How Has the Home Warranty Service Market Size Evolved in Recent Years?
The home warranty service market has seen considerable growth due to a variety of factors.
• The home warranty service market has grown steadily in recent years. It will rise from $8.47 billion in 2024 to $9.13 billion in 2025, achieving a compound annual growth rate (CAGR) of 7.7%.
This growth can be attributed to increased homeownership, the complexity of home systems, growing consumer awareness, economic factors, and the aging housing stock.
What Is The Forecast For The Home Warranty Service Market Size?
The home warranty service market is expected to maintain its strong growth trajectory in upcoming years.
• The home warranty service market is forecasted to grow to $12.18 billion by 2029 at a CAGR of 7.5%.
The growth is attributed to growing demand for protection plans, urbanization, financial flexibility, and rising customer satisfaction. Trends include enhanced mobile apps, cybersecurity for connected devices, remote monitoring, flexible plans, and digital platforms.
What Are The Essential Drivers Behind The Growth Of The Home Warranty Service Market?
The increasing rates of homeownership are expected to fuel the growth of the home warranty service market. Homeownership refers to the ownership of a property, entailing responsibilities such as maintaining and managing the home. Rising homeownership rates are driven by the appeal of real estate as a stable investment and growing accessibility to purchasing homes. Home warranty services are crucial for homeowners as they cover repair and replacement costs for major appliances and systems, offering financial protection and peace of mind. For example, in May 2023, the National Association of Home Builders reported that in Q1 2023, homeownership rates increased by 0.3 percentage points among households aged 35-44, and those aged 65 and older saw a rise to 78.8% from 78.6% the previous year. Therefore, the growing homeownership rates are fueling the home warranty service market.
How Is The Global Home Warranty Service Market Divided Into Key Segments?
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
Subsegments:
1) By Home Systems: Heating, Ventilation, And Air Conditioning (HVAC), Plumbing Systems, Electrical Systems, Water Heaters, Ductwork And Ventilation Systems
2) By Appliances: Refrigerators, Dishwashers, Ovens And Stoves, Washing Machines And Dryers, Microwave Ovens, Garbage Disposals
3) By Other Types: Pool And Spa Equipment, Garage Door Openers, Septic Systems, Well Pumps, Pest Control
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What Trends Are Shaping The Home Warranty Service Market?
Prominent companies in the home warranty service market are innovating sophisticated solutions that come with in-built home warranty protection. The aim is to improve customer convenience and effortlessly incorporate coverage into property dealings. Embedded home warranty protection refers to automatically included coverage in property transactions. This service provides instant protection for home systems and appliances, eliminating the need for separate agreements. For example, in April 2023, Sure Inc., an American developer of infrastructure and distribution platforms, introduced a cutting-edge embedded home warranty protection solution. This service is developed to elevate the digital experience of homeowners and landlords. The unique service enables partners and property management platforms to smoothly embed home warranty coverages into their existing digital offerings using Sure's APIs and white-label platform. The system simplifies the purchase process, making it easier for consumers to access home warranties with just a few clicks.
Who Are the Key Players In The Home Warranty Service Market?
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.
What Are The Regional Insights Into The Home Warranty Service Market?
North America was the largest region in the home warranty service market in 2023. The regions covered in the home warranty service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
