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Global Automotive Usage Based Insurance Market: By Package: Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD); By Vehicle Type; By Technology; Regional Analysis; Historical Market and Forecast (2018-2028); Market Dynamics: SWOT Analysis; Competitive Landscape; Industry Events and Developments

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 2023-2028. North America and Europe are expected to be key markets.

 

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 2022, 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 2022, 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

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

 

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 2022
Historical Period 2018-2022
Forecast Period 2023-2028
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Package
  • Vehicle Type
  • Technology
  • Region
Breakup by Package
  • Pay-As-You-Drive (PAYD)
  • Pay-How-You-Drive (PHYD)
  • Manage-How-You-Drive (MHYD)
Breakup by Vehicle Type
  • Passenger Vehicles
  • Light Commercial Vehicle
  • Heavy Commercial Vehicle
Breakup by Technology
  • Black Box
  • Smartphone
  • Embedded Telematics
  • On-Board Diagnostics (OBD)
  • Others
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT
  • Porter's Five Forces
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • 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
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 (2018-2022) 
    8.3    Global Automotive Usage Based Insurance Market Forecast (2023-2028)
    8.4    Global Automotive Usage Based Insurance Market by Package
        8.4.1    Pay-As-You-Drive (PAYD)
            8.4.1.1    Market Share
            8.4.1.2    Historical Trend (2018-2022)
            8.4.1.3    Forecast Trend (2023-2028)
        8.4.2    Pay-How-You-Drive (PHYD)
            8.4.2.1    Market Share
            8.4.2.2    Historical Trend (2018-2022)
            8.4.2.3    Forecast Trend (2023-2028)
        8.4.3    Manage-How-You-Drive (MHYD)
            8.4.3.1    Market Share
            8.4.3.2    Historical Trend (2018-2022)
            8.4.3.3    Forecast Trend (2023-2028)
    8.5    Global Automotive Usage Based Insurance Market by Vehicle Type
        8.5.1    Passenger Vehicles
            8.5.1.1    Market Share
            8.5.1.2    Historical Trend (2018-2022)
            8.5.1.3    Forecast Trend (2023-2028)
        8.5.2    Light Commercial Vehicle
            8.5.2.1    Market Share
            8.5.2.2    Historical Trend (2018-2022)
            8.5.2.3    Forecast Trend (2023-2028)
        8.5.3    Heavy Commercial Vehicle
            8.5.3.1    Market Share
            8.5.3.2    Historical Trend (2018-2022)
            8.5.3.3    Forecast Trend (2023-2028)
    8.6    Global Automotive Usage Based Insurance Market by Technology
        8.6.1    Black Box
            8.6.1.1    Market Share
            8.6.1.2    Historical Trend (2018-2022)
            8.6.1.3    Forecast Trend (2023-2028)
        8.6.2    Smartphone
            8.6.2.1    Market Share
            8.6.2.2    Historical Trend (2018-2022)
            8.6.2.3    Forecast Trend (2023-2028)
        8.6.3    Embedded Telematics
            8.6.3.1    Market Share
            8.6.3.2    Historical Trend (2018-2022)
            8.6.3.3    Forecast Trend (2023-2028)
        8.6.4    On-Board Diagnostics (OBD)
            8.6.4.1    Market Share
            8.6.4.2    Historical Trend (2018-2022)
            8.6.4.3    Forecast Trend (2023-2028)
        8.6.5    Others
    8.7    Global Automotive Usage Based Insurance Market by Region       
        8.7.1    North America
            8.7.1.1    Market Share
            8.7.1.2    Historical Trend (2018-2022) 
            8.7.1.3    Forecast Trend (2023-2028)
        8.7.2    Europe
            8.7.2.1    Market Share
            8.7.2.2    Historical Trend (2018-2022) 
            8.7.2.3    Forecast Trend (2023-2028)
        8.7.3    Asia Pacific
            8.7.3.1    Market Share
            8.7.3.2    Historical Trend (2018-2022) 
            8.7.3.3    Forecast Trend (2023-2028)
        8.7.4    Latin America
            8.7.4.1    Market Share
            8.7.4.2    Historical Trend (2018-2022) 
            8.7.4.3    Forecast Trend (2023-2028)
        8.7.5    Middle East and Africa
            8.7.5.1    Market Share
            8.7.5.2    Historical Trend (2018-2022) 
            8.7.5.3    Forecast Trend (2023-2028) 
9    North America Automotive Usage Based Insurance Market Analysis
    9.1    United States of America 
        9.1.1    Market Share
        9.1.2    Historical Trend (2018-2022) 
        9.1.3    Forecast Trend (2023-2028)
    9.2    Canada
        9.2.1    Market Share
        9.2.2    Historical Trend (2018-2022) 
        9.2.3    Forecast Trend (2023-2028)
10    Europe Automotive Usage Based Insurance Market Analysis
    10.1    United Kingdom
        10.1.1    Market Share
        10.1.2    Historical Trend (2018-2022) 
        10.1.3    Forecast Trend (2023-2028)
    10.2    Germany
        10.2.1    Market Share
        10.2.2    Historical Trend (2018-2022) 
        10.2.3    Forecast Trend (2023-2028)
    10.3    France
        10.3.1    Market Share
        10.3.2    Historical Trend (2018-2022) 
        10.3.3    Forecast Trend (2023-2028)
    10.4    Italy
        10.4.1    Market Share
        10.4.2    Historical Trend (2018-2022) 
        10.4.3    Forecast Trend (2023-2028)
    10.5    Others
11    Asia Pacific Automotive Usage Based Insurance Market Analysis
    11.1    China
        11.1.1    Market Share
        11.1.2    Historical Trend (2018-2022) 
        11.1.3    Forecast Trend (2023-2028)
    11.2    Japan
        11.2.1    Market Share
        11.2.2    Historical Trend (2018-2022) 
        11.2.3    Forecast Trend (2023-2028)
    11.3    India
        11.3.1    Market Share
        11.3.2    Historical Trend (2018-2022) 
        11.3.3    Forecast Trend (2023-2028)
    11.4    ASEAN
        11.4.1    Market Share
        11.4.2    Historical Trend (2018-2022) 
        11.4.3    Forecast Trend (2023-2028)
    11.5    Australia
        11.5.1    Market Share
        11.5.2    Historical Trend (2018-2022) 
        11.5.3    Forecast Trend (2023-2028)
    11.6    Others
12    Latin America Automotive Usage Based Insurance Market Analysis
    12.1    Brazil
        12.1.1    Market Share
        12.1.2    Historical Trend (2018-2022) 
        12.1.3    Forecast Trend (2023-2028)
    12.2    Argentina
        12.2.1    Market Share
        12.2.2    Historical Trend (2018-2022) 
        12.2.3    Forecast Trend (2023-2028)
    12.3    Mexico
        12.3.1    Market Share
        12.3.2    Historical Trend (2018-2022) 
        12.3.3    Forecast Trend (2023-2028)
    12.4    Others
13    Middle East and Africa Automotive Usage Based Insurance Market Analysis
    13.1    Saudi Arabia
        13.1.1    Market Share
        13.1.2    Historical Trend (2018-2022) 
        13.1.3    Forecast Trend (2023-2028)
    13.2    United Arab Emirates
        13.2.1    Market Share
        13.2.2    Historical Trend (2018-2022) 
        13.2.3    Forecast Trend (2023-2028)
    13.3    Nigeria
        13.3.1    Market Share
        13.3.2    Historical Trend (2018-2022) 
        13.3.3    Forecast Trend (2023-2028)
    13.4    South Africa
        13.4.1    Market Share
        13.4.2    Historical Trend (2018-2022) 
        13.4.3    Forecast Trend (2023-2028)
    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 2028
2.    Global Automotive Usage Based Insurance Historical Market: Breakup by Package (USD Million), 2018-2022
3.    Global Automotive Usage Based Insurance Market Forecast: Breakup by Package (USD Million), 2023-2028
4.    Global Automotive Usage Based Insurance Historical Market: Breakup by Vehicle Type (USD Million), 2018-2022
5.    Global Automotive Usage Based Insurance Market Forecast: Breakup by Vehicle Type (USD Million), 2023-2028
6.    Global Automotive Usage Based Insurance Historical Market: Breakup by Technology (USD Million), 2018-2022
7.    Global Automotive Usage Based Insurance Market Forecast: Breakup by Technology (USD Million), 2023-2028
8.    Global Automotive Usage Based Insurance Historical Market: Breakup by Region (USD Million), 2018-2022
9.    Global Automotive Usage Based Insurance Market Forecast: Breakup by Region (USD Million), 2023-2028
10.    North America Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2022
11.    North America Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2023-2028
12.    Europe Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2022
13.    Europe Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2023-2028
14.    Asia Pacific Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2022
15.    Asia Pacific Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2023-2028
16.    Latin America Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2022
17.    Latin America Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2023-2028
18.    Middle East and Africa Automotive Usage Based Insurance Historical Market: Breakup by Country (USD Million), 2018-2022
19.    Middle East and Africa Automotive Usage Based Insurance Market Forecast: Breakup by Country (USD Million), 2023-2028
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 2023 and 2028.

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 2023-2028, 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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Why Expert Market Research?

Right People

We are technically excellent, strategic, practical, experienced and efficient; our analysts are hand-picked based on having the right attributes to work successfully and execute projects based on your expectations.

Right Methodology

We leverage our cutting-edge technology, our access to trusted databases, and our knowledge of the current models used in the market to deliver you research solutions that are tailored to your needs and put you ahead of the curve.

Right Price

We deliver in-depth and superior quality research in prices that are reasonable, unmatchable, and shows our understanding of your resource structure. We, additionally, offer attractive discounts on our upcoming reports.

Right Support

Our team of expert analysts are at your beck and call to deliver you optimum results that are customised to meet your precise needs within the specified timeframe and help you form a better understanding of the industry.

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