Global Auto Extended Warranty is designed to tackle the tear and wear of cars. It is a kind of insurance policy. This warranty is optional. It is provided at an extra cost by manufacturers, and dealers. Auto extended warranty provides protection on various electrical and mechanical components. The electrical system, air conditioning, and powertrain do not come under the general auto warranty services. The auto extended warranty market will show rapid growth during their forecast period. The factors which impact market growth involve an increase in the awareness of the extended warranty.
Global Auto Extended Warranty Market Driving Factors and Challenges
The increase in the vehicle number on the road and also the trend based on keeping cars for longer periods of time has led to an increase in the demand based on auto extended warranties. The need for extended warranty coverage increases as the likelihood of mechanical failures increases. Complex components and advanced technologies are there in modern vehicles. They are most expensive to replace or repair. This will increase the demand for extended warranties because of the rising cost. This will protect them from unexpected expenses based on the repair. Peace of mind and the addition of protection is provided to the consumers by the extended warranty. Car owners can protect themselves from any financial burden based on any unexpected repairs by the purchase of an extended warranty. Extended warranty programmes are provided by many dealers and manufacturers to customers. The complexity based on the maintenance and repair of vehicles increases as the vehicles become more advanced in technology. The cost will be high because of the complex electrical systems, advanced safety-related features, and computer-controlled components.
In underdeveloped regions, consumers based in Africa and South America are less aware of the extended warranty. When they are aware of it, they do not want to pay more towards the extended warranty. In the regions, where the spend capacity is less and also the per capita income, then the consumers will only be able to buy the basic products. This is the major critical threat to the growth of the market in developing regions.
There are inbuilt systems that give warning before any product stops functioning. This warning sign will allow the consumers to fix the problem without any damage to the automobile and electronic products.
Impact of COVID-19 on the Global Auto Extended Warranty Market
The global economic slowdown due to the surge in COVID-19 cases has particularly affected the world negatively. The auto extended market leads to a decline in sales based on vehicles when the travel ban is imposed by the government. At that time, the vehicles were not in use, so the chances based on the breakdown of vehicles were more. The market players were then providing services to those owners. This particular key factor helps in the increment in sales. The policies based on work-from-home and social distancing reduce the use of vehicles.
Auto Extended Warranty Market Key Players:
The market study provides market data by the competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; TATA Motors Limited, Olive, Endurance Warranty Services, LLC, Concord Auto Protect, CarShield LLC, CARCHEX, AXA, ASSURANT, Inc., AmTrust Financial, AAA Warranty Services Others.
Global Auto Extended Warranty Market Segmentation:
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.