Automotive Usage Based Insurance Market

Description

The automotive usage-based insurance (UBI) market is anticipated to grow from US$52.1 billion in 2024 to US$ 102.45 Billion by 2031, reflecting a compound annual growth rate (CAGR) of 11.45% during the period from 2031 to 2031. The demand for UBI is being driven by advancements in telematics technology and a diverse range of insurance premium options.

Analysis of the Automotive Usage-Based Insurance Market

As the telematics industry continues to evolve and gain traction in the automotive sector, new collaborations are emerging among insurers, automotive manufacturers, device original equipment manufacturers (OEMs), and telematics solution providers. These partnerships are designed to leverage the potential of data-driven technologies. The younger demographic is particularly inclined towards automotive usage-based insurance, as they are more tech-savvy and interested in lower premium rates. In markets like Italy and the US, UBI targets a wide array of drivers. However, in the UK, awareness has been a significant barrier to growth, with UBI primarily focused on fleet markets and younger drivers. Nevertheless, the introduction of increasingly attractive programs by UBI providers is generating substantial interest. With the rise of connected vehicles and advanced driver-assistance systems (ADAS), it is expected that all new cars will soon come equipped with built-in telematics devices, further boosting the automotive usage-based insurance market.

Overview of the Automotive Usage-Based Insurance Market

Currently, the UBI or telematics insurance segment within the automotive insurance industry is still in its early stages, as only a few countries have widely adopted this technology. Automotive insurance companies are increasingly forming alliances with telematics firms to enhance their UBI offerings both now and in the future. Additionally, numerous companies in the global automotive usage-based insurance market are actively implementing strategies to attract consumers with appealing policies and technologies. The market is highly fragmented, featuring a mix of established firms and emerging players worldwide. From an investment perspective, both insurance and telematics companies in both developing and developed nations are receiving significant funding, contributing to recent market growth. Furthermore, various governments are streamlining insurance regulations, which is another factor propelling market expansion.

Strategic Insights

Drivers and Opportunities in the Automotive Usage-Based Insurance Market

Growth of Mobility-as-a-Service (MaaS)

In recent years, consumer attitudes towards urban and intercity travel have evolved significantly. A large segment of travelers globally is now opting not to drive their own vehicles to avoid traffic congestion. This shift has led to the rise of alternative transit options such as car sharing and ride-hailing services in both developed and developing nations. Known as Mobility-as-a-Service, this model allows consumers to access vehicles and drivers through third-party providers. MaaS aims to deliver comprehensive transportation solutions by utilizing various modes of transport, thereby optimizing existing transportation infrastructure. The growing popularity of MaaS is prompting third-party providers to acquire more vehicles to enhance customer experiences, which is also increasing the number of service providers globally. Notable MaaS providers include Uber, Lyft, Zipcar, Car2go, Beeline Singapore, UbiGo AB, and Smile Mobility, among others.

Growing Collaborations Between Telematics and Insurance Companies

The automotive usage-based insurance market has been maturing significantly in countries such as the US, Italy, and the UK. Insurance companies offering telematics insurance are continually leveraging various factors to improve their offerings and provide better schemes to customers. A notable trend in the global automotive usage-based insurance market is the increasing number of partnerships between telematics and insurance companies. These collaborations are expanding the UBI ecosystem across different economies, and this trend is expected to further increase market size in the coming years. Significant partnerships include:

In November 2022, Ford collaborated with CerebrumX Lab Inc., an AI-driven automotive data services platform, to integrate Ford's connected vehicle data into its UBI initiatives for insurers.
In November 2022, Wejo Group Limited entered into an agreement with Ford Motor Company to enhance end-to-end insurance offerings for consumers in the US.
In February 2022, Ford partnered with State Farm to develop UBI products for eligible connected Ford and Lincoln vehicle owners.

In addition to these partnerships, numerous other insurance providers, telematics firms, and automotive OEMs worldwide are increasingly collaborating to strengthen the UBI market. This trend of expanding partnerships within the automotive usage-based insurance ecosystem is expected to drive significant growth in the market over the next few years. Moreover, telematics companies are showing interest in the automotive sector in developing regions, further boosting revenue streams in the global automotive usage-based insurance market.

Segmentation Analysis of the Automotive Usage-Based Insurance Market

Key segments contributing to the analysis of the automotive usage-based insurance market include technology type and policy type.

In terms of technology, the automotive usage-based insurance market is categorized into smartphones, black boxes, dongles, and others. The dongles segment held the largest market share in 2024.
Regarding policy type, the market is divided into pay-as-you-drive (PAYD) and pay-how-you-drive (PHYD), with the PHYD segment holding a larger market share in 2024.

Geographical Analysis of the Automotive Usage-Based Insurance Market

The geographical scope of the automotive usage-based insurance market report is divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America.

North America led the automotive usage-based insurance market in 2024, encompassing the US, Canada, and Mexico. This dominance is attributed to the presence of numerous automotive OEMs, telematics, and insurance companies in the region. Additionally, the high adoption rate of new technologies and solutions has encouraged residents to choose telematics insurance. North America is also a leader in the mobility-as-a-service sector, which has seen significant growth over the years and continues to trend upward.

Furthermore, the higher disposable income levels in the region have resulted in increased vehicle purchases. This rise in vehicle ownership, along with the associated technologies and solutions, has positively impacted the growth of the automotive usage-based insurance market in the US.

Scope of the Automotive Usage-Based Insurance Market Report

Recent Developments in the Automotive Usage-Based Insurance Market

The automotive usage-based insurance market is assessed through qualitative and quantitative data collected from primary and secondary research, including key corporate publications, association data, and databases. Recent developments and strategies in the automotive usage-based insurance market include:

In January 2022, Otonomo partnered with Audi to pilot consumer offerings ranging from pay-as-you-drive insurance to general vehicle status notifications.
In September 2021, LexisNexis Risk Solutions entered into an agreement with Ford Motor Co. to ensure the availability of Ford-connected vehicle data to US auto insurers via the LexisNexis Telematics Exchange.

Coverage and Deliverables of the Automotive Usage-Based Insurance Market Report

The report titled "Automotive Usage Based Insurance Market Size and Forecast (2021-2031)" provides a comprehensive analysis of the market, covering the following areas:

Market size and forecast at global, regional, and country levels for all key segments.
Market dynamics, including drivers, restraints, and key opportunities.
Key future trends.
A detailed Porter's Five Forces analysis.
Global and regional market analysis, highlighting key trends, major players, regulations, and recent developments.
Industry landscape and competition analysis, including market concentration, heat map analysis, prominent players, and recent developments.
In-depth company profiles with SWOT analysis.

Product Code: TIPAT100001345

1. Introduction

1.1 Scope of the Study
1.2 The Insight Partners Research Report Guidance
1.3 Market Segmentation
- 1.3.1 Global Automotive Usage Based Insurance Market and By Technology Fitted
- 1.3.2 Global Automotive Usage Based Insurance Market and By Policy Type
- 1.3.3 Global Automotive Usage Based Insurance Market and By Geography

2. Key Takeaways

3. Research Methodology

3.1.1 Coverage
3.1.2 Secondary Research
3.1.3 Primary Research

4. Automotive Usage Based Insurance Market Landscape

4.1 Market Overview
4.2 Ecosystem Analysis
4.3 PEST Analysis
- 4.3.1 North America and PEST Analysis
- 4.3.2 Europe and PEST Analysis
- 4.3.3 Asia-Pacific and PEST Analysis
- 4.3.4 Rest of World (RoW) and PEST Analysis

5. Automotive Usage Based Insurance Market and Key Industry Dynamics

5.1 Key Market Drivers
- 5.1.1 Significant Adoption of Mobility-as-a-Service (MaaS)
- 5.1.2 Wide Variety of Insurance Premiums is Stimulating the Demand
5.2 Key Market Restraints
- 5.2.1 Lack of Telematics Insurance Awareness in Emerging Countries
5.3 Key Market Opportunities
- 5.3.1 Increasing Partnerships among Telematics Companies and Insurance Companies
5.4 Future Trends
- 5.4.1 Advanced Telematics Technologies to Accentuate the Demand of UBI
5.5 Impact Analysis Of Drivers and Restraints

6. Automotive Usage Based Insurance and Global Market Analysis

6.1 Global Automotive Usage Based Insurance Market Overview
6.2 Global Automotive Usage Based Insurance Market Forecast and Analysis
6.3 Market Positioning and Global Top 5 Players

7. Automotive Usage Based Insurance Market Revenue and Forecasts To 2031 andTechnology Fitted

7.1 Overview
7.2 Technology Fitted Market Forecasts and Analysis
7.3 Smartphones
- 7.3.1 Overview
- 7.3.2 Smartphones Market forecasts and analysis
7.4 Black Box
- 7.4.1 Overview
- 7.4.2 Black Box Market Forecasts And Analysis
7.5 Dongles
- 7.5.1 Overview
- 7.5.2 Dongles Market Forecasts And Analysis
7.6 Others
- 7.6.1 Overview
- 7.6.2 Others Market Forecasts And Analysis

8. Automotive Usage Based Insurance Market Revenue and Forecasts To 2031 and By Policy Type

8.1 Overview
8.2 Policy Type Market Forecasts and Analysis
8.3 PAY-As-You-Drive (PAYD)
- 8.3.1 Overview
- 8.3.2 PAYD Market Forecasts And Analysis
8.4 Pay-How-You-Drive (PHYD)
- 8.4.1 Overview
- 8.4.2 PHYD Market Forecasts And Analysis

9. Global Automotive Usage Based Insurance Marketand Geographical Analysis

9.1 Overview
9.2 North America Automotive Usage Based Insurance Market Revenue and Forecasts To 2031
- 9.2.1 Overview
- 9.2.2 North America Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
- 9.2.3 North America Automotive Usage Based Insurance Market Breakdown, by Technology Fitted
- 9.2.4 North America Automotive Usage Based Insurance Market Breakdown, by Policy Type
- 9.2.5 North America Automotive Usage Based Insurance Market Breakdown by Key Countries
  - 9.2.5.1 US Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.2.5.1.1 US Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.2.5.1.2 US Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.2.5.2 Canada Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.2.5.2.1 Canada Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.2.5.2.2 Canada Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.2.5.3 Mexico Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.2.5.3.1 Mexico Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.2.5.3.2 Mexico Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
9.3 Europe Automotive Usage Based Insurance Market Revenue and Forecasts To 2031
- 9.3.1 Overview
- 9.3.2 Europe Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
- 9.3.3 Europe Automotive Usage Based Insurance Market Breakdown, by Technology Fitted
- 9.3.4 Europe Automotive Usage Based Insurance Market Breakdown, by Policy Type
- 9.3.5 Europe Automotive Usage Based Insurance Market Breakdown by Key Countries
  - 9.3.5.1 UK Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.3.5.1.1 UK Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.3.5.1.2 UK Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.3.5.2 Germany Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.3.5.2.1 Germany Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.3.5.2.2 Germany Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.3.5.3 Italy Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.3.5.3.1 Italy Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.3.5.3.2 Italy Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.3.5.4 Rest of Europe Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.3.5.4.1 Rest of Europe Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.3.5.4.2 Rest of Europe Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
9.4 ASIA PACIFIC (APAC) Automotive Usage Based Insurance Market Revenue and Forecasts To 2031
- 9.4.1 Overview
- 9.4.2 Asia-Pacific Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
- 9.4.3 Asia-Pacific Automotive Usage Based Insurance market Breakdown, by Technology Fitted
- 9.4.4 Asia-Pacific Automotive Usage Based Insurance Market Breakdown, by Policy Type
- 9.4.5 Asia-Pacific Automotive Usage Based Insurance Market Breakdown by Key Countries
  - 9.4.5.1 Australia Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.4.5.1.1 Australia Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.4.5.1.2 Australia Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.4.5.2 China Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.4.5.2.1 China Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.4.5.2.2 China Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.4.5.3 Singapore Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.4.5.3.1 Singapore Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.4.5.3.2 Singapore Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.4.5.4 Rest of APAC Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.4.5.4.1 Rest of APAC Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.4.5.4.2 Rest of APAC Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
9.5 Rest of World (ROW) Automotive Usage Based Insurance Market Revenue and Forecasts To 2031
- 9.5.1 Overview
- 9.5.2 Rest of World (ROW) Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
- 9.5.3 Rest of World (RoW) Automotive Usage Based Insurance Market Breakdown, by Technology Fitted
- 9.5.4 Rest of World (RoW) Automotive Usage Based Insurance Market Breakdown, by Policy Type
- 9.5.5 Rest of world (ROW) Automotive Usage Based Insurance Market Breakdown by Key Countries
  - 9.5.5.1 South Africa Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.5.5.1.1 South Africa Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.5.5.1.2 South Africa Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.5.5.2 Brazil Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.5.5.2.1 Brazil Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.5.5.2.2 Brazil Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type
  - 9.5.5.3 Rest of World Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn)
    - 9.5.5.3.1 Rest of World Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Technology Fitted
    - 9.5.5.3.2 Rest of World Automotive Usage Based Insurance Market Revenue and Forecasts to 2031 (US$ Mn), by Policy Type

10. Impact of COVID-19 Pandemic on Automotive Usage Based Insurance Market

10.1 Overview
10.2 North America: Impact Assessment of COVID-19 Pandemic
10.3 Europe: Impact Assessment of COVID-19 Pandemic
10.4 Asia-Pacific: Impact Assessment of COVID-19 Pandemic
10.5 Rest of World: Impact Assessment of COVID-19 Pandemic

11. Industry Landscape

11.1 Market Initiative
11.2 Merger and Acquisition
11.3 New Development

12. Company Profiles

12.1 Allstate Insurance Company
- 12.1.1 Key Facts
- 12.1.2 Business Description
- 12.1.3 Products and Services
- 12.1.4 Financial Overview
- 12.1.5 SWOT Analysis
- 12.1.6 Key Developments
12.2 AXA SA
- 12.2.1 Key Facts
- 12.2.2 Business Description
- 12.2.3 Products and Services
- 12.2.4 Financial Overview
- 12.2.5 SWOT Analysis
- 12.2.6 Key Developments
12.3 Allianz SE
- 12.3.1 Key Facts
- 12.3.2 Business Description
- 12.3.3 Products and Services
- 12.3.4 Financial Overview
- 12.3.5 SWOT Analysis
- 12.3.6 Key Developments
12.4 Metromile, Inc.
- 12.4.1 Key Facts
- 12.4.2 Business Description
- 12.4.3 Products and Services
- 12.4.4 Financial Overview
- 12.4.5 SWOT Analysis
- 12.4.6 Key Developments
12.5 Ingenie Services Limited
- 12.5.1 Key Facts
- 12.5.2 Business Description
- 12.5.3 Products and Services
- 12.5.4 Financial Overview
- 12.5.5 SWOT Analysis
- 12.5.6 Key Developments
12.6 Liberty Mutual Insurance Company
- 12.6.1 Key Facts
- 12.6.2 Business Description
- 12.6.3 Products and Services
- 12.6.4 Financial Overview
- 12.6.5 SWOT Analysis
- 12.6.6 Key Developments
12.7 Octo Telematics S.p.A
- 12.7.1 Key Facts
- 12.7.2 Business Description
- 12.7.3 Products and Services
- 12.7.4 Financial Overview
- 12.7.5 SWOT Analysis
- 12.7.6 Key Developments
12.8 Sierra Wireless, Inc.
- 12.8.1 Key Facts
- 12.8.2 Business Description
- 12.8.3 Products and Services
- 12.8.4 Financial Overview
- 12.8.5 SWOT Analysis
- 12.8.6 Key Developments
12.9 TomTom Telematics BV
- 12.9.1 Key Facts
- 12.9.2 Business Description
- 12.9.3 Products and Services
- 12.9.4 Financial Overview
- 12.9.5 SWOT Analysis
- 12.9.6 Key Developments
12.10 Vodafone Automotive
- 12.10.1 Key Facts
- 12.10.2 Business Description
- 12.10.3 Products and Services
- 12.10.4 Financial Overview
- 12.10.5 SWOT Analysis
- 12.10.6 Key Developments

13. Appendix

13.1 About The Insight Partners
13.2 Glossary of Terms