An auto extended warranty is an insurance policy that provides an extended warranty plan or service contract for vehicle maintenance or damage beyond the manufacturer’s warranty period. This plan covers the cost of repairing and replacing specific vehicle components and systems in the event of engine breakdown or failure. Auto extended warranty plans offer various coverage options, durations and mileage limits to suit customer needs. Many of the plans of auto extended warranty market are transferable which enhances the vehicle’s resale value. These extended warranties provide customers with financial security against high costs, emergency repairs and many additional services such as roadside assistance.
According to SPER market research, ‘Auto Extended Warranty Market Size– By Coverage, By Distribution Channel, By Vehicle Age, By Application – Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ state that the Auto Extended Warranty Market is predicted to reach USD 68.51 billion by 2033 with a CAGR of 6.13%.
The auto extended warranty market is expected to grow robustly in the future, driven by factors such as increased awareness, benefits of an extended warranty plan, and educating buyers about available products and services. Innovative services offered by major players and rising demand for extended warranty coverage in automobiles are also expected to boost the market growth. The increasing complexity of vehicles, as advanced technologies make repairs more expensive, is driving the market. The opportunities for auto extended warranty market lies in offering customized coverage options and advantages of digital platforms will help to streamline the purchase process and provide value-added services, giving owners peace of mind and protection against unexpected repair expenses as their vehicles age.
Lack of awareness about the coverage included in auto extended warranty and high additional costs for purchasing auto extended warranty are restraining the market growth. However, factors such as false claims, fraud, and consumer ignorance about purchasing auto-extended warranties can negatively affect the adoption of auto-extended contracts. Extended warranty plans face challenges in terms of consumer perception regarding their value and trustworthiness.
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Impact of COVID-19 on the Global Auto Extended Warranty Market
The global economic slowdown due to the surge in COVID-19 cases has had a negative impact on the world. The auto extended warranty market has experienced a decline in sales due to travel bans imposed by governments. Policies based on work-from-home and social distancing have reduced the use of vehicles, thus the market was adversely affected.
Auto Extended Warranty Market Key Players:
Geographically, auto extended warranty market in North America has grown significantly due to the growing number of consumers using the auto extended warranties in the region. Europe also accounts for a large portion of the auto extended warranty market, mainly due to the presence of major automobile manufacturers. Asia-Pacific is expected to be the fastest growing market for auto extended warranties due to the emergence of emerging economies, high repair costs, variety of offers & benefits offered under auto extended warranties, and improved customer experience. Additionally, some of the market key players are AAA Warranty Services, AmTrust Financial, ASSURANT INC., AXA, CARCHEX, Carshield LLC, Concord Auto Protect and others.
Auto Extended Warranty Market Segmentation:
The SPER Market Research report seeks to give market dynamics, demand, and supply forecasts for the years up to 2033. This report contains statistics on product type segment growth estimates and forecasts.
By Coverage: Based on the Coverage, Global Auto Extended Warranty Market is segmented as; Powertrain, Stated component, Exclusionary.
By Distribution Channel: Based on the Distribution channel, Global Auto Extended Warranty Market is segmented as; Auto Dealers/ Manufacturers, Third-Party Providers.
By Vehicle Age: Based on the Vehicle Age, Global Auto Extended Warranty Market is segmented as; New Vehicles, and Used Vehicles.
By Application: Based on the Application, Global Auto Extended Warranty Market is segmented as; Personal, and Commercial.
By Region: This research also includes data for Asia-Pacific, Europe, the Middle East and Africa, North America, and Latin America.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.
For More Information, refer to below link:-
Auto Extended Warranty Market Future Outlook
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