United States Mobile Phone Insurance Market Report and Forecast 2024-2032

United States Mobile Phone Insurance Market Outlook

The United States mobile phone insurance market size was approximately USD 11.40 billion in 2023. The market is projected to grow at a CAGR of 8.3% between 2024 and 2032, reaching a value of around USD 23.97 billion by 2032.

Key Trends in the Market

Mobile phone insurance serves as a preventive measure that enables users to mitigate substantial replacement costs associated with the loss or breakdown of their mobile phones. Such insurance policies generally encompass protection against physical damage, theft and loss, internal coverage failures, as well as virus and data threats.

The rising occurrences of accidental damage, phone thefts, virus infections, and device malfunctions have prompted consumers to seek means of protecting their mobile phones, leading to an increasing adoption of mobile phone coverage policies.

• The growing popularity of smartphone financing and lease programmes, offered by both carriers and retailers throughout the United States, is contributing significantly to the United States mobile phone insurance market growth. As the prices of smartphones continue to rise, a growing number of consumers are opting for instalment plans and lease arrangements to make these coveted devices more budget-friendly. Consequently, there is a heightened inclination among consumers to protect their valuable investments and comply with leasing and financing regulations by opting for mobile phone insurance.

• The increasing mobile phone ownership among younger generations, notably millennials and Gen Z, is propelling the United States mobile phone insurance market demand. The dynamic and active lifestyles of these demographic groups, coupled with their reliance on smartphones, increase the likelihood of accidental damage or loss of gadgets, boosting the requirement for optimal insurance services.

• One of the key United States mobile phone insurance market trends is the growing threat of cyberattacks. Hence, leading companies are offering innovative phone insurance solutions that can protect smartphones against fraudulent calls, cyberattacks, technical breakdowns, and fraudulent usage of e-wallets, among others.

Market Analysis

Based on phone type, the market is segmented into budget phones, mid and high-end phones, and premium smartphones. By coverage type, the United States mobile phone insurance market segmentation includes physical damage, internal component failure, and theft and loss protection, among others. The major regional markets for mobile phone insurance in the United States are New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States mobile phone insurance market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Apple Inc.

• AT&T Inc.

• Worth Ave. Group, L.L.C.

• American International Group, Inc.  

• SquareTrade, Inc.

• Assurant, Inc.

• AKKO, LLC

• Asurion, LLC

• Others

Market Share by Phone Type

As per the United States mobile phone insurance market analysis, the demand for insurance solutions for premium smartphones is significantly increasing. This can be attributed to the growing focus by users to protect their phones from accidental damage and reduce overall costs associated with repair and replacement.

The growing partnerships between third-party insurance companies and smartphone manufacturers to provide extended-term service plans and services like accurate device assessments, accidental damage protection, and subscription pricing options are further propelling the segment’s growth.

Market Share by Coverage Type

Physical damage accounts for a significant portion of the United States mobile phone insurance market share as this coverage addresses accidental damages encountered by smartphone owners. As smartphones play an increasingly vital role in daily life, the likelihood of incidents such as dropping, cracking, or otherwise damaging these valuable devices significantly rises.

By offering protection against such mishaps, physical damage coverage provides consumers with the confidence that their smartphones are safeguarded, thereby alleviating the financial strain associated with expensive repairs or replacements.

This coverage option holds a particular appeal for owners of premium smartphones, given the substantial costs associated with repairing or replacing sophisticated devices. With physical damage coverage in effect, consumers can use their smartphones confidently, secure in the knowledge that they have a safety net to rely on in the event of accidents.

Competitive Landscape

Apple Inc., founded in 1976, is a company that specialises in personal computers, smartphones, tablet computers, computer peripherals, and software. Renowned for its widely embraced consumer electronics, Apple's lineup includes iconic devices like iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company is also recognised for its diverse range of software offerings, encompassing operating systems such as iOS, macOS, watchOS, tvOS, and audioOS, along with the popular iCloud cloud storage service.

American International Group, Inc., established in 1919, stands as a leading insurance and financial services entity, operating across over 70 countries and jurisdictions worldwide. AIG's member companies provide an extensive array of insurance products and services catering to both businesses and individuals. These offerings encompass property casualty insurance, life insurance, retirement products, mortgage insurance, and various other financial services, solidifying AIG's position as a comprehensive provider in the insurance and financial industry.

Assurant, Inc. is a company that offers comprehensive risk management solutions for use in the automotive, housing protection, and lifestyle sectors. Its protection and insurance products are aimed at supporting businesses to manage the risk of financial loss, property damage, and theft, among others.

Other market players operating in the United States mobile phone insurance market include AT&T Inc., Worth Ave. Group, L.L.C., SquareTrade, Inc., AKKO, LLC, and Asurion, LLC, among others.

Key Highlights of the Report