The Asia-Pacific (APAC) gadget insurance market is projected to experience significant growth, with a compound annual growth rate (CAGR) of 17.4% from 2021 to 2031. This expansion is attributed to an increase in gadget sales and heightened awareness among young professionals.
Globally, the gadget insurance market is expected to expand from $59.4 billion in 2021 to $193.5 billion by 2031, marking a CAGR of 12.9%, according to a report by Allied Market Research.
Key drivers of growth include rising incidents of accidental damage, device theft, malware infections, and device malfunctions. Additionally, the surge in high-quality smartphone adoption and the growing demand for multi-gadget insurance services are contributing to the market’s expansion.
However, the market faces some challenges, particularly from the decline in PC sales, driven by the increasing use of smartphones and tablets, which could potentially hinder growth.
Physical Damage and Virus Protection Segments Lead Growth
In 2021, the physical damage segment accounted for nearly half of the global gadget insurance market share and is expected to maintain its dominance through the forecast period. This growth is largely due to the convenient claim management services provided by insurers.
The virus and data protection segment is anticipated to experience the fastest growth, with a projected CAGR of 19.5%. This surge is fueled by the growing use of smartphones and laptops, alongside an uptick in cyber-attacks targeting personal data.
Smartphones, Tablets, and Cameras Drive Demand
Mobile phones and tablets made up nearly half of the global gadget insurance market share in 2021, primarily due to the high initial costs and expensive repairs associated with these devices.
The cameras segment is also expected to grow at a rapid pace, with a forecasted CAGR of 17.9%. This growth is driven by the rising costs of photography equipment and a growing demand among millennials for high-quality cameras.
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