Global Automotive Usage Based Insurance Market Share Analysis 2024, Forecast To 2033

The automotive usage-based insurance market size has grown rapidly in recent years. It will grow from $41.48 billion in 2023 to $48.90 billion in 2024 at a compound annual growth rate (CAGR) of 17.9%. The growth in the historic period can be attributed to rising insurance premiums, the growth of connected vehicles, the need for improved risk assessment, regulatory changes favoring usage-based models, and the adoption of mobile apps. The automotive usage-based insurance market size is expected to see rapid growth in the next few years, growing to $95.28 billion in 2028 at a CAGR of 18.1%. The growth in the forecast period can be attributed to advancements in AI and machine learning, enhanced data privacy and security measures, integration with smart home technology, growth in subscription-based insurance models, and rising environmental concerns. Major trends in the forecast period include the integration of AI and machine learning for enhanced risk assessment, the rise of personalized and flexible insurance models, increasing adoption of telematics in electric vehicles, the incorporation of real-time data from connected and autonomous vehicles, and the growth of subscription-based models.