How Has the IoT Insurance Market Evolved Historically and What is its Current Size?
The iot insurance market has seen considerable growth due to a variety of factors.
• In recent times, the IoT insurance market has witnessed tremendous expansion. The market's size, which is projected to skyrocket from $100.02 billion in 2024 to $153.89 billion in 2025, displays a compound annual growth rate (CAGR) of 53.9%. Factors responsible for such substantial growth in the past include improved customer involvement, risk reduction, and mitigation. Additionally, the popularity of home automation devices, the uptick in use of health and wearable devices, smart property appliances, as well as versed cybersecurity worries also contribute to the expansion.
What Does Future Hold for The IoT Insurance Market?
The IoT Insurance market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for considerable expansion in the IoT insurance market size over the impending years. The anticipated development will catapult the market to $983.02 billion by 2029, growing at a compound annual growth rate (CAGR) of 59.0%.
Factors contributing to this projected growth during the forecast period encompass regulatory endorsements, an upsurge of insurtech startups, smart city campaigns, personalized insurance premiums, and climate and environmental surveillance. Major trends during this period include the incorporation of connected devices, the use of telematics in auto insurance, smart property and home insurance, cyber insurance in tandem with IoT security, blockchain for data protection, as well as data analytics and prognostic modeling.
What Are The Primary Growth Drivers In The IoT Insurance Market?
The increasing adoption of the Internet of Things (IoT) is a major factor that propels the expansion of the IoT insurance market. The IoT consists of a network of physical objects embedded with sensors, software, and other technologies designed for connecting and exchanging data with other devices and systems across the internet. These IoT-based solutions aid insurance firms in assessing risks more accurately and enhancing their customer relationship. For example, a report by Ericsson, a Swedish telecommunication corporation released in November 2022, stated that broadband IoT (4G/5G), which links most cellular IoT devices, registered 1.3 billion connections in 2022. It is projected that roughly 60% of cellular IoT connections will be broadband IoT connections by the end of 2028, with 4G making up the majority. North East Asia currently dominates in cellular IoT connections, and by 2023, the region is estimated to exceed 2 billion connections. Consequently, the escalating use of the Internet of Things (IoT) is expected to influence the growth of the IoT insurance market.
What Is The Segmentation Of The Global IoT Insurance Market?
The IoT insurance market covered in this report is segmented –
1) By Component: Solution, Service
2) By Insurance Type: Life And Health Insurance, Property And Casualty Insurance, Other Insurance Types
3) By Application: Automotive Transportation And Logistics, Life And Health, Commercial And Residential Buildings, Business And Enterprise, Agriculture, Other Applications
Subsegments:
1) By Solution: Telematics Solutions, Risk Assessment Tools, Data Analytics Platforms, Claims Management Systems, Smart Home Devices
2) By Service: Consulting Services, Implementation Services, Data Management Services, Support And Maintenance Services, Training And Education Services
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What Emerging Trends Are Shaping The IoT Insurance Market Landscape?
The increasing technological advancements are a dominant trend in the IoT insurance market. The primary firms within this market are emphasizing the importance of innovation in order to enhance IoT applications within the insurance domain. Specifically in December 2022, ARMD, a UK-based InsureTech business that employs technology to offer insurance to tradespeople, introduced a novel Smart Van Alarm and Tracker. This piece of IoT technology significantly enhances the security of tradespeople, delivers superior underwriting data for insurers, and minimizes fraudulent claims. The ARMD application, which requires no technical skills, is employed to operate the IoT device. This centralizes the tool inventory, protection, insurance, and the positioning of the van. This accelerates the payment of claims down to a few days from several weeks and simplifies the process for both tradespeople and insurers. In the case of a break-in, the customers are alerted immediately. The device also functions as a vehicle tracker, providing critical data relevant to claim and underwriting processes.
Who Are the Key Players In The IoT Insurance Market?
Major companies operating in the IoT insurance market include:
• SAP SE
• Cisco Systems Inc.
• Alphabet Inc.
• International Business Machines Corporation
• Accenture plc
• Microsoft Corporation
• Oracle Corporation
• Aeris Group Ltd.
• Concirrus Ltd.
• Telit Communications plc
• Verisk Analytics Inc.
• Allerin Pvt. Ltd.
• ForMotiv LLC
• Wipro Limited
• Webfleet Solutions BV
• Intel Corporation
• Capgemini SE
• Allstate Insurance Company
• Liberty Mutual Insurance Company
• State Farm Mutual Automobile Insurance Company
• Progressive Corporation
• The Travelers Companies Inc.
• Nationwide Mutual Insurance Company
• American International Group Inc.
• Zurich Insurance Group AG
• Chubb Limited
• The Hartford Financial Services Group Inc.
• Farmers Insurance Group of Companies
• Munich Re Group
• Swiss Re AG
• Berkshire Hathaway Inc.
• AXA SA
• Generali Group
• Ping An Insurance (Group) Company of China Ltd.
• China Life Insurance Company Limited
• Samsung Fire & Marine Insurance Co Ltd.
• Sompo Holdings Inc.
What Are The Regional Insights Into The IoT Insurance Market?
North America was the largest region in the IoT insurance market in 2024. The regions covered in the IoT insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
