According to a recent report published by Allied Market Research, titled, “Auto Extended Warranty Market By Coverage, Distribution Channel, Vehicle Age, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global auto extended warranty market size was valued at $34.19 billion in 2020, and is projected to reach $60.82 billion by 2030, growing at a CAGR of 5.9% from 2021 to 2030.
An auto extended warranty helps to keep the vehicle running smooth and hassle-free after the manufacturers or retailers warranty has expired. This, therefore, is one of the major trends for the market growth as it has been witnessed that incidence of traffic collision, accidents, injuries, with respect to cars is on a rise nowadays. This increases the chances of an unexpected failure of various components and systems on the cars such as the engine, gearbox, electrics, steering, and suspension. All these increase the repair bills on a vehicle, which is not covered by manufacturer’s warranty. Thus, to reduce the operational expenses and other expenses end users are adopting auto extended warranty services that drive the growth of the market.
Get a Sample Copy of this Report : https://www.alliedmarketresearch.com/request-sample/A12526
Factors such as increased awareness for extended warranty, rise in costly repairs bills are expected to fuel the market growth. However, decline in sale of cars is expected to negatively impact the growth of the market. On the contrary, innovative services offered by major auto extended warranty players, and rise in demand for extended warranty coverage in automobiles are expected to provide lucrative opportunities for the market growth in the coming years.
On the basis of distribution channel, the auto dealers/manufacturers channel segment dominated the market in 2020, and is projected to maintain its dominance during the forecast period. This channel helps in expanding coverages beyond OEMs warranty and provide cost of replacement and other such defects caused from a manufacturing defect or poor workmanship.
Region wise, the auto extended warranty market size was dominated by North America in 2020, and is expected to retain its position during the forecast period. The major factor that drives the growth of the market in this region includes rise in demand for advanced features in cars and increase in competition for telematics in automotive vertical. However, Asia-Pacific is expected to witness significant auto extended warranty market growth rate during the forecast period, owing to the increase in automotive warranty companies and rise in adoption of extended warranty services.
The auto extended warranty industry has been severely affected, due to unprecedented transport restrictions, resulting in decline of new vehicle purchases. Moreover, handling large number of claims at a time has become a challenging factor for the global auto warranty industry. As a result, these major factors affected the growth of the market during the pandemic situation.
Key Findings of the Study
- By distribution channel, the auto dealers/manufacturers segment led the auto extended warranty industry, in terms of revenue in 2020.
- By application, the personal application segment accounted for the highest auto extended warranty market share in 2020.
- By region, North America generated the highest revenue in 2020.
The key players profiled in the market include AAA Warranty Services, AmTrust Financial, ASSURANT, INC., AXA, CARCHEX, CarShield, LLC, Concord Auto Protect, Endurance Warranty Services, LLC, Olive, and TATA Motors Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry. This study includes auto extended warranty market trends, auto extended warranty market analysis, and future estimations to determine the imminent investment pockets.
About Us:
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients in making strategic business decisions and achieving sustainable growth in their respective market domain.
We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality data and help clients in every way possible to achieve success. Each data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of the domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
Contact Us:
United States
1209 Orange Street,
Corporation Trust Center,
Wilmington, New Castle,
Delaware 19801 USA.
Int'l: +1-503-894-6022
Toll Free: +1-800-792-5285
Fax: +1-800-792-5285
[email protected]
https://medium.com/@kokate.mayuri1991
