| Status : Published | Published On : Mar, 2023 | Report Code : VRAT4082 | Industry : Automotive & Transportation | Available Format :
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Page : 190 |
Global Automotive Usage-Based Insurance (UBI) Market – Analysis and Forecast (2023-2030)
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 2022 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 competitive advantage and further enhancing the customer base of the enterprises.
Usage-based insurance is a type of auto insurance that comprises 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 are thereby escalating the growth of the 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 to the growth of the 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 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 in order 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.
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Report Metric |
Details |
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Market Size Available for the Years in the Study |
2018 – 2030 |
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Historical Period |
2018 – 2022 |
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Base Year |
2022 |
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Forecast Period |
2023 – 2030 |
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Segments Covered in the Study |
Technology, Package Type, Vehicle Type, Device Offering, Vehicle Age, Electric & Hybrid Vehicle, and Region |
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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.) |
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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 premiums along with risk-related costs is another factor pertaining to 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 over regulations along with 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 in order 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.
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Source: VynZ Research
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Source: VynZ Research
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Automotive Usage-Based Insurance (UBI) Market