Fully covered: Consistent improvements in the housing market will boost industry demand

Given the industry's close connection with the domestic housing market, the continued recovery in both existing home sales and housing starts has aided the Home Warranty Providers industry. Over the next five years, industry revenue is forecast to increase due to continued improvements in the housing market. Mounting existing home sales and housing starts will benefit the industry; however, any increases in regulation can potentially harm profitability in the future...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 11-16
5.3%
Forecast Growth 16-21
Profit
Employment
8,664
Businesses
176

Industry Threats & Opportunities

  • Consistent improvements in the domestic housing market will boost industry demand
  • Large industry players have many advantages over potential entrants
  • Per capita disposable income will increase, boosting demand for home warranties
  • Industry Report - Industry SWOT Analysis Chapter

    The Home Warranty Providers industry is in the mature stage of its economic life cycle; this stage is characterized by increasing acquisitions and stability in the industry's product offerings and target markets. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 6.1% during the 10 years to 2021. In contrast, US GDP is projected to grow at an annualized rate of 2.0% during the same period. These figures signify that the industry's share of the economy is growing; however, this growth is largely indicative of the industry's reliance on volatile housing markets for revenue and recovery off of a relatively low base in 2011...purchase to read more.

    Additional Insights for the Home Warranty Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Warranty Providers Industry are

  • Must comply with government regulations
  • Having a good reputation
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Homeownership rate and Existing home sales in the Home Warranty Providers industry impact industry performance..

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    What's in this report

    What is the Home Warranty Providers Industry?

    This industry underwrites home warranty policies, which protect a homeowner against the cost of repair or replacement of any structural component or appliance of a home that is caused by normal wear and tear or by a defect of a structural component or appliance.

    Industry Products
  • General appliance and other warranties
  • Heating and air conditioning warranties
  • Main electrical panel and wiring warranties
  • Industry Activities
  • Providing general appliance and plumbing warranties
  • Providing heating and air conditioning warranties
  • Providing main electrical panel and wiring warranties
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Homeownership rate
  • Existing home sales
  • Per capita disposable income
  • External competition

  • Current Performance
  • Existing home sales and stability in renewals
  • Market share dominance
  • Cost structure trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Factors of production
  • Regulatory landscape
  • Table: Home Warranty Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home Warranty Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Electricians
  • Heating & Air-Conditioning Contractors
  • Major Household Appliance Manufacturing
  • Plumbers

  • Products & Services
  • General appliance and other warranties
  • Heating and air conditioning warranties
  • Main electrical panel and wiring warranties
  • Chart: Home Warranty Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Homeowners aged 33 and younger
  • Homeowners aged 34 to 48
  • Homeowners aged 49 to 58
  • Homeowners aged 59 to 67
  • Homeowners aged 68 and older
  • Chart: Major Market Segmentation for the Home Warranty Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitProvision for home warranty claimsWagesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Home Warranty Providers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Warranty Providers Industry

  • Industry Globalization
    ServiceMaster Global Holdings Inc., First American Financial Corporation, Old Republic International Corp.,
  • Table: ServiceMaster Global Holdings Inc. - financial performance
  • Table: First American Financial Corporation - financial performance
  • Table: Old Republic International Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Home Warranty Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Home Warranty Providers Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Existing home sales (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Premium
  • The specified amount of payment required periodically by a home warranty provider to provide coverage under a given insurance plan for a defined period of time.
  • Service Fee
  • Fee paid by the homeowner for each repair or replacement made.
  • Warranty
  • Type of coverage offered by vendors to cover repair or replacement costs for products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Home Warranty Providers can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Home Warranty Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Home Warranty Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Home Warranty Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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