Usage-based Insurance (UBI) Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Description

The Global Usage-Based Insurance (UBI) Market was valued at USD 52.1 billion in 2023 and is projected to grow at a CAGR of over 24% from 2024 to 2032. UBI, a form of auto insurance, employs in-vehicle communication systems to track mileage and driving behaviors. Telematics systems provide detailed insights into driving habits and safety measures, enabling insurers to adjust premiums in real time according to perceived risks. Insurers can customize premiums based on actual driving behaviors-using metrics like total mileage, travel time, GPS location, acceleration, braking, and airbag deployment-thereby reducing fraudulent claims. The rising adoption of these connected insurance solutions, aimed at minimizing unexpected claims and encouraging safer driving, is poised to boost the industry's market share.

The overall usage-based insurance (UBI) industry is classified based on the package, technology, vehicle, vehicle age, distribution channel, and region.

The market segments include OBD-II, Black Box, Smartphone, and Embedded telematics. OBD-II dominated in 2023, holding over 49% of the market share. With the rising trend of connected cars and the influx of driver data, telematics technology has emerged as a cornerstone. It enables insurance providers to harness vast information, spanning driving habits, maintenance requirements, and vehicle performance. As connected car technology gains traction, upcoming vehicles are set to integrate data connections. These advancements will provide insurers with comprehensive usage and location data, crucial for formulating UBI policies.

The market is divided into passenger and commercial vehicles. The passenger vehicle segment is projected to surpass USD 285.9 billion by 2032. Given their prevalent use among individuals, passenger vehicles dominate the automotive landscape. This widespread ownership translates to a heightened demand for UBI products tailored to individual drivers. The telematics-based UBI model is especially apt for passenger vehicles, allowing insurers to adjust premiums based on specific driving traits-like speed and braking-that are more pertinent to personal cars than commercial fleets.

In 2023, North America commanded a dominant position, representing over 40% of the market. The region's surging demand for UBI insurance is fueled by a growing appetite for personalized insurance solutions and a robust telematics infrastructure. Additionally, favorable government regulations encouraging the adoption of telematics-based insurance have further bolstered market growth. The widespread use of connected cars equipped with advanced telematics systems has also contributed to the region's market leadership. Moreover, increasing awareness among consumers about the benefits of usage-based insurance, such as cost savings and tailored policies, has driven demand.

Product Code: 3020

Chapter 1 Methodology and Scope

1.1 Research design
- 1.1.1 Research approach
- 1.1.2 Data collection methods
1.2 Base estimates and calculations
- 1.2.1 Base year calculation
- 1.2.2 Key trends for market estimation
1.3 Forecast model
1.4 Primary research and validation
- 1.4.1 Primary sources
- 1.4.2 Data mining sources
1.5 Market definitions

Chapter 2 Executive Summary

2.1 Industry 360° synopsis, 2021 - 2032

Chapter 3 Industry Insights

3.1 Industry ecosystem analysis
3.2 Supplier landscape
- 3.2.1 Insurance companies
- 3.2.2 Insurance brokers and agents
- 3.2.3 Technology providers
- 3.2.4 Government regulators
- 3.2.5 End-user
3.3 Advantages/features of UBI
3.4 Working/Architecture of UBI
3.5 UBI policy
3.6 UBI vs traditional automotive insurance
3.7 Profit margin analysis
3.8 Technology and innovation landscape
3.9 Patent analysis
3.10 Key news and initiatives
3.11 OBD standards
3.12 Regulatory landscape
3.13 Impact forces
- 3.13.1 Growth drivers
  - 3.13.1.1 Increased consumer demand for personalized pricing
  - 3.13.1.2 Growing regulatory support and incentives
  - 3.13.1.3 Increased vehicle connectivity
  - 3.13.1.4 Technological advancement
- 3.13.2 Industry pitfalls and challenges
  - 3.13.2.1 Data privacy concerns
  - 3.13.2.2 Complexity in data management
3.14 Growth potential analysis
3.15 Porter's analysis
3.16 PESTEL analysis

Chapter 4 Competitive Landscape, 2023

4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix

Chapter 5 Market Estimates and Forecast, By Package, 2021 - 2032 ($Bn)

5.1 Key trends
5.2 Pay-How-You-Drive (PHYD)
5.3 Pay-As-You-Drive (PAYD)
- 5.3.1 Device- based
- 5.3.2 Telematics-based
5.4 Manage-How-You-Drive (MHYD)

Chapter 6 Market Estimates and Forecast, By Technology, 2021 - 2032 ($Bn)

6.1 Key trends
6.2 OBD-II
6.3 Black box
6.4 Smartphone
6.5 Embedded telematics

Chapter 7 Market Estimates and Forecast, By Vehicle, 2021 - 2032 ($Bn)

7.1 Key trends
7.2 Passenger vehicle
- 7.2.1 OBD-II
- 7.2.2 Black box
- 7.2.3 Smartphone
- 7.2.4 Embedded telematics
7.3 Commercial vehicle
- 7.3.1 Light commercial vehicles(LCVs)
  - 7.3.1.1 OBD-II
  - 7.3.1.2 Black box
  - 7.3.1.3 Smartphone
  - 7.3.1.4 Embedded telematics
- 7.3.2 Medium commercial vehicles(MCVs)
  - 7.3.2.1 OBD-II
  - 7.3.2.2 Black box
  - 7.3.2.3 Smartphone
  - 7.3.2.4 Embedded telematics
- 7.3.3 Heavy commercial vehicles(HCVs)
  - 7.3.3.1 OBD-II
  - 7.3.3.2 Black Box
  - 7.3.3.3 Smartphone
  - 7.3.3.4 Embedded telematics

Chapter 8 Market Estimates and Forecast, By Vehicle Age, 2021 - 2032 ($Bn)

8.1 Key trends
8.2 New vehicles
8.3 Used vehicles

Chapter 9 Market Estimates and Forecast, By Distribution channel, 2021 - 2032 ($Bn)

9.1 Key trends
9.2 Direct sales
9.3 Brokers and agents
9.4 Bancassurance
9.5 Online platforms

Chapter 10 Market Estimates and Forecast, By Region, 2021 - 2032 ($Bn)

10.1 Key trends
10.2 North America
- 10.2.1 U.S.
- 10.2.2 Canada
10.3 Europe
- 10.3.1 UK
- 10.3.2 Germany
- 10.3.3 France
- 10.3.4 Italy
- 10.3.5 Spain
- 10.3.6 Netherland
- 10.3.7 Austria
- 10.3.8 Rest of Europe
10.4 Asia Pacific
- 10.4.1 China
- 10.4.2 India
- 10.4.3 Japan
- 10.4.4 Australia
- 10.4.5 Southeast Asia
- 10.4.6 Rest of Asia Pacific
10.5 Latin America
- 10.5.1 Brazil
- 10.5.2 Mexico
- 10.5.3 Colombia
- 10.5.4 Rest of Latin America
10.6 MEA
- 10.6.1 UAE
- 10.6.2 South Africa
- 10.6.3 Saudi Arabia
- 10.6.4 Rest of MEA

Chapter 11 Company Profiles

11.1 Allianz SE
11.2 Allstate Insurance Company
11.3 ASSICURAZIONI GENERALI S.P.A.
11.4 AXA
11.5 Cambridge Mobile Telematics
11.6 Danlaw, Inc.
11.7 Desjardins Group
11.8 Insure The Box Limited
11.9 Intelligent Mechatronic Systems Inc.
11.10 Liberty Mutual Insurance
11.11 Mapfre, S.A.
11.12 Metromile Inc.
11.13 Nationwide
11.14 Octo Technology
11.15 Progressive Casualty Insurance Company
11.16 Sierra Wireless
11.17 State Farm Mutual Automobile Insurance Company
11.18 TomTom International BV
11.19 UnipolSai Assicurazioni S.p.A.
11.20 Vodafone Automotive SpA
11.21 Zubie, Inc.