China Gadget Insurance Market Dynamics, Recent Developments, and Strategic Insights by 2031

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.

China Gadget Insurance Market Analysis

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.

China Gadget Insurance Market Overview

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.

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China Gadget Insurance Market: Strategic Insights

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China Gadget Insurance Market Driver and Opportunities

Rise in Sales of Mobile Phones and Wearables

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.

Growing Initiatives by Gadget Insurance Market Players

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.

China Gadget Insurance Market Report Segmentation Analysis

The key segments that contributed to the derivation of China gadget insurance market analysis are type, device type and sales channel.

• By type, the market is divided into physical damage, theft & loss prevention, and others. The physical damage segment held the largest market share in 2023.
• Based on device type, the market is divided into laptops and PCs, smartphones, tablets, wearable devices, home entertainment devices, cameras, and others. The smartphones segment held the largest market share in 2023.
• By sales channel, the market is divided into retail and online. The online segment held a larger China gadget insurance market share in 2023.

China Gadget Insurance Market Share Analysis

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.

China Gadget Insurance Market Report Scope

China Gadget Insurance Market News and Recent Developments

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:

• Digital Care sp. z o.o ("Digital Care"), a Poland-based device protection and services company, has been renamed to bolttech Poland sp. z o.o and rebranded to bolttech. This follows the completion of bolttech's acquisition of Digital Care in October 2023, when Digital Care became a part of the growing international InsurTech group. (Source: Digital Care sp. z o.o, Press Release, June 2024)
• Allianz Partners, a world leader in B2B2C insurance and assistance services, and bolt tech, an international insurance, announced a partnership to provide embedded device and appliance protection insurance across Asia Pacific and the US. The strategic cooperation agreement aims to bring together each company's complementary strengths to offer best-in-class solutions, enabling business partners to add insurance and protection products to customer journeys at the point of need. (Source: Allianz Partners, Press Release, October 2023)

China Gadget Insurance Market Report Coverage & Deliverables

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:

• China gadget insurance market size and forecast at country levels for all the key market segments covered under the scope
• China gadget insurance market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• China gadget insurance market analysis covering key market trends, country framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the China gadget insurance market
• Detailed company profiles