In India’s fast-growing home appliance sector, consumer expectations have evolved beyond just product performance. Modern buyers seek long-term reliability, protection from repair costs, and hassle-free service experiences. With appliances like refrigerators, washing machines, and air conditioners being high-value purchases, device protection plans and extended warranty programs have emerged as both a customer need and a strategic advantage for India’s retail chains and Original Equipment Manufacturers (OEMs).
Top OEMs and retail chains, including Godrej, Haier, Hitachi, Samsung, Croma, Reliance and others, have begun partnering with leading insurtech companies in India to design and manage Warranty-as-a-Service (WaaS) solutions. These solutions not only delight customers but also unlock significant revenue streams for brands.
Market Snapshot: The Rising Demand for Appliance Protection Plans
The extended warranty market in India is witnessing a rapid expansion, driven by rising repair costs, increased product complexity, and shifting consumer behaviour towards value-added services.
The Indian extended warranty market was valued at USD 4.0 billion in 2024 and is projected to reach USD 9.0 billion by 2033 at a CAGR of 10%.
Consumer electronics extended warranty revenue in India is expected to grow from USD 3.58 billion in 2023 to USD 8.80 billion by 2032, at a CAGR of 10.5%.
OEMs already account for over 40% of the extended warranty market share, making them the most influential players in shaping the future of this market.
This growth represents a massive opportunity for appliance brands to integrate home appliance protection plans into their core business strategy.
Advantages of Extended Warranty for Customers
While extended warranty plans hold strong business potential, they must first earn the trust and adoption of customers. A well-designed home appliance protection plan delivers value in multiple ways, making it easier for OEMs and retail chains to market and sell them.
Protection of Investment
Buying a refrigerator, washing machine, or air conditioner is a significant household expense. A single breakdown, such as a compressor failure, can cost thousands to repair. A device protection plan shields customers from these unpredictable repair bills, ensuring that their purchase continues to provide value for years to come.
Longer Appliance Lifespan
Appliances covered under device protection plans often receive regular preventive maintenance and priority repair service. These proactive measures prevent minor issues from escalating into major failures, effectively extending the product's functional life.
Avoidance of Unexpected Costs
Even with the best manufacturing quality, mechanical or electronic parts can fail due to wear and tear, power fluctuations, or other factors. Extended warranty coverage means customers never have to make a sudden, large out-of-pocket payment, especially for high-cost components like motors, cooling coils, or circuit boards.
Peace of Mind
For many customers, the biggest benefit of a warranty plan is not having to worry. Whether it’s a minor issue or a major breakdown, they know authorised service professionals will handle it promptly. This assurance creates a stress-free ownership experience.
Convenience & Time Savings
Without an extended warranty plan, customers might need to search for trustworthy repair vendors, negotiate costs, and wait for service slots. Warranty-backed repairs, on the other hand, are pre-arranged with authorised service centres, use genuine parts, and often come with priority scheduling, saving valuable time and effort.
How Customer Benefits Translate into Strategic Advantages for OEMs & Retail Chains
The same factors that make extended warranty plans appealing to customers also fuel business growth for OEMs and retail chains when executed well.
1. High-Margin Revenue Streams
Extended warranties represent one of the most profitable after-sales services, generating recurring income without incurring additional manufacturing costs.
2. Enhanced Brand Loyalty
A smooth extended warranty claim builds customer trust. Satisfied customers not only return for repeat purchases but also recommend the brand to their friends and family.
3. Increased Retention and Upselling Opportunities
Warranty programmes create ongoing touchpoints with customers. OEMs and retailers can capitalise on these opportunities to promote accessories, seasonal upgrades, and premium appliance models.
4. Streamlined After-Sales Operations
Digitally integrated warranty systems like Zopper’s warranty API automate claim management, reduce fraud, and optimise service routing, lowering operational costs.
5. Competitive Differentiation
In a crowded market, OEMs that offer comprehensive appliance warranty plans stand out as customer-focused and service-oriented.
When comparing the two perspectives — customer benefits and OEM & retail benefits — it is clear that extended warranty programmes create a win-win ecosystem. The following table illustrates how these advantages align and reinforce each other:
Customer Advantages vs OEM/Retail Advantages of Extended Warranty Programmes
Advantages for Customers | Advantages for OEMs and Retailers | ||
Protection of Investment | Safeguards high-value home appliances from costly repairs and replacements. | High-Margin Revenue Streams | Generates recurring income from extended warranty sales with minimal operational cost. |
Extended Appliance Lifespan | Regular maintenance under warranty keeps devices running efficiently for years. | Enhanced Brand Loyalty | Customers associate the brand with reliability, leading to repeat purchases. |
Avoidance of Unexpected Costs | Eliminates sudden expenses for major component failures. | Customer Retention & Upselling | Warranty period enables targeted offers for upgrades and accessories. |
Peace of Mind | Reduces stress with hassle-free, authorised service support. | Operational Efficiency | Digital claims and predictive maintenance reduce service costs. |
Convenience & Time Savings | No need to find repair vendors; authorised service is arranged quickly. | Competitive Differentiation | Positions the brand as customer-first in a competitive appliance market. |
Conclusion
Extended warranties and device protection plans are no longer just optional add-ons; they are a core part of the customer journey and a key revenue driver for OEMs and retail chains.
For consumers, they offer security, savings, and convenience. For OEMs and retailers, they unlock profitability, loyalty, and market differentiation. As India’s device protection plan market continues to grow at double-digit rates, brands that embrace warranty innovation today will lead tomorrow’s appliance industry.
Frequently Asked Questions (FAQs)
Q1: What is an extended warranty plan for home appliances?
An extended warranty plan is a protection plan that covers repairs or replacements beyond the manufacturer’s standard warranty period.
Q2: Why should OEMs and retailers offer extended warranty plans or device protection plans?
Extended warranty and device protection plans boost revenue, improve brand loyalty, and create opportunities for upselling.
Q3: Do customers value extended warranties?
Yes. With rising repair costs and busy lifestyles, customers increasingly seek hassle-free ownership solutions.
Q4: Can extended warranties be customised for different appliance categories?
Absolutely. Plans can be tailored to suit specific product types, coverage periods, and service levels. Top insurtech companies in India have already designed different device protection plans for smartphones, tablets, laptops, televisions, air conditioners, washing machines and refrigerators. They often offer end-to-end management, including plans, technology integration, insurance partnerships, and claims settlement.
Q5: Are extended warranties profitable for OEMs and retailers?
Absolutely. Warranty plans allow OEMs and retailers to enjoy high margins and generate long-term recurring income.
