Mobile Phone Insurance Market Research Report, Size & Forecast 2028

[Research Report] The mobile phone insurance market value is expected to grow from US$ 27,291.83 million in 2021 to US$ 53,161.84 million by 2028; the market is estimated to grow at a CAGR of 10.4% from 2022 to 2028.

Analyst Perspective:

Mobile phone insurance is a fast-growing market that offers coverage for lost, stolen, or damaged phones. The market is favorably competitive, with many companies providing different plans and coverage options to meet the diverse needs of consumers. The high cost of smartphones and the need for protection against damage or loss drive the growth of mobile phone insurance. These plans typically cover accidental damage, theft, and device loss. Some plans offer additional coverage for water damage, screen cracks, and other issues. The mobile phone insurance market is anticipated to grow as more people adopt smartphones and seek device protection. The trend of frequent smartphone upgrades is also expected to drive the market.

Market Overview:

Mobile phone insurance is a service contract that offers component and repair services for phones sold by retailers and service providers. It frequently offers further protection for phones against theft, intentional damage, unauthorized use, and e-wallet transactions. The expense and inconvenience of mechanical and electrical problems are also covered by mobile phone insurance. One of the main causes driving the growth of the mobile phone insurance market is the rise in accidental damage, phone theft, virus infection, and device malfunction. Another important element is the rise in the adoption of high-quality smartphones. Additionally, the market for mobile phone insurance is growing because of the high cost of replacing key components. A mobile phone insurance policy usually covers physical damage, internal coverage failure, theft and loss protection, and virus and data protection.

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Mobile Phone Insurance Market: Strategic Insights

Mobile Phone Insurance Market

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  CAGR (2021 - 2028)

  10.4%
• Market Size 2021
  US$ 27.29 Billion
• Market Size 2028
  US$ 53.16 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Key Players

• American International Group Inc
• Allianz SE
• Apple Inc
• AT T Inc
• Aviva insurance Limited
• Better Buy Insurance
• Gadget Cover
• Insurance2go
• Telef nica Limited

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Coverage

• Physical Damage
• Electronic Damage
• Virus Protection
• Theft Protection

Sales Channel

• Mobile Operators
• Device OEMs
• Retailers

Phone Type

• New Phones and Refurbished Phones

End User

• Corporate and Personal

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Market Driver:

Surge in Adoption of High Quality smartphones to Drive Growth of Mobile Phone Insurance Market

The surge in the adoption of high-quality smartphones drives the mobile phone insurance market in several ways. Firstly, high-quality smartphones are expensive, and their repair or replacement costs can be significant. Therefore, consumers increasingly seek device protection through mobile phone insurance plans. These plans typically cover accidental damage, theft, and device loss. Secondly, high-quality smartphones are more advanced and have more features than their predecessors. This means they are more susceptible to damage from drops, water, and other accidents. Mobile phone insurance plans offer coverage for such damages, essential for consumers who want to protect their investments. Thirdly, the surge in the adoption of high-quality smartphones drives the mobile phone insurance market by increasing the demand for coverage against loss or theft. High-quality smartphones are attractive targets for thieves, and the risk of loss or theft is higher than for less expensive devices. Mobile phone insurance plans offer coverage against such risks, essential for consumers who want to protect their investments. Finally, the surge in the adoption of high-quality smartphones drives the mobile phone insurance market by increasing the need for coverage against breakdowns and malfunctions. High-quality smartphones are more complex than their predecessors and have more components that can fail. Mobile phone insurance plans can offer coverage against such risks, essential for consumers who want to protect their investments.

Segmental Analysis:

Based on coverage, the market has been segmented into physical damage, electronic damage, virus protection, and theft protection. The physical damage segment held the largest share of the market in 2020.  Rising awareness about STDs and HIV has led to an increase in the usage of condoms globally. The physical damage segment is the most significant mobile phone insurance market, accounting for most of the market share. This is because smartphones are fragile and expensive devices that can easily be damaged, and many consumers are willing to pay for insurance coverage that protects their devices from physical damage. The growth of this segment is also due to the increasing adoption of smartphones worldwide and the popularity of high-end smartphones. The demand for insurance coverage that protects smartphones from accidental damage will remain strong in the coming years.

Regional Analysis:

The Asia Pacific mobile phone insurance market was valued at US$ 5,407.60 million in 2021 and is projected to reach US$ 13,238.89 million by 2028; it is expected to grow at a CAGR of 14.0% during the forecast period. Due to several key factors, Asia is the fastest-growing region in the mobile phone insurance market. Firstly, the region is experiencing a rapid increase in smartphone penetration. As more and more people in Asia transition from basic mobile phones to smartphones, the potential customer base for mobile phone insurance expands significantly. This growing market of smartphone users creates a higher demand for insurance coverage to protect their valuable devices. Secondly, the rising middle class in Asia has increased disposable incomes and purchasing power. As a result, more individuals can afford to invest in smartphones, which are increasingly becoming an essential part of daily life. With smartphones' growing value and importance, consumers are recognizing the need to protect their devices against accidental damage, theft, or loss. This growing awareness of smartphone protection drives the region's demand for mobile phone insurance. Thirdly, advancements in e-commerce and digital payment systems have made it easier for consumers in Asia to access and purchase mobile phone insurance. Online platforms and mobile applications offer convenient and streamlined processes for obtaining insurance coverage, attracting a larger customer base.

Additionally, the availability of multiple payment options, including digital wallets and online banking, further facilitates the purchase of mobile phone insurance for consumers in Asia. Furthermore, the expanding network coverage and improving internet connectivity in the region have played a crucial role in driving the growth of mobile phone insurance. With improved connectivity, users rely more on smartphones for various activities such as communication, banking, shopping, and entertainment. This increased dependency on smartphones enhances the perceived value of insurance coverage, prompting more individuals to seek protection for their devices. Lastly, the growing trend of bundled insurance offerings by telecom operators and device manufacturers has contributed to the growth of the mobile phone insurance market in Asia. These bundled packages often combine mobile phone insurance with other services, such as extended warranties, data plans, or device upgrades. Such comprehensive offerings provide added convenience and value to customers, making mobile phone insurance attractive. These factors merged with the growing awareness and importance of smartphone protection, have contributed to Asia emerging as the fastest-growing region in the mobile phone insurance market.

Key Player Analysis:

The mobile phone insurance market analysis consists of the players such as Allianz; American International Group, Inc.; Apple Inc.; AT&T Inc.; Aviva; Gadget Cover; Pier Insurance Managed Services Ltd.; and Telefónica Limited. Among the players in the mobile phone insurance; Apple Inc. and AT&T Inc., Inc are the top two players owing to the diversified product portfolio offered.

Mobile Phone Insurance Market Report Scope

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Recent Developments:

 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the mobile phone insurance market. A few recent key market developments are listed below: 

• In October 2020, Bolttech announced its partnership with Samsung in Thailand. Through this partnership boltech provides mobile device repair services to owners of Samsung Galaxy smartphones and tablets through the Samsung Care+ programme.
• In October 2021, Assurant announced the acquisition of HYLA Mobile, a leading provider of mobile device trade-in and reuse solutions. This acquisition is expected to enhance Assurant's position in the mobile phone insurance ecosystem market by providing a more comprehensive suite of solutions to customers. HYLA Mobile's expertise in device trade-in and refurbishment will allow Assurant to offer more sustainable and cost-effective solutions to customers, while also reducing waste and supporting the circular economy.
• In March 2021, SquareTrade launched a new mobile phone insurance product that offers coverage for lost or stolen devices and the standard protection against accidental damage. The product, called "Lost and Stolen Protection," is available to both new and existing SquareTrade customers and provides up to $1,000 in coverage for lost or stolen devices. This move is aimed at addressing the growing concern among smartphone users about the risk of theft and loss and offers an additional layer of protection for customers.