PUBLISHER: Persistence Market Research | PRODUCT CODE: 1640773
PUBLISHER: Persistence Market Research | PRODUCT CODE: 1640773
Usage-based Insurance for Automotive Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2025 - 2032
Persistence Market Research has recently released a comprehensive report on the worldwide market for Usage-based Insurance (UBI) in the automotive sector. The report offers a thorough assessment of crucial market dynamics, including drivers, trends, opportunities, and challenges, providing detailed insights into the market structure. This research publication presents exclusive data and statistics outlining the anticipated growth trajectory of the global usage-based insurance market from 2025 to 2032.
Key Insights:
- UBI Market Size (2025E): US$ 69.8 Bn
- Projected Market Value (2032F):US$ 270.3 Bn
- Global Market Growth Rate (CAGR 2025 to 2032):21.3%
Usage-Based Insurance Market - Report Scope:
Usage-based insurance for the automotive market enables consumers to pay for insurance based on their driving behavior, providing more personalized and potentially lower-cost coverage. This market includes products such as pay-per-mile insurance, telematics-based insurance, and behavior-based insurance. It caters to consumers, insurance providers, and telematics companies, offering a range of solutions to improve cost-efficiency and drive customer loyalty. Market growth is driven by increasing demand for cost-effective insurance policies, rising adoption of connected car technologies, and the growing interest in personalized insurance plans.
Market Growth Drivers:
The global UBI market is propelled by several key factors, including growing consumer demand for personalized insurance policies that are directly tied to driving behavior. Advances in telematics and connected vehicle technologies are enabling more accurate data collection, which enhances insurers' ability to offer fairer premiums. Additionally, as insurance companies seek to differentiate themselves in a competitive market, the growing trend towards digitalization and data-driven models fosters the expansion of UBI products. Moreover, a rising focus on eco-friendly driving habits and rewards for low-emission drivers are contributing to the popularity of UBI solutions.
Market Restraints:
Despite promising growth prospects, the UBI market faces challenges related to privacy concerns, data security, and the regulatory landscape. The collection of sensitive driving data raises questions about data ownership and consumer consent, which could hinder broader adoption. Additionally, regulatory bodies in different regions may impose strict data protection laws, which could complicate the implementation of UBI solutions. High initial investments in telematics infrastructure and reluctance from some consumers to share their driving behavior data may also present barriers to market growth.
Market Opportunities:
The UBI market presents significant growth opportunities driven by advancements in telematics technology, the shift toward smart cities, and increasing consumer awareness of customizable insurance products. With the expansion of the Internet of Things (IoT) and connected vehicle networks, insurers have the opportunity to gather more comprehensive and real-time data, further enhancing the personalization of insurance offers. The emergence of new business models such as pay-per-mile insurance and behavior-based incentives opens up opportunities for innovative insurers to target younger, tech-savvy consumers. Furthermore, as the demand for electric vehicles (EVs) grows, UBI can cater to eco-conscious drivers by offering premiums based on sustainable driving practices.
Key Questions Answered in the Report:
- What are the primary factors driving the growth of the UBI market globally?
- Which telematics solutions and insurance models are gaining traction in the market?
- How are technological advancements in connected vehicles and telematics reshaping the UBI market landscape?
- Who are the key players in the UBI market, and what strategies are they employing to maintain market relevance?
- What are the emerging trends and future prospects in the global UBI market?
Competitive Intelligence and Business Strategy:
Leading players in the global UBI market, including companies like Allstate, Progressive, and Liberty Mutual, focus on innovation, customer engagement, and strategic partnerships to maintain their competitive edge. These companies invest in telematics infrastructure and data analytics to enhance the accuracy of driving behavior tracking and improve customer experience. Collaborations with tech firms specializing in IoT, automotive, and telematics solutions are common strategies to improve service offerings and expand customer bases. Moreover, insurers are increasingly focusing on flexible, usage-based pricing models and rewards systems to cater to an evolving consumer market.
Key Companies Profiled:
- Allstate Insurance Company
- Progressive Corporation
- Liberty Mutual Insurance
- State Farm
- Metromile
- AXA
- Zurich Insurance Group
- Munich Re
- Allianz
- Root Insurance
Usage-based Insurance for Automotive Market Segmentation
By Type
- Pay-As-You-Drive (PAYD)
- Pay-How-You-Drive
- Pay-As-You-Go (PAYG)
- Manage-How-You-Drive (MHYD)
By Technology
- OBD-II Based UBI
- Smartphone-Based UBI
- Black Box-Based UBI
- Embedded System-Based UBI
By Vehicle Usage
- New Vehicle
- Old Vehicle
By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
By Region
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- The Middle East and Africa
Table of Contents
1. Executive Summary
- 1.1. Global Usage-based Insurance for Automotive Market Snapshot, 2025 - 2032
- 1.2. Market Opportunity Assessment, 2025 - 2032, US$ Bn
- 1.3. Key Market Trends
- 1.4. Future Market Projection
- 1.5. Premium Market Insights
- 1.6. Vehicle Type Developments and Key Market Events
- 1.7. PMR Analysis and Recommendations
2. Market Overview
- 2.1. Market Scope and Definition
- 2.2. Market Dynamics
- 2.2.1. Drivers
- 2.2.2. Restraints
- 2.2.3. Opportunity
- 2.2.4. Challenges
- 2.2.5. Key Trends
- 2.3. Macro-Economic Factors
- 2.3.1. Global GDP Growth Outlook
- 2.3.2. Insurance Penetration Rates
- 2.3.3. Government Spending and Infrastructure Investments
- 2.3.4. Global R&D Expenditure
- 2.3.5. Vehicle Ownership Rates
- 2.4. COVID-19 Impact Analysis
- 2.5. Forecast Factors - Relevance and Impact
3. Value Added Insights
- 3.1. Regulatory Landscape
- 3.2. Value Chain Analysis
- 3.3. PESTLE Analysis
- 3.4. Porter's Five Force Analysis
4. Price Trend Analysis
- 4.1. Key Highlights
- 4.2. Key Factors Impacting Usage-based Insurance for Automotive Prices
- 4.3. Pricing Analysis, by Type
5. Global Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 5.1. Global Usage-based Insurance for Automotive Market Outlook: Type
- 5.1.1. Introduction / Key Findings
- 5.1.2. Historical Market Size (US$ Bn) and Analysis, By Type, 2019 - 2023
- 5.1.3. Current Market Size (US$ Bn) and Analysis and Forecast, By Type, 2025 - 2032
- 5.1.3.1. Pay-As-You-Drive (PAYD)
- 5.1.3.2. Pay-How-You-Drive (PHYD)
- 5.1.3.3. Pay-As-You-Go (PAYG)
- 5.1.3.4. Manage-How-You-Drive (MHYD)
- 5.2. Market Attractiveness Analysis: Type
- 5.3. Global Usage-based Insurance for Automotive Market Outlook: Technology
- 5.3.1. Introduction / Key Findings
- 5.3.2. Historical Market Size (US$ Bn) Analysis, By Technology, 2019 - 2023
- 5.3.3. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 5.3.3.1. OBD-II Based UBI
- 5.3.3.2. Smartphone-Based UBI
- 5.3.3.3. Black Box-Based UBI
- 5.3.3.4. Embedded System-Based UBI
- 5.3.3.5. Others
- 5.4. Market Attractiveness Analysis: Technology
- 5.5. Global Usage-based Insurance for Automotive Market Outlook: Vehicle Usage
- 5.5.1. Introduction / Key Findings
- 5.5.2. Historical Market Size (US$ Bn) Analysis, By Vehicle Usage, 2019 - 2023
- 5.5.3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 5.5.3.1. New Vehicle
- 5.5.3.2. Old Vehicle
Market Attractiveness Analysis: Vehicle Usage
- 5.6. Global Usage-based Insurance for Automotive Market Outlook: Vehicle Type
- 5.6.1. Introduction / Key Findings
- 5.6.2. Historical Market Size (US$ Bn) Analysis, By Vehicle Type, 2019 - 2023
- 5.6.3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 5.6.3.1. Passenger Vehicles
- 5.6.3.2. Commercial Vehicles
- 5.7. Market Attractiveness Analysis: Vehicle Type
6. Global Usage-based Insurance for Automotive Market Outlook: Region
- 6.1. Key Highlights
- 6.2. Historical Market Size (US$ Bn) and Analysis, By Region, 2019 - 2023
- 6.3. Current Market Size (US$ Bn) Analysis and Forecast, By Region, 2025 - 2032
- 6.3.1. North America
- 6.3.2. Europe
- 6.3.3. East Asia
- 6.3.4. South Asia and Oceania
- 6.3.5. Latin America
- 6.3.6. Middle East & Africa
- 6.4. Market Attractiveness Analysis: Region
7. North America Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 7.1. Key Highlights
- 7.2. Historical Market Size (US$ Bn) Analysis, By Market, 2019 - 2023
- 7.2.1. By Country
- 7.2.2. By Type
- 7.2.3. By Technology
- 7.2.4. By Vehicle Usage
- 7.2.5. By Vehicle Type
- 7.3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025 - 2032
- 7.3.1. U.S.
- 7.3.2. Canada
- 7.4. Current Market Size (US$ Bn) Analysis and Forecast, By Type, 2025 - 2032
- 7.4.1. Pay-As-You-Drive (PAYD)
- 7.4.2. Pay-How-You-Drive (PHYD)
- 7.4.3. Pay-As-You-Go (PAYG)
- 7.4.4. Manage-How-You-Drive (MHYD)
- 7.5. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 7.5.1. OBD-II Based UBI
- 7.5.2. Smartphone-Based UBI
- 7.5.3. Black Box-Based UBI
- 7.5.4. Embedded System-Based UBI
- 7.5.5. Others
- 7.6. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 7.6.1. New Vehicle
- 7.6.2. Old Vehicle
- 7.7. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 7.7.1. Passenger Vehicles
- 7.7.2. Commercial Vehicles
- 7.8. Market Attractiveness Analysis
8. Europe Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 8.1. Key Highlights
- 8.2. Historical Market Size (US$ Bn) Analysis, By Market, 2019 - 2023
- 8.2.1. By Country
- 8.2.2. By Type
- 8.2.3. By Technology
- 8.2.4. By Vehicle Usage
- 8.2.5. By Vehicle Type
- 8.3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025 - 2032
- 8.3.1. Germany
- 8.3.2. France
- 8.3.3. U.K.
- 8.3.4. Italy
- 8.3.5. Spain
- 8.3.6. Russia
- 8.3.7. Turkey
- 8.3.8. Rest of Europe
- 8.4. Current Market Size (US$ Bn) Analysis and Forecast, By Type, 2025 - 2032
- 8.4.1. Pay-As-You-Drive (PAYD)
- 8.4.2. Pay-How-You-Drive (PHYD)
- 8.4.3. Pay-As-You-Go (PAYG)
- 8.4.4. Manage-How-You-Drive (MHYD)
- 8.5. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 8.5.1. OBD-II Based UBI
- 8.5.2. Smartphone-Based UBI
- 8.5.3. Black Box-Based UBI
- 8.5.4. Embedded System-Based UBI
- 8.5.5. Others
- 8.6. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 8.6.1. New Vehicle
- 8.6.2. Old Vehicle
- 8.7. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 8.7.1. Passenger Vehicles
- 8.7.2. Commercial Vehicles
- 8.8. Market Attractiveness Analysis
9. East Asia Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 9.1. Key Highlights
- 9.2. Historical Market Size (US$ Bn) Analysis, By Market, 2019 - 2023
- 9.2.1. By Country
- 9.2.2. By Type
- 9.2.3. By Technology
- 9.2.4. By Vehicle Usage
- 9.2.5. By Vehicle Type
- 9.3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025 - 2032
- 9.3.1. China
- 9.3.2. Japan
- 9.3.3. South Korea
- 9.4. Current Market Size (US$ Bn) Analysis and Forecast, By Type, 2025 - 2032
- 9.4.1. Pay-As-You-Drive (PAYD)
- 9.4.2. Pay-How-You-Drive (PHYD)
- 9.4.3. Pay-As-You-Go (PAYG)
- 9.4.4. Manage-How-You-Drive (MHYD)
- 9.5. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 9.5.1. OBD-II Based UBI
- 9.5.2. Smartphone-Based UBI
- 9.5.3. Black Box-Based UBI
- 9.5.4. Embedded System-Based UBI
- 9.5.5. Others
- 9.6. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 9.6.1. New Vehicle
- 9.6.2. Old Vehicle
- 9.7. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 9.7.1. Passenger Vehicles
- 9.7.2. Commercial Vehicles
- 9.8. Market Attractiveness Analysis
10. South Asia & Oceania Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 10.1. Key Highlights
- 10.2. Historical Market Size (US$ Bn) Analysis, By Market, 2019 - 2023
- 10.2.1. By Country
- 10.2.2. By Type
- 10.2.3. By Technology
- 10.2.4. By Vehicle Usage
- 10.2.5. By Vehicle Type
- 10.3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025 - 2032
- 10.3.1. India
- 10.3.2. Southeast Asia
- 10.3.3. ANZ
- 10.3.4. Rest of South Asia & Oceania
- 10.4. Current Market Size (US$ Bn) Analysis and Forecast, By Type, 2025 - 2032
- 10.4.1. Pay-As-You-Drive (PAYD)
- 10.4.2. Pay-How-You-Drive (PHYD)
- 10.4.3. Pay-As-You-Go (PAYG)
- 10.4.4. Manage-How-You-Drive (MHYD)
- 10.5. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 10.5.1. OBD-II Based UBI
- 10.5.2. Smartphone-Based UBI
- 10.5.3. Black Box-Based UBI
- 10.5.4. Embedded System-Based UBI
- 10.5.5. Others
- 10.6. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 10.6.1. New Vehicle
- 10.6.2. Old Vehicle
- 10.7. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 10.7.1. Passenger Vehicles
- 10.7.2. Commercial Vehicles
- 10.8. Market Attractiveness Analysis
11. Latin America Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 11.1. Key Highlights
- 11.2. Historical Market Size (US$ Bn) Analysis, By Market, 2019 - 2023
- 11.2.1. By Country
- 11.2.2. By Type
- 11.2.3. By Technology
- 11.2.4. By Vehicle Usage
- 11.2.5. By Vehicle Type
- 11.3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025 - 2032
- 11.3.1. Brazil
- 11.3.2. Mexico
- 11.3.3. Rest of Latin America
- 11.4. Current Market Size (US$ Bn) Analysis and Forecast, By Type, 2025 - 2032
- 11.4.1. Pay-As-You-Drive (PAYD)
- 11.4.2. Pay-How-You-Drive (PHYD)
- 11.4.3. Pay-As-You-Go (PAYG)
- 11.4.4. Manage-How-You-Drive (MHYD)
- 11.5. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 11.5.1. OBD-II Based UBI
- 11.5.2. Smartphone-Based UBI
- 11.5.3. Black Box-Based UBI
- 11.5.4. Embedded System-Based UBI
- 11.5.5. Others
- 11.6. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 11.6.1. New Vehicle
- 11.6.2. Old Vehicle
- 11.7. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 11.7.1. Passenger Vehicles
- 11.7.2. Commercial Vehicles
- 11.8. Market Attractiveness Analysis
12. Middle East & Africa Usage-based Insurance for Automotive Market Outlook: Historical (2019 - 2023) and Forecast (2025 - 2032)
- 12.1. Key Highlights
- 12.2. Historical Market Size (US$ Bn) Analysis, By Market, 2019 - 2023
- 12.2.1. By Country
- 12.2.2. By Type
- 12.2.3. By Technology
- 12.2.4. By Vehicle Usage
- 12.2.5. By Vehicle Type
- 12.3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025 - 2032
- 12.3.1. GCC Countries
- 12.3.2. Egypt
- 12.3.3. South Africa
- 12.3.4. Northern Africa
- 12.3.5. Rest of Middle East & Africa
- 12.4. Current Market Size (US$ Bn) Analysis and Forecast, By Type, 2025 - 2032
- 12.4.1. Pay-As-You-Drive (PAYD)
- 12.4.2. Pay-How-You-Drive (PHYD)
- 12.4.3. Pay-As-You-Go (PAYG)
- 12.4.4. Manage-How-You-Drive (MHYD)
- 12.5. Current Market Size (US$ Bn) Analysis and Forecast, By Technology, 2025 - 2032
- 12.5.1. OBD-II Based UBI
- 12.5.2. Smartphone-Based UBI
- 12.5.3. Black Box-Based UBI
- 12.5.4. Embedded System-Based UBI
- 12.5.5. Others
- 12.6. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Usage, 2025 - 2032
- 12.6.1. New Vehicle
- 12.6.2. Old Vehicle
- 12.7. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle Type, 2025 - 2032
- 12.7.1. Passenger Vehicles
- 12.7.2. Commercial Vehicles
- 12.8. Market Attractiveness Analysis
13. Competition Landscape
- 13.1. Market Share Analysis, 2023
- 13.2. Market Structure
- 13.2.1. Competition Intensity Mapping
- 13.2.2. Competition Dashboard
- 13.3. Company Profiles (Details - Overview, Financials, Strategy, Recent Developments)
- 13.3.1. Progressive Corporation
- 13.3.1.1. Overview
- 13.3.1.2. Solution Portfolio
- 13.3.1.3. Key Financials
- 13.3.1.4. Market Developments
- 13.3.1.5. Market Strategy
- 13.3.2. Allstate Corporation
- 13.3.3. State Farm Mutual Automobile Insurance Company
- 13.3.4. Liberty Mutual Insurance
- 13.3.5. Nationwide Mutual Insurance Company
- 13.3.6. American Family Insurance
- 13.3.7. Esurance (a subsidiary of Allstate)
- 13.3.8. Metromile
- 13.3.9. Root Insurance
- 13.3.10. Aviva
- 13.3.1. Progressive Corporation
14. Appendix
- 14.1. Research Methodology
- 14.2. Research Assumptions
- 14.3. Acronyms and Abbreviations
