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Global Consumer Electronics Extended Warranty Market By Product Types (Laptops & PCs, Mobiles & Tablets, Home Entertainment Devices, Heating & Cooling equipment, Kitchen equipment, Others) By Distribution Channel (Manufacturers, Retailers, Others) By Coverage Types (Standard Protection Plan, Accidental Protection Plan) - Growth, Share, Opportunities & Competitive Analysis, 2016 – 2028

How Growing Market Penetration of High-End Smartphones, Laptops, and PCs Plays an Important Role in Consumer Electronics Extended Warranty Market?

As the use of smartphones, laptops, PCs, tablets, and other brown goods has increased, the market for protection for these devices has grown at a higher pace. As a result, the availability of extended warranties for these products has increased competition in the extended warranty market. Moreover, rising raw material prices continue to put downward pressure on profit margins for producers and dealers of consumer electronics. Furthermore, extended warranty solutions for these products are constantly improving, and their dominance is projected to continue during the forecast period. Thus, the increasing use and penetration of smartphones, laptops, tablets, and other brown goods fuel the expansion of the consumer electronics extended warranty market.

extended-warranty-market-for-consumer-electronics

What is the Market Size of Consumer Electronics Extended Warranty in term of value?

Global Consumer Electronics Extended Warranty Market is projected to increase at a significant CAGR of 14.7% in the coming years. In 2021, the global consumer electronics extended warranty market was valued at USD 49.2 billion and is projected to reach at value of USD 112.03 billion by 2028. The demand for consumer electronics extended warranty is projected to increase substantially in the coming years and is presumed to generate revenue opportunity for the key industry players that worth USD 62.83 billion during the forecast period between 2022 and 2028.

How Mobiles & Tablets Contributed to the Extended Warranty Market For Consumer Electronics Growth?

In 2020, the mobile devices segment led the global extended warranty market for consumer electronics. Over 50% of the total market value was generated by the smartphone and tablet segment. The growing penetration of high-end premium smartphones, particularly in nations such as the U.S., U.K., Germany, France, China, India, and others, drives the growth of the mobile devices segment. Moreover, the continuously rising adoption of tablets is a significant factor driving the rise of the mobile devices segment. The sector is expected to maintain its market leadership over the forecast period, owing to the continued growth of smartphone and tablet usage. Furthermore, consumers who favor high-end expensive smartphones account for more than 40% of all smartphone users in Europe. These users are the primary purchasers of related extended warranty contracts, which drives segment growth.

Interesting Facts about Consumer Electronics Extended Warranty Industry

  • The market is being led by value-conscious consumers' demand to extend product life and reduce repair costs.
  • The rising cost of consumer electronics and vehicle maintenance and repair is driving industry expansion.
  • The development of several innovative extended warranty solutions with added benefits is accelerating market expansion.
  • The growth of extended warranty is being supported by the digitalization of extended warranty solutions to improve consumer services.
  • North America region had a major share in terms of volume as well as value in the global consumer electronics extended warranty market in 2020 and is projected to continue its dominance over the forecast period.
  • Mobile devices segment to witness high growth during the forecast period due to increased awareness for extended warranty among consumers across the globe.

Who are the Top 10 players/companies in consumer electronics extended warranty market in term of value and volume?

The key players in the global consumer electronics extended warranty market in terms of value and volume include Amazon.com Inc., Assurant Inc., AmTrust Financial, AXA, Asurion, Go Warranty & Services LLP, OnPoint Warranty, SquareTrade Inc., Securranty, and OneAssist Consumer Solutions Pvt. Ltd. These key players are concentrating on new product developments as well as technological innovation to enhance consumer electronics extended warranty to gain competitive market share at a global level. Moreover, some regional and country level players are also investing heavily to expand their product portfolio and to enhance their sales. For instance, in February 2022, Nokia Mobile has launched smartphone protection insurance and extended warranty programs. Customers concerned about the security of their Nokia phones now can purchase additional security from HMD Global. On the other hand, in 2020, N26 Group formed a strategic partnership with Allianz Global Assistance Europe to offer its comprehensive insurance package for premium customers, which includes an extended warranty for consumer devices.

Who are the Top 10 Countries in the Extended Warranty Market For Consumer Electronics?

In the global consumer electronics extended warranty market, the major countries are U.S., India, Brazil, China, Japan, Germany, U.K., France, Hong Kong, and United Arab Emirates. China is the major producer and exporter of consumer electronics globally. In 2018, China's exports accounted for 12.4% of global trade in the consumer electronics market. Besides, the consumer electronics extended warranty market in developing countries like India is projected to witness major growth in the coming years due to increased popularity for smart gadgets and wearable among youngsters.

Which is the Key Application Area in the Consumer Electronics Extended Warranty Market?

Strategic alliances with e-commerce retailers will remain a significant strategy for extended warranty service providers during the forecast period. Some of the major extended warranty providers have formed strategic partnerships with numerous e-commerce retailers, under which they cover electronics purchased through such web platforms. Customers would be required to pay an additional fee, or the online retailer would bear a portion of the premium cost in order to provide more value for the customers.

In addition, extended warranties often cover regular wear and tear as well as product faults. Moreover, accidental damages such as drop damage or a user spilling anything on the gadget are covered by some plans. An extended warranty is provided by either the manufacturer, the retailer, or the warranty administrator, and the fee is set at a percentage of the product's retail price.

What are the Major Driving Factors for Consumer Electronics Extended Warranty Market?

Extended warranty plans nowadays include routine maintenance as well as accidental damages such as liquid spillage, theft, or broken displays. As a result, increasing customer awareness about the safety of their electronic gadgets after the original warranty has ended is the key factor driving the market growth. Moreover, the rising sales of high-end cars and consumer gadgets, such as smartphones, laptops, tablets, and wearable's, are accelerating the product adoption. Furthermore, leading players are providing value-added services such as hassle-free replacements and on-site services, as well as digitizing extended warranty processes for faster claim settlements, which is also propelling market expansion.

What are the Major Restraints for Consumer Electronics Extended Warranty Market?

The key restraint of the global consumer electronics extended warranty market which is projected to hamper the market growth include huge decline in sales of personal computer (PCs). PCs are one of the most common types of consumer equipment for which extended warranty coverage is purchased. However, with the recent downturn in PC sales, demand for extended warranties has also decreased. For instance, according to Business Quant, PC unit shipment has been declining globally. The COVID-19 epidemic has impacted the supply chain of numerous PC firms such as HP, Lenovo, and others, potentially reducing their consumer base. In addition, HP announced that year-over-year sales in the U.S. dropped by 16% in April 2020. As a result, these factors restrain the market for consumer electronics extended warranties.

Which Region Dominated the World Consumer Electronics Extended Warranty Market?

In 2020, North America dominated the global consumer electronics extended warranty market and accounted for more than 55% of the market revenue share in terms of value as well as volume. The region's dominance is largely attributable to a high level of consumer awareness of the benefits of extended warranties. Moreover, the United States has a huge consumer base for high-end smartphones, laptops, and PCs, which is significantly boosting the consumer electronics extended warranty market. The overall consumer electronics market in the United States has been growing significantly in recent years. Consumers' willingness to pay high costs for technologically advanced products has driven the consumer electronics market in the North American region, enhancing the extended warranty market's expansion in consumer electronics.

Furthermore, Europe is another key market for consumer electronics extended warranties. The U.K. has the largest market in the region, owing to high consumer awareness of extended warranties and significant smartphone and PC adoption. In addition, the increasing popularity of smart gadgets and wearable's, as well as the high cost of consumer electronics, has led European consumers to purchase an extended warranty for their expensive devices.

Segmentation of Global Consumer Electronics Extended Warranty Market-

Global Consumer Electronics Extended Warranty Market – By Product Types

  • Laptops & PCs
  • Mobiles & Tablets
  • Home Entertainment Devices
  • Heating & Cooling equipment
  • Kitchen equipment
  • Others

 Global Consumer Electronics Extended Warranty Market – By Distribution Channel

  • Manufacturers
  • Retailers
  • Others

Global Consumer Electronics Extended Warranty Market – By Coverage Types

  • Standard Protection Plan
  • Accidental Protection Plan

Frequently asked questions about global consumer electronics extended warranty industry

The COVID-19 pandemic has had a moderate effect on the consumer electronics extended warranty industry, as lower-income consumers decreased their purchases of electronic devices during the lockdown. Customers are, however, taking advantage of offers of warranty extension for products purchased through authorized offline and online platforms. As a result, the consumer electronics extended warranty market has seen significant development.

North America accounted for the highest share in the global consumer electronics extended warranty market in terms of value as well as volume.

The increased awareness for extended warranty among consumers worldwide and growing sale of televisions, washing machines, and refrigerators are the major factors driving the growth of the market.

Mobiles & Tablets devices segment had a major share in 2020 with more than 50% of the market revenue share. Besides, laptops & PCs device segment is projected to witness the fastest growth.

E-commerce retailers industry had a major share in the global market in 2020 and is projected to continue its dominance over the forecast period.

Global Consumer Electronics Extended Warranty Market Scope

Report Attribute Details
Market Value in 2021 USD 49.2 BN
Market Value in 2028 USD 112.03 BN
CAGR 14.7%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Godaddy
Published Date:  Jul 2022
Category:  Semiconductor & Electronics
Report ID:   59204
Report Format:   PDF
Pages:   200
Rating:    4.7 (70)
Delivery Time: 24 Hours to 48 Hours   
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