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Home Warranty Providers in the US Industry Data and Analysis
Over the past five years, home warranty providers have benefited from a powerful housing boom and a wave of tech-driven upgrades, but they’re also facing more volatility and higher customer expectations. Surging home prices, fueled by tight supply and earlier rock-bottom mortgage rates, have encouraged owners to purchase more comprehensive policies to protect higher-value properties, while recent rate swings have fluctuated housing demand — and warranty sales — from year to year. At the same time, seasonality and severe weather, from winter cold snaps to major hurricanes, have driven spikes in claims that pressure profit and may gradually push providers toward products with lower average payouts, like appliance-only plans. To stay competitive, companies are heavily leaning into digital tools, AI-powered claims handling and always-on support, while simplifying coverage terms and courting online reviews to build trust. Larger home warranty sellers are using these advantages, plus strong cash flow, to widen their lead over smaller rivals. Overall, revenue for home warranty providers has expanded at a CAGR of 3.9% over the past five years, reaching $4.6 billion in 2025. This includes a 1.8% rise in revenue in that year.
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What's included in this industry analysis
IBISWorld's research coverage on the Home Warranty Providers industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released December 2025.
About this industry
What's this industry report about?
The Home Warranty Providers industry in the United States operates under the NAICS industry code OD4785. Companies in this space underwrite home warranty policies, which protect homeowners against the cost of repairing or replacing any structural component or appliance of a home that's caused by normal wear and tear or a defect in a structural component or appliance. Related terms covered in the Home Warranty Providers industry in the United States include premium, warranty and service fee.
What's included in this industry?
Products and services covered in Home Warranty Providers industry in the United States include HVAC, Appliances and Other Systems.
What companies are included in this industry?
Companies covered in the Home Warranty Providers industry in the United States include Frontdoor, Inc. and First American Financial Corporation.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Home Warranty Providers industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Home Warranty Providers industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Home Warranty Providers industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Home Warranty Providers industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Home Warranty Providers industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Home Warranty Providers industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Home Warranty Providers industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Home Warranty Providers industry in the United States.
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Frequently Asked Questions
What is the market size of the Home Warranty Providers industry in the United States in 2026?
The market size of the Home Warranty Providers industry in the United States is $4.6bn in 2026.
How many businesses are there in the Home Warranty Providers industry in the United States in 2025?
There are 70 businesses in the Home Warranty Providers industry in the United States, which has grown at a CAGR of 2.5 % between 2020 and 2025.
How may import tariffs affect the Home Warranty Providers industry in the United States?
The Home Warranty Providers industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Home Warranty Providers industry in the United States?
The Home Warranty Providers industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Home Warranty Providers industry in the United States grown or declined over the past 5 years?
The market size of the Home Warranty Providers industry in the United States has been growing at a CAGR of 3.9 % between 2020 and 2025.
What is the forecast growth of the Home Warranty Providers industry in the United States over the next 5 years?
Over the next five years, the Home Warranty Providers industry in the United States is expected to grow.
What are the biggest companies in the Home Warranty Providers industry in the United States?
The biggest companies operating in the Home Warranty Providers industry in the United States are Frontdoor, Inc. and First American Financial Corporation
What does the Home Warranty Providers industry in the United States include?
Providing general appliance and plumbing warranties and Providing heating and air conditioning warranties are part of the Home Warranty Providers industry in the United States.
Which companies have the highest market share in the Home Warranty Providers industry in the United States?
The company holding the most market share in the Home Warranty Providers industry in the United States is Frontdoor, Inc..
How competitive is the Home Warranty Providers industry in the United States?
The level of competition is high and steady in the Home Warranty Providers industry in the United States.
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