In 2024, the global extended warranty market was valued at $147.1 billion.
By 2033, it’s projected to hit $239 billion, growing at a steady 5.5% CAGR, according to market research firm IMARC Group’s Extended Warranty Market Report by Coverage.
What’s behind the upward trend? Here are the key factors driving growth in the market.
1. More consumers want to protect their budget
In a time when unexpected costs can hit hard, people are looking for ways to keep their money safe.
According to Bankrate’s 2025 Annual Emergency Savings Report, about 6 in 10 U.S. adults feel uncomfortable with their emergency savings. About 4 in 10 say they wouldn’t be able to cover an unexpected $1,000 expense.
As repair, parts and labor costs continue to go up, extended warranties can offer the safety net that people seek to protect themselves against surprise expenses.
2. Digital tools have transformed coverage
AI and advanced data analytics are speeding up claims, detecting fraud more accurately, and making it easier to personalize coverage to individual needs, with fewer resources.
These improvements are creating a new standard for the extended warranty purchase experience. This leads to OEMs offering protection plans with lower overhead and consumers obtaining better coverage and higher satisfaction.
3. North America leads the global market
North America holds the largest share of the extended warranty market.
According to IMARC Group, in 2024, the U.S. alone generated $48.4 billion in revenue.
Some of the factors that influence this are:
- The widespread adoption of high-end vehicles
- Strong partnerships to provide more reliable coverage
- Advanced digital infrastructure for managing claims
The use of AI-driven systems and digital-first platforms make North America the most developed warranty market around the world.
The extended warranty market is evolving
With digital innovation and increasing demand for protection, extended warranties are becoming an even more attractive safety net.
In the future, we can expect to see more reliable coverage plans, more digital platforms to sell coverage and smarter claims processes.
Discover how Repair Ventures provides auto OEMs with a smart, digital-first experience for their extended warranty customers.
However, there are also concerns surrounding AI, such as privacy issues, data security, and the potential for over-reliance on automation. Marketers must balance the benefits of AI with ethical considerations to ensure that it’s used responsibly and transparently.