The China gadget insurance market size was valued at US$ 6.40 billion in 2023 and is expected to reach US$ 20.49 billion by 2031; it is estimated to record a CAGR of 15.6% from 2023 to 2031. The shift toward digital insurance platforms and the integration with e-commerce and tech-retailer companies are likely to bring new trends to the market.
As more consumers invest in consumer electronics, the demand for insurance coverage to mitigate potential losses has surged. As per the article by Capitol AI, China has the highest number of smartphone users globally, with over one billion people owning a smartphone as of 2022. This represents a mobile penetration rate of nearly 72%, making China one of the leading countries in terms of smartphone adoption. This surge in mobile phone adoption has led to increased demand for gadget insurance in the country. Moreover, the rapid development of technologies, including artificial intelligence, cloud computing, and big data analytics, has accelerated the innovation and development of China's gadget insurance industry. Technological applications mainly focus on digital distribution, precise pricing, intelligent underwriting, and claims settlement. The disruption of traditional products and distribution channels is poised to expedite the transformation of China's gadget insurance industry. New entrants, often constrained by limited working capital, face significant challenges in achieving the same level of technological innovation within a short timeframe.
Gadget insurance is a specialized insurance used to protect electronic devices such as smartphones, laptops, PCS, and tablets from various risks. This type of insurance is particularly relevant for both individuals and businesses that rely heavily on these gadgets for daily operations and communication. Gadget insurance typically covers various key areas, including accidental damage, theft and loss, and mechanical breakdown. Due to the reliance on technology for communication, data management, and operational efficiency, any disruption can result in substantial financial losses.
Businesses and individuals who obtain gadget insurance can reduce the risks associated with device damage or loss, maintaining continuity and limiting possible interruptions. Gadget insurance can be designed to cover many devices under a single policy, making it an affordable option for enterprises with a large number of gadgets. Discounts for ensuring several devices, such as mobiles and laptops, can increase the financial feasibility of these policies.
Shenzhen is the largest research and development and production base in China for smart wearable devices in China, producing ~80% of the world's wearable products, with a complete industrial chain, including sensors, flexible components, terminal devices, and interactive solutions. Thus, the gadget insurance market in China is experiencing robust growth, significantly fueled by the rising sales of mobile phones and wearable technology. China has witnessed a dramatic increase in the penetration of mobile phones, with millions of units sold annually. According to the Shanghai Municipal People's Government, China's smartphone sales would increase by 3.6% in 2024, marking the market's first annual gain since 2021 and an early sign of economic recovery. This surge is primarily driven by the rapid adoption of smartphones, which are now considered essential tools for communication, commerce, and entertainment. Per the 50th China Statistical Report on Internet Development released by China Internet Network Information Center (CNNIC), the number of Internet users in China was 1.05 billion in June 2022, with 99.6% of them being cell phone users. The report also stated that 74.4% of the country's population has access to the internet now, with diversified tools of mobile phones, desktop computers, laptops, TVs, and tablets. Thus, with the increasing sales of mobile phones and wearables, the demand for gadget insurance is growing in China.
The China gadget insurance market is characterized by an increasing number of initiatives aimed at enhancing consumer engagement and expanding coverage options. These initiatives are addressing the evolving needs of tech-savvy consumers and presenting significant growth opportunities within the market. Gadget insurance providers are increasingly developing innovative coverage options tailored to the diverse needs of consumers. Policies that cover a wide range of devices, including smartphones, tablets, laptops, and wearables, enhance the appeal of insurance products. For instance, in July 2023, Apple Inc. revealed AppleCare+, an enhanced warranty scheme that covers accidental harm and offers round-the-clock technical support. AppleCare+ is available for purchase up to 60 days after the purchase of an iPhone across most countries and areas. Similarly, in February 2022, FingerMotion, Inc., a firm specializing in mobile data and services, announced the formation of a strategic partnership with China Mobile and Shanghai TengLian JiuJiu Information Communication Technology Co., Ltd. This partnership aims to develop a device protection insurance service for smartphones and the latest 5G models. This collaboration marks a significant achievement in the device protection sector, as it caters to 80% of the users in the market in China, with TengLian being the inaugural company to offer such innovative services. Hence, initiatives by gadget insurance market players in China are expected to contribute to a more robust and dynamic market.
The key segments that contributed to the derivation of China gadget insurance market analysis are type, device type and sales channel.
Over the past decade, the China insurance market has significantly contributed to the expansion of the global insurance sector, capturing a substantial share of overall growth. Two prominent Chinese insurers, Ping An Insurance and China Life Insurance, rank among the top five largest insurance companies globally based on market capitalization. AIA, headquartered in the Hong Kong Special Administrative Region (SAR) of China, held the title of the largest life insurance company worldwide by market capitalization as of October 2022.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 6.40 Billion |
| Market Size by 2031 | US$ 20.49 Billion |
| Global CAGR (2023 - 2031) | 15.6% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Coverage Type
|
| Regions and Countries Covered | China
|
| Market leaders and key company profiles |
The China Gadget insurance market has been evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the China gadget insurance market are listed below:
The China gadget insurance market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "China Gadget Insurance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the below areas:
The List of Companies - China Gadget Insurance Market
The physical damage coverage type segment led the China gadget insurance market with a significant share in 2023.
The China gadget insurance market is expected to reach US$ 20.49 billion by 2031.
The key players holding majority shares in the China gadget insurance market include Assurant, AT&T, Apple, Chubb, Huawei, and VivaCover.
The shift toward digital insurance platforms and integration with e-commerce and tech-retailer companies is expected to drive the growth of the China gadget insurance market in the coming years.
The rise in sales of mobile phones and wearables, increased awareness of gadget insurance, insurtech development in China, and customized policies for specific gadgets are driving factors in the China gadget insurance market.
The China gadget insurance market was estimated to be valued at US$ 6.40 billion in 2023 and is projected to reach US$ 20.49 billion by 2031; it is anticipated to grow at a CAGR of 15.6% over the forecast period.