Usage-based Insurance Market for ICE & Electric Vehicle by Package (PAYD, PHYD, MHYD), Technology (OBD-II, Smartphone, Embedded System, Black Box), Vehicle Age (New, On-Road), Device Offering (BYOD, Company Provided), and Region - Global Forecast to 2025
By: marketsandmarkets.com
Publishing Date: September 2018
Report Code: AT 6582
[157 Pages Report] The global usage-based insurance market for automotive was valued to be USD 21.86 billion in 2017 and is projected to reach USD 95.81 billion by 2025, at a CAGR of 18.95%, during the forecast period. The automotive usage-based insurance industry has evolved along with the automotive industry. The demand for market of usage-based insurance is largely influenced by increasing vehicle sales with telematics and connected car services, reduction in insurance as compared to the traditional insurance, and increasing vehicle sales and parc.
Years considered for this report:
- 2017 Base Year
- 2018 Estimated Year
- 20202025 Forecast Period
Increasing vehicle with telematics and connected car services to drive the global usage-based insurance for automotive demand close to USD 96 billion by 2025
The usage-based insurance for automotive is a method to calculate the insurance premium. The amount of insurance premium is decided on the basis of a driving score which is calculated by considering factors such as vehicle usage, location, speeding, braking, cornering, night driving, and distracted driving. Based on the driving score, automotive insurance providers offer a discount on the insurance premium.
Ambiguity over regulations and legislative environments are acting as a restraint for the usage-based insurance market as usage-based insurance providers need to plan new product for different states with in a country.
Furthermore, ongoing new product developments and partnerships by leading companies are likely to propel the growth of usage-based insurance in the untapped markets for the long forecast.
Market Dynamics
Drivers
- Increasing adoption of telematics and connected cars
- Reduction in insurance premium and risk-related costs
- Increasing vehicle sales and parc
Restraints
- Ambiguity over regulations and legislative environments
Opportunities
- Automotive usage-based insurance ecosystem
Challenges
- Data privacy
- Lack of standardized systems
Objectives of the study
- To define, analyze, segment, and forecast the global usage-based insurance market (20152025), in terms of value (USD million)
- To segment and forecast the usage-based insurance market size, by value, by vehicle type, vehicle age, technology, and device offering
- To segment the usage-based insurance market and forecast the market size, by value, by package type
- To segment the usage-based insurance market and forecast the market size, by value, by electric and hybrid vehicle type
- To segment the usage-based insurance market and forecast the market size, by value, by region
- To identify the market dynamics and analyze their impact on the global usage-based insurance market
The research methodology used in the report involves various secondary sources, including paid databases and directories such as American Insurance Association (AIA), Insurance Europe, Association of British Insurers (ABI), Insurance Information Institute (III) and Factiva, and Hoovers. Experts from related industries have been interviewed to understand the future trends of the usage-based insurance market for automotive.
A bottom-up approach was used to estimate and validate the size of the global market and the size of various other dependent submarkets in the overall usage-based insurance market. The market size, by value, of the market, has been derived by multiplying the country-wise penetration of UBI on the vehicle insurance market, by vehicle type and vehicle age. Summation of country wise market for a specific region gives the regional market and further summation of regional market gives the global market for usage-based insurance. The total market is further segmented by package type, vehicle type, and vehicle age.
A top-down approach has been followed to estimate certain markets such as the usage-based insurance market by technology and device offering. The global numbers were broken down into regional numbers by considering all the regional trends which are also validated through industry experts.
The figure given below shows the breakup of the profile of industry experts that participated in primary discussions.
To know about the assumptions considered for the study, download the pdf brochure
The usage-based insurance market consists of companies such as Progressive Corporation (US), Vodafone (UK), Allstate (US), Octo Telematics (UK), TomTom (Netherlands), Allianz (Germany), AXA (France), Liberty Mutual (US), Verizon (US), and Sierra Wireless (Canada).
Usage-based Insurance Market Target Audience
- Automotive cloud service providers
- Automotive electronics hardware and software suppliers
- Automotive insurance platform providers
- Automotive insurance providers
- Automotive Original Equipment Manufacturers
- In-vehicle telematics service providers
- Regional automotive insurance associations
Usage-based Insurance Market Scope of the Report
Usage-based Insurance Market By Package Type
- Pay-As-You-Drive (PAYD)
- Pay-How-You-Drive (PHYD)
- Manage-How-You-Drive (MHYD)
Usage-based Insurance Market By Technology
- OBD-II
- Smartphone
- Embedded System
- Black Box
- Others
Usage-based Insurance Market By Device Offering
- Bring Your Own Device (BYOD)
- Company Provided
Usage-based Insurance Market By Vehicle Age
- New Vehicles
- On-Road Vehicles
Usage-based Insurance Market By Electric & Hybrid Vehicle Type
- HEV
- PHEV
- BEV
Usage-based Insurance Market By Vehicle Type
- Light-Duty Vehicle (LDV)
- Heavy-Duty Vehicle (HDV)
Usage-based Insurance Market By Region
- The Americas
- Asia Oceania
- Europe Middle East (EME)
Critical Questions:
- When Asia Oceania going to be a mass adoption market for usage-based insurance?
- Which package type is going to dominate in the future?
- How are the industry players addressing the challenge of data privacy and standardized systems?
Available Customizations
With the given market data, MarketsandMarkets offers customizations in accordance to company-specific needs.
- Usage-based insurance market, by vehicle type, by country
- Light-duty vehicle
- Heavy-duty vehicle
- Usage-based insurance market, by vehicle type, by vehicle age, by region
- The Americas
- EME
- Asia Oceania
Note 1: Countries considered are China, Japan, South Korea, India, rest of Asia Oceania, Italy Germany, UK, France, Spain, Russia, rest of Europe, US, Canada, Mexico, Brazil, and rest of the Americas.
Table of Contents
1 Introduction (Page No. - 15)
1.1 Objectives
1.2 Market Definition
1.3 Market Scope
1.4 Markets Covered
1.4.1 Years Considered for the Study
1.5 Currency and Pricing
1.6 Package Size
1.7 Limitations
1.8 Stakeholders
2 Research Methodology (Page No. - 20)
2.1 Research Data
2.2 Secondary Data
2.2.1 Key Secondary Sources for Vehicle Sales
2.2.2 Key Secondary Sources for Market Sizing
2.2.3 Key Data From Secondary Sources
2.3 Primary Data
2.3.1 Primary Participants
2.4 Market Size Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Market Breakdown & Data Triangulation
2.6 Assumptions
3 Executive Summary (Page No. - 30)
4 Premium Insights (Page No. - 34)
4.1 Attractive Opportunities in the Usage-based Insurance Market
4.2 Market, By Region
4.3 Market, By Package Type
4.4 Market, By Technology
4.5 Market, By Vehicle Type
4.6 Market, By Vehicle AGE
4.7 Market, By Device Offering
4.8 Market, By Electric & Hybrid Vehicle Type
5 Market Overview (Page No. - 40)
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Increasing Adoption of Telematics and Connected Cars
5.2.1.1.1 Telematics
5.2.1.1.2 Connected Car Services
5.2.1.2 Reduction in Insurance Premium and Risk-Related Costs
5.2.1.3 Increasing Vehicle Sales and Parc
5.2.2 Restraints
5.2.2.1 Ambiguity Over Regulations and Legislative Environments
5.2.3 Opportunities
5.2.3.1 Automotive Usage-based Insurance Ecosystem
5.2.4 Challenges
5.2.4.1 Data Privacy
5.2.4.2 Lack of Standardized Systems
6 Technological Overview (Page No. - 48)
6.1 Impact Analysis of Usage-based Insurance Market on the Automotive Ecosystem
6.2 Future of Market
6.2.1 Pay-Per-Mile
6.2.2 Try Before You Buy (TBYB)
6.2.3 Autonomous Vehicle
6.2.4 Usage-based Insurance for Ride-Hailing and Rentals
6.2.5 How the Insurance Policy Changes for Fleet Owners
6.2.6 AI and HMI in Transportation
7 Usage-based Insurance Market for Automotive, By Package Type (Page No. - 52)
Note - The Chapter is Further Segmented at Regional Level and Considered Regions are Asia Oceania, Europe Middle East (EME) and the Americas
7.1 Introduction
7.2 Pay-As-You-Drive (PAYD)
7.3 Pay-How-You-Drive (PHYD)
7.4 Manage-How-You-Drive (MHYD)
8 Usage-based Insurance Market for Automotive, By Technology (Page No. - 57)
Note - The Chapter is Further Segmented at Regional Level and Considered Regions are Asia Oceania, Europe Middle East (EME) and the Americas
8.1 Introduction
8.2 OBD-II
8.3 Smartphone
8.4 Embedded System
8.5 Black Box
8.6 Other Technologies
9 Usage-based Insurance Market for Automotive, By Vehicle Type (Page No. - 63)
Note - The Chapter is Further Segmented at Regional Level and Considered Regions are Asia Oceania, Europe Middle East (EME) and the Americas
9.1 Introduction
9.2 Light-Duty Vehicle (LDV)
9.3 Heavy-Duty Vehicles (HDV)
10 Usage-based Insurance Market for Automotive, By Vehicle Age (Page No. - 67)
Note - The Chapter is Further Segmented at Regional Level and Considered Regions are Asia Oceania, Europe Middle East (EME) and the Americas
10.1 Introduction
10.2 New Vehicles
10.3 On-Road Vehicles
11 Usage-based Insurance Market, By Device Offering (Page No. - 71)
Note - The Chapter is Further Segmented at Regional Level and Considered Regions are Asia Oceania, Europe Middle East (EME) and the Americas
11.1 Introduction
11.2 Bring Your Own Device (BYOD)
11.3 Company Provided
12 Usage-based Insurance Market for Automotive, By Electric and Hybrid Vehicle (Page No. - 75)
Note - The Chapter is Further Segmented at Regional Level and Considered Regions are Asia Oceania, Europe, North America and Row
12.1 Introduction
12.2 Battery Electric Vehicle (BEV)
12.3 Hybrid Electric Vehicle (HEV)
12.4 Plug-In Hybrid Vehicle (PHEV)
13 Usage-based Insurance Market for Automotive, By Region (Page No. - 81)
Note - The Chapter is Further Segmented at Regional & Country Level By Package Type- PAYD, PHYD & MHYD and Vehicle Age- New Vehicles & On-Road Vehicles
13.1 Introduction
13.2 Asia Oceania
13.2.1 China
13.2.2 Japan
13.2.3 South Korea
13.2.4 India
13.2.5 Rest of Asia Oceania
13.3 The Americas
13.3.1 US
13.3.2 Canada
13.3.3 Mexico
13.3.4 Brazil
13.3.5 Rest of Americas
13.4 Europe Middle East (EME)
13.4.1 Italy
13.4.2 UK
13.4.3 Germany
13.4.4 France
13.4.5 Spain
13.4.6 Russia
13.4.7 UAE
13.4.8 Rest of EME
14 Competitive Landscape (Page No. - 110)
14.1 Overview
14.2 Automotive Usage-based Insurance Market: Market Share Analysis
14.3 Company-Wise Product Matrix
14.4 Competitive Scenario
14.4.1 Partnerships/Joint Ventures
14.4.2 New Product Launches/New Product Developments
14.4.3 Mergers & Acquisitions
14.4.4 Expansions
15 Company Profiles (Page No. - 122)
(Business Overview, Products Offered, Recent Developments, and SWOT Analysis)*
15.1 Progressive Corporation
15.2 Vodafone
15.3 Allstate
15.4 Octo Telematics
15.5 Tomtom
15.6 Allianz
15.7 AXA
15.8 Liberty Mutual
15.9 Verizon
15.10 Sierra Wireless
15.11 Additional CPS
15.11.1 The Americas
15.11.1.1 Modus Group
15.11.1.2 Intelligent Mechatronic Systems
15.11.1.3 Inseego
15.11.1.4 Truemotion
15.11.1.5 Cambridge Mobile Telematics
15.11.1.6 Metromile
15.11.1.7 Movitrack Viasat
15.11.2 Europe Middle East (EME)
15.11.2.1 Insure the Box
15.11.2.2 Mapfre
15.11.2.3 The Floow
15.11.2.4 Assicurazioni Generali
15.11.2.5 Unipolsai Assicurazioni
*Details on Business Overview, Products Offered, Recent Developments, and SWOT Analysis Might Not Be Captured in Case of Unlisted Companies.
16 Appendix (Page No. - 150)
16.1 Key Industry Insights
16.2 Discussion Guide
16.3 Knowledge Store: Marketsandmarkets Subscription Portal
16.4 Available Customization
16.4.1 Usage-based Insurance Market, By Vehicle Type, By Country
16.4.1.1 Light-Duty Vehicle
16.4.1.2 Heavy-Duty Vehicle
16.4.2 Market, By Vehicle Type, By Vehicle Age, By Region
16.4.2.1 The Americas
16.4.2.2 EME
16.4.2.3 Asia Oceania
16.4.3 Market, By Electric & Hybrid Vehicle Type, By Country
16.4.4 Market, By Off-Highway Vehicle Type, By Region
16.4.4.1 Construction
16.4.4.2 Agriculture
16.5 Related Reports
16.6 Author Details
List of Tables (78 Tables)
Table 1 Currency Exchange Rates (W.R.T. USD)
Table 2 Summary Table
Table 3 Future Impact of UBI
Table 4 Usage-based Insurance Market, By Package Type, 20162025 (USD Million)
Table 5 PAYD: Market, By Region, 20162025 (USD Million)
Table 6 PHYD: Market, By Region, 20162025 (USD Million)
Table 7 MHYD: Market, By Region, 20162025 (USD Million)
Table 8 Market, By Technology, 20162025 (USD Million)
Table 9 OBD-II : Market, By Region, 20162025 (USD Million)
Table 10 Smartphone: Market, By Region, 20162025 (USD Million)
Table 11 Embedded System: Market, By Region, 20162025 (USD Million)
Table 12 Black Box: Market, By Region, 20162025 (USD Million)
Table 13 Others Technologies: Market, By Region, 20162025 (USD Million)
Table 14 Market, By Vehicle Type, 20162025 (USD Million)
Table 15 LDV: Market, By Region, 20162025 (USD Million)
Table 16 HDV: Market, By Region, 20162025 (USD Million)
Table 17 Usage-based Insurance Market, By Vehicle Age, 20162025 (USD Million)
Table 18 New Vehicles: Market, By Region, 20162025 (USD Million)
Table 19 On-Road Vehicle: Market, By Region, 20162025 (USD Million)
Table 20 Market, By Device Offering, 20162025 (USD Million)
Table 21 BYOD: Market, By Region, 2016-2025 (USD Million)
Table 22 Company Provided: Market, By Region, 2016-2025 (USD Million)
Table 23 Usage-based Insurance Market, By Electric and Hybrid Vehicle, 20162025 (USD Million)
Table 24 Electric & Hybrid Vehicle: Market, By Region, 20162025 (USD Million)
Table 25 BEV: Market, By Region, 20162025 (USD Million)
Table 26 HEV: Market, By Region, 20162025 (USD Million)
Table 27 PHEV: Market, By Region, 20162025 (USD Million)
Table 28 Market for Automotive, By Region, 20162025 (USD Million)
Table 29 Asia Oceania: Market for Automotive, By Country, 20162025 (USD Million)
Table 30 Asia Oceania: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 31 Asia Oceania: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 32 China: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 33 China: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 34 Japan: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 35 Japan: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 36 South Korea: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 37 South Korea: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 38 India: Usage-based Insurance Market for Automotive, By Package Type, 20162025 (USD Million)
Table 39 India: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 40 Rest of Asia Oceania: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 41 Rest of Asia Oceania: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 42 The Americas: Market for Automotive, By Country, 20162025 (USD Million)
Table 43 The Americas: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 44 The Americas: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 45 US: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 46 US: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 47 Canada: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 48 Canada: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 49 Mexico: Usage-based Insurance Market for Automotive, By Package Type, 20162025 (USD Million)
Table 50 Mexico: Market for Automotive, By Policy Type, 20162025 (USD Million)
Table 51 Brazil: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 52 Brazil: Market for Automotive, By Policy Type, 20162025 (USD Million)
Table 53 Rest of Americas: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 54 Rest of Americas: Market for Automotive, By Policy Type, 20162025 (USD Million)
Table 55 EME: Market for Automotive, By Country, 20162025 (USD Million)
Table 56 EME: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 57 EME: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 58 Italy: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 59 Italy: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 60 UK: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 61 UK: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 62 Germany: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 63 Germany: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 64 France: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 65 France: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 66 Spain: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 67 Spain: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 68 Russia: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 69 Russia: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 70 UAE: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 71 UAE: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 72 Rest of EME: Market for Automotive, By Package Type, 20162025 (USD Million)
Table 73 Rest of EME: Market for Automotive, By Vehicle Age, 20162025 (USD Million)
Table 74 Product Matrix
Table 75 Partnerships/Joint Ventures, 20132018
Table 76 New Product Launches/New Product Developments, 20132018
Table 77 Mergers & Acquisitions, 20132017
Table 78 Expansions, 2016
List of Figures (48 Figures)
Figure 1 Usage-based Insurance Market for Automotive: Market Segmentation
Figure 2 Market for Automotive: Research Design
Figure 3 Research Methodology Model
Figure 4 Breakdown of Primary Interviews
Figure 5 Bottom-Up Approach: Market, By Country, Vehicle Type, Vehicle Age and Package Type
Figure 6 Top-Down Approach: Market Technology and Device Offering
Figure 7 Data Triangulation
Figure 8 Market for Automotive: Market Outlook
Figure 9 Market for Automotive, By Region, 2018 vs. 2025 (USD Million)
Figure 10 The Americas to Hold the Largest Share of the Usage-based Insurance Market During the Forecast Period, By Value
Figure 11 Pay-As-You-Drive to Be the Largest and Mange-How-You-Drive Segment to Be Fastest in Market, 20182025, By Value
Figure 12 Embedded System Market to Be the Fastest Growing Market, 20182025, By Value
Figure 13 Light-Duty Vehicle to Be the Largest Market and Heavy-Duty Vehicle to Be the Fastest Growing Market for Usage-based Insurance, 2018ByValue38
Figure 14 On-Road Vehicles to Be the Largest Market for Usage-based Insurance, 20182025, By Value
Figure 15 BYOD to Be the Fastest Growing Market in Market, 20182025, By Value
Figure 16 HEV to Be the Largest Segment of Market, 2018 vs. 2022 vs. 2025, By Value
Figure 17 Market Dynamics: Usage-based Insurance Market for Automotive
Figure 18 On-Highway Telematics Services, 2017 vs. 2019 vs. 2022 (USD Billion)
Figure 19 Number of Connected Cars, By Region, 2017 vs. 2022 vs. 2025 (Million Units)
Figure 20 Vehicle Sales, By Region, 20122017 (Million Units)
Figure 21 Vehicle Parc, By Region, 20122017 (Million Units)
Figure 22 Impact of Usage-based Insurance on the Automotive Ecosystem
Figure 23 Usage-based Insurance Market, By Package Type, 2018 vs 2022 vs 2025 (USD Million)
Figure 24 Market, By Technology, 2018 vs 2022 vs 2025 (USD Million)
Figure 25 Market, By Vehicle Type, 2018 vs 2022 vs 2025 (USD Million)
Figure 26 Market, By Vehicle Age, 2018 vs 2022 vs 2025 (USD Million)
Figure 27 Market, By Device Offering Type, 2018 vs 2022 vs 2025 (USD Million)
Figure 28 Market for Automotive, By Electric and Hybrid Vehicle, 2018 vs. 2022 vs. 2025 (USD Million)
Figure 29 Market for Automotive, By Region, 2018 vs. 2022 vs. 2025 (USD Billion)
Figure 30 Asia Oceania: Market for Automotive, By Country, 2018 vs 2022 vs 2025 (USD Million)
Figure 31 North America: Market Snapshot
Figure 32 EME: Market for Automotive Snapshot
Figure 33 Companies Adopted Expansions as the Key Growth Strategy From 2013 to 2018
Figure 34 Automotive Market Ranking Analysis in 2017
Figure 35 Usage-based Insurance Market, Cost Breakup By Industry Participants
Figure 36 Progressive Corporation: Company Snapshot
Figure 37 SWOT Analysis: Progressive Corporation
Figure 38 Vodafone: Company Snapshot
Figure 39 SWOT Analysis: Vodafone
Figure 40 Allstate: Company Snapshot
Figure 41 SWOT Analysis: Allstate
Figure 42 SWOT Analysis: Octo Telematics
Figure 43 Tomtom: Company Snapshot
Figure 44 SWOT Analysis: Tomtom
Figure 45 Allianz: Company Snapshot
Figure 46 AXA: Company Snapshot
Figure 47 Liberty Mutual: Company Snapshot
Figure 48 Verizon: Company Snapshot
The usage-based insurance market for automotive is estimated to be USD 28.43 billion in 2018 and is projected to reach USD 95.81 billion by 2025, at a CAGR of 18.95%. Reduction in insurance premium as compared to regular insurance, increasing vehicles with telematics and connected car services, and increasing vehicle sales and on-road vehicles are projected to drive the market for automotive.
Manage-How-You-Drive (MHYD) is expected to be the fastest growing market for usage-based insurance by package type owing to increasing sales of vehicles equipped with telematics unit and connected car services which make it cost-effective to adopt MHYD without any external hardware. Pay-As-You-Drive (PAYD) is estimated to be the largest market during the forecast period owing to reasons such as ease of deployment, no complex algorithms for working, and cost-effectiveness for the insurer as well as consumers.
On-road vehicles are estimated to be largest as well as the fastest growing market for usage-based insurance market by vehicle age. The penetration of usage-based insurance is lower in on-road vehicles as compared to new vehicles, however, owing to the huge difference in new vehicle sales and on-road vehicles, the market for on-road vehicles is the highest in 2018 and is projected to be the largest market by 2025 as well.
Bring your own device (BYOD) is estimated to be the fastest market for usage-based insurance market by device offering. BYOD provides flexibility to the user for device selection and is the most cost-effective when compared to company provided devices.
Embedded system is estimated to be the largest as well as the fastest market for usage-based insurance by technology during the forecast period. Embedded system is very accurate at capturing vehicle data as it is an integrated part of the system and does not require external calibration to register data. This also helps reduce the initial cost as the user does not have to buy separate devices (OBD-II or black box) to avail usage-based insurance. The market for embedded system-based UBI is directly related to the market for connected cars with inbuilt telematics.
The HEV segment is estimated to hold the largest market share in the usage-based insurance market, by electric & hybrid vehicle type. The large market share is attributed to the higher sales of HEVs than BEVs and PHEVs in all the regions. The market is also estimated to grow with the HEV market. The Americas is the largest markets for HEVs in terms of vehicle sales. Hence, this is expected to be the largest market for usage-based insurance for HEVs.
The Americas region is projected to be the largest market for usage-based insurance during the forecast period. The Americas has the highest adoption rate of usage-based insurance as compared to other regions owing to higher regular insurance premiums and high sales of premium D segment and light-duty vehicles. Apart from this, vehicles with telematics and connected car services are acting as a driving factor for the usage-based insurance market.
In the Americas, the US is the leading country in the usage-based insurance market where light-duty vehicles are the leading vehicle type. The market for on-road vehicles is estimated to have the largest market share and for new vehicles is estimated to be the fastest in the Americas region.
Ambiguity over regulations and legislative environments are acting as a restraint for the usage-based insurance market as usage-based insurance providers need to plan new products for different states within a country.
The usage-based insurance market consists of companies such as Progressive Corporation (US), Vodafone (UK), Allstate (US), Octo Telematics (UK), TomTom (Netherlands), Allianz (Germany), AXA (France), Liberty Mutual (US), Verizon (US), and Sierra Wireless (Canada).
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