Status : Published Published On : Jul, 2020 Report Code : VRAT4082 Industry : Automotive & Transportation Available Format : Page : 190

Global Automotive Usage-Based Insurance (UBI) Market – Analysis and Forecast (2019-2025)

Industry Insights by Technology (Black Box, OBD-II, Embedded, Smartphone and Others), by Package Type (Pay-How-You-Drive (PHYD), Pay-As-You-Drive (PAYD) and Manage-How-You-Drive (MHYD)), by Vehicle Type (Heavy-duty Vehicle (HDV) and Light-duty Vehicle (LDV)), By Device Offering (Company Provided and Bring Your Own Device (BYOD)), by Vehicle Age (On-Road Vehicle and New Vehicle), by Electric & Hybrid Vehicle (Hybrid Electric Vehicle (HEV), Plug-in Hybrid Vehicle (PHEV) and Battery Electric Vehicle (BEV))

Industry Overview

The global automotive usage-based insurance (UBI) market is estimated to be USD 40.3 billion in 2020 and is predicted to reach USD 93.7 billion by 2025, growing at a CAGR of 18.4 % during the forecast period. The growth of this market is attributed towards acceptance of shifting trends observed amongst insurance providers towards remote diagnostics. The amalgamation of usage-based structure along with remote diagnostics solutions are thus facilitating business organizations to distinguish offers thereby providing them competitive advantage and further enhancing the customer base of the enterprises.

Automotive Usage-Based Insurance (UBI) Market Highlights

Usage-based insurance is a type of auto-insurance that comprises of in-vehicle communication systems in order to monitor driving behavior and track mileage. In addition, telematics systems thus provide appropriate feedback pertaining to driver safety practices and driving patterns that enables the insurance providers to significantly influence the cost of insurance on the basis of predicted risk. Additionally, benefits provided by usage-based insurance (UBI) to the service providers is thereby escalating the growth of global automotive usage-based insurance (UBI) market.

In order to align insurance premium rates in order to decrease fraudulent insurance claims there are various factors that facilitate insurance service providers to align premium rates of the insurance efficiently. These factors include acceleration & braking patterns, total miles driven, on-road vehicle location (GPS or Global Positioning System), airbag usage and the time of day thereby significantly contributing towards the growth of global automotive usage-based insurance (UBI) market.

Market Segmentation

Insight by Technology

On the basis of technology, the global automotive usage-based insurance (UBI) market is segmented into black box, OBD-II, embedded, smartphone and others. Amongst these segments, embedded segment is expected to witness highest CAGR during the forecast period as it is considered to be an effective system for capturing data and do not require any form of external calibration in order to register data.

Insight by Package Type

Based upon package type, the global automotive usage-based (UBI) insurance market is subdivided into Pay-How-You-Drive (PHYD), Pay-As-You-Drive (PAYD) and Manage-How-You-Drive (MHYD). Amongst these segments, Pay-As-You-Drive (PAYD) is expected to witness highest CAGR during the forecast period due to extensive adoption of PAYD model as it helps in reaping advantages of mileage-based insurance premiums.

Report Metric

Details

Market Size Available for the Years in the Study

2015 – 2025

Historical Period

2015 – 2019

Base Year

2019

Forecast Period

2020 – 2025

Segments Covered in the Study

Technology, Package Type, Vehicle Type, Device Offering, Vehicle Age, Electric & Hybrid Vehicle, and Region

Geographies Covered in the Study

North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.)

Companies Covered in the Study

UnipolSai Assicurazioni S.p.A, Danlaw, Assicurazioni Generali S.P.A, Allianz SE, Mapfre, S.A, Desjardins Group, Octo Technology Nationwide, Cambridge Mobile Telematics, Liberty Mutual Insurance, Progressive Casualty Insurance Company, Allstate Insurance Company, Intelligent Mechatronic Systems Inc., Vodafone Automotive S.p.A, State Farm Mutual Automobile Insurance Company, Metromile Inc., AXA, TomTom International BV, Sierra Wireless, Zubie, Inc., and Insure The Box Limited

Industry Dynamics

Growth Drivers

Extensive adoption of connected cars and telematics along with decreasing insurance premium along with risk related costs is another factor pertaining towards the growth of global automotive usage-based insurance (UBI) market. These systems utilizes advance machine-to-machine techniques that helps in collecting data from in-car vehicles that enables insurance providers to further adjust and set premiums based upon individual’s driving behavior rather than having any history to claim. Furthermore, the growth of this market is attributed towards greater popularity as usage-based insurance systems enables the insurance enterprises to improve business profitability at extensive rate.

Challenges

Increased cases of data privacy, ambiguity over legislative environments and over regulations along with lack of standardized systems are the key factors that are anticipated to hamper the growth of global automotive usage-based insurance (UBI) market.

Geographic Overview

Geographically, North America is the largest revenue contributor in automotive usage-based insurance market due to high popularity of mobility as a service along with extensive collaborations between insurance and telematics companies. Furthermore, these companies are enhancing their solution offers and are providing improved schemes and packages to the insurance providers.

Moreover, Asia-Pacific is expected to witness highest CAGR in automotive-based insurance (UBI) market during the forecast period owing to increasing acceptance of telematics and IoT in Japan, China, India and South Korea. Additionally, increasing level of pollution in countries of Asia-Pacific is thriving the need to adopt fuel-efficient solutions that is further escalating the growth of automotive usage-based insurance (UBI) market in this region.

Competitive Insight

Key players operating in the automotive usage-based insurance market are emphasizing their efforts upon strategic acquisitions in order to strengthen capabilities of research & development that supports them in providing innovative solutions to the users and thus gain competitive advantage.

Some of the major players operating in the global automotive usage-based insurance (UBI) market include UnipolSai Assicurazioni S.p.A, Danlaw, Assicurazioni Generali S.P.A, Allianz SE, Mapfre, S.A, Desjardins Group, Octo Technology Nationwide, Cambridge Mobile Telematics, Liberty Mutual Insurance, Progressive Casualty Insurance Company, Allstate Insurance Company, Intelligent Mechatronic Systems Inc., Vodafone Automotive S.p.A, State Farm Mutual Automobile Insurance Company, Metromile Inc., AXA, TomTom International BV, Sierra Wireless, Zubie, Inc., and Insure The Box Limited.

Primary Research

VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry includes, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behaviour.

Automotive Usage-Based Insurance (UBI) Market Size

Source: VynZ Research

Automotive Usage-Based Insurance (UBI) Market Analysis

Source: VynZ Research

Frequently Asked Questions

Some of the major players operating in the global automotive usage-based insurance (UBI) market include UnipolSai Assicurazioni S.p.A, Danlaw, Assicurazioni Generali S.P.A, Allianz SE, Mapfre, S.A, Desjardins Group, Octo Technology Nationwide, Cambridge Mobile Telematics, Liberty Mutual Insurance, Progressive Casualty Insurance Company, Allstate Insurance Company, Intelligent Mechatronic Systems Inc., Vodafone Automotive S.p.A, State Farm Mutual Automobile Insurance Company, Metromile Inc., AXA, TomTom International BV, Sierra Wireless, Zubie, Inc., and Insure The Box Limited.
Asia-Pacific is expected to witness highest CAGR in automotive-based insurance (UBI) market during the forecast period.
Extensive adoption of connected cars and telematics along with decreasing insurance premium along with risk related costs is another factor pertaining towards the growth of global automotive usage-based insurance (UBI) market.
Amongst all segments, embedded segment is expected to witness highest CAGR during the forecast period.
The global automotive usage-based insurance (UBI) market size is predicted to reach USD 93.7 billion by 2025.

Place an order

Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Automotive Usage-Based Insurance (UBI) Market