Global Electronic Gadget Insurance Market Overview:
Electronic Gadget Insurance Market Size was estimated at 14.2 (USD Billion) in 2022. The Electronic Gadget Insurance Market Industry is expected to grow from 15.19(USD Billion) in 2023 to 27.9 (USD Billion) by 2032. The Electronic Gadget Insurance Market CAGR (growth rate) is expected to be around 6.98% during the forecast period (2024 - 2032)
Key Electronic Gadget Insurance Market Trends Highlighted
The present article highlights the fact that several electronic devices are now on the market and there are many companies involved in insuring them. A good example of this is Apple's watch insurance policy. In addition, most online retailers have made it easy for people to buy these gadgets on the internet, which has resulted in market growth.
There have been several reasons why there has been a massive increase in the uptake of gadget insurance policies over time. The use of mobile phones for personal and business purposes has continued to grow across different countries. Furthermore, as technology advances, we have become more dependent upon our smartphones and other electronic gadgets with regard to running our businesses or just running our lives on a daily basis.
Some key driver behind expanded coverage are affordable quotes, access to emerging markets with their expanding middle class and disposable income, and subscription-based cover, among others. Some potential areas for exploration include developing specialized products aimed at specific types of devices or patterns of use as well as incorporating such advancements like internet-of-things into risk profiling and claim processing activities. On its part, some current trends witnessed include pay-as-you-use policies where premiums are determined by actual utilization of device services and implementation usage-based underwriting that incorporates artificial intelligence (AI) together with machine learning algorithms in claims processing while reducing risk exposure.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electronic Gadget Insurance Market Drivers
Rising Adoption of Electronic Gadgets
The increasing adoption of electronic gadgets, such as smartphones, laptops, tablets, and smartwatches, is a key driving factor for the Electronic Gadget Insurance Market. As these devices are becoming increasingly indispensable both for personal and professional purposes, more and more consumers across the globe are willing to purchase insurance to protect them from any damage, loss, or theft. Moreover, the demand for electronic gadgets is particularly high in developing countries due to the increasing disposable incomes and the improved accessibility to technology.Another factor contributing to the market growth is that more and more electronic gadgets worldwide are purchased through e-commerce platforms, allowing customers to buy electronic gadget insurance just at the point of sale.
Increasing Awareness of Insurance Benefits
The second most prominent driver of the Electronic Gadget Insurance Market is increasing awareness among consumers regarding the benefits of insurance. Insurance companies are promoting insurance policies as a means of providing personal financial stability during times of unexpected uncertainties. Not the manufacturers or the insurance companies. The consumers themselves are becoming aware that anything unexpected could happen with their costly gadgets and that their hard-earned money would be in trouble should anything happen to their gadgets.In order to protect their investment in expensive gadgets and to avoid situations causing financial loss, consumers are more and more opting for insurance covers for their special electronic gadgets.
Expansion of Insurance Coverage
Furthermore, the expansion of insurance coverage is another factor that boosts the electronic gadget insurance market growth across the globe. Adoption of such policies and offerings continues to increase, and insurance companies are continuously broadening their product range to suit new needs. Not only is standard damage, loss, or theft insurance available on the market, but accidental damage, liquid damage, and even warranty extensions are available to consumers.The full spectrum of insurance encourages customers to purchase insurance along with gadgets.
Electronic Gadget Insurance Market Segment Insights:
Electronic Gadget Insurance Market Policy Type Insights
The Electronic Gadget Insurance Market is segmented by policy type into Comprehensive Insurance and Named Peril Insurance. Comprehensive insurance offers extensive coverage for a wide range of risks, including accidental damage, theft, and loss. Named peril insurance, on the other hand, provides coverage for specific perils that are explicitly named in the policy. In 2023, the Electronic Gadget Insurance Market revenue for Comprehensive Insurance was estimated at USD 7.8 billion, accounting for approximately 51% of the market share.This segment is expected to continue its dominance in the coming years, driven by the increasing demand for comprehensive protection against various risks.
The growing popularity of expensive electronic gadgets, such as smartphones, laptops, and tablets, has fueled the demand for comprehensive insurance policies that cover accidental damage and theft. Named Peril Insurance, on the other hand, accounted for a revenue of USD 7.3 billion in 2023, representing around 49% of the Electronic Gadget Insurance Market. This segment is expected to witness steady growth over the forecast period, driven by the increasing adoption of budget-friendly insurance policies that cover specific perils, such as fire, water damage, and power surges.
The rising number of entry-level electronic gadgets, such as budget smartphones and tablets, has contributed to the popularity of Named Peril Insurance as a cost-effective option for consumers. Overall, the segmentation of the Electronic Gadget Insurance Market by policy type provides insurers with insights into the varying needs and preferences of consumers. Comprehensive Insurance remains the preferred choice for consumers seeking comprehensive protection, while Named Peril Insurance offers a cost-effective alternative for those seeking coverage against specific perils.Understanding these market dynamics enables insurers to develop tailored insurance products that meet the evolving needs of the market, thereby driving growth and profitability in the industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electronic Gadget Insurance Market Protection Plan Insights
This growth is attributed to the increasing demand for electronic gadgets such as smartphones, laptops, and tablets, coupled with rising consumer awareness about the importance of protecting these devices from damage, theft, or extended repairs. Within the Protection Plan segment, the Accidental Damage Plan holds a substantial market share, driven by the high incidence of accidental damage to electronic gadgets. The Theft Protection Plan is also gaining traction, particularly in regions with high crime rates. Additionally, the Extended Warranty Plan is witnessing steady growth as consumers seek to extend the lifespan of their devices beyond the manufacturer's warranty period.
Electronic Gadget Insurance Market Gadget Type Insights
The market growth is attributed to the increasing adoption of electronic gadgets and the rising awareness of the need for protection against accidental damage, theft, and other unforeseen events. Smartphones hold the largest market share due to their high penetration rate and vulnerability to damage. Laptops and tablets follow closely, driven by the growing remote work and education trends. Wearables are gaining popularity, contributing to the market's growth. Gaming consoles, though a smaller segment, are expected to witness a steady rise in demand due to the increasing popularity of online gaming.
Electronic Gadget Insurance Market Distribution Channel Insights
The distribution channel segment plays a crucial role in the Electronic Gadget Insurance Market. Online distribution channels are gaining popularity, driven by the convenience and accessibility they offer. In 2023, the online channel accounted for a significant share of the market, and it is projected to maintain its dominance in the coming years. The Electronic Gadget Insurance Market segmentation by distribution channel provides valuable insights into the market dynamics. Offline distribution channels, which include insurance agents and gadget sellers, still hold a substantial market share.These channels offer personalized advice and support, which can be important for customers seeking comprehensive insurance coverage for their electronic gadgets. However, with the increasing adoption of online platforms, offline channels are facing challenges in terms of market share. The Electronic Gadget Insurance Market data shows that the online distribution channel is expected to grow at a faster CAGR compared to offline channels. This growth is attributed to the increasing penetration of smartphones and internet connectivity, as well as the growing popularity of e-commerce platforms.As a result, online channels are likely to gain a larger share of the Electronic Gadget Insurance Market revenue in the future.
Electronic Gadget Insurance Market Regional Insights
The Electronic Gadget Insurance Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth in the region can be attributed to the increasing adoption of electronic gadgets, rising disposable income, and growing awareness about the importance of gadget insurance. Europe is another major market for electronic gadget insurance, with a significant share of the global market.The region is home to a large number of tech-savvy consumers who are willing to spend on insurance to protect their valuable gadgets. APAC is a rapidly growing market for electronic gadget insurance, driven by the increasing penetration of smartphones and other electronic gadgets in the region. The region is expected to witness significant growth in the coming years as more and more consumers become aware of the benefits of gadget insurance. South America and MEA are relatively smaller markets for electronic gadget insurance, but they are expected to grow at a steady pace in the coming years.The growing middle class in these regions is expected to drive the demand for electronic gadgets and, subsequently, the demand for gadget insurance.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electronic Gadget Insurance Market Key Players And Competitive Insights:
Major players in the Electronic Gadget Insurance Market are constantly striving to outdo each other by introducing new features and services. They are also expanding their reach into new markets and forming strategic partnerships to gain a competitive edge. The Electronic Gadget Insurance Market industry is expected to witness a significant increase in mergers and acquisitions in the coming years as companies seek to consolidate their market position and gain access to new technologies and customer bases. Leading Electronic Gadget Insurance Market players are also investing heavily in research and development to create innovative products and services that meet the evolving needs of consumers.
The Electronic Gadget Insurance Market development is being driven by a number of factors, including the increasing adoption of electronic gadgets, the rising cost of repairs, and the growing awareness of the importance of protecting valuable possessions.SquareTrade is a leading provider of Electronic Gadget Insurance Market products and services. The company offers a variety of plans to protect electronic gadgets against accidental damage, theft, and loss. SquareTrade also offers a variety of value-added services, such as 24/7 customer support and free shipping on repairs. The company has a strong track record of customer satisfaction and has been recognized for its excellent service by a number of organizations. SquareTrade is a publicly traded company and its shares are traded on the Nasdaq Stock Market.Asurion is a leading provider of Electronic Gadget Insurance Market products and services. The company offers a variety of plans to protect electronic gadgets against accidental damage, theft, and loss. Asurion also offers a variety of value-added services, such as 24/7 customer support and free shipping on repairs. The company has a strong track record of customer satisfaction and has been recognized for its excellent service by a number of organizations. Asurion is a privately held company and its financial information is not publicly available.
Key Companies in the Electronic Gadget Insurance Market Include:
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Allianz
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Nationwide
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Zurich Insurance Group
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Generali
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Travelers Companies
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The Hartford
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Prudential Financial
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Berkshire Hathaway
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Liberty Mutual
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MetLife
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AIG
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Allstate
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Farmers Insurance
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Chubb
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AXA
Electronic Gadget Insurance Industry Developments
The Electronic Gadget Insurance Market is projected to reach USD 27.9 billion by 2032, exhibiting a CAGR of 6.98% during the forecast period (2024-2032). Rising demand for electronic gadgets, increasing disposable income, and growing awareness about the importance of protecting valuable devices are driving market growth. Additionally, the proliferation of smartphones, laptops, and other electronic devices has fueled the need for insurance coverage. Furthermore, the increasing adoption of smart home devices and the rise of the Internet of Things (IoT) are expected to contribute to market expansion. Key players in the market include Assurant, AIG, Zurich Insurance Group, and Chubb. Recent developments include the launch of innovative insurance products, such as usage-based insurance and on-demand coverage, to cater to the evolving needs of consumers.
Electronic Gadget Insurance Market Segmentation Insights
Electronic Gadget Insurance Market Policy Type Outlook
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Comprehensive Insurance
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Named Peril Insurance
Electronic Gadget Insurance Market Protection Plan Outlook
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Accidental Damage Plan
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Theft Protection Plan
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Extended Warranty Plan
Electronic Gadget Insurance Market Gadget Type Outlook
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Smartphones
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Laptops
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Tablets
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Wearables
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Gaming Consoles
Electronic Gadget Insurance Market Distribution Channel Outlook
Electronic Gadget Insurance Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
14.2 (USD Billion) |
| Market Size 2023 |
15.19 (USD Billion) |
| Market Size 2032 |
27.9 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.98% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Allianz, Nationwide, Zurich Insurance Group, Generali, Travelers Companies, The Hartford, Prudential Financial, Berkshire Hathaway, Liberty Mutual, MetLife, AIG, Allstate, Farmers Insurance, Chubb, AXA |
| Segments Covered |
Policy Type, Protection Plan, Gadget Type, Distribution Channel, Regional |
| Key Market Opportunities |
Increased device ownership and usageGrowing awareness of insurance benefitsExpansion of product offeringsTechnology advancementsPartnerships and collaborations |
| Key Market Dynamics |
Growing smartphone penetration 3G4G5G proliferationIncreasing adoption of wearable devicesSurge in demand for extended warrantiesRise of ecommerce and online insurance channelTechnological advancements in gadget design |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Electronic Gadget Insurance Market is expected to reach a valuation of USD 27.9 Billion by the year 2032, exhibiting a CAGR of 6.98% during the forecast period of 2024-2032.
North America and Europe are the dominant regions in the Electronic Gadget Insurance Market, collectively accounting for over 60% of the market share. The Asia-Pacific region is anticipated to showcase promising growth prospects, owing to the increasing adoption of electronic gadgets and rising disposable income in developing countries.
Electronic Gadget Insurance primarily finds applications in insuring smartphones, laptops, tablets, and other portable electronic devices against accidental damage, theft, and loss. It provides coverage for repair or replacement costs, offering peace of mind to device owners.
Major players in the Electronic Gadget Insurance Market include AIG, Allianz, Assurant, Chubb, and Lemonade. These companies offer a range of insurance products tailored to meet the specific needs of electronic gadget owners.
The increasing penetration of electronic gadgets, rising disposable income, and growing awareness about the importance of device protection are the primary factors propelling the growth of the Electronic Gadget Insurance Market.
The Electronic Gadget Insurance Market faces challenges such as intense competition, commoditization of insurance products, and the emergence of new technologies that could disrupt the traditional insurance landscape.
Opportunities for growth in the Electronic Gadget Insurance Market lie in the expansion of the Internet of Things (IoT) and the development of innovative insurance products that cater to the evolving needs of consumers.
Key trends shaping the Electronic Gadget Insurance Market include the integration of technology into insurance processes, the rise of usage-based insurance models, and the increasing demand for customized insurance solutions.
The Electronic Gadget Insurance Market is anticipated to exhibit a CAGR of 6.98% over the forecast period of 2024-2032.
When purchasing Electronic Gadget Insurance, it is essential to consider factors such as the coverage provided, the cost of the insurance, the reputation of the insurance provider, and the terms and conditions of the policy.
