As per the latest report by IMARC Group, titled “Mobile Phone Insurance Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025”, the global mobile phone insurance market size reached US$ 24.9 Billion in 2019, growing at a CAGR of 8.7% during 2014-2019. Mobile phone insurance is a risk-transfer mechanism that ensures full or partial financial compensation for smartphones against damages and losses caused by events that are beyond the control of the insured party. It usually covers internal component failure, theft and loss damage, virus and data protection, and physical damage caused due to a fire, accident and water or liquid damage. At present, there is a rise in the demand for mobile phone insurance owing to the boosting sales of high-end smartphones and the hefty replacement costs in case of loss or breakdown.
Global Mobile Phone Insurance Market Trends:
Mobile phones play a vital role in the modern lifestyle since they serve as a platform for communication, entertainment, education, and digital transactions. Owing to this, there is an increase in the number of consumers who are looking for effective ways to ensure the safety of their mobile devices. In line with this, the rising incidences of phone thefts, accidental damages and device malfunctioning, in confluence with the ease in the claiming procedure, facility to upgrade policies, and the extension of coverage for including accessories, have also contributed to the market growth. Furthermore, several mobile phone manufacturers are collaborating with insurance providers, which in turn is anticipated to impel the market growth in the coming years. On account of these factors, the market value is projected to reach US$ 44.1 Billion by 2025, expanding at a CAGR of 10.2% during the forecast period (2020-2025).
- Based on the type, the market has been bifurcated into new and refurbished phones. At present, new mobile phones represent the leading market segment.
- On the basis of the coverage, the market has been segmented into physical damage, electronic damage, virus protection, data protection and theft protection. At present, the physical damage segment exhibits a clear dominance in the market.
- The market has been analyzed on the basis of the distribution channel into mobile operators, device original equipment manufacturers (OEMs), retailers, online and others. Amongst these, online distribution channels account for the majority of the total market share.
- Based on the end user, the market has been divided into corporate and personal segments. The personal segment currently holds the largest market share.
- Region-wise, North America dominates the market. Other major markets include Asia Pacific, Europe, Middle East and Africa, and Latin America.
- The competitive landscape of the market has been examined, with some of the key players being American International Group (AIG), Inc., Allianz SE, AmTrust International Underwriters DAC, Apple Inc., AT&T Inc., AXA Group, Deutsche Telekom AG, Liberty Mutual Insurance Group, Pier Insurance Managed Services Ltd., Samsung Electronics Co. Ltd., SoftBank Group Corporation, Sprint Corporation, Telefónica Insurance S.A., Verizon Communications Inc., Vodafone Group Plc, Xiaomi Corporation and Orange S.A.
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