In order to differentiate their machines, manufacturers are increasingly willing to go well beyond the normal warranty period of e.g. 2 years, and provide a much more comprehensive coverage.

In this context we have spotted a significant increase (74%) in 2024 (until 4 April 2024) and 2023 of extended warranties provided compared e.g. to 2022.

This might also be a reaction to the lower demand in the market, and be perceived as a better way to enhance sales by focusing on quality rather than on e.g. discounts or other commitments.

Even Robotics companies like e.g. VitiBot (a French developer of wine-growing robots) announced in April 2024 a significant warranty extension for its flagship product Bakus and its tools with a warranty of 5 years or 3,000 hours. This was preceded e.g. by Naïo Technologies that announced a new 5-year warranty in September 2023 differentiating itself from other robot manufacturers.

The extension of warranties of course comes with potential future liabilities, the latest growth numbers however show its importance for manufacturers in a slowing market. Whether MTZ in Belarus or Hustler Equipment in New Zealand, warranty extensions have increased considerably across the world in the past 12-18 months.

The following graph shows that from 1 January 2022 until 4 April 2024 we identified most warranty extensions in the UK, followed by Germany, and the United States.