Global Home Warranty Providers Market Application Fields: Residential Leads the Market with a Share of 75.23%

Global Home Warranty ProvidersMarket Overview

According to Global Market Monitor, the global home warranty providers market size is $9831.05 million in 2024 with a CAGR of 7.56% from 2024 to 2029.

A home warranty is a service contract that helps protect homeowners from unexpected repair costs for major systems and equipment that fail due to normal wear and tear. Home warranties can cover the service, repair, or replacement of major home systems and appliances. The Home Warranty Providers market refers to the market for companies that offer home warranty services.

Pros of Home Warranty Providers   

Home warranties cover service, repair, or replacement of major home systems and appliances. It can provide a financial buffer in the event of a big-ticket item failure, and it can extend the protection of the manufacturer's warranty after the warranty period expires. A home warranty is part of an overall home protection plan. If there is a problem with the equipment or system specified in the contract, the customer can submit a service request and the home warranty company will dispatch a contractor to diagnose, repair, and possibly replace the item. Therefore, a home warranty can minimize out-of-pocket costs of repairing or replacing expensive items that customers may not have the budget for. Meanwhile, a home warranty may be worthwhile if the appliance no longer has a manufacturer's warranty, and if the customer wants to reduce the out-of-pocket cost of repairing or replacing expensive items like a refrigerator or stove. In general, home warranties have the advantage of covering old appliances, and reducing out-of-pocket costs for repairs or replacements. The advantages of Home Warranty Providers are one of the factors driving the industry.

Maintenance of Old Customers

For downstream customers in the industry, the required Home Warranty Providers service is not a one-time service. The maintenance and repair of household appliances is one of the unavoidable expenses in the whole product use process. With the long-term use of various household products, some problems may occur. Generally speaking, customers and industry companies usually sign one-year contracts. After the contract expires, the customer re-selects whether to purchase the service and sign a new contract. Therefore, improving the renewal rate of existing old customers is an important opportunity for the development of industry companies. It is harder for a company to develop a new customer than to re-consume an old one. Therefore, the maintenance of old customers is very important. The maintenance of old customers runs through the whole process of pre-sale, in-sale, and after-sale. The purpose is not only to achieve cooperation but also to make customers feel good service and product-added value, to form a stable and loyal customer group. Recording customers by category and understanding the specific situation of each frequent customer, refining the classification of old customers, understanding the needs and preferences of different customers, and targeted marketing and services will be an opportunity for the development of the industry.

By Type	General Appliance and Other Warranties
	Heating and Air Conditioning Warranties
	Main Electrical Panel and Wiring Warranties
	Others
	The heating and air conditioning warranties segment holds the largest market share.
By Application	Commercial
	Residential
	75.23% of the total value is generated through the residential in 2024.