The global mobile phone insurance market is anticipated to cross USD 50 Billion by 2029 with 8.28% CAGR by 2024-29.
In today’s digital age, mobile phones have become an indispensable part of the lives. From communication and entertainment to managing finances and accessing critical information, our reliance on these devices is undeniable. However, with their high value and frequent use, mobile phones are also prone to damage, loss, and theft. This is where mobile phone insurance comes into play. Mobile phone insurance is a policy that provides coverage for the phone against various risks such as accidental damage, theft, loss, and sometimes even mechanical breakdowns outside the manufacturer’s warranty. The specifics of the coverage can vary widely depending on the provider and the policy. Mobile phones serve as a platform for entertainment and education and an effective platform for conducting digital transactions. Increasing the use of smartphones for storing personal information and digital transactions has led to the increasing need for safeguarding mobile devices. This trend is expected to escalate market growth over the forecast period. According to GSMA (Global System for Mobile Communications Association), approximately 75% of internet users are expected to access the internet through smartphones by 2025. Mobile phone insurance service providers are collaborating with smartphone manufacturers to experiment with the success rate of insurance policies/schemes offered when purchasing a mobile phone. According to the research report, “Global Mobile Phone Insurance Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 50 Billion by 2029, increasing from USD 33.55 Billion in 2023. The market is expected to grow with 8.28% CAGR by 2024-29. Increasing incidents of accidental damage, phone thefts, virus infection, and device malfunction are expected to drive market growth over the forecast period. These incidents have urged customers to look for ways to safeguard their mobile phones and, thereby, adopt mobile phone coverage policies. Mobile phone insurance helps consumers avoid high replacement costs in case their mobile phone is lost or faces a breakdown. A mobile phone insurance policy typically covers physical damage, internal coverage failure, theft & loss protection, and virus & data protection.
The high cost of repair and replacement for premium smartphones drives the demand for comprehensive mobile phone insurance coverage. Premium smartphones, such as the latest iPhone or Samsung Galaxy models, come with advanced technology, superior build quality, and high price tags, often exceeding $1,000. The intricate components, such as high-resolution displays, sophisticated camera systems, and powerful processors, make these devices both valuable and expensive to repair or replace. As a result, owners of premium smartphones are more inclined to purchase insurance to safeguard their significant investment against potential risks like accidental damage, theft, or loss. The cost of fixing a cracked screen or replacing a stolen device can be prohibitively high, prompting users to seek insurance for financial protection and peace of mind. Smartphones are essential, everyday devices that are frequently exposed to physical risks such as drops, spills, and impacts. These accidents can lead to cracked screens, damaged casings, and malfunctioning components, which are among the most common and costly repairs. Given the sleek designs and sophisticated technology embedded in modern smartphones, even minor physical damage can result in expensive repair bills. For instance, replacing a shattered screen on a premium smartphone can cost hundreds of dollars. The high probability of such incidents occurring, combined with the significant financial burden of repairs, makes physical damage coverage an attractive and practical option for consumers. Insurance policies that cover physical damage offer users a safeguard against the unpredictability of daily mishaps, ensuring that they can quickly and affordably repair or replace their devices without facing substantial out-of-pocket expenses.
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The mobile phone insurance market would gain the highest levels in North America, mainly due to the huge adoption of premium smartphones and consumer awareness towards device protection. With flagship phones touching over $1,000, consumers are getting induced towards securing this investment by having an insurance policy that cushions their financial hardships when the damage or theft occurs. Growing e-commerce and online banking have also brought in increasing pressure in terms of data breaches and thus a growing need for insurance plans that include data recovery and identity theft protection facilities. It also involves the growing trend of partnerships between mobile carriers and retailers and insurance providers that enables bundled insurance offerings from these companies and enhances the convenience available to the consumer and should reflect the strong trend towards broad coverage option arrangements that are customized to the requirements of consumers. In Europe, mobile phone insurance is fast growing, especially because of increased usage of smart phones and the rising incidence of damages by accidents, theft etc. Increased smartphone usage in general is the biggest driving force behind this trend, not only in Germany but also in the UK. Consumers are increasingly asking for more extended coverage options beyond mere damage protection at an affordable price. Sustainability is also a factor that influences the market with consumers gradually shifting from replacing the device to repairs- oriented solutions. The other major regulation aspect is one that is compelling the insurers to provide more comprehensive policies like extended warranties and liquid spill protections. The European market shall be growing with customers looking to invest in secured devices with rising levels of disposable income. It is driven by the Asia-Pacific region’s highest rate of growth, most recently with fast smartphone penetration in emerging economies such as India and China.
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A growing number of mobile payment systems also drive demand for the underpinning insurance products that help protect against loss and theft. As it increases the need for insurance solutions that are effective for demographics using smartphones to access the mobile phone network. As this particular mobile payment application would be integrated with other popular mobile payment applications, it would make the purchase process easier and significantly increase the adoption rate of such programs, allowing for an improvement in the experience of the customer. The South American mobile phone insurance market is slowly transforming with customers becoming more conscious about the protection offered by their mobile devices. Brazil and Argentina start to understand the significance of mobile phone insurance as smartphone penetration increases and thefts and damages are progressively on the rise. However, the region lags in rapid growth mainly because of economic challenges and unavailability of comprehensive insurance solutions. Based on people’s awareness of public services and companies’ entry into this tailored product line, a huge amount of expansion for this market can be expected. The coming years are most likely to surge demands with increased reliance on mobile-based daily activities. At present, the Middle East and Africa region can be both challenging and attractive for the mobile phone insurance market. Even though smartphone penetration is growing, especially across the South African and UAE territories, it often goes unnoticed by its consumer base; existing offerings are rarely known or even reach the target consumers as economic instability deters them. However, in the future, as mobile technology becomes far more ubiquitous and integral to daily living, it will be easier for insurers to make the point that protection of the gadget is also a benefit. Access-enhancing initiatives related to affordable products can enhance this product group’s growth.
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The trends that will develop the mobile phone insurance market into the future are a mix of opportunities. Note that most of the trends today are being led by technology through solutions based on Insurtech, which improves customer experience. The increasing use of artificial intelligence (AI) for claims processing and customer service is pushing insurers to promptly respond to claims and increase the efficacy of the service delivered. This will most probably attract more technically savvy customers who prefer convenience and speed in dealing with the insurance companies. The demand for bundled and embedded insurance products is also on the rise. Consumers want to have bundled forms of insurance solutions easily integrated at the point of purchase so it can be promoted in a manner that simplifies the purchasing process. This may open the door for some form of collaboration between mobile device manufacturers or retailers and insurers about comprehensive bundles easily absorbed by consumers. The growing cost of smart phones is another factor that is driving the growth in the market. More and more people are looking for insurance cover so as to be protected against the risk of losing out financially when they lose their smart phones due to theft or other forms of damage. In addition, the increase in accident damages and cases of robbery is yet another proof that many people want mobile phone insurance, hence increasing the number of subscribers who embrace the protection plans.
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Considered in this report
• Geography: Global
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029
Regions & Countries covered in the report:
• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)
Aspects covered in this report
• Global mobile phone insurance market with its value and forecast along with its segments
• Region & Country-wise mobile phone insurance market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Phone Type
• Premium smartphones
• Mid & high-end phones
• Budget phones
By Coverage
• Physical Damage
• Internal Component Failure
• Theft & Loss Protection
• Others
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E-mail: sales@bonafideresearch.com
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Europe: +44 20 8089 0049
North America: +1 201 793 8545
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