Global Home Warranty Service Market Overview
The Home Warranty Service Market Size was estimated at 3.0 (USD Billion) in 2022.The Home Warranty Service Industry is expected to grow from 3.19(USD Billion) in 2023 to 5.5 (USD Billion) by 2032. The Home Warranty Service Market CAGR (growth rate) is expected to be around 6.25% during the forecast period (2024 - 2032).
Key Home Warranty Service Market Trends Highlighted
The surge in homeownership rates and the aging housing stock are key drivers propelling the growth of the home warranty service market. Homeowners increasingly seek protection against unexpected repair costs, driving demand for comprehensive warranty coverage. Additionally, the rising cost of home repairs and the complexity of modern appliances and systems contribute to the growing popularity of home warranties.Unexplored markets in developing regions present significant growth opportunities. Homeownership rates in these regions are projected to increase, creating a substantial market for warranty services. Moreover, innovative technologies such as smart home devices and preventive maintenance programs are emerging as potential growth drivers, allowing providers to expand their service offerings.The home warranty service market is witnessing several notable trends. Digitalization is becoming increasingly prevalent, with providers offering online platforms for purchasing and managing warranties. Customization and personalization are gaining traction as homeowners seek tailored coverage that meets their specific needs. Additionally, green home warranties covering repairs related to energy efficiency and sustainability are becoming more popular amidst growing environmental concerns.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Home Warranty Service Market Drivers
Rising Homeownership Rates
The increasing number of homeowners globally is a major driver of the home warranty service market. As more people purchase homes, they are becoming increasingly aware of the benefits of home warranties, which can protect them from unexpected repair costs. Home warranties provide peace of mind to homeowners, as they know that they will be covered in the event of a major appliance or system failure. The rising homeownership rates are expected to continue in the coming years, which will further drive the demand for home warranty services.
Increasing Complexity of Home Systems
Modern homes are becoming increasingly complex, with a growing number of appliances and systems that can break down. This complexity makes it more difficult and expensive for homeowners to repair their homes on their own. As a result, they are turning to home warranty companies to provide them with the protection they need. Home warranty companies can quickly and efficiently repair or replace broken appliances and systems, which can save homeowners a significant amount of time and money.
Growing Awareness of Home Warranties
Homeowners are becoming increasingly aware of the benefits of home warranties. This is due in part to the efforts of home warranty companies to educate consumers about the importance of protecting their homes. Home warranty companies are also making it easier for homeowners to purchase and use their services. As a result, the demand for home warranty services is expected to continue to grow in the coming years.
Home Warranty Service Market Segment Insights
Home Warranty Service Market Coverage Type Insights
The Basic Coverage is the basic cover that the maximum number of home warranties avail at present. The system and appliances that are usually covered by this include the heating and cooling system, plumbing system, electrical system, and other major systems and appliances. Enhanced Coverage offers a higher level of protection than Basic Coverage. It covers more items in addition to the items covered under Basic Coverage. Some of the items covered by this coverage are the roof, foundation, and pool.Under Customized Coverage, the homeowners will be able to customize their warranty coverage as per their requirements. Moreover, the items that are not under coverage for Basic or Enhanced are also covered under this category. The Basic Coverage segment is anticipated to realize the highest share in the Home Warranty Service Market revenue in 2023. Basic Coverage is currently the most affordable market of the warranty and it also offers coverage for the major home systems and appliances. The enhanced Coverage segment is anticipated to realize faster growth than the Basic Coverage segment for the next five years.Homeowners are increasingly going for more comprehensive coverage for their homes. Customized Coverage segments are anticipated to realize the least growth for the next five years. This growth is attributed to the increasing number of homeowners, escalating home repair costs, and increasing awareness of home warranties. 
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Home Warranty Service Market Property Type Insights
The Property Type segment of the Home Warranty Service Market can be classified into Single-Family Homes, Multi-Family Homes, and Commercial Properties. Single-Family Homes dominated the market in 2023, accounting for a revenue share of around 65%. The growing demand for homeownership, particularly among millennials and first-time homebuyers, is a key factor driving the growth of this segment. Multi-Family Homes are projected to witness a significant growth rate during the forecast period, owing to the increasing popularity of rental properties and the rising number of households.Commercial Properties, including office buildings, retail spaces, and industrial facilities, are also expected to contribute to the market growth as businesses seek to protect their valuable assets.
Home Warranty Service Market Service Provider Insights
The Home Warranty Service Market is segmented by service providers into national companies, regional companies, and local contractors. National companies account for the largest share of the market, followed by regional companies and local contractors. National companies have a wide reach and can offer a variety of services, including home inspections, repairs, and replacements. They typically have a strong brand presence and are able to offer competitive pricing. Regional companies operate in a specific geographic area and may offer a more limited range of services than national companies.However, they often have a strong understanding of the local market and can offer competitive pricing. Local contractors are typically small businesses that operate in a specific area. The growth of the market is attributed to increasing demand for home warranty services, rising disposable income, and growing awareness of the benefits of home warranties.
Home Warranty Service Market Sales Channel Insights
The Home Warranty Service Market is segmented into Direct Sales, Agent Sales, and Online Sales based on Sales Channel. Direct Sales held the largest market share in 2023, accounting for over 55% of the Home Warranty Service Market revenue. This growth is attributed to the increasing adoption of direct sales channels by home warranty providers, which enables them to connect directly with customers and offer personalized services. Agent Sales is expected to witness significant growth during the forecast period, owing to the increasing number of insurance agents and brokers offering home warranty products as part of their portfolio. Online Sales are expected to gain traction in the coming years, driven by the growing popularity of online marketplaces and the convenience of purchasing home warranty services online.
Home Warranty Service Market Value-Added Services Insights
The Value-Added Services segment is anticipated to grow significantly over the forecast period, owing to the increasing demand for additional services beyond basic home warranty coverage. Home Inspection Services, which assess the condition of a property before purchase or sale, are expected to contribute significantly to the segment's growth. The market for Concierge Services, which provide personalized assistance for home-related tasks such as scheduling repairs or finding contractors, is also projected to expand. Smart Home Integration, which enables homeowners to monitor and control their home systems remotely, is another promising area within the Value-Added Services segment, driven by the rising popularity of smart home devices and the growing awareness of energy efficiency.The Home Warranty Service Market revenue for Value-Added Services is expected to reach USD 1.2 billion by 2024, exhibiting a CAGR of 6.5% from 2023 to 2032. This growth is attributed to the increasing adoption of smart home technologies and the growing demand for convenient and personalized home services.
Home Warranty Service Market Regional Insights
The regional segmentation of the Home Warranty Service Market offers valuable insights into the market's dynamics across different geographic regions. North America is projected to dominate the market with a significant revenue share due to the increasing adoption of home warranty services by homeowners and real estate investors. The presence of established players and favorable regulatory frameworks further contribute to the region's dominance. Europe holds a substantial market share, driven by the growing awareness of home warranty benefits and the presence of a large pool of homeowners.The Asia-Pacific (APAC) region is expected to witness significant growth in the coming years due to the expanding middle class, rising urbanization, and increasing demand for housing. South America and the Middle East and Africa (MEA) regions represent emerging markets with untapped potential for home warranty services, offering opportunities for market expansion. 
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Home Warranty Service Market Key Players And Competitive Insights
Major players in the Home Warranty Service Market industry focus on expanding their presence in developing regions, introducing innovative products, and adopting advanced technologies to enhance customer experience. Leading Home Warranty Service Market players emphasize strategic partnerships and collaborations to offer comprehensive home protection plans, catering to the evolving needs of homeowners. The Home Warranty Service Market development is influenced by the rising popularity of smart home devices and IoT solutions, which are integrated with home warranty services to provide remote monitoring and predictive maintenance. The competitive landscape is expected to witness increased competition as new entrants and startups emerge, offering innovative home warranty plans and leveraging technology to streamline operations.American Home Shield is a leading provider of home warranty services in the United States. The company offers a range of plans covering major home systems and appliances, including HVAC, plumbing, and electrical systems. American Home Shield has a wide network of contractors and technicians to ensure prompt and reliable service. The company's focus on customer satisfaction and its commitment to providing quality coverage have contributed to its strong reputation in the industry.Another major player in the Home Warranty Service Market is First American Home Warranty. The company provides comprehensive home warranty plans for homeowners and homebuyers. First American Home Warranty has a strong network of licensed and insured contractors to ensure efficient and high-quality repairs. The company's plans are customizable, allowing homeowners to tailor their coverage to their specific needs. First American Home Warranty's commitment to innovation and customer support has positioned it as a trusted and reliable provider in the market.
Key Companies in the Home Warranty Service Market Include
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Choice Home Warranty
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American Home Shield
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Select Home Warranty
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National Home Service Contracts
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Fidelity National Home Warranty
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Liberty Home Guard
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Old Republic Home Protection
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ARAG
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210 Home Buyers Warranty
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HSA Home Warranty
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First American Home Warranty
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HMS Home Warranty
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FirstService Brands
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Cinch Home Services
Home Warranty Service Market Industry Developments
The Home Warranty Service Market size was valued at 3.19 billion USD in 2023 and is projected to reach 5.5 billion USD by 2032, exhibiting a CAGR of 6.25% during the forecast period. The growth of the market can be attributed to the increasing demand for homeownership, rising disposable income, and growing awareness about the benefits of home warranty plans. Major market players include American Home Shield, Cinch Home Services, and First American Home Warranty. The market is fragmented, with a large number of regional and local players. However, the competitive landscape is expected to consolidate over the forecast period, with the larger players acquiring smaller players to expand their market share.
Home Warranty Service Market Segmentation Insights
Home Warranty Service Market Coverage Type Outlook
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Basic Coverage
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Enhanced Coverage
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Customized Coverage
Home Warranty Service Market Property Type Outlook
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Single-Family Homes
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Multi-Family Homes
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Commercial Properties
Home Warranty Service Market Service Provider Outlook
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National Companies
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Regional Companies
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Local Contractors
Home Warranty Service Market Sales Channel Outlook
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Direct Sales
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Agent Sales
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Online Sales
Home Warranty Service Market Value-Added Services Outlook
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Home Inspection Services
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Concierge Services
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Smart Home Integration
Home Warranty Service Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
3.0(USD Billion) |
| Market Size 2023 |
3.19(USD Billion) |
| Market Size 2032 |
5.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.25% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Choice Home Warranty, American Home Shield, Select Home Warranty, National Home Service Contracts, Fidelity National Home Warranty, Liberty Home Guard, Old Republic Home Protection, ARAG, 210 Home Buyers Warranty, HSA Home Warranty, First American Home Warranty, HMS Home Warranty, FirstService Brands, Cinch Home Services |
| Segments Covered |
Coverage Type, Property Type, Service Provider, Sales Channel, Value-Added Services, Regional |
| Key Market Opportunities |
Growing homeownership rates Increasing awareness of benefits Expansion into emerging markets. Technological advancements Focus on customer experience. |
| Key Market Dynamics |
Increasing homeownership, aging housing stock, rising labor costs, technological advancements, growing awareness |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The overall valuation of the Home Warranty Service Market is expected to reach 5.5 USD Billion by 2032.
The Home Warranty Service Market is projected to grow at a CAGR of 6.25% from 2023 to 2032.
North America is expected to hold the largest market share in the Home Warranty Service Market by 2032.
The residential segment is expected to drive the growth of the Home Warranty Service Market.
Some of the key competitors in the Home Warranty Service Market include American Home Shield, Cinch Home Services, and First American Home Warranty.
The key factors driving the growth of the Home Warranty Service Market include rising homeownership rates, increasing awareness of home warranty benefits, and growing disposable income.
The major challenges faced by the Home Warranty Service Market include competition from other home protection plans, limited awareness of home warranty benefits, and regulatory issues.
The key trends shaping the Home Warranty Service Market include digitization, customization, and the emergence of smart home technology.
Technology is having a significant impact on the Home Warranty Service Market, enabling the development of new products and services and improving customer experience.
The growth opportunities for the Home Warranty Service Market include expanding into new markets, developing new products and services, and partnering with other home-related businesses.
