The e-commerce industry has witnessed unprecedented growth in the last decade, with smartphones and tablets playing a pivotal role in reshaping consumer buying behaviour. As more consumers shop online for devices and appliances, the expectations around device protection plans, extended warranty products, and other value-added services have grown significantly. The global extended warranty market alone was estimated at USD 133.6 billion in 2023, projected to nearly double to USD 258.6 billion by 2030, at a CAGR of 9.9%. Another report places the 2025 value at USD 160.8 billion, with forecasts reaching USD 347.3 billion by 2034, growing at a CAGR of 8.9%.
For e-commerce companies, OEMs, and retailers, this shift represents more than just a new sales channel; it opens up a lucrative opportunity to boost both topline and bottom-line growth by embedding protection plans into the customer journey. By integrating embedded insurance solutions, businesses can not only enhance customer trust but also unlock recurring revenue streams.
This blog explores why device protection and mobile warranty coverage are becoming a critical differentiator in e-commerce, how technology trends are shaping this evolution, and how insurtech companies are making it easier for digital businesses to implement seamless, profitable solutions.
Technology Trends Shaping E-commerce Growth
The online marketplace for smartphones and tablets has evolved rapidly, driven by technological advancements and shifting consumer expectations. Three major trends are shaping the next phase of growth:
1. The Mobile-First Experience
With mobile devices becoming the primary gateway to online shopping, e-commerce platforms must prioritise mobile-first experiences. Seamless navigation, quick checkout, and the integration of mobile extended warranty or mobile screen protection plans at the point of sale can create stickier customer relationships and increase average order value (AOV).
2. eWallets and Secure Payments
The rise of eWallets has transformed how customers pay online. By embedding insurance and warranty solutions alongside secure payment options, businesses can build customer confidence while reducing cart abandonment rates. Offering a one-click option for mobile warranty coverage during checkout creates additional value without disrupting the shopping flow.
3. Subscription Models for Customer Retention
Subscription commerce is booming across categories. For device sellers, subscription-based mobile warranty plans and annual extended warranty programmes can create predictable revenue streams while strengthening customer loyalty. Customers appreciate convenience, personalisation, and long-term cost savings, while businesses benefit from recurring topline growth.
Why Device Protection and Extended Warranty Are Business Growth Drivers
While consumers value peace of mind, businesses must recognise that device protection and extended warranty programmes are not just risk mitigators, they are powerful revenue enablers.
Boosting Conversion Rates
A PYMNTS survey found that 60.1% of consumers would opt for insurance or warranty at checkout, and 78% said they would spend more online when offered these protections. Offering mobile screen protection or an extended warranty at checkout increases trust and reduces purchase hesitation. Customers are more likely to buy a high-value smartphone or device when they know it is backed by comprehensive protection.Enhancing Average Order Value
Adding mobile extended warranty or embedded insurance solutions as an upsell contributes directly to higher cart value. This incremental revenue comes at minimal acquisition cost since the customer is already in the purchase funnel.Improving Customer Retention
Customers who purchase mobile warranty plans tend to have higher repeat purchase rates. A satisfied customer who successfully claims a cracked screen repair or extended coverage renewal is more likely to buy their next device from the same retailer or OEM.Strengthening Bottomline Through Margins
Protection plans and warranties often carry high profit margins. For OEMs and e-commerce players, bundling these with core products creates a steady revenue stream while offsetting the thin margins of devices.
The Role of Insurtech in Scaling Device Protection
While the opportunity is massive, implementing protection and warranty solutions in e-commerce requires expertise in underwriting, claims management, and API integration. This is where insurtech companies in India become strategic partners.
1. Seamless API Integration
Insurtechs offer plug-and-play APIs that enable retailers and OEMs to embed mobile warranty or extended warranty plans directly into their checkout flows. Customers can opt in with a single click, and the experience feels like a natural extension of the e-commerce platform.
2. Underwriting Expertise
Partnering with an insurtech company eliminates the need for retailers to navigate the complex world of insurance underwriting. Insurtechs work with insurers to design risk-based, competitive products tailored for smartphones, tablets, and appliances.
3. End-to-End Claims Management
Claims are the make-or-break factor for customer trust. Insurtechs manage the entire claims lifecycle, from registration to settlement, ensuring speed, transparency, and minimal friction for customers. A smooth claims experience strengthens loyalty and increases the likelihood of renewal.
4. Embedded Insurance Solutions at Scale
By leveraging embedded models, retailers and OEMs can offer mobile screen protection and mobile extended warranty across multiple geographies, tapping into global e-commerce growth. This scalability ensures topline expansion without significant operational overhead.
Case in Point: How Protection Plans Drive Retail Success
Smartphone Retailers: Offering mobile extended warranties at checkout has been shown to increase conversion rates by up to 15%, while also generating recurring revenue from renewals.
OEMs: Embedding mobile screen protection into flagship device launches builds customer confidence and improves product differentiation in a highly competitive market.
E-commerce Platforms: Adding embedded insurance solutions increases AOV and provides cross-sell opportunities during peak sale seasons like Diwali or Black Friday.
Wrapping it Up
The revolution of e-commerce is not just about faster deliveries and better discounts, it’s about creating lasting value for customers and businesses alike. For OEMs, retailers, and e-commerce companies, embedding mobile warranty, extended warranty, and device protection solutions is no longer optional, it’s a strategic growth lever.
By embracing embedded insurance solutions, businesses can unlock new revenue streams, strengthen margins, and enhance customer loyalty. And with insurtech companies providing seamless API integration, underwriting, and claims management, the barriers to entry are lower than ever.
In a world where electronic devices are central to our lives, protection and trust are the currencies of e-commerce success. Those who act now will not only safeguard customer devices but also secure their place at the forefront of digital commerce.
FAQs
What is the projected revenue growth for global embedded insurance solutions in e‑commerce?
The embedded insurance market is expected to surge from USD 119.16 billion in 2024 to USD 802.57 billion by 2032, at a CAGR of 27.8%.
How fast is the mobile extended warranty market expanding within consumer electronics?
The consumer electronics extended warranty segment is forecast to grow from USD 126.4 billion in 2023 to USD 285.0 billion by 2032, at a CAGR of 9.45%.
What proportion of online shoppers are likely to increase spend when mobile screen protection is offered at checkout?
Data shows 78% of consumers said they would have a greater propensity to spend more if warranties or insurance (like mobile screen protection) were offered at checkout.
How significant is the extended warranty market’s growth for OEMs and retailers?
The global extended warranty market, valued at USD 133.6 billion in 2023, is projected to reach USD 258.6 billion by 2030, growing at 9.9% CAGR, indicating major upsell and retention opportunities for OEMs and retailers.
Why should e‑commerce platforms offer embedded insurance solutions powered by Insurtech?
Embedded insurance not only drives higher AOV and conversion, but the market’s rapid expansion signals growing customer acceptance and an avenue for scalable, profitable service via API‑enabled Insurtech integration.
