In terms of revenue, the Global Usage-Based Insurance (UBI) Market is expected to reach USD 78.9 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 26.9% from 2022 to 2028.
In recent years, Usage-Based Insurance (UBI) is considered to be gaining huge demand. This is attributed owing to growing automotive industry, technological advancement in manufacturing industry, and demand in adoption for telematics. Also, increasing production of automotive and upcoming smart vehicles fuels the market growth during the forecast period.
Key Highlights from Report:
- The black box sub-segment of the technology segment is anticipated to dominate the Usage-Based Insurance (UBI) Market. Rise in adapting to telematics insurance for heavy duty vehicles is expected to grow and generate revenue for this segment to grow. Also, black box captures broad array of data and is quite accurate.
- The MHYD sub-segment of the application segment is accounted for the largest market share in 2021 for the Usage-Based Insurance (UBI) Market. MHYD provides better driving behaviour especially in learning phase of drivers (18 – 25 age groups). This helps in improving the functionally in brakes & speed technology of automotive and reduces accidents.
- North America is the largest regional segment. This surge is attributed to the rising demand for Usage-Based Insurance (UBI) in developed economies, such as the U.S. and Canada. The growth is attributed owing to the mobility in automotive as a service and increasing collaborations between telematics and insurance companies is rising in this region.
In 21st century, insurance is considered to be the most important tool for safeguarding mishaps and help in recovering from financial debt. Today, Usage-Based Insurance (UBI) telematics model is gaining huge attention especially from the automotive domain. The importance of this technology has not only offered to auto insurance policyholders but also other areas of service sector. Increasing willingness of government to implement UBI has created huge demand in the market. Also around 80-90% of the automotive owners are currently UBI.
North America is expected to dominate the Global Usage-Based Insurance (UBI) Market in 2021 and is likely to continue the same trend during the forecast period. This region has the most advanced professionals and funds for investing in UBI technology. Also, growing technological advancements with the availability of surplus know-how in executing this technology makes this region prominent for the market to flourish in coming years. On the other hand, developing countries such as India, China and Indonesia are showing huge potential in their respective organizations. However, insufficient funds, lack of skilled labour and social issues make it difficult for the market to grow.