Mobile Phone Insurance Market by Phone Type (Budget Phones, Mid & High-End Phones, and Premium Smartphones), Sales Channel (Mobile Operators, Device OEMS & Retailers, and Others), Coverage (Physical Damage, Internal Component Failure, Theft & Loss Protection, Virus & Data Protection, and Others), and End User (Business and Individuals): Global Opportunity Analysis and Industry Forecast 2023–2030
Industry: BFSI | Publish Date: 09-May-2023 | No of Pages: 409 | No. of Tables: 325 | No. of Figures: 300 | Format: PDF | Report Code : N/A
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Market Overview
The global Mobile Phone Insurance (MPI) Market size was valued at USD 31.55 billion in 2022, and is predicted to reach USD 75.13 billion by 2030, with a CAGR of 11.7% from 2023 to 2030.
Mobile phone insurance (MPI) is a form of policy that provides coverage for replacement and repair costs of different smartphone brands. It is a form of insurance policy that provides protection against a variety of risks and damages to phones.
MPI covers insurance for theft and loss protection, physical damage, and internal component failure. This insurance plan works similar to any other plan such as crop insurance, life insurance, car insurance, and health insurance where customers pay a premium for their coverage to safeguard their products for a period of 6 months to 1 year or more.
Mobile phone insurance is different from mobile phone warranty as it covers any damage that results from an accident or unforeseen incidents. The damages and risks covered under the mobile phone insurance policies are both internal and external.
Surge in Adoption of High-Quality Smartphones Across the Globe
Increase in the use of smartphones by consumers to store private information and conduct online transactions has increased the need to protect mobile devices from physical and technological harm, which has raised awareness regarding the need for mobile insurance across the globe. Smartphones have delicate display that is easily damaged within a short amount of time after purchase, which has prompted customers to get mobile phone insurance.
In addition, increase in the cost of smartphones, owing to their advanced features such as storage capacity, battery backup, and HD camera quality are also convincing consumers to opt for mobile phone insurance policies.
Rise in Incidents of Accidental Damage and Phone Thefts Across the Globe
Growth in incidences of mechanical breakdown, accidental damage of phones or malicious & liquid damage, theft, and unauthorized usage, creates opportunities for insurance companies to invest and develop such products that have limited proliferation, high coverage, and provide financial security in the form of newly refurbished phones. Accidents involving unintentional handling damage and loss of protection have increased over the past few years, which has increased the demand for mobile phone insurance.
High Premium Packages
The rise in insurance costs, especially for premium mobiles, hinders the mobile phone insurance market growth. In addition, a lack of awareness among individuals regarding the types of insurance is expected to restrain the market growth.
Introduction of Artificial Intelligence (AI)
Growing advancements in technologies in mobile insurance such as artificial intelligence that delivers human-like interactions making it easier for customers to interact with some of the complex insurance processes and technology are expected to propel the MPI industry growth.
Asia-Pacific is Projected to Hold the Largest Market
The smartphone insurance market in this region is experiencing growth driven by initiatives from device protection plan service providers, aimed at simplifying the claiming process for customers. A notable example is Finger Motion, Inc.'s introduction of mobile device protection products in China in July 2022. These products offer a three-tier protection plan, encompassing trade-in options, coverage for accidental screen damage, and protection against mechanical breakdown.
Both new and existing members have the option to acquire these comprehensive device protection packages. Additionally, the rise in mobile theft cases within the region has prompted individuals to opt for cellphone insurance plans, providing coverage for both premium and budget phones to mitigate potential financial losses.
For instance, in 2021, Mumbai, India, recorded 48,856 instances of mobile phones being lost or stolen, indicating an average daily loss or theft of 134 phones. This surge in incidents has heightened the awareness and adoption of cell phone insurance plans as a safeguard against unforeseen financial setbacks.
North America Witnessed Substantial Growth in the Market
The presence of mobile phone manufacturers including Apple Inc., that focuses on unlimited battery replacement and three claims protection for loss, theft, and physical damage propels the market growth. For instance, Apple Inc’s AppleCare+ provides a warranty of one year and 90 days of technical support with the option to purchase plans for longer service periods.
In addition, the cell phone insurance market growth is driven by the growing purchase of high-quality smartphones, increasing cases of accidental damage, phone theft, and gadget failure. For instance, in September 2022, Statista Research Apple held the largest share of the smartphone operating systems market in the U.S. and its sales tend to stand at 23.4% in the fourth quarter of 2021, which, in turn, increased the necessity of mobile insurance plans for safeguarding smartphones.
Competitive Landscape
The mobile phone insurance market includes various players such as Apple Inc., American International Group Inc, Assurant Inc, Asurion Group Inc, CHUBB, Boltech, Singtel, Amtrust Financial Services, Securranty Assurance for TomorrowS, and Square Trade Inc. These market players are adopting various strategies including product launches and partnerships to increase their market presence.
For instance, in September 2022, Assurant Inc, announced a multiyear extension of its long-standing partnership with T-Mobile to continue providing comprehensive mobile device protection solutions. In addition, in November 2021, Asurion launched mobile smartphone insurance in Australia, which includes repair, replace, restore, and resolve insurance.
Mobile Phone Insurance Market Key Segments
By Phone type
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Budget Phones
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Mid & High-End Phones
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Premium Smartphones
By Sales Channel
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Mobile Operators
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Device OEMS & Retailers
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Others
By Coverage
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Physical Damage
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Internal Component Failure
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Theft & Loss Protection
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Virus & Data Protection
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Others
By End User
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Business
-
Individuals
By Region
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North America
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U.S
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Canada
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Mexico
-
-
Europe
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Germany
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UK
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France
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Spain
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Italy
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Netherlands
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Denmark
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Finland
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Norway
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Sweden
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Russia
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Rest of Europe
-
-
Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Thailand
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Singapore
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Rest of Asia-Pacific
-
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RoW
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Latin America
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Middle East
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Africa
-
Report Scope and Segmentation
|
Parameters |
Details |
|
Market Size in 2022 |
USD 31.55 Billion |
|
Revenue Forecast in 2030 |
USD 75.13 Billion |
|
Analysis Period |
2022–2030 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
Surge in adoption of high-quality smartphone across the globe Rising incidents of accidental damage and phone thefts across the world |
|
Countries Covered |
26 |
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 analysts working hours) after purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
Key Players
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Apple Inc.
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American International Group Inc
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Assurant Inc
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Asurion Group Inc
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CHUBB
-
Boltech
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Singtel
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Amtrust Financial Services
-
Securranty Assurance for TomorrowS
-
Square Trade Inc
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