Smartphone popularity will see the number of handsets in America reach 265m by 2017, according to new research.
The proliferation of large screen devices is driving more mobile phone users to sign up for handset insurance, claims growth partnership company Frost & Sullivan.
People's data usage will reach nearly two gigabytes per month in four years' time, according to the firm, which believes the higher number of smartphone users, as well as their larger screens, is fuelling demand for mobile phone insurance programmes.
"We find both the consumer and service provider benefit from mobile handset protection plans," said Frost & Sullivan mobile and wireless research director Brent Iadarola.
"While handset protection programs cannot prevent a device incident, they can certainly ensure consumers get back to using their phones quickly and in a pain-free manner."
Iadarola advises mobile operators to cash in by offering their own handset protection schemes, including the replacement of personal and business data.
"Strong support of Tier I mobile operators, and attractive offerings from direct-to-consumer providers are the two main reasons for the continued traction for handset protection plans," he said.
"Frost & Sullivan anticipates integrated solutions that deliver comprehensive mobile protection will emerge as important value added services for mobile users."
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