipment. . Moreover, the warranty company will not cover items that have been misused, improperly installed, or improperly used.
The growth of the global home warranty service market is majorly driven by rise in need for protection of expensive appliances such as refrigerators; heating, ventilation, and air conditioning (HVAC) systems; dishwashers; ovens; cook tops; plumbing; and electrical systems. This helps in maintenance and servicing of appliances and systems in home. In addition, rise in awareness for warranty services is driving the market growth in tire 2 and tire 3 cities. This awareness is leading to increase in subscription of home warranty services with services providers. However, hidden charges at the time of actually warranty claim and stringent terms & conditions of service providers restraint the market growth.
On the contrary, increase in expenditure on home services majorly in the developing countries such as China, India, and Brazil is anticipated to open new avenues for the growth of the home warranty service market during the forecast period.
The global home warranty service market is segmented into distribution channel, type, sales channel, application, and region. On the basis of distribution channel, the market is categorized into brokers, agents & branches, and others. Depending on type, it is bifurcated into home systems and appliances. By application, it is segregated into residential and commercial. As per sales channel, it is fragmented into renewals, home resale, and direct to consumer. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, Japan, South Korea, India, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
The growth of the global home warranty service market is majorly driven by rise in need for protection of expensive appliances such as refrigerators; heating, ventilation, and air conditioning (HVAC) systems; dishwashers; ovens; cook tops; plumbing; and electrical systems. This helps in maintenance and servicing of appliances and systems in home. In addition, rise in awareness for warranty services is driving the market growth in tire 2 and tire 3 cities. This awareness is leading to increase in subscription of home warranty services with services providers. However, hidden charges at the time of actually warranty claim and stringent terms & conditions of service providers restraint the market growth.
On the contrary, increase in expenditure on home services majorly in the developing countries such as China, India, and Brazil is anticipated to open new avenues for the growth of the home warranty service market during the forecast period.
The global home warranty service market is segmented into distribution channel, type, sales channel, application, and region. On the basis of distribution channel, the market is categorized into brokers, agents & branches, and others. Depending on type, it is bifurcated into home systems and appliances. By application, it is segregated into residential and commercial. As per sales channel, it is fragmented into renewals, home resale, and direct to consumer. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, Japan, South Korea, India, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
Competition Analysis
The major players profiled in the home warranty service market include AFC Home Club, Cinch Home Services, Inc., First American Home Warranty, FNHW (Fidelity National Home Warranty), Frontdoor, Inc., Home Buyers Warranty Corporation, Landmark Home Warranty, Old Republic International Corporation, Oneguard Home Warranties, and Transforms SR Brands LLC companies in the market have adopted product launch and business expansion as their key developmental strategies to offer better products and services to customers in the home warranty service market.KEY BENEFITS FOR STAKEHOLDERS
- The report provides an extensive analysis of the current trends, future estimations, and dynamics of the home warranty service market
- In-depth home warranty service market analysis is conducted by estimations for the key segments between 2021 and 2030
- Extensive analysis of the market is conducted by following key product positioning and monitoring of top competitors within the market framework
- A comprehensive analysis of four major regions is provided to determine the prevailing opportunities
- The market forecast analysis from 2021 to 2030 is included in the report
- The key market players operating in the market are profiled in this report and their strategies are analyzed thoroughly, which help to understand the competitive outlook of the market industry
KEY MARKET SEGMENTS
By Distribution Channel
- Brokers
- Agents & Branches
- Others
By Type
- Home System
- Appliance
By Application
- Residential
- Commercial
By Sales Channel
- Renewals
- Home Resale
- Direct to Customer
By Region
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Players
- AFC Home Club
- Cinch Home Services, Inc
- First American Home Warranty
- FNHW (Fidelity National Home Warranty)
- Frontdoor, Inc
- Home Buyers Warranty Corporation
- Landmark Home Warranty
- Old Republic International Corporation
- Oneguard Home Warranties
- Transforms SR Brands LLC
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Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Overview
Chapter 4: Home Warranty Service Market, by Distribution Channel
Chapter 5: Home Warranty Service Market, by Type
Chapter 6: Home Warranty Service Market, by Application
Chapter 7: Home Warranty Service Market, by Sales Channel
Chapter 8: Home Warranty Service Market, by Region
Chapter 9: Company Profiles
List of Tables
List of Figures
Executive Summary
According to a recent report titled, “Home Warranty Service Market by Distribution Channel, Type, Sales Channel and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the home warranty services market was valued at $7.3 billion in 2020, and is expected to reach $13.6 billion by 2030, registering a CAGR of 6.3% from 2021 to 2030.Home warranty is a service offered by developers that cover the cost of structural defects in homes caused due to natural calamities or poor construction quality. It further covers repair and replacement costs of appliances such as fans, ACs, and fittings, which come with a furnished flat. When an appliance or system is damaged, the homeowner contacts the home warranty provider. The warranty company usually works in unison with one or more home service providers, such as plumbing or electrical contractors. After being notified of a claim, the warranty company requests services from one of its partnered providers, who will assess the damage and subsequently provide a report to the warrantor. The assessment report reveals the extent and potential causes of damage to the appliance. The home warranty company confirms if the policyholder’s contract covers the appliance or system for the assessed damage. If approved, the warrantor employs the contractor to repair or replace the system.
The growth of the home warranty service market is majorly driven benefits associated with warranty services such as protection of appliances and home systems in case of damage or breakdown as well as availability of free of cost service or minimal amount payment to servicing firms. In addition, rise in awareness among people to opt for home warranty services to prevent high repairing and maintenance costs of home systems and appliances notably contributes toward the growth of the global market. However, several hidden charges and implementation of terms & conditions by home warranty service providers make the service costly post maintenance or repair work is carried out. On the contrary, the expenditure on systems installed at homes and specific commercial spaces is being covered under home warranty services in emerging countries, which is expected to offer lucrative opportunities for the growth of the home warranty service market.
The global home warranty service market is segmented into distribution channel, type, sales channel, application, and region. On the basis of distribution channel, the market is segregated into brokers, agents & branches, and others. Depending on type, it is bifurcated into home systems and appliances. By application, it is fragmented into residential and commercial. As per sales channel, it is categorized into renewals, home resale, and direct to consumer. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, Japan, South Korea, India, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
Key Findings Of The Study
- By distribution channel, the brokers segment was the highest revenue contributor in 2020
- Depending on type, the home system segment dominated the market in 2020
- Depending on sales channel, the renewals segment dominated the market in 2020
- On the basis of application, the residential led the market in 2020
- Region, Asia-Pacific generated the highest revenue in 2020
- The major players profiled in the home warranty service market include AFC Home Club, Cinch Home Services, Inc., First American Home Warranty, FNHW (Fidelity National Home Warranty), Frontdoor, Inc., Home Buyers Warranty Corporation, Landmark Home Warranty, Old Republic International Corporation, Oneguard Home Warranties, and Transforms SR Brands LLC These players have adopted product launch and business expansion as their key developmental strategies to offer better products and services to customers
Companies Mentioned
- AFC Home Club
- Cinch Home Services, Inc.
- First American Home Warranty
- FNHW (Fidelity National Home Warranty)
- Frontdoor, Inc.
- Home Buyers Warranty Corporation
- Landmark Home Warranty
- Old Republic International Corporation
- Oneguard Home Warranties
- Transforms SR Brands LLC.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 160 |
| Published | February 2022 |
| Forecast Period | 2020 - 2030 |
| Estimated Market Value ( USD | $ 7315.1 million |
| Forecasted Market Value ( USD | $ 13611.2 million |
| Compound Annual Growth Rate | 6.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
