In 2022, the UK extended warranty market was valued at $3.54 billion. It is anticipated to expand at a CAGR of 9.9%, reaching approximately $8.93 billion by 2032. Extended warranty, also known as a service agreement, service contract, or a maintenance agreement, refers to policy that extends the warranty period of consumer durable goods beyond what is provided by manufacturers to consumers on purchase of new items. If the damage is caused by manufacturing faults or low quality, it often covers the expenses of repair or replacement of the product. Extended warranty is generally provided for automobile and electronic & electrical appliances, and is usually offered by the manufacturer, retailer, or third-party service provider.
Increased awareness of extended warranty policies among consumers has led to the development of extended warranty in the insurance market. The rise in extended warranty usage is driven by the need to protect expensive items against unexpected repairs or replacements of parts. As more individuals invest in electronic devices and appliances, the demand for extended warranty services grows, contributing to the expansion of the market for extended warranties.
However, introduction of automotive analytics and early warning system in vehicles, is one of the key factors restraining the growth of the extended warranty market. On the contrary, the expansion of complex and sophisticated product and service are fostering the demand for additional warranty coverage, which is likely to pave growth opportunities for the UK market. In addition, the untapped potential of emerging economies is providing lucrative opportunities for the market growth during the forecast period. Additionally, as vehicles become more advanced, consumers are seeking extended warranty plans to cover the high costs of unexpected repairs, driving the growth of the extended warranty market.
The extended warranty market is segmented based on coverage, application, distribution channel, and end user. By coverage, the market is bifurcated into standard protection plan and accidental protection plan. By application, the market is divided into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. By distribution channel, the market is segregated into manufacturers, retailers, and others. By end user, the market is divided into business and individuals.
The key players profiled in the extended warranty market analysis are AXA UK, American International Group, Inc., AmTrust Financial, Assurant, Inc., Asurion, Autoguard Group Company, Warrantywise, SquareTrade, Inc., Warranty Direct, Cupra S.A.U. These players have adopted various strategies, including partnership, collaboration, product launch, and developments to increase their market penetration and strengthen their position in the industry.
Increased awareness of extended warranty policies among consumers has led to the development of extended warranty in the insurance market. The rise in extended warranty usage is driven by the need to protect expensive items against unexpected repairs or replacements of parts. As more individuals invest in electronic devices and appliances, the demand for extended warranty services grows, contributing to the expansion of the market for extended warranties.
However, introduction of automotive analytics and early warning system in vehicles, is one of the key factors restraining the growth of the extended warranty market. On the contrary, the expansion of complex and sophisticated product and service are fostering the demand for additional warranty coverage, which is likely to pave growth opportunities for the UK market. In addition, the untapped potential of emerging economies is providing lucrative opportunities for the market growth during the forecast period. Additionally, as vehicles become more advanced, consumers are seeking extended warranty plans to cover the high costs of unexpected repairs, driving the growth of the extended warranty market.
The extended warranty market is segmented based on coverage, application, distribution channel, and end user. By coverage, the market is bifurcated into standard protection plan and accidental protection plan. By application, the market is divided into automobiles, consumer electronics, home appliances, mobile devices & PCs, and others. By distribution channel, the market is segregated into manufacturers, retailers, and others. By end user, the market is divided into business and individuals.
The key players profiled in the extended warranty market analysis are AXA UK, American International Group, Inc., AmTrust Financial, Assurant, Inc., Asurion, Autoguard Group Company, Warrantywise, SquareTrade, Inc., Warranty Direct, Cupra S.A.U. These players have adopted various strategies, including partnership, collaboration, product launch, and developments to increase their market penetration and strengthen their position in the industry.
Key benefits for stakeholders
- The study provides in-depth analysis of the extended warranty market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the UK extended warranty market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the extended warranty market from 2023 to 2032 is provided to determine the market potential.
Key market segments
By Coverage
- Standard Protection Plan
- Accidental Protection Plan
By Distribution Channel
- Manufacturers
- Retailers
- Others
By Application
- Automobiles
- Consumer Electronics
- Home Appliances
- Mobile Devices & PCs
- Others
By End User
- Individuals
- Business
Key market players
- AXA UK
- American International Group, Inc.
- AmTrust Financial
- Assurant, Inc.
- Asurion
- Autoguard Group Company
- Warrantywise
- SquareTrade, Inc.
- Warranty Direct
- Cupra S.A.U.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: UK EXTENDED WARRANTY MARKET, BY COVERAGE
CHAPTER 5: UK EXTENDED WARRANTY MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: UK EXTENDED WARRANTY MARKET, BY APPLICATION
CHAPTER 7: UK EXTENDED WARRANTY MARKET, BY END USER
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILE
Companies Mentioned
- AXA UK
- American International Group, Inc.
- AmTrust Financial
- Assurant, Inc.
- Asurion
- Autoguard Group Company
- Warrantywise
- SquareTrade, Inc.
- Warranty Direct
- Cupra S.A.U.
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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