Mobile Phone Insurance Market Research Report, Size & Forecast 2028

Mobile Phone Insurance Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Coverage (Physical Damage, Electronic Damage, Virus Protection, and Theft Protection), Sales Channel (Mobile Operators, Device OEMs, Retailers, and Others), Phone Type (New Phones and Refurbished Phones), and End User (Corporate and Personal)

Publication Month : May 2022

  • Report Code : TIPTE100000940
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 189
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[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
Market Size Value inUS$ 27,291.83 million in 2021
Market Size Value byUS$ 53,161.84 million by 2028
Growth rateCAGR of 10.4% from 2021 to 2028.
Forecast Period2021- 2028
Base Year2021
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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:

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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.

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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.

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.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Coverage, Sales Channel, Phone Type, and End User

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Portugal, Russian Federation, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Which is the fastest growing regional market?

Asia Pacific region is the fastest growing region in the mobile phone insurance market.

What is the incremental growth of the mobile phone insurance market during the forecast period?

The incremental growth of the mobile phone insurance market is 10.4% during 2022 to 2028.

What are the future trends of the mobile phone insurance market?

Simplification of insurance claiming procedure and growing trend for insuring new phones are the key trending factors driving the market growth.

What are the driving factors impacting the global mobile phone insurance market?

Surge in uptake of high-quality smartphone and increasing cases of accidental damage, phone theft, and gadget failure are the key factors driving the mobile phone insurance market over the forecast period.

What is the estimated global market size for the mobile phone insurance market in 2021?

The estimated market size for the mobile phone insurance market was US$27,291.83 million in 2021.

Which is the leading coverage segment in the mobile phone insurance market?

Physical damage segment is holding larger market share during the forecast period.

Which countries are registering a high growth rate during the forecast period?

Canada and India are the prominent countries registered the highest growth rate of 15.5% and 19.4% respectively, during the forecast period.

What will be the global market size for mobile phone insurance market by 2028?

The global market size for mobile phone insurance market will be US$ 53,161.84 million in 2028.

Which are the key players holding the major market share of mobile phone insurance market?

The key companies operating in the mobile phone insurance market that are profiled in the report include Allianz; American International Group, Inc.; Apple Inc.; AT&T Inc.; Aviva; Gadget Cover; Pier Insurance Managed Services Ltd.; and Telefónica Limited.

The List of Companies - Mobile Phone Insurance Market

  1. American International Group, Inc.
  2. Allianz SE
  3. Apple Inc.
  4. AT&T Inc.
  5. Aviva insurance Limited
  6. Better Buy Insurance
  7. Gadget Cover
  8. Insurance2go
  9. Telefónica Limited
  10. Pier Insurance Managed Services Ltd.
  11. AQILO Business Consulting GmbH.
  12. Square Trade Inc.
  13. Switched On Insurance

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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