Global Automotive Usage-based Insurance Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

By Pricing Scheme;

Pay-How-You-Drive (PHYD), Pay-As-You-Drive (PAYD) and Manage-How-You-Drive (MHYD).

By Application;

Automotive Embedded UBI and Automotive App-Based UBI.

By Geography;

North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2020 - 2030).
Report ID: Rn663599550 Published Date: May, 2024 Updated Date: June, 2024


Global Automotive Usage-based Insurance Market (USD Million), 2020 - 2030

In the year 2023, the Global Automotive Usage-based Insurance Market was valued at USD 46,272.27 million. The size of this market is expected to increase to USD 180,865.10 million by the year 2030, while growing at a Compounded Annual Growth Rate (CAGR) of 21.5%.

The global automotive usage-based insurance (UBI) market is witnessing significant growth and transformation, fueled by advancements in telematics technology, changing consumer behavior, and evolving regulatory landscapes. Usage-based insurance, also known as telematics insurance, relies on real-time data collected from sensors and devices installed in vehicles to assess individual driving behavior and calculate insurance premiums accordingly. By offering personalized pricing based on actual driving patterns, UBI enables insurers to more accurately assess risk and provide incentives for safer driving practices. This market has gained traction due to its potential to enhance road safety, reduce accidents, and lower insurance costs for consumers.

One of the key drivers of the global automotive usage-based insurance market is the growing demand for innovative insurance solutions that offer greater transparency, affordability, and flexibility for consumers. Traditional insurance models often rely on demographic factors and historical data to assess risk, resulting in standardized premiums that may not accurately reflect individual driving habits. In contrast, UBI leverages real-time data on factors such as vehicle speed, acceleration, braking, and mileage to tailor insurance premiums to each driver's behavior. This approach not only allows insurers to more accurately price risk but also encourages safer driving behaviors among policyholders, leading to potential reductions in accidents and claims payouts.

Regulatory initiatives aimed at promoting road safety and reducing insurance fraud are driving the adoption of usage-based insurance programs worldwide. Governments and regulatory bodies are increasingly recognizing the potential of telematics technology to improve driver behavior, mitigate risks, and enhance road safety outcomes. As a result, many jurisdictions are introducing incentives and mandates to encourage insurers and consumers to adopt UBI solutions. This regulatory support, coupled with advancements in telematics technology and increasing consumer awareness, is expected to fuel further growth in the global automotive usage-based insurance market in the coming years.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Pricing Scheme
    2. Market Snapshot, By Application
    3. Market Snapshot, By Region
  4. Global Automotive Usage-based Insurance Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Rising Awareness of Driver Safety and Risk Management
        2. Regulatory Mandates for Insurance Telematics and Usage-based Pricing
        3. Growing Demand for Personalized Insurance Solutions
        4. Advancements in Data Analytics and Artificial Intelligence
      2. Restraints
        1. Lack of Standardization and Interoperability
        2. Complexity of Implementation and Integration with Existing Systems
        3. Resistance from Traditional Insurance Providers
        4. Limited Consumer Awareness and Understanding
      3. Opportunities
        1. Development of Innovative Usage-based Insurance Products
        2. Collaboration with Automotive OEMs and Telematics Providers
        3. Integration with Vehicle-to-Everything (V2X) Communication Systems
        4. Personalized Risk Assessment and Premium Pricing Models
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Compeitive Rivalry
  5. Market Segmentation
    1. Global Automotive Usage-based Insurance Market, By Pricing Scheme, 2020 - 2030 (USD Million)
      1. Pay-How-You-Drive (PHYD)
      2. Pay-As-You-Drive (PAYD)
      3. Manage-How-You-Drive (MHYD)
    2. Global Automotive Usage-based Insurance Market, By Application, 2020 - 2030 (USD Million)
      1. Automotive Embedded UBI
      2. Automotive App-Based UBI
    3. Global Automotive Usage-based Insurance Market, By Geography, 2020 - 2030 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. State Farm Mutual Automobile
      2. Liberty Mutual Insurance
      3. AXA
      4. The Progressive Corporation
      5. Allianz
      6. American International
      7. MAPFRE
      8. Insurethebox
      9. Verisk Analytics
  7. Analyst Views
  8. Future Outlook of the Market