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Europe automotive extended warranty market size reached around USD 7717.38 Million in 2025. The market is projected to grow at a CAGR of 5.41% between 2026 and 2035 to reach nearly USD 13070.37 Million by 2035.
Compound Annual Growth Rate
5.41%
Value in USD Million
2026-2035
Automotive extended warranty is an additional warranty that an individual can buy while purchasing a new car, or before the standard warranty expires. It offers a protection plan for vehicles that is valid for certain periods.
Extended warranties are carried out in accordance with European Union (EU) regulations in the region.
Figure: Number of new registered cars in Europe (million cars)

The rise in awareness of the extended warranty among consumers is expected to drive its demand in Europe. This is due to its benefits as it offers warranty coverage ahead of the warranty period to help sustain the vehicle for an extended period.
The European market for new vehicles is expected to grow due to the rising use of new cars and increased purchases of luxury vehicles. To further boost sales, manufacturers are offering extended warranties for new vehicles.
In 2022, passenger car registrations in the EU reached about 253 million. The countries with the highest number of registered cars include Germany, Italy, and France.

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Opteven Group partnered with Mercedes-Benz Italia to manage claims authorisation and repair operations for mechanical breakdown warranties under the Mercedes-Benz Certified pre-owned programme. The arrangement became operational on 1 July 2026 and covers selected Mercedes-Benz and Mercedes-AMG passenger cars and commercial vehicles in Italy. Opteven provides the operational infrastructure for warranty claims and repairs, strengthening the integration of specialist warranty providers into OEM-certified used-vehicle programmes. The development reflects the increasing importance of extended and breakdown warranty solutions within Europe's growing certified pre-owned vehicle ecosystem, where manufacturers seek structured aftersales protection beyond the original vehicle warranty.
The European Union's new GARAN label is scheduled to become mandatory for qualifying commercial guarantees from 27 September 2026, creating a new compliance consideration for automotive warranty providers and manufacturers. Real Garant reported that vehicle warranties offered by OEMs or dealers on behalf of manufacturers may require the label, depending on how the warranty is sold and documented. The requirement is designed to give consumers clearer information about guarantee rights at the point of purchase. For Europe's automotive extended warranty market, the change increases emphasis on transparent warranty documentation and standardised presentation of commercial warranty coverage.
Icare, the automotive warranty-services subsidiary of BNP Paribas Cardif, partnered with Portuguese insurtech Habit to distribute automotive protection products in Portugal. The collaboration initially launched through Volvo Car Portugal's entire dealer network, offering Icare's Used Vehicle Warranty for pre-owned vehicles. The product covers financial losses associated with mechanical, electrical and electronic failures arising from used-vehicle sales. The partners also indicated that the relationship could support the introduction of additional products, including warranty extensions and electric-vehicle solutions. The development demonstrates the increasing use of digital insurance intermediaries to distribute automotive warranty products through established European dealership networks.
BYD UK partnered with QBE Automotive Protection in January 2026 to introduce Extended Warranty and Service & Maintenance plans for customers across the United Kingdom. The products are distributed through BYD's authorised retailer network and are designed to cover unexpected repair costs alongside routine vehicle servicing. QBE specifically positioned the protection products for the changing requirements of EV and plug-in hybrid vehicle owners, while BYD described the programme as part of its wider aftersales strategy. The partnership demonstrates how rapidly expanding EV brands are incorporating third-party warranty and maintenance products into their European ownership and dealer-support models.
The increasing number of electric vehicles in Europe's parc is changing the structure of automotive warranty products. EU analysis notes that battery-electric vehicles generally require fewer and less costly routine maintenance operations than comparable internal-combustion vehicles, while shifting servicing requirements toward batteries, power electronics and software diagnostics. This is encouraging warranty providers to reconsider traditional mechanical-breakdown coverage and develop protection for EV-specific components and systems. As more EVs move beyond their initial manufacturer warranty periods, extended warranty programmes are increasingly relevant for battery health, electrical systems, charging components and electronic controls.
Connected-car technology is creating opportunities for more data-driven extended warranty administration across Europe. The European Commission's 2026 automotive aftermarket evaluation states that around 25% of Europe's vehicle parc had at least basic connectivity, while more than 22% of new vehicles sold in 2024 had over-the-air update capabilities. Remote diagnostics, predictive maintenance and vehicle-generated data can allow warranty providers and repair networks to identify potential faults earlier and improve claims assessment. As connectivity expands, extended warranty services can increasingly incorporate vehicle usage and diagnostic information rather than relying exclusively on conventional inspection and repair records.
European warranty providers are facing greater emphasis on transparency and clear communication of guarantee terms. From 27 September 2026, the EU's new notice on legal guarantee rights and the GARAN label for qualifying voluntary commercial guarantees will enter practical use. The framework is intended to help consumers distinguish statutory guarantee rights from voluntary durability guarantees. For automotive businesses, this creates a stronger requirement to clearly communicate the scope, duration and nature of warranty protection. Extended automotive warranty providers and vehicle retailers therefore need to ensure that commercial warranty products are presented distinctly from consumers' existing legal guarantee rights.
Extended warranties are increasingly being integrated into broader automotive aftersales ecosystems encompassing authorised dealers, independent repairers, spare-parts suppliers and digital vehicle services. The European Commission's 2026 assessment highlights how vehicle digitalisation and electrification are changing repair and maintenance channels, while access to technical information, vehicle-generated data and diagnostic tools is becoming increasingly important. This is creating closer links between warranty administrators and repair networks because claims increasingly depend on specialised diagnostics and electronic systems. The trend is particularly relevant for newer connected and electrified vehicles, where warranty servicing requires capabilities beyond conventional mechanical repair.
Europe's growing focus on vehicle durability, repairability and circularity is strengthening the relevance of products that support vehicles beyond their initial ownership period. The EU's new End-of-Life Vehicles Regulation entered into force on 13 August 2026 and introduces requirements covering the vehicle lifecycle, including repair, reuse, remanufacturing and recycling. Separately, the EU consumer framework promotes longer-lasting products and better information about durability and reparability. These developments create an environment in which keeping vehicles operational for longer becomes increasingly important. Extended warranties can consequently form part of broader aftersales strategies focused on vehicle longevity rather than only short-term repair protection.
With the rapid advancements in automotive technology, there is an opportunity to expand warranty coverage to include new and emerging technologies. For example, offering warranties that cover electric vehicle (EV) components, such as batteries and electric drivetrains, can address the growing market for EVs in Europe and provide peace of mind to EV owners.
Modern vehicles feature complex advanced electronic components and software, making post-warranty repairs costly. This potential expense encourages consumers to opt for extended warranty options. Additionally, the competitive environment among European car dealerships leads to extended warranties being offered as a strategy to build customer trust and loyalty. Dealerships, working with warranty providers, often offer customized warranty plans tailored to individual needs and budgets, boosting the demand for automotive extended warranties in Europe.

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“Europe Automotive Extended Warranty Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Coverage
Market Breakup by End Use
Market Breakup by Operating Model
Market Breakup by Country
Based on end use, passenger cars account for a significant share of the market
In 2023, new passenger car vehicle registrations in Germany increased by 7.3% to 2,844,609 cars, an increase of more than the 2,651,357 cars sold in 2022. Passenger car warranties typically cover various components of the vehicle for a certain period after purchase, protecting against defects or malfunctions. Extended warranties for cars can be provided by manufacturers, dealers, or a third-party entity, in addition to the existing warranty. Volkswagen AG, the world's largest passenger car manufacturer based in Germany is considered the largest warranty provider on a global scale.
Warranty options for these types of vehicles differs based on the manufacturer and region. LCVs and MCVs come with standard warranties that cover a certain period or mileage. From January to April 2023, France and the UK had the highest LCV registration volumes followed by Germany, Italy, and Spain.
Based on operating model, used passenger cars significantly contribute to the Europe automotive extended warranty market revenue
Used vehicles with extended warranty are considered to have higher resale value. Used vehicles are typically regularly maintained and in best condition, making it a more attractive purchase for any potential new owner over another car that isn’t covered.
A warranty product for new vehicles offers protection against mechanical and electrical failures, shielding drivers from costly repair expenses. In today's climate of escalating repair costs due to inflation and supply chain challenges, pre-purchased warranty products prove to be exceptionally valuable, providing financial security to vehicle owners.
Market players offer extended warranty services that can vary in terms of duration covered, services offered, cost effectiveness, insurance cover provided, among others.
Volkswagen Group is a top global automobile and commercial vehicle manufacturer and the largest carmaker in Europe. Founded in 1937, the company operate in Europe, North America, South America, Asia Pacific, and other regions.
Canopius is a global speciality and Property & Casualty (re)insurer with locations in the UK, the US, Bermuda, Singapore, and Australia. Founded in 2003, the company provides underwriting (re)insurance services across over 130 countries.
BMW engages in manufacture of premium cars and motorcycles. The German company consist of 4 brands in automotive segment, i.e., BMW, MINI, Rolls-Royce and BMW Motorrad. The BMW Group production network consists of over 30 production sites spread worldwide.
The Renault Group is a global automotive company that operates in more than 128 countries and has a strong presence in Europe, especially in France. The company offers extended warranty services to its customers, providing them with additional coverage beyond the standard warranty period.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other notable players operating in the Europe automotive extended warranty market are Stellantis N.V., Ford Motor Company, Mercedes-Benz Group AG, and CG Car-Garantie Versicherungs-AG, among others.
Germany is home to three renowned automotive manufacturers such as Volkswagen Auto Group, BMW, and Mercedes. These manufacturers offer extended warranties, with BMW offering up to 2 years, Volkswagen up to 3 years or 150,000 kilometres, and Mercedes allowing annual extensions up to 200,000 kilometres.
The Polish automotive sector is a significant contributor to the country's economy, accounting for approximately 10% of total industrial production and representing about 4% of GDP. The average age of cars in Poland being 14.5 years indicates that there is a significant number of older vehicles on the road. Therefore, more customers are looking for ways to ensure the long-term reliability of their cars, making extended warranties an attractive option.
Global Extended Warranty Market
United States Auto Extended Warranty Market
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
In 2025, the market reached an approximate value of USD 7717.38 Million.
The market is projected to grow at a CAGR of 5.41% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 13070.37 Million by 2035.
The coverages for extended warranties include mileage-based, more than 24 months, 12 months to 24 months, and up to 12 months.
The key countries include the United Kingdom, Germany, France, Italy, Spain, Poland, and others.
The end uses include passenger cars, LCV and MCV, bus, and others.
The operating models of vehicles are used passenger cars and new passenger cars.
The key players in the market include Volkswagen AG, Canopius Group, BMW AG, Renault Group, Stellantis N.V., Ford Motor Company, Mercedes-Benz Group AG, and CG Car-Garantie Versicherungs-AG, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Coverage |
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| Breakup by End Use |
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| Breakup by Operating Model |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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