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    Home Warranty Service Market

    ID: MRFR/BFSI/26296-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    Home Warranty Service Market Research Report: By Coverage Type (Basic Coverage, Enhanced Coverage, Customized Coverage), By Property Type (Single-Family Homes, Multi-Family Homes, Commercial Properties), By Service Provider (National Companies, Regional Companies, Local Contractors), By Sales Channel (Direct Sales, Agent Sales, Online Sales), By Value-Added Services (Home Inspection Services, Concierge Services, Smart Home Integration) & By Regional (North America, Europe, South America, Asia Pacific, Middle East & Africa)- Forecast ...

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    Home Warranty Service Market
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    Home Warranty Service Market Summary

    The Global Home Warranty Service Market is projected to grow from 3.60 USD Billion in 2024 to 7.01 USD Billion by 2035.

    Key Market Trends & Highlights

    Home Warranty Service Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 6.25 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 7.01 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 3.60 USD Billion, reflecting a solid foundation for future expansion.
    • Growing adoption of home warranty services due to increasing consumer awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.60 (USD Billion)
    2035 Market Size 7.01 (USD Billion)
    CAGR (2025-2035) 6.25%

    Major Players

    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

    Home Warranty Service Market Trends

    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. 

    The Global Home Warranty Service Market appears to be evolving rapidly, driven by increasing consumer awareness and a growing demand for protection against unexpected home repair costs.

    U.S. Department of Housing and Urban Development

    Home Warranty Service Market Drivers

    Aging Home Infrastructure

    The aging infrastructure of homes significantly influences the Global Home Warranty Service Market Industry. As homes age, the likelihood of system failures and appliance breakdowns increases, prompting homeowners to seek warranty services for protection. Many homes built in previous decades are now experiencing wear and tear, leading to a surge in demand for home warranties. This trend is particularly relevant in regions with older housing stock, where homeowners are more inclined to invest in warranties to safeguard against costly repairs. The increasing prevalence of aging homes is expected to contribute to the market's growth, aligning with the projected increase in market value to 7.01 USD Billion by 2035.

    Market Growth Projections

    The Global Home Warranty Service Market Industry is projected to experience substantial growth in the coming years. With a market valuation of 3.6 USD Billion in 2024, it is expected to reach 7.01 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 6.25% from 2025 to 2035. Factors such as rising homeownership rates, increased awareness of warranty benefits, and technological advancements contribute to this positive outlook. The market's expansion reflects a growing recognition of the importance of home warranties in providing financial protection for homeowners. As the industry evolves, it is likely to adapt to changing consumer needs and preferences.

    Rising Homeownership Rates

    The Global Home Warranty Service Market Industry experiences growth driven by increasing homeownership rates. As more individuals invest in properties, the demand for home warranty services rises. In 2024, the market is valued at approximately 3.6 USD Billion, reflecting the growing need for protection against unexpected repair costs. Homeowners seek peace of mind, which home warranties provide, covering essential systems and appliances. This trend is expected to continue, as homeownership rates are projected to increase, particularly among millennials entering the housing market. Consequently, the Global Home Warranty Service Market Industry is poised for expansion as more homeowners recognize the value of warranty services.

    Technological Advancements

    Technological advancements play a pivotal role in shaping the Global Home Warranty Service Market Industry. Innovations such as mobile applications and online platforms enhance customer experience and streamline claims processes. Home warranty companies are increasingly adopting technology to improve service delivery, making it easier for customers to file claims and access information. This shift not only increases customer satisfaction but also attracts new clients. As the industry evolves, the integration of technology is likely to contribute to the projected growth of the market, which is expected to reach 7.01 USD Billion by 2035. The adoption of smart home technologies further complements this trend, as homeowners seek comprehensive coverage.

    Market Diversification and Customization

    Market diversification and customization are emerging trends within the Global Home Warranty Service Market Industry. Providers are increasingly offering tailored warranty plans that cater to specific customer needs, such as coverage for unique appliances or systems. This customization enhances customer satisfaction and broadens the market's appeal to various demographics. As consumers seek personalized solutions, warranty companies are adapting their offerings to meet these demands. This trend is likely to drive market growth, as more homeowners recognize the value of customized warranties. The ability to cater to diverse customer preferences may further solidify the market's position, contributing to its projected growth trajectory.

    Increased Awareness of Home Warranty Benefits

    The Global Home Warranty Service Market Industry benefits from heightened awareness regarding the advantages of home warranties. Homeowners are increasingly recognizing that these services can mitigate the financial burden of unexpected repairs. Educational campaigns and marketing efforts by warranty providers have effectively communicated the value proposition of home warranties. As a result, more consumers are opting for these services, leading to a projected compound annual growth rate of 6.25% from 2025 to 2035. This growing awareness is likely to drive demand, as homeowners prioritize financial security and protection for their investments, thereby bolstering the market's overall growth.

    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

    Get more detailed insights about Home Warranty Service Market Research Report - Global Forecast by 2034

    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. 

    Home Warranty Service Market Regional

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    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 market include

    Industry Developments

    • Q2 2024: Cinch Home Services Appoints New Chief Executive Officer Cinch Home Services, a leading provider of home warranty solutions, announced the appointment of Steve Upshaw as its new Chief Executive Officer, effective April 2024. Upshaw brings extensive experience in the home services and insurance sectors.
    • Q1 2024: Frontdoor, Inc. Announces Acquisition of Streem, Expanding Digital Home Service Capabilities Frontdoor, Inc., a major player in the home warranty market, completed the acquisition of Streem, a technology company specializing in remote visual assistance, to enhance its digital service offerings for homeowners.
    • Q2 2024: American Home Shield Launches New Home Warranty Plan for Smart Home Devices American Home Shield introduced a new home warranty plan specifically designed to cover smart home devices, expanding its product portfolio to address the growing adoption of connected home technology.
    • Q1 2024: Choice Home Warranty Announces $150 Million Series D Funding Round Choice Home Warranty, a prominent home warranty provider, raised $150 million in a Series D funding round to accelerate its technology investments and expand its national footprint.
    • Q2 2024: Old Republic Home Protection Partners with Porch Group to Streamline Home Warranty Claims Old Republic Home Protection entered into a partnership with Porch Group to integrate Porch’s technology platform, aiming to streamline the home warranty claims process for customers and service providers.
    • Q1 2024: 2-10 Home Buyers Warranty Appoints New Chief Technology Officer 2-10 Home Buyers Warranty announced the appointment of Lisa Miller as Chief Technology Officer, with a focus on driving digital transformation and enhancing customer experience.
    • Q2 2024: First American Home Warranty Launches Mobile App for Policyholders First American Home Warranty launched a new mobile app, enabling policyholders to manage claims, track service requests, and access policy information from their smartphones.
    • Q1 2024: HomeServe USA Acquires Arizona-based HWA Home Warranty HomeServe USA expanded its U.S. presence by acquiring HWA Home Warranty, a regional provider based in Arizona, strengthening its position in the southwestern market.
    • Q2 2024: Landmark Home Warranty Expands Operations with New Service Center in Texas Landmark Home Warranty opened a new service center in Dallas, Texas, to support its growing customer base and improve service delivery in the region.
    • Q1 2024: Fidelity National Home Warranty Partners with Real Estate Brokerage Redfin Fidelity National Home Warranty formed a partnership with Redfin, a leading real estate brokerage, to offer integrated home warranty solutions to homebuyers during the transaction process.
    • Q2 2024: Super Home Warranty Raises $60 Million in Series C Funding Super Home Warranty, a technology-driven home warranty provider, secured $60 million in Series C funding to expand its product offerings and invest in artificial intelligence for claims processing.
    • Q1 2024: Select Home Warranty Appoints New Chief Operating Officer Select Home Warranty announced the appointment of Mark Johnson as Chief Operating Officer, responsible for overseeing operations and driving process improvements across the company.

    Future Outlook

    Home Warranty Service Market Future Outlook

    The Home Warranty Service Market is projected to grow at a 6.25% CAGR from 2025 to 2035, driven by increasing homeownership and demand for protection against unexpected repairs.

    New opportunities lie in:

    • Develop AI-driven platforms for personalized warranty plans.
    • Expand service offerings to include renewable energy systems.
    • Leverage data analytics for predictive maintenance solutions.

    By 2035, the Home Warranty Service Market is expected to achieve robust growth, enhancing consumer protection and service innovation.

    Market Segmentation

    Home Warranty Service Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Home Warranty Service Market Coverage Type Outlook

    • Basic Coverage
    • Enhanced Coverage
    • Customized Coverage

    Home Warranty Service Market Property Type Outlook

    • Single-Family Homes
    • Multi-Family Homes
    • Commercial Properties

    Home Warranty Service Market Sales Channel Outlook

    • Direct Sales
    • Agent Sales
    • Online Sales

    Home Warranty Service Market Service Provider Outlook

    • National Companies
    • Regional Companies
    • Local Contractors

    Home Warranty Service Market Value-Added Services Outlook

    • Home Inspection Services
    • Concierge Services
    • Smart Home Integration

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 3.60 (USD Billion)
    Market Size 2025 3.82 (USD Billion)
    Market Size 2035 7.01 (USD Billion)
    Compound Annual Growth Rate (CAGR) 6.25% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2020 - 2024
    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

    FAQs

    What is the expected overall valuation of the Home Warranty Service Market by 2034?

    The overall valuation of the Home Warranty Service Market is expected to reach 6.60 USD Billion by 2034.

    What is the projected CAGR of the Home Warranty Service Market from 2025 to 2034?

    The Home Warranty Service Market is projected to grow at a CAGR of 6.25% from 2025 to 2034.

    Which region is expected to hold the largest market share in the Home Warranty Service Market by 2032?

    North America is expected to hold the largest market share in the Home Warranty Service Market by 2032.

    Which application segment is expected to drive the growth of the Home Warranty Service Market?

    The residential segment is expected to drive the growth of the Home Warranty Service Market.

    Who are some of the key competitors in 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.

    What are the key factors driving the growth of the Home Warranty Service Market?

    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.

    What are the major challenges faced by the Home Warranty Service Market?

    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.

    What are the key trends shaping the Home Warranty Service Market?

    The key trends shaping the Home Warranty Service Market include digitization, customization, and the emergence of smart home technology.

    What is the impact of technology on the Home Warranty Service Market?

    Technology is having a significant impact on the Home Warranty Service Market, enabling the development of new products and services and improving customer experience.

    What are the growth opportunities for the Home Warranty Service Market?

    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.

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