Mobile phones insurance market is growing potentially form the past decade and it is expected to grow at a CAGR of 12.45% from 2017 to 2025. The market is projected to USD 32.15 billion by 2025.
We spend more pounds on smartphones if lost or damaged. In these cases, mobile phone insurance will provide benefits according to its schemes. If the mobile is lost due to accidental damage, screen cracking and water damage they have separate policies for these incidences.
The cost given by insurance companies for mobile phones will vary according to damage to the phone and also claims more money if the person has previously claimed the insurance on mobile phones. If the person did not claim before, they may provide less money with no claim bonus. Insurance policy will not be applicable for the policyholders below 18 years of age, second-hand phones, accidentally left your mobile in some other places, lost photos, theft without force and cosmetic damage. So, a person should go through the terms and conditions before claiming.
- Growing prevalence for the breakdown of mobile phones due to mechanical related issues is particularly driving the demand of the market. Increased incidences of accidental damages are also propelling the growth of the market to the extent. Rise in the support from the government through funds is also greatly influencing the demand of the market. Growing investments from the top most companies are boosting up the growth of the market. The rise in the economy of the developed countries is outshining the demand of the market. An increasing number of network operators and insurance companies are also leveling up the growth of the market.
- However, the lack of knowledge over the policies and benefits of insurance policies is slightly declining the growth of the market. Increased fraud activities are also limiting the growth of the market. Lack of privacy and security concerns has remained a challenging factor for the market. Lack of standardization is one more attribute impacting negatively on the growth of the market.
- Increasing launch of various applications and simple process to claim the insurance for mobile phones is surging growth opportunities for the market. Stringent rules and regulations by the government are also leveraging the demand of the market further. Rising disposable income in urbanized areas is prompting the demand of the market. Growing prevalence for the utilization of smartphones is also pushing the growth of this market.
- Manufacturers are collaborating with insurance managers which are also accelerating the demand of the market. Growing internet of things is also one of the factors for the growth of the market. Raising awareness through advertisements is extraordinarily developing the demand of the market.
Segment Wise Growth and Trends:
Based on the phone type, the market is segmented into the new phone and refurbished. New phone segment is expected to lead the highest shares of the market. Acceptance of advanced technologies and launch of various innovative products are fueling the demand of the market extensively.
On the basis of coverage, the market categories are physical damage, electrical damage, virus protection, and theft protection. Physical damage segments are having huge popularity in this market.
By the sales channel, the market is divided into mobile operators, device OEMs, retailers, and others. Mobile operators are estimated to have the highest CAGR in the forecast period.
By End-Use, Corporate and personal are the end-user segments for the mobile phone insurance market. The corporate sector is leading with the highest shares of the market.
North America to dominate the Global Mobile Phone Insurance Market
Geographically, the market is segmented into Asia Pacific, North America, Europe, Latin America, Middle East, and Africa. North America is the one ruling the highest revenue shares of the market. Rise in the production rate of the electronic goods and also increases utilization of smartphones are lavishing the demand of the market in this region. The Asia Pacific is positioned second in leading the largest shares of the market by owing to the quick adoption of advanced technology and also launch of various applications in favor of the insurance companies. Latin America is witnessed by the significant growth rate in the following period. Growing prevalence for the investments on insurance companies by the government is mainly ascribed to propel the growth of the market in Latin America.
Europe is likely to have sustainable market shares in the coming years owing to the rise in the demand for protection of mobile phones and to lower the risks due to accidental damages. The Middle East and Africa are anticipated to have huge growth opportunities with the rise in the awareness towards the terms and conditions and also increasing online retailers through partnerships with the insurance companies along with growing utilization of smartphones.
The major players in the mobile phone insurance market are Allianz, AmTrust International, Apple Inc., ASSURANT, INC., Asurion, Aviva, Brightstar Corp., American International Group, Inc., Geek Squad and GoCare Warranty Group.
This research report includes following segmentation for the Global Mobile Phone Insurance Market size and forecast until 2025.
Mobile Phone Insurance Market Analysis – By Phone Type:
Mobile Phone Insurance Market Analysis – By Damage Type:
- Physical Damage
- Electrical Damage
- Virus Protection
- Theft Protection
Mobile Phone Insurance Market Analysis – By Region:
- North America
- Asia Pacific
- Latin America
- Middle East