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Usage-Based Insurance (UBI) Market

Usage-Based Insurance (UBI) Market

Usage-Based Insurance (UBI) Market Global Industry Assessment & Forecast

Number Of Pages # Pages:

145

Base Year:

2021

Date

Jun - 2022

Format:

PDF XLS PPT

Report Code:

VMR-1658

Segments Covered
  • By Package PHYD, PAYD
  • By Technology OBD-II, Smartphone, Black Box, Embedded Telematics
  • By Vehicle Type Passenger Vehicle, Commercial Vehicle
  • By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Snapshot
Forecast YearsForecast Years: 2022 - 2028
Historical YearsHistorical Years: 2016 - 2021
Revenue 2021Revenue 2021: USD 18.9 Billion
Revenue 2028: USD 78.9 Billion
Revenue CAGR (2022 - 2028): 26.9%
Fastest Growing Region (2022 - 2028) Asia Pacific
Largest Region (2021): North America
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report
  • Go To Market Strategy
  • Region Specific Market Dynamics
  • Region Level Market Share
  • Import Export Analysis
  • Production Analysis
  • Others Request Customization Speak To Analyst

Global Usage-Based Insurance (UBI) Market

Usage-Based Insurance (UBI) Market- By Technology, Packaging Type, Vehicle type and Region.

Market Synopsis:

Usage-Based Insurance (UBI) Market Size, 2021 To 2028 (USD Billion)

The Global Usage-Based Insurance (UBI) Market is valued at USD 18.9 Billion in the year 2021 and is projected to reach a value of USD 78.9 Billion by the year 2028. The Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 26.9% over the forecast period.

Usage-Based Insurance (UBI), also known as telematics insurance, is a type of customized auto insurance policy in which the premium is calculated based on the vehicle's usage or the consumer's driving activity during the forecast period. The Global Usage-Based Insurance (UBI) Market is growing due to the increasing popularity of Usage-Based Insurance (UBI) among end-users due to its many characteristics such as providing reliable and quick data gathering methods and customizable insurance prices.

Furthermore, considerations such as a higher likelihood of the car being retrieved in the event of theft and decreased fuel usage have aided the market's rise during the forecast period. The introduction of Usage-Based Insurance (UBI) products is being driven by the increasing production of passenger and commercial vehicles. Another factor boosting market demand is the widespread implementation of in-car technologies to entice more customers to UBI since they are willing to provide their driving information in exchange for personalized insurance quotations during the forecast period.

The development of connected vehicles, as well as growing concerns about driver safety, are all contributing to the market's rise. Other variables, like a considerable fall in UBI insurance premium costs and the implementation of favorable government laws encouraging the use of telematics, are expected to have a positive impact. The automobile sector's growing demand for remote diagnostic technology is expected to propel the market forward during the forecast period. The adoption of remote car diagnostic systems based on data-driven technology is gaining traction in the automotive industry due to the rising complexity of automobiles. The remote diagnostic technology includes a safety feature that allows the car to be watched and controlled remotely during the forecast period.

The most popular e-method of transportation is passenger vehicles, which are expected to see a boom in market demand, increasing the demand for telematics devices. The demand for UBI solutions in passenger vehicles will be driven by a significant shift in the sale and production of passenger vehicles. However, the market's growth is projected to be hindered by expensive telematics installation costs and other data security issues.

Market segmentation:

The Usage-Based Insurance (UBI) Market is segmented based on package, technology, and vehicle type. Based on technology, the market is segmented as OBD-II, Smartphones, Black-box, and embedded telematics. Based on packaging type, the market is segmented as PAYD and PHYD. Based on vehicle type, the market is segmented as, Passenger vehicles and Commercial vehicles.

Based on Technology:

Based on technology, the market is segmented as OBD-II, Smartphones, Black-box, and embedded telematics. The Black Box segment holds the largest share in the market during the forecast period. The original version of UBI technology, the black box, is commonly preferred by vehicle owners. The demand for the black box will rise as the use of telematics insurance in Usage-Based Insurance (UBI) for heavy-duty vehicles grows. Currently, Europe, notably Italy, has the highest penetration. The black box is extremely accurate and records a wide range of data. However, these devices are costly and must be installed by a professional, raising the service's overall initial cost. In addition, the UBI market is shifting from a black box to an embedded system.

Based on Packaging Type:

Based on packaging type, the market is segmented as PAYD and PHYD. The PAYD segment is anticipated to grow at the highest rate during the forecast period. PAYD is crucial because it helps in the tracking of mileage driven and the establishment of pricing rules based on that mileage. PAYD encourages safe driving by charging customers more if they do not drive safely. The companies provide a variety of new products through the PAYD programmers, ranging from low-mileage discounts to short-term and on-demand options. As a result, businesses will have more opportunities to provide more specialized insurance services to stay competitive.

Asia Pacific is Projected to Grow at the Highest CAGR During the Forecast Period

Asia Pacific is accounted to grow at the highest Compound Annual Growth Rate (CAGR) during the forecast period. Due to the growing acceptance of Mobility as a Service and more collaborations between telematics and insurance companies, the market in North America is likely to develop. Government leaders are promoting the adoption of telematics-enabled auto insurance to reduce the number of accidents. As a result, automakers and IT firms are engaged in a heated battle for technological advancements.

Another factor driving market expansion is the increasing adoption of smartphones and telematics in major countries such as India and China. The demand for UBI solutions in the region is expected to be supported by rising government initiatives aimed at improving vehicle safety and security. However, due to consumer awareness and prominent players in the market targeting Asia- Pacific countries, Asia-Pacific is expected to grow significantly throughout the forecast period.

Competitive Landscape:

The key players in the Global Usage-Based Insurance (UBI) Market include- Allianz SE, Allstate Insurance Company, ASSICURAZIONI GENERALI S.P.A., AVIVA PLC, AXA, Cambridge Mobile Telematics, Danlaw Inc., Desjardins Group, The Box Limited, Intelligent Mechatronic Systems Inc., Liberty Mutual Insurance, Mapfre S.A., Metromile Inc., Nationwide, Octo Technology, Progressive Casualty Insurance Company, Sierra Wireless, State Farm Mutual Automobile Insurance Company, TomTom International BV, UnipolSai Assicurazioni S.P.A., Verizon Communication Inc., Vodafone Automotive S.P.A., Zubie Inc. and others.

Segmentation of the Global Usage-Based Insurance (UBI) Market:

Parameter Details
Segments Covered
  • Package (PHYD, PAYD)
  • Technology (OBD-II, Smartphone, Black Box, Embedded Telematics)
  • Vehicle Type (Passenger Vehicle, Commercial Vehicle)
  • Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Allianz SE
  • Allstate Insurance Company
  • ASSICURAZIONI GENERALI S.P.A.
  • AVIVA PLC
  • AXA
  • Cambridge Mobile Telematics
  • Danlaw Inc.
  • Desjardins Group
  • The Box Limited
  • Intelligent Mechatronic Systems Inc.
  • Liberty Mutual Insurance
  • Mapfre S.A.
  • Metromile Inc.
  • Nationwide
  • Octo Technology
  • Progressive Casualty Insurance Company
  • Sierra Wireless
  • State Farm Mutual Automobile Insurance Company
  • TomTom International BV
  • UnipolSai Assicurazioni S.P.A.
  • Verizon Communication Inc.
  • Vodafone Automotive S.P.A.
  • Zubie Inc.
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis

FAQ
Frequently Asked Question
  • The global Usage-Based Insurance (UBI) valued at USD 18.9 Billion in 2020 and is expected to reach USD 78.9 Billion in 2028 growing at a CAGR of 26.9%.

  • The prominent players in the market are Allianz SE, Allstate Insurance Company, ASSICURAZIONI GENERALI S.P.A., AVIVA PLC, AXA, Cambridge Mobile Telematics, Danlaw Inc., Desjardins Group, The Box Limited, Intelligent Mechatronic Systems Inc., Liberty Mutual Insurance, Mapfre S.A., Metromile Inc., Nationwide, Octo Technology, Progressive Casualty Insurance Company, Sierra Wireless, State Farm Mutual Automobile Insurance Company, TomTom International BV, UnipolSai Assicurazioni S.P.A., Verizon Communication Inc., Vodafone Automotive S.P.A., Zubie Inc..

  • The market is project to grow at a CAGR of 26.9% between 2021 and 2028.

  • The driving factors of the Usage-Based Insurance (UBI) include

    • Increasing adoption of telematics and connected cars

  • North America was the leading regional segment of the Usage-Based Insurance (UBI) in 2020.