Auto Extended Warranty Market Forecast To 2034 – For Business Leaders, Analysts, And Strategic Teams

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The Business Research Company’s Auto Extended Warranty Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, July 28, 2025 /EINPresswire.com/ -- How Big Is The Global Auto Extended Warranty Market Expected To Grow, And What Is Its Annual Growth Rate?
The auto extended warranty market has seen remarkable growth recently. Expected growth is from $32.76 billion in 2024 to $34.95 billion in 2025, yielding a compound annual growth rate CAGR of 6.7%. The historic growth can be attributed to factors such as vehicle longevity, consumer awareness, complexity of vehicle systems, peace of mind, and used car market growth.

The market size is set to witness sturdy growth over the next few years, reaching $43.28 billion by 2029 at a CAGR of 5.5%. The growth forecasted is primarily attributable to rising repair costs, market competition, customized warranty plans, lease and finance structures, and regulatory changes. Integral trends for the forecast period include technology integration for claims processing, emergence of transferable warranty policies, adoption of wear-and-tear coverage, focus on enhancing customer support services, development of all-encompassing maintenance packages, and integration of roadside assistance services.

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What Are The Key Factors Driving Growth In The Auto Extended Warranty Market?
The upsurge in the automotive production sector is set to foster the growth of the auto extended warranty market. The automotive sector encapsulates the design, development, production, and maintenance of vehicles including cars, trucks, motorcycles among others. Auto extended warranties boost the confidence of consumers when buying vehicles, thereby fostering brand loyalty and promoting high-quality manufacturing standards as manufacturers strive to curtail warranty claims and ensure long-lasting customer satisfaction. To illustrate, in May 2023, the European Automobile Manufacturers Association, a Germany-based automobile manufacturers association reported that there was a production of 85.4 million automotive vehicles worldwide in 2022, a surge of 5.7% from 2021. Hence, the rising demand for automotive production is propelling the growth of the auto extended warranty market.

Rising vehicle repair costs is yet another factor pushing the growth of the auto extended warranty market. Vehicle repairs involve activities undertaken to fix or restore a vehicle to its optimal working condition. An extended warranty can cover cost of repairs beyond the original manufacturer's warranty. Particularly for aging vehicles that are more prone to breakdowns, an extended warranty can shield the vehicle owner from unforeseen repair bills. In October 2023, the US-based Federal Reserve Bank of Minneapolis proclaimed a 17% upswing in vehicle repair costs in 2022. Furthermore, a survey indicated that approximately 34% of 584 respondents nursed concerns over car repairs in 2022. The escalating vehicle repair costs are thus driving the growth of the auto extended warranty market.

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Who Are The Key Industry Players In The Auto Extended Warranty Market?
Major actors operating in the auto extended warranty market include 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.

What Are The Emerging Trends In The Auto Extended Warranty Market?
In February 2023, the US-based Reynolds and Reynolds Company effected the acquisition of American Guardian Warranty Services Inc. at an undisclosed value. This acquisition enabled Reynolds and Reynolds Company to offer dealers a streamlined opportunity to sell aftermarket auto warranty products. American Guardian Warranty Services Inc., is an auto insurance company based out of the United States that offers vehicle service contracts, auto-extended, and limited warranties, along with other finance and insurance products and services.

How Is The Auto Extended Warranty Market Segmented?
The auto extended warranty market segmentation in this report includes:
1 By Product: Powertrain Warranty, Component Warranty, Bumper-To-Bumper Warranty
2 By Vehicle Age: New Vehicle, Used Vehicle
3 By Distribution Channel: Auto Dealers or Manufacturers, Third-Party Providers
4 By Application: Passenger Vehicles, Commercial Vehicles

This is further broken down:
1 By Powertrain Warranty: Engine Coverage, Transmission Coverage, Drivetrain Coverage
2 By Component Warranty: Electrical Component Coverage, HVAC System Coverage, Brake System Coverage, Other Component Coverage
3 By Bumper-To-Bumper Warranty: Comprehensive Coverage, Exclusionary Coverage, Named-Component Coverage

Which Regions Are Contributing To The Auto Extended Warranty Market?
In 2024, North America held the largest share in the auto extended warranty market. On the other hand, Asia-Pacific is projected to be the swiftest growing region in the forecast period. The report covers regions such as Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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