Global Insurance Telematics Market Size Forecast 2024 - 2033
23 Dec, 2024
How Is The Global Insurance Telematics Market Defined?
Insurance telematics refers to the use of technology, such as GPS-based devices or mobile apps, to monitor and assess the driving behavior and patterns of policyholders. It is utilized to allow insurance companies to create usage-based insurance (UBI) schemes that appropriately price premiums and policies based on individual driving behaviors.
Insurance Telematics Global Market Report 2024 provides data on the global insurance telematics market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The insurance telematics market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Are The Global Insurance Telematics Market Size And Growth Rates Projected To Evolve?
The insurance telematics market has grown rapidly, increasing from $3.43 billion in 2023 to $4.01 billion in 2024 at a CAGR of 16.9%. Growth drivers include regulatory mandates, road safety concerns, fraud prevention, and the rise of personalized insurance solutions. The market is forecasted to reach $7.59 billion in 2028, with a CAGR of 17.3%. Key drivers include connected vehicle ecosystems, autonomous vehicle developments, usage-based insurance, and environmental sustainability. Trends include AI-enhanced analytics, data privacy advancements, commercial telematics solutions, and partnerships to expand offerings.
What Are The Essential Drivers Behind The Growth Of The Insurance Telematics Market?
The rising adoption of connected cars is expected to drive the growth of the insurance telematics market. Connected cars are vehicles equipped with communication systems that allow them to interact with external devices and networks. The adoption of connected cars is being driven by advancements in mobile technology, enabling cars to collect data for predictive maintenance and provide real-time driving data such as speed, braking, and location. Insurance companies use this data to assess individual driving behaviors and offer usage-based insurance. The IEEE Communications Society projected in January 2023 that the number of connected vehicles worldwide would grow from 192 million in 2023 to 367 million by 2027. This surge in connected car adoption is driving the growth of the insurance telematics market.
Get Your Free Sample of the Global Insurance Telematics Market ReportHow Is The Global Insurance Telematics Market Divided Into Key Segments?
The insurance telematics market covered in this report is segmented –
1) By Type: Pay-As-You-Drive (PAYD), Pay-How-you-Drive (PHYD), Manage-How-You- Drive (MHYD)
2) By Technology: On-Board Diagnostic II (OBD-ll), Smartphone, Hybrid, Black-Box
3) By Deployment: On-premise, Cloud
4) By Organization Size: Large Enterprises, Small And Medium-sized Enterprises
5) By Vehicle Type: Light-Duty Vehicles (LDV), Heavy-Duty Vehicles (HDV)
What Trends Are Reshaping The Future Of The Insurance Telematics Market?
In the insurance telematics market, companies are introducing innovative solutions such as add-on cover facilities to enhance their competitive edge. These add-on features enhance traditional telematics insurance offerings. For example, in July 2022, Edelweiss Group, an India-based financial services company, introduced the Switch 'Pay As You Drive' (PAYD) add-on to its car insurance policy. This feature offers flexible pricing based on annual mileage, allowing policyholders to reduce premiums based on their driving habits.
What Is The Fastest Growing Region In The Insurance Telematics Market?
Europe was the largest region in the insurance telematics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance telematics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.