Usage Based Insurance Market - Forecasts from 2025 to 2030

Description

The usage-based insurance market, valued at US$82.283 billion in 2030 from US$54.048 billion in 2025, is projected to grow at a CAGR of 8.77% through 2030.

Usage-based insurance (UBI) is a type of automotive insurance where, instead of the premium being decided on a traditional basis, it is also determined by the driver's behavior, driving pattern, and vehicle usage. The demand for UBI is projected to witness substantial growth during the projected period due to the premium discounts allowing insurers to cut down on insurance premiums, along with the budding innovations in premium policies further catering to this demand.

Market Trends:

EV Adoption: The growing popularity of electric vehicles (EVs) and the shift toward autonomous driving are opening up substantial opportunities for the usage-based insurance (UBI) market. EV drivers typically exhibit distinct habits, such as shorter trips and more city-based driving, compared to traditional car owners. UBI accommodates these patterns by offering tailored premiums that align with the specific needs of EV drivers.
Government Regulations: Governments are enacting policies to enhance road safety and reduce traffic accidents. For example, New South Wales collaborated with partners, stakeholders, and community members to develop the 2026 Road Safety Action Plan. Through well-attended consultations, various initiatives were shaped, with details of the engagement process and feedback captured in the Engagement Summary for the 2026 Road Safety Action Plan.
Rising Use of Telematics: The expanding adoption of telematics technologies-like GPS, accelerometers, and onboard diagnostics-allows for detailed tracking of driving behavior. UBI leverages this data to assess risks related to speed, cornering, braking, and acceleration, enabling insurers to set more accurate premiums and driving growth in the usage-based insurance market.
North America: North America holds a considerable share of the global UBI market. The steady rise in passenger vehicles in countries like the U.S. and Canada has heightened the need for improved driver awareness, encouraging insurance providers to roll out UBI programs.

Some of the major players covered in this report include Progressive Casualty Insurance Company, Nationwide Mutual Insurance Company, Liberty Mutual Insurance, and The Travelers Indemnity Company, among others:

Key Benefits of this Report:

Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

Historical data from 2022 to 2024 & forecast data from 2025 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

Usage-based Insurance Market Segmentation:

By Technology

OBD-II
Smartphone
Embedded System
Black Box
Hybrid

By Package Type

Pay-As-You-Drive
Pay-How-You-Drive

By Vehicle Type

Passenger Vehicle
Commercial Vehicle

By Vehicle Age

New Vehicles
On-Road Vehicles

By Region

North America
Europe
Asia Pacific
South America
Middle East & Africa

Product Code: KSI061612806

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview
2.2. Market Definition
2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers
3.2. Market Restraints
3.3. Market Opportunities
3.4. Porter's Five Forces Analysis
3.5. Industry Value Chain Analysis
3.6. Policies and Regulations
3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. USAGE-BASED INSURANCE MARKET BY TECHNOLOGY

5.1. Introduction
5.2. OBD-II
5.3. Smartphone
5.4. Embedded System
5.5. Black Box
5.6. Hybrid

6. USAGE-BASED INSURANCE MARKET BY PACKAGE TYPE

6.1. Introduction
6.2. Pay-As-You-Drive
6.3. Pay-How-You-Drive

7. USAGE-BASED INSURANCE MARKET BY VEHICLE TYPE

7.1. Introduction
7.2. Passenger Vehicle
7.3. Commercial Vehicle

8. USAGE-BASED INSURANCE MARKET BY VEHICLE AGE

8.1. Introduction
8.2. New Vehicles
8.3. On-Road Vehicles

9. USAGE-BASED INSURANCE MARKET BY GEOGRAPHY

9.1. Introduction
9.2. North America
- 9.2.1. By Technology
- 9.2.2. By Package Type
- 9.2.3. By Vehicle Type
- 9.2.4. By Vehicle Age
- 9.2.5. By Country
  - 9.2.5.1. USA
  - 9.2.5.2. Canada
  - 9.2.5.3. Mexico
9.3. South America
- 9.3.1. By Technology
- 9.3.2. By Package Type
- 9.3.3. By Vehicle Type
- 9.3.4. By Vehicle Age
- 9.3.5. By Country
  - 9.3.5.1. Brazil
  - 9.3.5.2. Argentina
  - 9.3.5.3. Others
9.4. Europe
- 9.4.1. By Technology
- 9.4.2. By Package Type
- 9.4.3. By Vehicle Type
- 9.4.4. By Vehicle Age
- 9.4.5. By Country
  - 9.4.5.1. Germany
  - 9.4.5.2. France
  - 9.4.5.3. United Kingdom
  - 9.4.5.4. Spain
  - 9.4.5.5. Others
9.5. Middle East and Africa
- 9.5.1. By Technology
- 9.5.2. By Package Type
- 9.5.3. By Vehicle Type
- 9.5.4. By Vehicle Age
- 9.5.5. By Country
  - 9.5.5.1. Saudi Arabia
  - 9.5.5.2. UAE
  - 9.5.5.3. Others
9.6. Asia Pacific
- 9.6.1. By Technology
- 9.6.2. By Package Type
- 9.6.3. By Vehicle Type
- 9.6.4. By Vehicle Age
- 9.6.5. By Country
  - 9.6.5.1. China
  - 9.6.5.2. Japan
  - 9.6.5.3. South Korea
  - 9.6.5.4. India
  - 9.6.5.5. Indonesia
  - 9.6.5.6. Thailand
  - 9.6.5.7. Taiwan
  - 9.6.5.8. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis
10.2. Market Share Analysis
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Progressive Casualty Insurance Company
11.2. Nationwide Mutual Insurance Company
11.3. Liberty Mutual Insurance
11.4. The Travelers Indemnity Company
11.5. Verizon
11.6. Telit
11.7. Guidewire Software, Inc.
11.8. Zendrive Inc.
11.9. Nextm2m A/S

12. APPENDIX

12.1. Currency
12.2. Assumptions
12.3. Base and Forecast Years Timeline
12.4. Key benefits for the stakeholders
12.5. Research Methodology
12.6. Abbreviations