What Is The Scope Of The Global Market?
Automotive usage-based insurance (UBI) is a type of auto insurance in which the premium is calculated based on the actual usage of the vehicle. This insurance model uses telematics technology to track driving habits, mileage, and other pertinent factors.
Automotive Usage-Based Insurance Global Market Report 2024 provides data on the global automotive usage-based insurance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The automotive usage-based insurance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
What Are The Expected Annual Growth Rates And Market Size Estimates For The Global Automotive Usage-Based Insurance Sector?
The automotive usage-based insurance market has expanded rapidly, growing from $41.48 billion in 2023 to $48.90 billion in 2024 at a compound annual growth rate (CAGR) of 17.9%. Growth during this period was driven by rising insurance premiums, the proliferation of connected vehicles, the need for improved risk assessment, regulatory changes supporting usage-based models, and the adoption of mobile apps.This market is projected to reach $95.28 billion by 2028, with a CAGR of 18.1%. Future growth will be fueled by advancements in AI and machine learning, stronger data privacy and security measures, integration with smart home technology, an increase in subscription-based insurance models, and rising environmental concerns. Notable trends include the integration of AI for improved risk assessment, personalized and flexible insurance models, increased adoption of telematics in electric vehicles, real-time data utilization from connected and autonomous vehicles, and growth in subscription-based offerings.
Which Factors Are Boosting Growth In The Automotive Usage-Based Insurance Market?
The growing vehicle ownership is expected to drive the automotive usage-based insurance market. Vehicle ownership refers to the possession and registration of motorized vehicles, and is increasing due to economic growth, higher disposable incomes, and urbanization. Automotive usage-based insurance (UBI) offers personalized rates based on individual driving habits, encouraging safe driving by offering cheaper premiums for low-mileage drivers. For instance, in June 2024, Statistics Canada reported that 26.3 million road motor vehicles were registered in Canada in 2022, reflecting a 0.3% increase from the previous year. This increase in vehicle ownership is contributing to the growth of the automotive UBI market.
Get Your Free Sample of the Global Automotive Usage-Based Insurance Market Report
What Key Areas Define The Segmentation Of The Global Automotive Usage-Based Insurance Market?
The automotive usage-based insurance market covered in this report is segmented –
1) By Type: Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD)
2) By Vehicle Type: Passenger Cars, Commercial Vehicles
3) By Technology: Black Box, On-Board Diagnostics (OBD)-II, Embedded, Smartphone, Other Technologies
4) By Distribution Channel: Insurance Companies, Aggregator Platforms
4) By End-User: Individual Consumers, Fleet Owners Or Managers
How Are Emerging Trends Reshaping The Dynamics Of The Automotive Usage-Based Insurance Market?
Companies in the automotive usage-based insurance market are introducing technology-driven insurance policies to personalize coverage based on driving habits. These plans use real-time data on speed, braking, and other behaviors to determine premiums. For instance, in February 2021, Singapore-based Carro partnered with Japan-based Mitsui Sumitomo Insurance to launch AI-driven usage-based car insurance. This model leverages AI to analyze driver behavior and incentivize safe driving through rewards, offering a more tailored and user-friendly insurance experience.
Which Region Has The Fastest Expansion In The Automotive Usage-Based Insurance Market?
North America was the largest region in the automotive usage based insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive usage-based insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
