The home warranty service market size has experienced significant growth in recent years, increasing from $7.88 billion in 2023 to $8.47 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.4%. This expansion can be attributed to several factors, including increased home ownership, the complexity of home systems, heightened consumer awareness, economic considerations, and the aging housing stock. Looking forward, the market is projected to reach $11.34 billion by 2028 at a CAGR of 7.6%. The anticipated growth during this forecast period will be driven by rising awareness and demand for protection plans, urbanization, condo living, financial flexibility, and increasing customer expectations and satisfaction. Key trends expected to shape the market include enhanced mobile apps and online portals, a focus on cybersecurity for connected devices, remote monitoring and control, customizable and flexible plans, and the rise of digital platforms and mobile applications.
Major Driver In The Home Warranty Service Market
The rising homeownership rates are projected to propel the growth of the home warranty service market. Homeownership, defined as owning a home and managing a residential property, is becoming more appealing as real estate is seen as a stable investment, making purchasing homes more attractive and accessible to a wider range of individuals. Home warranty services offer homeowners financial protection by covering repair and replacement costs for major systems and appliances, providing peace of mind. According to the National Association of Home Builders, homeownership rates increased by 0.3 percentage points for households aged 35–44 in the first quarter of 2023, while rates for those aged 65 and older rose to 78.8% from 78.6% the previous year. The home warranty service market was valued at $5.11 billion in 2023, expected to reach $5.53 billion in 2024, and projected to grow to $7.41 billion by 2028, indicating that the rising homeownership rates are driving the growth of the home warranty service market.
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Home Warranty Service Market Competitive Landscape
Major companies operating in the home warranty service market are Transform SR Brands LLC, Old Republic International Corporation, Cross Country Home Services Inc., HomeServe USA Corp., Frontdoor Inc., American Home Shield Corporation, First American Home Warranty Corporation, 2-10 Home Buyers Warranty, Home Buyers Warranty Corporation, Fidelity National Home Warranty Company, OneGuard Home Warranties LLC, Home Warranty of America Inc., Landmark Home Warranty LLC, Liberty Home Guard LLC, ARW Home Services LLC, The Home Service Club Ltd., Platinum Home Warranty LLC, Secure Home Warranty LLC, American Financial Contracting Group Inc., Select Home Warranty LLC, Choice Home Warranty, First Premier Home Warranty, Home Warranty Inc., HomeGuard Home Warranty Inc.
Key Home Warranty Service Market Trend
Major companies in the home warranty service market are developing advanced solutions featuring embedded home warranty protection to improve customer convenience and seamlessly integrate coverage into property transactions. Embedded home warranty protection refers to coverage automatically included in property transactions, offering immediate protection for home systems and appliances without the need for separate agreements. For example, in April 2023, Sure Inc., a U.S.-based developer of infrastructure and distribution platforms, introduced a modern embedded home warranty protection solution aimed at enhancing the digital experience for homeowners and landlords. This innovative offering enables partners and property management platforms to easily incorporate home warranty protection into their existing digital services using Sure's APIs and white-label platform. The system simplifies the purchasing process, allowing consumers to obtain home warranties with just a few clicks.
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Global Home Warranty Service Market Segmentation
The home warranty service market covered in this report is segmented –
1) By Type: Home Systems, Appliances, Other Types
2) By Distribution Channel: Direct Sales, Agents Or Brokers, Other Distribution Channel
3) By Application: Residential, Organization
By Geography:The regions covered in the home warranty service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the home warranty service market in 2023.
The Home Warranty Service Global Market Report 2024 furnishes information about the global home warranty service market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
