Mobile Phone Insurance Market Set to Surge to $56.56 Billion by 2028 with Trends in Cybersecurity and AI Integration Shaping the Industry

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Mar 04, 2024, 17:30 ET

DUBLIN, March 4, 2024 /PRNewswire/ -- The "Mobile Phone Insurance Global Market Report 2024" has been added to ResearchAndMarkets.com's offering.

The mobile phone insurance market size is expected to see rapid growth in the next few years. It will grow to $56.56 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The anticipated growth in the forecast period can be attributed to ongoing innovations in smartphones, the expansion of mid-range and premium device segments, the availability of customized and flexible insurance plans, the surge in e-commerce and online device sales, and the overall trend toward increased digitalization and connectivity. Key trends expected during this period encompass coverage for digital wallets and cybersecurity, flexibility in premium payment models, a focus on sustainability and eco-friendly practices, the integration of artificial intelligence in risk assessment, and the exploration of global expansion opportunities, particularly in emerging markets.

The rising adoption of smartphones is expected to significantly drive the expansion of the mobile phone insurance market in the coming years. Smartphones, portable electronic devices with cellular network connectivity, have become increasingly prevalent. A reliable mobile phone insurance plan offers coverage for necessary repairs or replacements, fueling the growth of the mobile phone insurance market alongside the increasing smartphone adoption. For instance, a report from Uswitch Limited published in 2022 indicated that there were 71.8 million active mobile connections. Projections suggest that by 2025, the UK will have a population of 68.3 million, with 95% of individuals owning smartphones. This surge in smartphone adoption is a key factor propelling the growth trajectory of the mobile phone insurance market.

The rise in phone theft incidents is expected to be a significant driver behind the growth of the mobile phone insurance market in the foreseeable future. Phone theft involves the unlawful acquisition or stealing of someone's mobile phone or smartphone device. Victims of phone theft often rely on mobile phone insurance to recover from the financial loss incurred due to the stolen device. This insurance coverage extends to replacement or repair costs associated with the stolen phone, providing a practical solution to mitigate the financial impact of theft. For instance, according to data from the London Metropolitan Police in December 2023, there were 90,864 reported phone thefts in 2022, averaging to 249 phones stolen each day. These incidents of phone theft highlight the growing need for mobile phone insurance as individuals seek protection against potential financial losses due to theft. Thus, the escalating frequency of phone theft incidents serves as a driving force behind the growth of the mobile phone insurance market.

Product innovation stands as a prominent trend gaining traction within the mobile phone insurance market. Key companies in this sector are placing a strategic focus on developing novel insurance products to cater to evolving consumer needs. For instance, in May 2023, Switched On Insurance, a UK-based gadget insurance company, introduced a new mobile phone insurance offering. This comprehensive and cost-effective insurance policy is designed to safeguard devices, specifically those under 36 months old. The company's mobile phone and gadget insurance come with various features, including unlimited claims and a 12-month warranty. The coverage extends to mobile devices while in use, ensuring protection during active use. Additionally, customers have the flexibility to cancel the insurance policy within the cooling-off period, typically set at 14 days. This innovative approach aims to meet consumer demands for comprehensive coverage and flexible policy options within the mobile phone insurance market.

Major companies within the mobile insurance policy market are increasingly adopting a strategic partnership approach to bolster the accessibility of insurance products and address emerging risks associated with customers' digital lifestyles.

North America was the largest region in the mobile phone insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global mobile phone insurance market during the forecast period. The regions covered in the mobile phone insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the mobile phone insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Mobile phone insurance caters to various phone types, categorized into budget phones, midrange and high-end phones, and premium smartphones. Budget phones typically offer optimal specifications for their cost. The insurance coverage spans several areas, including protection against physical damage, internal component failure, theft and loss, virus and data protection, among other coverages. These insurance policies are available through diverse distribution channels such as mobile operators, device OEMs (original equipment manufacturers), retailers, online platforms, and other channels. The end-users encompass both corporate and personal relationships seeking coverage for their mobile devices.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The market characteristics section of the report defines and explains the market.
The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
The forecasts are made after considering the major factors currently impacting the market. These include:
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.
Market segmentations break down the market into sub markets.
The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Report Scope

Markets Covered:

By Phone Type: Budget Phones; Mid and High-End Phones; Premium Smartphones
By Coverage: Physical Damage; Internal Component Failure; Theft and Loss Protection; Virus and Data Protection; Other Coverages
By Distribution Channel: Mobile Operators; Device OMEs (Original Equipment Manufacturer); Retailers; Online; Other Distribution Channels
By End-user: Corporate; Personal

Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain

Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Time Series: Five years historic and ten years forecast

Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita

Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments

Companies Profiled

Apple Inc.
AT&T Inc.
American International Group Inc.
SoftBank Corp.
Liberty Mutual Insurance Company
Orange S.A.
The Chubb Corporation
Xiaomi Corporation
Nokia Corporation
Aviva Life Insurance Company Limited
Singapore Telecommunications Limited
Assurant Inc.
Brightstar Corp.
Telefonica Brasil S.A.
Motorola Solutions Inc.
AmTrust Financial
Asurion LLC
Debenhams plc
Taurus Insurance Services Limited
Bolttech Management Limited
SquareTrade Inc.
U Mobile Sdn Bhd.
Servify
Digital Care Sp. z o.o.
CoverCloud Insurance
GoCare Warranty Group
OPPO Electronics Corp.
Better Buy Insurance Co.
Pier Insurance Managed Services Ltd.
Direct General Insurance Company

For more information about this report visit https://www.researchandmarkets.com/r/t88bw1

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