Global Usage-Based Insurance Market for Automotive by Package Type, Technology Type, Vehicle Type, Vehicle Age, Device Offering, Electric & Hybrid Vehicles, and Region – Forecast to 2027

PR Newswire

DUBLIN, March 2, 2020 /PRNewswire/ -- The "Usage-Based Insurance Market for Automotive by Package Type, Technology Type (OBD-II, Blackbox, Smartphone, Embedded, and Other Technologies), Vehicle Type, Vehicle Age, Device Offering, Electric & Hybrid Vehicles, and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The usage-based insurance market for automotive is projected to reach USD 126 billion by 2027 from USD 24 billion in 2019, at a CAGR of 23.0%.

Increasing adoption of telematics and connected cars is expected to drive the usage-based insurance market. According to Ernst & Young, 88 percent of all new cars in 2025 will feature embedded telematics. Intel research shows that connected cars are the thirdfastest growing technology market after phones and tablets. With the aid of technology found in today's smartphones such as accelerometer and gyroscope, the insurer can access all data to devise a clear picture of how a customer behaves. The easy operation and convenience of smartphone apps have provided a fillip to the usage-based insurance market.

PAYD segment is expected to be the largest market by package type

Pay-As-You-Drive (PAYD) is estimated to be the largest segment during the forecast period. The key advantages of PAYD are ease of deployment, no complex algorithms for working, and cost-effectiveness for the insurer as well as consumers. Secondly, PAYD insurance encourages consumers to drive less and drive green. This reduces vehicle emissions and contributes to the worldwide efforts for environmental betterment. As people drive less, the accidental risks associated with drivers reduce. Additionally, PHYD and MHYD gather multiple data points about driver behavior, which the driver may not be comfortable sharing. This makes PAYD the preferred choice. In addition, PHYD and MHYD record rash driving or speeding that attract higher premiums. Hence, many users stick to PAYD insurance plans.

On-Road Vehicle segment is expected to grow at the highest CAGR

On-road vehicle is estimated to be the fastest-growing market during the forecast period. Initially, the adoption of usage-based insurance is likely to be less in on-road vehicles. As the penetration of UBI is expected to increase in new vehicles, the UBI market for on-road vehicles will also increase at a rapid pace. The major countries that are expected high penetration of UBI are the US, Italy, Germany, UK, and China. The UBI penetration in vehicle parc is expected to increase with a double growth rate in these countries.

The Asia Oceania market is expected to register the highest growth during the forecast period

The Asia Oceania usage-based insurance market is estimated to be the fastest-growing regional market. The growing adoption of IoT and telematics in China, Japan, South Korea, and India is expected to drive market growth in the region. Rising pollution in APAC countries such as China is a major concern. Thus, the governments in this region are focusing on less CO2 emission as well as fuel-efficient solutions.

Several companies plan to integrate telematics and IoT enabled navigation in new vehicles to reduce carbon emission and offer real-time emission data. For instance, Maruti Suzuki launched Suzuki Connect, an advanced telematics solution for its customers in India. Similarly, the Ministry of Industry and Information Technology and the Standardization Administration of China together issued the Guidelines for Developing the Standards System of the Telematics Industry (Intelligent and Connected Vehicles). Such initiatives would boost the growth of vehicle telematics, which in turn would drive the growth of the usage-based insurance market during the forecast period.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunities in the Usage-Based Insurance Market
4.2 Usage-Based Insurance Market, By Region
4.3 Usage-Based Insurance Market, By Vehicle Type
4.4 Usage-Based Insurance Market, By Vehicle Age
4.5 Usage-Based Insurance Market, By Package Type
4.6 Usage-Based Insurance Market, By Technology
4.7 Usage-Based Insurance Market, By Device Offering
4.8 Usage-Based Insurance Market, By Electric & Hybrid Vehicle

5 Market Overview
5.1 Introduction
5.2 Years Considered for the Study
5.3 Market Dynamics
5.3.1 Drivers
5.3.1.1 Increasing Adoption of Telematics and Connected Cars
5.3.1.2 Reduction in Insurance Premium and Risk-Related Costs
5.3.2 Restraints
5.3.2.1 Ambiguity Over Regulations and Legislative Environments
5.3.3 Opportunities
5.3.3.1 Developing Automotive Usage-Based Insurance Ecosystem
5.3.4 Challenges
5.3.4.1 Data Privacy
5.3.4.2 Lack of Standardized Systems
5.4 Revenue Missed: Opportunities for Usage-Based Insurance Providers
5.4.1 Revenue Shift Driving Market Growth
5.5 Usage-Based Insurance Market, Scenarios (2018-2027)
5.5.1 Usage-Based Insurance Market, Most Likely Scenario
5.5.2 Usage-Based Insurance Market, Optimistic Scenario
5.5.3 Usage-Based Insurance Market, Pessimistic Scenario

6 Impact Analysis
6.1 Introduction
6.2 Ride Sharing
6.3 Autonomous Vehicles

7 Usage-Based Insurance Market, By Package Type
7.1 Introduction
7.1.1 Research Methodology
7.1.2 Assumptions/Limitations
7.1.3 Industry Insights
7.2 Pay-As-You-Drive (PAYD)
7.2.1 Cost Effectiveness and Faster Claims Settlement to Drive the PAYD Market
7.3 Pay-How-You-Drive (PHYD)
7.3.1 Increasing Sales of Vehicles Equipped With Telematics Will Drive the PHYD Market
7.4 Manage-How-You-Drive (MHYD)
7.4.1 Existing Mature Markets in North America and Europe Will Drive the MHYD Market

8 Usage-Based Insurance Market, By Technology
8.1 Introduction
8.1.1 Research Methodology
8.1.2 Assumptions/Limitations
8.1.3 Industry Insights
8.2 OBD-II
8.2.1 High Reliability and Customer Acceptance Will Drive the OBD-II Market
8.3 Smartphone
8.3.1 Cost Effectiveness and User Convenience Will Drive the Smartphone Market
8.4 Embedded System
8.4.1 Increasing Number of Connected Cars Will Drive the Embedded System Market
8.5 Black Box
8.5.1 Increasing Demand for Insurance Telematics Will Drive the Black Box Market
8.6 Other Technologies
8.6.1 Increasing Awareness About Auto Insurance and Government Policies Will Drive the Market for Other Technologies

9 Usage-Based Insurance Market, By Vehicle Type
9.1 Introduction
9.1.1 Research Methodology
9.1.2 Assumptions/Limitations
9.1.3 Industry Insights
9.2 Light-Duty Vehicle (LDV)
9.2.1 Advancements in Connected Car Technologies and Telematics Services Will Drive the LDV Market
9.3 Heavy-Duty Vehicle (HDV)
9.3.1 New Product Offerings and Increasing Sales of HDVs Will Drive the HDV UBI Market

10 Usage-Based Insurance Market, By Vehicle Age
10.1 Introduction
10.1.1 Research Methodology
10.1.2 Assumptions/Limitations
10.1.3 Industry Insights
10.2 New Vehicles
10.2.1 Increasing Sales of Vehicles With Telematics Will Drive the New Vehicles UBI Market
10.3 On-Road Vehicles
10.3.1 Growing Awareness and Technological Advancements Will Drive the On-Road Vehicles UBI Market

11 Usage-Based Insurance Market, By Device Offering
11.1 Introduction
11.1.1 Research Methodology
11.1.2 Assumptions/Limitations
11.1.3 Industry Insights
11.2 Bring Your Own Device (BYOD)
11.2.1 High Convenience and Demand for Smartphone UBI Technology Will Drive the BYOD UBI Market
11.3 Company Provided
11.3.1 Increasing Number of Vehicles With Advanced Safety Features Will Drive the Company Provided UBI Market

12 Usage-Based Insurance Market, By Electric and Hybrid Vehicle
12.1 Introduction
12.1.1 Research Methodology
12.1.2 Assumptions/Limitations
12.1.3 Industry Insights
12.1.4 Electric & Hybrid Vehicle Sales Data
12.2 Battery Electric Vehicle (BEV)
12.2.1 Increasing BEV Sales and Opportunities to Reduce Average Premium Will Drive the BEV Market
12.3 Hybrid Electric Vehicle (HEV)
12.3.1 Attractive Government Policies to Promote Hybrid Vehicles Will Drive the HEV Market
12.4 Plug-In Hybrid Vehicle (PHEV)
12.4.1 Increasing Sales of PHEV Equipped With Telematics Will Drive the PHEV Market

13 Usage-Based Insurance Market, By Region
13.1 Introduction
13.1.1 Research Methodology
13.1.2 Assumptions/Limitations
13.1.3 Industry Insights
13.2 Asia Oceania
13.3 Europe
13.4 North America
13.5 Rest of the World

14 Competitive Landscape
14.1 Overview
14.2 Usage-Based Insurance Market: Market Ranking Analysis
14.3 Competitive Leadership Mapping
14.3.1 Terminology
14.3.2 Visionary Leaders
14.3.3 Innovators
14.3.4 Dynamic Differentiators
14.3.5 Emerging Companies
14.4 Competitive Leadership Mapping: Usage-Based Insurance Providers
14.4.1 Strength of Product Portfolio
14.4.2 Business Strategy Excellence
14.5 Competitive Leadership Mapping: Telematics Service Providers
14.5.1 Strength of Product Portfolio
14.5.2 Business Strategy Excellence
14.6 Competitive Scenario
14.6.1 New Product Developments/Launch
14.6.2 Expansion
14.6.3 Acquisition
14.6.4 Partnerships/Contracts
14.7 Right to Win

15 Company Profiles
15.1 Key Players
15.1.1 UnipolSai Assicurazioni S.P.A
15.1.2 Progressive Casualty Insurance Company
15.1.3 Allstate Insurance Company
15.1.4 State Farm Mutual Automobile Insurance Company
15.1.5 Liberty Mutual Insurance Company
15.1.6 AXA
15.1.7 Assicurazioni Generali S.P.A.
15.1.8 Allianz
15.1.9 Webfleet Solutions
15.1.10 Verizon
15.2 Other Key Players
15.2.1 North America
15.2.1.1 Nationwide Mutual Insurance Company
15.2.1.2 Zubie, Inc
15.2.1.3 Cambridge Mobile Telematics
15.2.1.4 Modus Group, LLC
15.2.1.5 Metromile Inc.
15.2.1.6 Amica
15.2.1.7 Sierra Wireless
15.2.2 Europe
15.2.2.1 Octo Group S.P.A
15.2.2.2 Trak Global Group
15.2.2.3 Insure the Box Limited
15.2.2.4 Mapfre
15.2.2.5 The Floow