Mobile Phone Insurance Market Share & Growth | Forecast 2031

Report Description

The mobile phone insurance market size was valued at USD 26.10 billion in 2021 and is projected to reach USD 59.95 billion by 2030, expanding at a CAGR of around 12% during the forecast period, 2022 – 2030. The growth of the market is attributed to rising occurrences of virus infection, phone thefts, accidental damage, and gadget failure.

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Mobile phones can be used for digital transactions, education, and entertainment. Smartphones are increasingly being used to store personal information and conduct digital transactions, necessitating the need for mobile device security. According to the GSMA, by 2025, roughly 75 % of all mobile phone owners are projected to own a smartphone. Insurance companies and smartphone manufacturers are partnering to test the success of insurance plans and schemes provided during the purchase of a phone. Service contracts are a type of mobile phone insurance that provides component repair service for phones supplied by merchants and service providers. It frequently includes extra phone coverage for issues such as unauthorized use, intentional damage, e-wallet payments, and theft. The expense and inconvenience of mechanical and electrical problems are also covered by mobile phone insurance. Although few smartphone users are aware of or ready to get mobile phone insurance, it has recently gained popularity. Smartphone thefts and losses are becoming more regular, making it even more vital for owners to insurance their devices.

Due to economic uncertainties and a drop in consumer expenditure, the mobile phone insurance market has been significantly impacted in the midst of the COVID-19 pandemic, resulting in a decrease in phone insurance premium activities among the general population. Furthermore, strict lockdowns around the world, as well as unemployment and wage cuts in several industries, have reduced the purchasing power of end users, which hampered the market growth.

Market Trends, Drivers, Restraints, and Opportunities

• Smartphones are increasingly being used to store personal information and conduct digital transactions, necessitating the need for mobile device security, which is projected to drive the market.
• Increasing cooperation between mobile phone makers and insurance providers are expected to boost market growth.
• Rising adoption of Business Intelligence (BI) products by market players is estimated to drive the market during the forecast period.
• The deployment of direct-to-consumer insurance service is anticipated to create significant opportunities for the market players during the forecast period.
• Complexities related of the user agreement make it difficult for customers to choose suitable insurance, which is expected to hinder the market growth.
• Decline in sales of mobile phones during the COVID-19 is projected to hamper the market growth.
• High cost of replacing key components of mobile phones is anticipated to boost the mobile phone insurance market during the forecast period.
• Increasing demand for novel products is estimated to fuel the market during the projected period.

Scope of the Report

The report on the global mobile phone insurance market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

The premium smartphones segment dominated the market in 2021

Based on phone types, the market is segregated into premium smartphones, mid & high-end phones, and budget phones. The premium smartphones segment accounted for about 60% of the total market share in 2021 and is estimated to maintain its dominance during the forecast period. Premium cellphones are prone to technical issues such as software breakdown. Users suffer huge losses as a result of hardware damage, theft, and technical issues. Users invest a lot of money to repair and maintain their phones when they get damaged. All these factors are anticipated to drive the demand for premium smartphones insurance segment. The mid & high-end phones segment is projected to expand at a rapid pace during the forecast period owing to increasing usage of mid-end smartphones globally. Growth of the segment is attributed to technological advancements and reducing cost of mid-end smartphones.

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The theft & loss protection segment is estimated to expand at a rapid pace during the forecast period

On the basis of coverage, the market is fragmented into virus & data protection, theft & loss protection, internal component failure, physical damage, and others. The theft & loss protection segment is estimated to expand at a rapid pace during the forecast period owing to growing incidences of mobile robbery. According to the International Telecommunication Union (ITU) around 4500 phones are stolen everyday in Argentina. This segment provides coverage against camera/display issues, malfunctioning, liquid damage, accidental damage, high repair cost, and replacement cost. The physical damage segment dominated the market in 2021. Mobile phone devices are susceptible to physical loss such as screen damages and cracks in the circuit board thus, physical damage protection plan is the most popular insurance plan among the customers. Several mobile phone insurance firms have begun to offer physical damage policies that include coverage for such damages, allowing consumers to avoid incurring expensive repair and maintenance costs.

North America is projected to dominate the market during the forecast period

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to dominate the market during the forecast period. Growth of the market in the region is attributed to presence of key market players and increasing incidence of crimes using smartphones in the US and Canada. According to the Bureau of Justice Assistance, every year, over one million smartphones are robbed in the United States. The availability of insurance policies that provide additional protection for software malfunctions and device replacement is anticipated to drive the market. The market in Asia Pacific is expected to expand during the forecast period. E-tailers such as Flipkart are partnering with insurance companies like Bajaj Allianz to provide customers with mobile phone insurance. This is estimated to drive the market in Asia Pacific. The growth of the market in the region is attributed to rising disposable income.

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