Mobile Phone Insurance Ecosystem Market Forecast 2023 - 2030

By Insurance Type :

Based on the insurance type, the market is trifurcated into physical damage, theft & loss, and others. The physical damage segment accounted for the largest revenue share of 41.35% in the year 2022. Moreover, the segment provides services such as protection against accidental damage to mobile phones. Insurance policies typically cover the cost of repairs or replacement of the damaged components, depending on the terms and conditions of the policy. Therefore, mobile phone insurance providers offer services in scenarios such as cracked screens, liquid damage, power surges, and hardware malfunctions, resulting in market growth.

The theft & loss segment is expected to witness the fastest CAGR growth during the forecast period. Insurance plans under this segment provide coverage against theft and loss of mobile phones. Customers file a claim to receive compensation or a replacement device if a device is stolen or lost. As a result, insurance companies provide services to the customers according to the terms and conditions of the policy, resulting in market growth.

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By Sales Channel :

Based on the sales channel, the market is segregated into mobile operators, insurance companies, device OEMs, retailers, and others. The insurance companies segment accounted for the largest revenue share in the year 2022. Insurance companies offer smartphone insurance services to the customers for various conditions such as accidental damage, theft or loss. Thus, insurance companies assess risks, determine premiums, and manage claims and payouts. Moreover, insurance companies maintain customer records, manage coverage details, and handle policy-related queries and changes. Thus, insurance companies are providing efficient customer support services leading to customer satisfaction that contributes to the growth of the market.

Device OEM segment is anticipated to register fastest CAGR growth during the forecast period. Device OEMs collaborate with insurance companies to offer insurance plans specifically designed for their devices. As a result, device OEMs provide extended services such as warranty coverage, device protection, or other insurance options bundled with the purchase of their devices. Therefore, the device OEMs ensure that customers receive adequate protection for their specific device models, resulting in market growth.

By Phone Type :

Based on the phone type, the market is segregated into budget phones, mid & high-end phones, and premium smartphones. The premium smartphones segment accounted for the largest revenue share in the year 2022. The increasing production of smartphones with advanced functionalities and features is driving the growth of mobile phone insurance ecosystem market. The growing value of consumer electronics devices drives the demand for insurance services to safeguard and protect smartphones from physical damage, theft, and loss. As a result, insurance services offer extended services for premium devices such as water damage, screen cracks, and repairing of face recognition or fingerprint sensors.

Moreover, the premium smartphones segment is anticipated to register fastest CAGR growth during the forecast period. The technological advancements in smartphones such as wireless connectivity are further facilitating insurance companies to provide cyber-security services such as identity monitoring and protection. For instance, in January 2021, Zimperium launched a critical zero-touch remote-code execution vulnerability called WifiDemon to protect iOS devices from network crash bugs or cyber security risks. Thus, the ability of insurance companies to provide cyber protection is further contributing to the growth of the market.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share in the year 2022. The increasing adoption of consumer electronics devices such as smartphones, laptops, and tablets in the region is driving the growth of mobile phone insurance ecosystem market. For instance, according to Statistics Canada, 84% of Canadians relied on a smartphone for personal use to communicate, research, or for entertainment in 2020. Thus, the development of smartphone devices with gradual incorporation of advanced features for safeguarding premium smartphones is fuelling the mobile phone insurance ecosystem market growth.

Europe accounted for a revenue share of USD 7,804.36 million in 2022 and is expected to reach USD 17,707.12 million in 2030, registering a CAGR of 10.9% during the forecast period. Additionally, in the region, Germany accounted for the largest revenue share of 18.5% in the year 2022. The rising cases of cyber security threats such as identity theft, financial loss, and others in the region is driving the growth of mobile phone insurance ecosystem market. A large section of the population in Europe are dependent on smartphone and internet services. For instance, according to Cybercrew UK, 92% of UK population own a smartphone as of March 2021. Furthermore, the growing risks of cybersecurity threats such as ransomware, malware, and advanced persistent threats (APTs) is increasing the demand for mobile phone insurance services, resulting in the market growth.