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Global Automotive Usage Based Insurance Market Forecast: By Package: Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD); By Vehicle Type: Passenger Vehicles, Light Commercial Vehicle, Heavy Commercial Vehicle; By Technology: Black Box, Others; Regional Analysis; Competitive Landscape; 2024-2032
Global Automotive Usage Based Insurance Market Outlook
The global automotive usage based insurance market is expected to grow at a CAGR of 21.4% during the period 2024-2032. North America and Europe are expected to be key markets.
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Global Market Likely to be Driven by Benefits of Usage Based Insurance, Including Lower Premiums and Improved Driving
Usage based insurance (UBI) is a type of insurance where the premium payable is directly linked to the use of the insured product or service. In the automotive insurance industry, usage based insurance is also known as Telematics insurance. Usage based insurance is quite prevalent for vehicles in developed countries. In a usage based insurance program, the automobile insurance company would keep a track of the way one drives; if the driving gets a good score, then it could lead to lower rates of car insurance. Usage based insurance programs usually assess acceleration, speeding and harsh braking, and also consider mileage and the time of day of the drive. Driving is scored, and the driver is also given tips to better the score. The better the driving, the better the auto insurance rates. Usage based insurance programs gather vehicle telematics data with the help of cellular, GPS or other technologies. Telematics devices used in usage based insurance (UBI) include smartphones with mobile apps, 12V dongles, Bluetooth connections, black boxes, GPS devices, and on-board sensors. The data so gathered include hard braking, acceleration, miles driven, speed, hard cornering, time of day, use of phone while driving, etc. Usage based insurance is gaining recognition and acceptance, with a significant percentage of drivers choosing a telematics option when offered.
The different types of usage based insurance for automobiles include:
Pay as You Drive (PAYD) – Insurance premium is charged on the basis of the amount of driving done.
Pay How You Drive (PHYD) – Insurance premium is charged on the basis of the driving skills of the driver. Parameters include acceleration, hard braking, hard turning, etc.
Pay as You Go (PAYG) – This method warrants the installation of a Telematics device, and could a combination of the aforementioned points.
Distance-based Insurance – Based on the number of miles travelled by the automobile during the policy period.
Benefits of Usage Based Insurance Expected to Boost the Global Automotive Usage Based Insurance Market
Benefits of usage based insurance (UBI) include improved driving, possibly lower premiums (safer and better driving would lead to lower premiums), possible reduction in road accidents, enhanced road safety, and better insurance products (with the help of the right kind of data, insurance companies may devise novel, improved, and beneficial need-based insurance policies).
Growing Use of Smartphones, Opportunities to Strengthen Company-Client Relationships Expected to Drive Market Growth
The increasing popularity of smartphones has provided insurance providers access to means to enhance and strengthen their relationships with clients. Today, insurance providers can leverage mobile telematics apps to offer unique incentives to drivers who exhibit safe on-road habits. Gestures such as congratulating a driver through a smartphone message on completing a long road trip safely and efficiently, or offering a bonus, rebate or reward for a demonstrating an on-road skillset are likely to strengthen company-client relationship.
Companies Offering Innovative and Data-driven Services Likely to Stimulate Global Automotive Usage Based Insurance Market
Leading companies are coming together to offer usage based insurance to new vehicle owners. For example, in 2023, State Farm® and Ford announced the launch of Drive Safe & Save™ Connected Car for customers with eligible connected Ford or Lincoln vehicles, to benefit from usage based insurance.
In 2023, Otonomo and Audi AG came together to focus on innovative, data-driven services. Audi would provide Otonomo with GDPR-compliant access to Audi car data, quickening the development of advanced mobility solutions, from pay-as-you-drive (data could be used for usage based insurance; elements included mileage readings and parking time) and insurance services to general vehicle status, first notification of loss, accident reporting, etc.
Market Segmentation
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By package, the market is segmented into:
- Pay-As-You-Drive (PAYD)
- Pay-How-You-Drive (PHYD)
- Manage-How-You-Drive (MHYD)
By vehicle type, the market is divided into:
- Passenger Vehicles
- Light Commercial Vehicle
- Heavy Commercial Vehicle
By technology, the market is classified into:
- Black Box
- Smartphone
- Embedded Telematics
- On-Board Diagnostics (OBD)
- Others
By region, the market is segmented into:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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Key Industry Players in the Global Automotive Usage Based Insurance Market
The report presents a detailed analysis of the following key players in the market, looking into their capacity, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:
- Allianz SE
- TomTom International B.V.
- Vodafone Automotive S.p.A
- Assicurazioni Generali S.p.A.
- Travelers Indemnity Company
- Esurance Insurance Services, Inc.
- Trak Global Group
- AXA S.A.
- Others
The EMR report gives an in-depth insight into the industry by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.
Key Highlights of the Report
| REPORT FEATURES | DETAILS |
|---|---|
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Package |
|
| Breakup by Vehicle Type |
|
| Breakup by Technology |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
6.1 Global
6.2 Regional
7 Opportunities and Challenges in the Market
8 Global Automotive Usage Based Insurance Market Analysis
8.1 Key Industry Highlights
8.2 Global Automotive Usage Based Insurance Historical Market (2018-2023)
8.3 Global Automotive Usage Based Insurance Market Forecast (2024-2032)
8.4 Global Automotive Usage Based Insurance Market by Package
8.4.1 Pay-As-You-Drive (PAYD)
8.4.1.1 Historical Trend (2018-2023)
8.4.1.2 Forecast Trend (2024-2032)
8.4.2 Pay-How-You-Drive (PHYD)
8.4.2.1 Historical Trend (2018-2023)
8.4.2.2 Forecast Trend (2024-2032)
8.4.3 Manage-How-You-Drive (MHYD)
8.4.3.1 Historical Trend (2018-2023)
8.4.3.2 Forecast Trend (2024-2032)
8.5 Global Automotive Usage Based Insurance Market by Vehicle Type
8.5.1 Passenger Vehicles
8.5.1.1 Historical Trend (2018-2023)
8.5.1.2 Forecast Trend (2024-2032)
8.5.2 Light Commercial Vehicle
8.5.2.1 Historical Trend (2018-2023)
8.5.2.2 Forecast Trend (2024-2032)
8.5.3 Heavy Commercial Vehicle
8.5.3.1 Historical Trend (2018-2023)
8.5.3.2 Forecast Trend (2024-2032)
8.6 Global Automotive Usage Based Insurance Market by Technology
8.6.1 Black Box
8.6.1.1 Historical Trend (2018-2023)
8.6.1.2 Forecast Trend (2024-2032)
8.6.2 Smartphone
8.6.2.1 Historical Trend (2018-2023)
8.6.2.2 Forecast Trend (2024-2032)
8.6.3 Embedded Telematics
8.6.3.1 Historical Trend (2018-2023)
8.6.3.2 Forecast Trend (2024-2032)
8.6.4 On-Board Diagnostics (OBD)
8.6.4.1 Historical Trend (2018-2023)
8.6.4.2 Forecast Trend (2024-2032)
8.6.5 Others
8.7 Global Automotive Usage Based Insurance Market by Region
8.7.1 North America
8.7.1.1 Historical Trend (2018-2023)
8.7.1.2 Forecast Trend (2024-2032)
8.7.2 Europe
8.7.2.1 Historical Trend (2018-2023)
8.7.2.2 Forecast Trend (2024-2032)
8.7.3 Asia Pacific
8.7.3.1 Historical Trend (2018-2023)
8.7.3.2 Forecast Trend (2024-2032)
8.7.4 Latin America
8.7.4.1 Historical Trend (2018-2023)
8.7.4.2 Forecast Trend (2024-2032)
8.7.5 Middle East and Africa
8.7.5.1 Historical Trend (2018-2023)
8.7.5.2 Forecast Trend (2024-2032)
9 North America Automotive Usage Based Insurance Market Analysis
9.1 United States of America
9.1.1 Historical Trend (2018-2023)
9.1.2 Forecast Trend (2024-2032)
9.2 Canada
9.2.1 Historical Trend (2018-2023)
9.2.2 Forecast Trend (2024-2032)
10 Europe Automotive Usage Based Insurance Market Analysis
10.1 United Kingdom
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Germany
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 France
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Italy
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
10.5 Others
11 Asia Pacific Automotive Usage Based Insurance Market Analysis
11.1 China
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Japan
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 India
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 ASEAN
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Australia
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Others
12 Latin America Automotive Usage Based Insurance Market Analysis
12.1 Brazil
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Argentina
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Mexico
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Others
13 Middle East and Africa Automotive Usage Based Insurance Market Analysis
13.1 Saudi Arabia
13.1.1 Historical Trend (2018-2023)
13.1.2 Forecast Trend (2024-2032)
13.2 United Arab Emirates
13.2.1 Historical Trend (2018-2023)
13.2.2 Forecast Trend (2024-2032)
13.3 Nigeria
13.3.1 Historical Trend (2018-2023)
13.3.2 Forecast Trend (2024-2032)
13.4 South Africa
13.4.1 Historical Trend (2018-2023)
13.4.2 Forecast Trend (2024-2032)
13.5 Others
14 Market Dynamics
14.1 SWOT Analysis
14.1.1 Strengths
14.1.2 Weaknesses
14.1.3 Opportunities
14.1.4 Threats
14.2 Porter’s Five Forces Analysis
14.2.1 Supplier’s Power
14.2.2 Buyer’s Power
14.2.3 Threat of New Entrants
14.2.4 Degree of Rivalry
14.2.5 Threat of Substitutes
14.3 Key Indicators for Demand
14.4 Key Indicators for Price
15 Competitive Landscape
15.1 Market Structure
15.2 Company Profiles
15.2.1 Allianz SE
15.2.1.1 Company Overview
15.2.1.2 Product Portfolio
15.2.1.3 Demographic Reach and Achievements
15.2.1.4 Certifications
15.2.2 TomTom International B.V.
15.2.2.1 Company Overview
15.2.2.2 Product Portfolio
15.2.2.3 Demographic Reach and Achievements
15.2.2.4 Certifications
15.2.3 Vodafone Automotive S.p.A
15.2.3.1 Company Overview
15.2.3.2 Product Portfolio
15.2.3.3 Demographic Reach and Achievements
15.2.3.4 Certifications
15.2.4 Assicurazioni Generali S.p.A.
15.2.4.1 Company Overview
15.2.4.2 Product Portfolio
15.2.4.3 Demographic Reach and Achievements
15.2.4.4 Certifications
15.2.5 Travelers Indemnity Company
15.2.5.1 Company Overview
15.2.5.2 Product Portfolio
15.2.5.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.6 Esurance Insurance Services, Inc.
15.2.6.1 Company Overview
15.2.6.2 Product Portfolio
15.2.6.3 Demographic Reach and Achievements
15.2.6.4 Certifications
15.2.7 Trak Global Group
15.2.7.1 Company Overview
15.2.7.2 Product Portfolio
15.2.7.3 Demographic Reach and Achievements
15.2.7.4 Certifications
15.2.8 AXA S.A.
15.2.8.1 Company Overview
15.2.8.2 Product Portfolio
15.2.8.3 Demographic Reach and Achievements
15.2.8.4 Certifications
15.2.9 Others
16 Key Trends and Developments in the Market
List of Figures and Tables
1. Global Automotive Usage Based Insurance Market: Key Industry Highlights, 2018 and 2032
2. Global Automotive Usage Based Insurance Historical Market: Breakup by Package (USD Million), 2018-2023
3. Global Automotive Usage Based Insurance Market Forecast: Breakup by Package (USD Million), 2024-2032
4. Global Automotive Usage Based Insurance Historical Market: Breakup by Vehicle Type (USD Million), 2018-2023
5. Global Automotive Usage Based Insurance Market Forecast: Breakup by Vehicle Type (USD Million), 2024-2032
6. Global Automotive Usage Based Insurance Historical Market: Breakup by Technology (USD Million), 2018-2023
7. Global Automotive Usage Based Insurance Market Forecast: Breakup by Technology (USD Million), 2024-2032
8. Global Automotive Usage Based Insurance Historical Market: Breakup by Region (USD Million), 2018-2023
9. Global Automotive Usage Based Insurance Market Forecast: Breakup by Region (USD Million), 2024-2032
10. North America Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2023
11. North America Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2024-2032
12. Europe Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2023
13. Europe Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2024-2032
14. Asia Pacific Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2023
15. Asia Pacific Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2024-2032
16. Latin America Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2023
17. Latin America Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2024-2032
18. Middle East and Africa Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2023
19. Middle East and Africa Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2024-2032
20. Global Automotive Usage Based Insurance Market Structure
Key Questions Answered in the Report
The global automotive usage-based insurance market is projected to grow at a CAGR of 21.4% between 2024 and 2032.
The major drivers of the market include the data-driven services, advancement of IoT, increasing production and sales of automobiles, changing demographic trend, changing driving habits and increasing number of affluent middle-class population.
The increasing popularity of smartphones and the benefits of usage-based insurance (UBI) are the key industry trends propelling the market's growth.
The major regions in the industry are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
Based on package, the market is divided into Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD).
The different types of vehicles are passenger vehicles, light commercial vehicle, and heavy commercial vehicle.
The various technologies are black box, smartphone, embedded telematics, and on-board diagnostics (OBD), among others.
The major players in the industry are Allianz SE, TomTom International B.V., Vodafone Automotive S.p.A, Assicurazioni Generali S.p.A., Travelers Indemnity Company, Esurance Insurance Services, Inc., Trak Global Group, and AXA S.A., among others.
Analyst Review
The global automotive usage-based insurance market was driven by the increasing popularity of smartphones in the historical period. Aided by the advancement of IoT and benefits of usage-based insurance (UBI), the market is expected to witness further growth in the forecast period of 2024-2032, growing at a CAGR of 21.4%.
EMR's meticulous research methodology delves deep into the market, covering the macro and micro aspects of the industry. Based on package, the market is divided into Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD). The different types of vehicles are passenger vehicles, light commercial vehicle, and heavy commercial vehicle. The various technologies are black box, smartphone, embedded telematics, and on-board diagnostics (OBD), among others. The major regional markets for automotive usage-based insurance are North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa. The major players in the industry are Allianz SE, TomTom International B.V., Vodafone Automotive S.p.A, Assicurazioni Generali S.p.A., Travelers Indemnity Company, Esurance Insurance Services, Inc., Trak Global Group, and AXA S.A., among others.
EMR's research methodology uses a combination of cutting-edge analytical tools and the expertise of their highly accomplished team, thus, providing their customers with market insights that are accurate, actionable and help them remain ahead of their competition.
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