Status : Published Published On : Dec, 2023 Report Code : VRAT4082 Industry : Automotive & Transportation Available Format : Page : 190
2025
2030

Global Automotive Usage-Based Insurance (UBI) Market – Analysis and Forecast (2025-2030)

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 2023 and is predicted to reach USD 95.7 billion by 2030, growing at a CAGR of 18.8 % during the forecast period. The growth of this market is attributed to the acceptance of shifting trends observed amongst insurance providers toward remote diagnostics. The amalgamation of usage-based structure along with remote diagnostics solutions are thus facilitating business organizations to distinguish offers thereby providing them a competitive advantage and further enhancing the customer base of the enterprises.

Automotive Usage-Based Insurance (UBI) Market

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

To align insurance premium rates to decrease fraudulent insurance claims various factors 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 to the growth of the global automotive usage-based insurance (UBI) market.

Market Segmentation

Insight by Technology

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

Insight by Package Type

Based on 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 the highest CAGR during the forecast period due to the extensive adoption of the PAYD model as it helps in reaping the advantages of mileage-based insurance premiums.

Global Automotive Usage-Based Insurance (UBI) Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  40.3 Billion

Revenue Forecast in 2030

U.S.D.  95.7 Billion

Growth Rate

18.8%

Segments Covered in the Report

By Technology, By Package Type, By Vehicle Type, Device Offering, By Vehicle Age, By Electric & Hybrid Vehicle

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

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.)

Industry Dynamics

Growth Drivers

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

Challenges

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

Geographic Overview

Geographically, North America is the largest revenue contributor in the automotive usage-based insurance market due to the 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 insurance providers.

Moreover, Asia-Pacific is expected to witness the highest CAGR in the 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, the increasing level of pollution in countries of Asia-Pacific is thriving the need to adopt fuel-efficient solutions that are further escalating the growth of the 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 to strengthen capabilities of research & development that support them in providing innovative solutions to the users and thus gain a 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 industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end user surveys comprising consumers are also conducted to understand consumer behavior.

The Automotive Usage-Based Insurance (UBI) Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

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

Geographical Segmentation

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

 

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 95.7 billion by 2030.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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