According to a recent market study published by Growth Market Reports, titled, “Global Automotive Extended Warranty Market” by coverage, vehicle age, distribution channel, application, and regions: size, volume, share, trends and opportunity analysis, 2015-2030”, the market was valued at USD 49.18 Billion in 2021 and is expected to grow at a moderate growth rate of 5.4% by the year 2030. Increasing vehicle sales, limited OEM warranty period, rising awareness among young population are expected to fuel the market during the forecast period.

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As per Growth Market Reports industry analyst Akash Vedpathak, “The automotive extended warranty market” is anticipated to witness significant growth during the forecast period 2022-2030. Key factors that are anticipated to fuel the demand for the global automotive extended warranty market during the forecast period are the increasing vehicle sales, limited OEM warranty period, rising awareness among young population. Conversely, high cost associated with extended warranty, and regulations governing warranty hamper the growth of the automotive extended warranty market. Technological advancements associated with automotive extended warranty are expected to create opportunities in the market.

Automotive extended warranty, also known as a service contract, is a type of protection plan that covers the cost of repairs or replacement of certain parts and systems in a vehicle after the manufacturer's warranty has expired. This type of warranty is typically purchased separately from the vehicle and is provided by the manufacturer, dealership, or third-party providers. The manufacturer's warranty, also known as the factory warranty, is a guarantee that covers the cost of repairs for a certain period of time or mileage, usually for three to five years or up to a certain number of miles driven.

However, once this warranty expires, the vehicle owner is responsible for any repairs or replacements needed, which are costly. Extended warranties often come with different levels of coverage, ranging from original equipment manufacturers and aftermarket or third-party administrators. These include coverage for parts such as the engine, transmission, electrical systems, and air conditioning. Some extended warranties also include roadside assistance, rental car reimbursement, and other benefits.

The word, ‘supply chain’, refers to all procedures involved in transforming an idea into a tangible good or service, through a series of intermediate production, distribution, and disposal phases. These procedures include production, distribution, design, marketing, and customer support services. In the supply chain process, the value of the product increases as it passes through various stages of the supply chain. The automotive extended warranty industry supply chain involves various stakeholders who contribute to the creation and delivery of extended warranty programs for vehicles.


These refer to companies that design and manufacture vehicles. They offer their own extended warranty program or partner with third-party providers to offer extended warranties to their customers.

Third-party warranty providers:

These refer to companies that specialize in providing extended warranty coverage for vehicles. They work with automakers, dealerships, or directly with customers to offer extended warranties.


Dealerships refer to businesses that sell vehicles to customers. They offer their own extended warranty programs or work with third-party providers to offer extended warranties to customers.

Service Providers:

Service providers provide repair and maintenance services for vehicles. They work with automakers, dealerships, or third-party warranty providers to provide services covered under extended warranties.


Customers are the end-users who purchase extended warranty coverage to protect themselves from unexpected repair costs.

The primary, as well as secondary research methodology, is used for keen observation and study of the automotive extended warranty market. The primary research methodology involves commercial agreements made with the primary respondents as well as consulting partners to extract critical information pertaining to the syndicated as well as consulting projects. Primary interviews were conducted with the stakeholders across industry verticals at regular intervals in line with the ongoing studies and to keep ourselves abreast with the latest market trends & developments. Validation of the estimated market size, and current and future trends done by the key opinion leaders (KOLs). These KOLs are the CXO level people from leading companies in the industry and possess experience of around 10-20 years in the industry. On the other hand, the secondary research methodology involves exhaustive desk research undertaken to understand the prevailing market trends & dynamics, market competition, customer insights, and other KPIs. Company websites, their SEC filings, annual reports, broker & financial reports, and investor presentations are scanned for understanding the competitive scenario, details and developments, and the overall competitive landscape. Regional government and statistical databases were analyzed for macro & microanalysis. Research publications and paid data are referred to obtain and validate the market estimations, budget, expenditure, and other statistical insights.

While COVID-19 has affected nearly every aspect of the economy, the automotive industry is amongst the most affected ones. The industry is still coping with the dual effects of declining sales and rising costs, which have put OEMs and suppliers in a difficult financial position. Due to consecutive lockdowns, social distancing norms, and a decrease in global demand for new vehicles, the COVID-19 pandemic had a negative impact on the auto extended warranty market. Severe lockdowns and shutdowns halted customer movement and severely disrupted automotive warranty companies, which were major factors in the decline of automobile extended warranties during the pandemic.

Several customers were unable to service vehicles that were due for maintenance because of the worldwide lockdown. Different four-wheeler and two-wheeler companies announced an extension on the warranty and service schedule for all of their vehicles for a specific amount of time in order to reduce the losses. The majority of them offered warranty extensions of at least 1 month and often 3 months. For instance, Jaguar Land Rover announced an extension to its customers' service and warranty on April 30, 2020. Service schedule intervals were increased by two months 3,200 kilometers. Owners whose extended warranties expired between March 23 and the end of the lockdown were also given due consideration. These owners had the right to warranty claims for repairs for up to 1,000 kilometers or 30 days following the lifting of the lockdown. Furthermore, Royal Enfield announced a two-month extension on April 13, 2020, for RE owners whose free services and warranties expire between March 22 and April 14, 2020. These measures were adopted by the car manufacturers in order to handle the dip in demand post-COVID-19.

Key Takeaways from the Study:

  • In terms of coverage, the automotive extended warranty market is segmented into powertrain coverage, stated component coverage, exclusionary coverage. The PACAS exclusionary coverage segment is projected to hold a substantial share of the market in 2021, due to the highest level of protection offered by it.
  • Based on the vehicle age, the automotive extended warranty market is segmented into new vehicle, used vehicle. The used vehicle segment is projected to hold a substantial share of the market in 2021, owing to the protection provided by it against unexpected repair cost.

Report Scope:

Report Metric


Market Value in 2021

USD 49.18 Billion

Market Growth Rate (from 2021 to 2030)


Historical Data

2015 to 2020

Base Year


Forecast Period

2022 – 2030

Units Considered

Value (USD Billion)

Market Segments

By Coverage (Powertrain Coverage, Stated Component Coverage, Exclusionary Coverage), By Vehicle Age (New Vehicle, Used Vehicle), By Distribution Channel (Auto Dealers/ Manufacturers, and Third-Party Providers), By Application (Personal, Commercial) and by regions.

Key Companies Profiled

Volkswagen AG, Honda Motor Co., Ltd, General Motors, Tata Motors, AmTrust Financial, Toyota Motor Corporation, AXA Partners Holding SA, CarShield, Protect My Car, Endurance Warranty Services, LLC, Toco Warranty Corp, Concord Auto Protect, Auto Advantage Inc., CARCHEX, AAA Warranty Services, AutoCon (India) Assistance & Administration Private Limited.

Customization Scope

Report customization available on request

Pricing and Purchase Options

Avail of tailor-made purchase options to meet your research requirements.

Target Audience:

Insurance Companies, Automotive OEMs, Component Manufacturers, Government Bodies