Mobile Phone Insurance Market

Mobile Phone Insurance Market Research, 2030

The global mobile phone insurance market was valued at $24.6 billion in 2020, and is projected to reach $74.5 billion by 2030, growing at a CAGR of 11.8% from 2021 to 2030.

In the wake of COVID-19 global health crisis, the mobile phone insurance market is negatively impacted, due to economic disruptions and decline in consumer spending which has led to reduce in phone insurance premium activities among the general public. In addition to this, stringent lockdown across the globe and loss of job and pay cut issues across various industries have reduced the purchasing power of the end users, which in turn hampers the growth of the market

Mobile phone insurance is called service contract, which provides component fix repair service for phones sold by retailers, and service providers. It often provides additional coverage of phones such as unauthorized usage, malicious damage, e-wallet payments, or theft. Mobile phone insurance also covers the cost and inconvenience of mechanical and electrical failures.

Factors such as increase in incidents of accidental damage, phone thefts, virus infection, & device malfunction, and surge in adoption of high quality smartphones are some of the major factors, which drive the mobile phone insurance market growth. In addition, high replacement cost of various parts of mobile phones boost mobile phone insurance market growth. However, decline in sale of mobile phones is a major restraint that hinders the growth of the market. On the contrary, surge in demand for innovative products is expected to boost the market growth in the future.

The report focuses on growth prospects, restraints, and trends of the global mobile phone insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the mobile phone insurance industry.

Segment review

The global mobile phone insurance market is segmented on the basis of phone type, sales channel, coverage type, end user, and region. By phone type, it is segmented into budget phones, mid & high-end phones, and premium smartphones. On the basis of sales channel, it is divided into retail and online. Based on coverage type, it is segregated into physical damage, internal component failure, theft & loss protection, and others. By end user, the market is divided into business and individuals. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of phone type, the premium smartphones segment dominated the mobile phone insurance market share in 2020, and is expected to maintain its dominance in the upcoming years owing to growing need to provide enhance security to this phones as premium phones are more prone to technical and physical damages, which lead to huge losses.

Region wise, the mobile phone insurance market was dominated by North America in 2020, and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region include 60% consumers prefer mobile phone insurance, while 62% are active users of mobile phone insurance in the country.

The report analyzes the profiles of key players operating in the global mobile phone insurance market such as Apple Inc., ASSURANT, INC., Asurion, AT&T Intellectual Property, Aviva, bolttech, Chubb, Digital Care sp. z o.o., Servify, Singtel, and U Mobile Sdn Bhd. These players have adopted various strategies to increase their market penetration and strengthen their position in the global mobile phone insurance market.   

COVID-19 impact analysis

The coronavirus pandemic has a significant impact on the mobile phone insurance market as several countries have imposed travel ban; policyholders are filing claims, demanding further extension of mobile phone coverage; and there are changes in terms of policies in the market. This has led insurers to freeze sales of new coverage’s for mobile phone insurance in the market. Although the COVID-19 outbreak negatively impacts the growth of the market, the industry is expected to recover by the third quarter of 2023. This is attributed to increase in government support & initiatives toward the insurance industry and increase in purchasing power of customers to buy mobile phone insurance.

Top impacting factors

Surge in adoption of high quality smartphones

Rise in demand for mobile phone insurance on accidents, such as mechanical breakdown, accidental damage of phones or malicious & liquid damage, theft, and unauthorized usage, creates pressure on insurance companies to invest and develop such products that have less proliferation, high coverage, and provide financial security in the form of new refurbished phones. In recent years, there has been an increase in the number of accidents, in terms of accidental damage from handling and loss protection, which resulted in an increase in the need for mobile phone insurance. For instance, in the U.S., a study conducted by ASSURANT, INC., a global mobile phone insurance provider, stated that in 2019, around 34% consumers purchased mobile phone insurance for more than two years for their mobile devices. Hence, these aforementioned factors are expected to boost the cell phone insurance market growth in the future.   

Decline in sales of mobile phones  

Mobile phones is one of the major category under consumer electronics, which largely purchases mobile phone insurance coverage in the market. However, demand for mobile phone insurance has also declined, with decline in sales of mobile phones since recent years. Moreover, consumer experiences and adoption of mobile phones remain a primary concern, which needs to be addressed by balancing the sales of mobile phones and its alternative uses in the market. Furthermore, unit shipment for mobile phones have been on the decline globally, therefore, these factors limit the growth of mobile phones premium in the market.

Surge in demand for innovative products

Various mobile phone companies across the globe are introducing new strategies to improve their market value and surge their revenue as well as enhance their customer experience. Some of the mobile phone insurance companies are providing applications and other technologically advanced services to their customers to keep their customer safe from the pandemic situation. For instance, according to Asurion survey, on May 25, 2021 the number of phone mishaps increased more than usual owing to vacations and summer activities. Therefore, such new advanced services have become a major trend in the mobile phone insurance industry, which, is expected provide a lucrative opportunity for mobile phone insurance providers in the upcoming years.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the mobile phone insurance market size analysis from 2020 to 2030 to identify the prevailing mobile phone insurance market opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the mobile phone insurance market outlook assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global mobile phone insurance market forecast.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global mobile phone insurance market trends, key players, market segments, application areas, and market growth strategies.

 Mobile Phone Insurance Market Report Highlights