Mobile Phone Insurance Market

Global Mobile Phone Insurance Market Research Report: By Phone Type (Budget Phones, Mid & High-End Phones, Premium Smartphones), By Sales Channel (Retail, Online), By Coverage Type (Physical Damage, Internal Component Failure, Theft & Loss Protection, Others), By End User (Business, Individuals), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032.

Banking, Financial Services and Insurance | January 2024 | Report ID: EMR00440 | Pages: 301

The global mobile phone insurance market was valued at USD 29.40 billion in 2023 and is estimated to reach approximately USD 87.91 billion by 2032, at a CAGR of 12.9% from 2024 to 2032.

The market for mobile phone insurance developed in reaction to people's increasing reliance on smartphones. Given the swift progress of technology and the rising expenses associated with mobile devices, users have been seeking safeguards against unintentional harm, theft, and other unanticipated incidents. With cell phones being widely used, this sector experienced a boom in the early 2000s as they evolved from just communication devices to indispensable personal assistants.

Insurance companies began providing mobile device-specific plans after realizing how important it was to protect these priceless items. This insurance offers users financial protection and peace of mind by covering a variety of incidents including screen damage, water damage, and loss. Intense competition in the industry produced cutting-edge coverage options, reasonably priced premiums, and easy-to-use claim procedures. The mobile phone insurance market changed throughout time in response to shifting consumer demands and the complexity of devices, eventually developing into a vital component of the mobile industry ecosystem. The insurance industry is still essential because it provides the necessary protection for these indispensable handsets even as they continue to evolve.

 

 

MOBILE PHONE INSURANCE MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2023)

29.40 Bn

Projected Market Value (2032)

87.91 Bn

Base Year

2023

Forecast Years

2024 - 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Phone Type, By Sales Channel, By Coverage Type, By End User, & Region

Segments Covered

By Phone Type, By Sales Channel, By Coverage Type, By End User, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Mobile Phone Insurance Market Dynamics

Technological developments in smartphones have a constant influence on this industry, leading to changes in insurance coverage and price for new, more expensive device models with more complex features. Consumer behavior also has a big impact; the need for comprehensive protection programs is being driven by consumers' growing reliance on mobile devices. As different insurance companies compete for market share by providing a variety of coverage options, cutting-edge plans, and affordable premiums, market rivalry heats up. Furthermore, outside variables such as the state of the world economy, modifications to regulations, and new dangers like flaws in devices or cybersecurity threats can quickly alter market dynamics.

 Collaborations between insurance providers and retailers or makers of mobile devices affect the market as well, frequently resulting in packaged insurance plans or alternatives with specific coverage. Customer happiness and experience, which include easy-to-use claim procedures and helpful customer service, have a big impact on customer decisions and industry trends. The insurance market adjusts to these dynamics as the mobile phone industry develops further, working to accommodate changing customer demands and technology improvements while navigating a competitive environment.

 

Global Mobile Phone Insurance Market Drivers

  • Technological Advancements

The insurance industry is strongly impacted by the constant advancement in smartphone technology, which is marked by better features, higher performance, and improved functionality. With the increasing sophistication and cost of electronics, people are looking for comprehensive insurance coverage to safeguard their investments. In addition to adding value to the device, innovations like foldable screens, sophisticated camera systems, and 5G connectivity also present new threats and vulnerabilities. In order to meet these changes, insurance companies modify their products and services, developing specific policies that cover new risks like cybersecurity threats or damage to delicate components.

In addition, insurers may now use IoT connectivity and data analytics to optimize risk assessment methods, customize policies based on user behavior, and expedite claims processing. This never-ending cycle of technical advancement drives up the need for strong insurance protection, making it an essential partner in the rapidly changing world of mobile devices.

  • Partnerships and Bundled Services

The market for mobile phone insurance is significantly influenced by partnerships and bundled services, which encourage creative partnerships between insurers, telecom operators, device manufacturers, and merchants. Through these partnerships, insurance coverage is made available in packages that also include the purchase of a mobile device or subscription service. By working together, retailers or gadget makers can improve their product offers with value additions, and insurance can access a larger consumer base through established distribution channels.

The ease of obtaining insurance at the time of purchase is a common draw for customers of bundled services, which streamlines the procedure and boosts uptake. These collaborations also make it possible to customize insurance policies to meet the demands of customers or certain gadget models, offering more appealing and comprehensive coverage alternatives.

 

Restraints:

  • Limited Coverage and Exclusions

Restricted scope of coverage and limitations exhibit significant barriers to the mobile phone insurance market, which frequently irritate customers looking for all-inclusive device protection. Limitations are common in insurance policies; they exclude specific sorts of losses, scenarios, or damages from coverage. The range of insurance provided can be limited by these exclusions, which can cover cosmetic damage, pre-existing conditions, or particular kinds of accidents. In addition, policyholders can be subject to deductibles, limits on the number of claims they can file in a given time frame, or caps on claim amounts. Customers who expect more extensive coverage may become dissatisfied with these limitations and may decide not to purchase insurance altogether or become irate if their claims are rejected because of these exclusions.

The increasing expense of mobile devices and their increasing integration into daily life have led to a discrepancy between consumer expectations and the coverage offered by insurance policies, which has become a significant deciding factor in consumer purchase decisions. To increase customer satisfaction in the mobile phone insurance market, insurance companies must address these constraints to increase transparency, better match coverage to consumer demands, and improve overall customer contentment.

  • Technological Complexity and Rapid Changes

Insurance companies find it difficult to keep up with the changing environment of mobile devices due to the significant limitations posed by technological complexity and rapid changes in the mobile phone insurance industry. Because of the rapid improvements in smartphone technology, it is becoming more difficult to effectively analyze risks and offer suitable coverage due to the complications introduced by complicated hardware designs and sophisticated software integrations. Insurance companies are confronted with the challenge of comprehending and addressing new risks related to innovative features or weaknesses, like software security flaws, foldable screens, and biometric authentication, with every new gadget generation.

The rapid advancement of technology makes it more difficult to update and modify policies, which could delay the provision of coverage that keeps up with the newest features of devices. Because complicated gadget components and unique technology require specialist knowledge to appropriately assess damages, this complexity also affects the processing of claims.

 

Opportunities:

  • Rising Smartphone Adoption

With a growing customer base for insurance companies, the increasing global adoption of smartphones offers a substantial opportunity in the mobile phone insurance market. The potential for insurance uptake increases significantly as cell phones become more commonplace and penetrate a wider range of populations and geographic areas. Particularly emerging markets present enormous promise because of the quick adoption of smartphones brought about by advances in technology, lower prices for devices, and better connectivity. The increased number of people owning smartphones creates opportunities for insurance businesses to attract new customers and enter unexplored regions.

The need for insurance coverage is also being driven by customers' growing awareness of the need to protect their cell phones against theft, damage, and loss as these gadgets become more and more necessary in daily life. This opportunity is further enhanced by the growing middle-class populations in many nations, as more people acquire cellphones and look to safeguard these priceless possessions.

  • Expansion of Electric Vehicle Charging Infrastructure

In the mobile phone insurance business, the search for unique and creative coverage choices is a significant potential for insurers to create products that truly meet the changing needs of their clientele. As mobile technology advances, customers want more than just basic security; they want specialized insurance policies that cover particular dangers related to their gadgets. This need creates opportunities for insurance companies to get creative and provide individualized coverage, giving customers a range of options to select from, including specialist protection against new dangers like malware or data breaches or modular coverage for different device components.

Furthermore, this desire for customization goes beyond simple coverage, opening the door for cutting-edge services like pay-as-you-go plans, on-demand insurance, and package options that pair software subscriptions or tech assistance with device insurance.

 

Segment Overview

  • By Phone Type

Based on phone type, the global mobile phone insurance market is divided into budget phones, mid & high-end phones, and premium smartphones. The premium smartphones category dominates the market with the largest revenue share in 2023. This market includes enthusiasts, professionals, and people looking for high-end features and cutting-edge technology. Premium smartphone insurance offers broad coverage, frequently covering almost all potential damages, as well as specific protection for high-end features like multiple cameras or OLED displays. However, because of the more intricate and expensive devices, these plans have higher rates.

The market for low-cost phones serves people looking for reasonably priced gadgets with essential features. Budget phone insurance policies frequently have an emphasis on affordable coverage, taking care of typical problems like screen cracks, water damage, or simple hardware problems. Because the total cost of the item is usually smaller, these plans typically have less coverage and lower premiums.

  • By Sales Channel

Based on the sales channel, the global mobile phone insurance market is categorized into retail and online. The retail category leads the global mobile phone insurance market with the largest revenue share in 2023. Retail insurance is the term used to describe insurance plans that are primarily provided and sold through physical stores, which are usually where customers buy their mobile devices. Mobile carrier stores, electronic retail stores, and device maker stores are a few examples of them. When purchasing a phone in-store, customers frequently get information regarding insurance alternatives, which gives salespeople the chance to go over the specifics of the coverage and advantages.

The insurance might be triggered immediately after the sale or at a later time; this frequently requires completing paperwork or registration procedures. Digital channels, such as e-commerce platforms, smartphone apps, and insurance company websites, are used by online insurers to conduct business. Online shoppers may quickly investigate and buy insurance policies, evaluate various coverage alternatives, peruse terms and conditions, and process payments electronically. There can be fewer physical documents required for the registration and activation procedures, which are typically simplified.

  • By Coverage Type

Based on coverage type, the global mobile phone insurance market is segmented into physical damage, internal component failure, theft & loss protection, and others. The physical damage segment dominates the mobile phone insurance market. This category includes defense against damage from outside sources to the device, such as drops, liquid spills, screen cracks, and physical breakage. Policies that address physical damage concentrate on either replacing or repairing the equipment as a whole or just the damaged pieces, based on the extent of the damage.

Damages from hardware or software failures brought on by manufacturing flaws, electrical problems, or general wear and tear are covered under internal component failure coverage. This category of insurance policies covers problems such as dead batteries, defective parts, or software bugs that prevent the device from working. The protection against theft, loss, or illegal use of the equipment is included in the theft and loss protection category. If the gadget is lost or stolen, it covers replacement or refund under the provisions of the policy. Certain policies may need particular documentation to support the claim, including police reports for equipment that has been reported stolen.

  • By End User

Based on end users, the global mobile phone insurance market is divided into businesses and individuals. The individual category dominates the market with the largest revenue share in 2023. Individual customers who buy mobile devices for personal use are served by this market segment. Plans for individual insurance are designed to meet the needs and minimize the dangers that users of personal devices encounter. Generally, coverage includes loss, theft, or damage to cell phones used for business, pleasure, or personal communication.

 The company's mobile phone insurance division offers services to companies, corporations, or groups that give their staff members mobile devices for work-related uses. Plans for business insurance are made to safeguard electronics used in office settings. To reduce interruptions to corporate activities, they might offer specific coverage for fleets of company-issued phones with an emphasis on data security, device management, and quick replacement.

 

Global Mobile Phone Insurance Market Overview by Region

The global mobile phone insurance market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. North America emerged as the leading region, capturing the largest market share in 2023. Smartphone use is very strong in the area, and the tech-savvy populace adopts new gadgets and technology quickly. The widespread adoption of smartphones has led to a significant increase in the need for insurance protection for these expensive devices. Furthermore, many insurance companies in North America compete by providing a wide range of cutting-edge coverage alternatives that pique consumers' attention and encourage adoption. In addition, the area's strong infrastructure allows for broad retail networks via carrier storefronts and online retailers, making insurance policies easy to get in addition to mobile device sales. North America has been at the vanguard due to its concentration on technical developments and early adoption of new mobile trends. As a result, insurance companies are constantly modifying their policies to match the changing risks connected with cutting-edge technologies.

Throughout the forecast period, Asia-Pacific is anticipated to post a significant CAGR. The region's economy are diversified and expanding quickly; both urban and rural populations are adopting smartphones at an accelerating rate in places like China, India, and Southeast Asian countries. Because of its widespread use, mobile phone insurance is becoming more and more popular as people realize how important it is to safeguard their gadgets. Additionally, consumer spending on high-end cellphones is being driven by growing middle-class populations and rising disposable incomes in many Asia-Pacific countries, which is expanding the market for insurance coverage. Furthermore, the tech-savvy populace of the area welcomes new developments in technology, creating an atmosphere that facilitates the quick adoption of novel insurance plans customized to individual device risks and user preferences.

 

 

Global Mobile Phone Insurance Competitive Landscape

In the global mobile phone insurance market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global mobile phone insurance market include,

  • Apple Inc.
  • American International Group, Inc.
  • Assurant, Inc
  • Asurion
  • AT&T Intellectual Property.
  • AmTrust Financial
  • Brightstar Corp.
  • GoCare Warranty Group
  • SquareTrade, Inc.
  • Taurus Insurance Services Limited, and various others.

 

Global Mobile Phone Insurance Recent Developments

  • In July 2023, Apple Inc. unveiled AppleCare+, an extended warranty program that offers round-the-clock technical support in addition to accidental damage coverage. In most countries and places, AppleCare+ can be purchased within 60 days of purchasing an iPhone.
  • In May 2022, Amazon said that owing to a new collaboration with Asurion, a supplier of device insurance, users can now safeguard all of their qualified electronics purchases from Amazon with a single plan. Asurion Tech Unlimited offers round-the-clock technical help together with coverage against theft, loss, and unintentional damage.

 

Scope of the Global Mobile Phone Insurance Market Report

Mobile Phone Insurance Market Report Segmentation

ATTRIBUTE

DETAILS

By Phone Type

  • Budget Phones
  • Mid & High-End Phones
  • Premium Smartphones

By Sales Channel

  • Retail
  • Online

 

By Coverage Type

  • Physical Damage
  • Internal Component Failure
  • Theft & Loss Protection
  • Others

By End User

  • Business
  • Individuals

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Mobile Phone Insurance Market Size and Forecast: To identify and estimate the market size for the global mobile phone insurance market segmented by phone type, by sales channel, by coverage type, by end user, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of mobile phone insurance between 2019 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for the global mobile phone insurance market
  • Market Influencing Factors: To find out the factors which are affecting the sales of mobile phone insurance among consumers
  • Impact of COVID-19: To identify and understand the various factors involved in the global mobile phone insurance market affected by the pandemic
  • Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Insurance Providers and Companies
  • Mobile Device Manufacturers
  • Retailers and Distributors:
  • Regulatory Bodies and Policy Makers
  • Technology and Data Security Experts
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

On the basis of Geography, the mobile phone insurance market is classified into North America, Europe, Asia Pacific, and the Rest of the world.
According to mobile phone insurance market research, the market is expected to grow at a CAGR of ~12.9% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2024 - 2032
North America held the largest share in 2023.
The major players operating in the global mobile phone insurance market include Apple Inc.; American International Group, Inc.; Assurant, Inc.; Asurion; AT&T Intellectual Property.; AmTrust Financial; Brightstar Corp.; GoCare Warranty Group; SquareTrade, Inc.; Taurus Insurance Services Limited, and various others.
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