Automotive Usage-based Insurance Market, By Type (Odometer Data Based and GPS Data Based), By Application (Compact Car, Mid-size Car, Full-size Car, and SUV/Crossover), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Automotive usage-based insurance is a sort of auto insurance used to track how far a vehicle is driven. Telematics technology, which may be deployed through mobile applications or found in cars, is used to power it. Several major factors have driven the growth and evolution of the vehicle usage-based insurance (UBI) sector. The UBI industry has been significantly influenced by the quick development of telematics technology, which uses sensors and communication equipment installed in cars. Insurance firms can more precisely determine risk due to these technologies, which may measure a driver's speed, distance travelled, acceleration, and braking.

Auto insurance called "usage-based insurance" are therefore used in-car communication devices to track mileage and keep an eye on driver behavior. Furthermore, telematics devices give relevant info regarding driving habits and safety procedures, which allows insurance companies to dramatically affect insurance rates depending on estimated risk. Furthermore, the advantages that usage-based insurance (UBI) offers to service providers are fueling the market's expansion for UBI in the automotive industry globally.

Owing to drivers' reduced auto insurance costs and the quickly advancing automobile telematics technology, UBI has seen an increase in satisfaction and retention from customer base. A risk-based premium recommended by an actuary is charged by insurers, and the main reason behind the introduction of UBI is to provide some accurate and realistic measurability to determine the risk to which the customers are exposed. Automobile telematics systems are already available on a voluntary basis in almost every market, but in many nations, authorities wish to impose restrictions on the use of the technology. The target market's growth, however, may be negatively impacted by the privacy concerns and related technological complexities associated with it.

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Automotive Usage-based Insurance Market Key Drivers:

Growing Adoption of Connected Vehicles along with Developments in Telematics Technology

• The widespread use of telematics and linked vehicles, as well as declining insurance rates and risk-related expenses, are factors contributing to the expansion of the worldwide usage-based insurance (UBI) industry for automobiles. These systems use cutting-edge machine-to-machine methods to assist in gathering information from cars, allowing insurance companies to modify and set premiums based on an individual's driving habits rather than a claim history.
• Additionally, this market is expected to grow due to its increased popularity as usage-based insurance systems allow insurance companies to increase their revenue at a significant rate. 

Increased Focus on Safety and Risk Management

• Improved loss ratios and cost savings are the outcomes of usage-based insurance, which enables insurers to more precisely evaluate and price risk based on individual driving behavior. By promoting safer driving habits, UBI supports the increased attention being paid to traffic safety. UBI has the ability to reduce insurance costs overall and accident rates by incentivizing safe driving.

Automotive Usage-based Insurance Market Restrains:

Issues Regarding Data Safety                             

• Data collecting methods give rise to security and privacy concerns. It is possible that customers are reluctant to give insurance companies access to their driving information. It is critical to establish trust and guarantee transparency while handling data. The absence of standardized systems and uncertainty surrounding legal frameworks and regulations are reasons that are predicted to impede the expansion of the worldwide automobile usage-based insurance (UBI) market.

Automotive Usage-based Insurance Market Opportunities:

• With UBI, premiums can be calculated more precisely according to every driver's driving habits. Fairer pricing and possibly reduced rates for safe drivers may result due to this system. UBI can reduce insurance costs by promoting better driving practices through incentives and feedback, which can result in fewer accidents.
• Additionally, companies can extend their solutions to new car segments and geographic areas as UBI gains traction. Connected cars technology and UBI can work together seamlessly to provide a greater range of features and data points.

Automotive Usage-based Insurance Market is segmented based on type, application, and region.

Type Insights        

• Odometer Data Based: Odometer data based type insurance uses the mileage driven by the insured vehicle to determine premiums. Premiums are modified based on the distance travelled, which is tracked by telematics equipment.
• GPS Data Based: GPS data based UBI policies track the driving behavior, including different factors like speed, acceleration, braking, and position, in addition to mileage using telematics devices with GPS capabilities.

Application Insights

• Compact Car: Compact cars are usually operated by inexperienced or less frequent commuters, who may be eligible for reduced UBI premiums.
• Mid-size Car: Mid-size car segment utilizes UBI policies to incentivize safe driving practices and is frequently used for both leisure and commuting driving.
• Full-size Car: Full-size car users can select usage-based insurance plans based on the size, driving habits, and insurance preferences of their automobile.
• SUV/Crossover: SUV/Crossover users can choose usage-based insurance plans, where premiums are set depending on driving habits, usage patterns, and the type of vehicles that are used.

Regional Insights:

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

Automotive Usage-based Insurance Market Regional Insights

• North America market is estimated to witness a significantly high revenue share over the forecast period, owing to rising acceptance of connected vehicle technology, and high rates of car ownership found in the region. It is further fueled by rise in cooperation between telematics suppliers, insurance companies, and OEMs.
• Asia Pacific market is estimated to witness fastest revenue share due to factors like increasing levels of discretionary income along with growing urbanization and demand for private automobiles. It is further fueled by increasing sales of cars with telematics.
• Europe market is expanding steadily and is anticipated to increase gradually as a result of growing smartphone adoption and expanding consumer knowledge of the advantages of UBI.
• Latin America market is an emerging region with increasing rates of car ownership, especially in the middle class segment. It is further fueled by increasing acceptance and knowledge of UBI benefits.
• Middle East & Africa market is in its developmental stages which is fueled by expanding economic growth and enhancing infrastructure which is further supported by rising rates of car ownership.

Report Scope:

Attribute	Details
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Type - Odometer Data Based and GPS Data Based By Application - Compact Car, Mid-size Car, Full-size Car, and SUV/Crossover
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Automotive Usage-based Insurance Market report based on type, application and region:

Automotive Usage-based Insurance Market, By Type:

• Odometer Data Based
• GPS Data Based

Automotive Usage-based Insurance Market, By Application:

• Compact Car
• Mid-size Car
• Full-size Car
• SUV/Crossover

Automotive Usage-based Insurance Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Automotive Usage-based Insurance Market includes, Allianz SE, AXA Insurance Company, Progressive, Incorporated, Generali Group, Insure The Box Ltd., Allstate Insurance company, Desjardins Group, Metromile Car Insurance Company, Liberty Mutual, and Aviva plc.

• In March 2023, Ford and Liberty Mutual Insurance teamed together to offer usage-based insurance for connected cars. The goal of this partnership was to enable Liberty Mutual customers who drive Ford linked cars to receive customized insurance prices by utilizing the data gathered by FordPass Connect, Ford's connected car platform.
• In May 2022, Liberty Mutual Insurance acquired the technical assets of Insurance Portal Services (Fetch). Through this transaction, Liberty Insurance Company was able to leverage embedded insurance capabilities for the automobile sector.

• Allianz SE *
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• AXA Insurance Company
• Progressive, Incorporated
• Generali Group
• Insure The Box Ltd.
• Allstate Insurance company
• Desjardins Group
• Metromile Car Insurance Company
• Liberty Mutual
• Aviva plc

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Preface
• Research Objectives
• Study Scope
• Years Considered for the study
• Assumptions
• Abbreviations

Research Methodology

• Research data
• Primary Data
  • Primary Interviews
  • Primary Breakdown
  • Key data from Primary Sources
  • Key Thickness Insights
• Secondary Data
  • Major Secondary Sources
  • Secondary Sources
• Market Estimation
• Top-Down Approach
  • Approach for estimating Market Share by Top-Down Analysis (Supply Side)
• Bottom-Up Approach
  • Approach for estimating market share by Bottom-up Analysis (Demand Side)
• Market Breakdown and Data Triangulation
• Research Assumptions

Market Preview

• Executive Summary
• Key Findings—Global Outlook for medical carts Strategies
  • Key Questions this Study will Answer
  • Market Snippet, By Type
  • Market Snippet, By Application
  • Market Snippet, By Region
• Opportunity Map Analysis
• Executive Summary—3 Big Predictions

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restrains
  • Market Opportunities
  • Market Trends
• DR Impact Analysis
• PEST Analysis
• Porter’s Five Forces Analysis
• Opportunity Orbit
• Market Investment Feasibility Index
• Macroeconomic Factor Analysis

Market Segmentation, By Type, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Odometer Data Based
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• GPS Data Based
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Application, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Compact Car
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Mid-Size Car
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Full-Size Car
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• SUV/Crossover
  • Overview
  • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Global Market, By Region, Forecast Period up to 10 Years, (US$ Bn)

• Overview
  • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • U.S.
    • Canada
• Europe
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • UK
    • France
    • Germany
    • Russia
    • Italy
    • Rest of Europe
• Asia Pacific
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Latin America
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
• Brazil
• Mexico
• Rest of Latin America
• Middle East & Africa
  • Market Size and Forecast (US$ Bn), By Type, Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Application , Forecast Period up to 10 Years
  • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East

Competitive Landscape

• Heat Map Analysis
• Market Presence and Specificity Analysis

Company Profiles

• Allianz SE
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• AXA Insurance Company
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Progressive Incorporated
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Generali Group
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Insure The Box Ltd
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Allstate Insurance Company
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Desjardins Group
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Metromile Car Insurance Company
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Liberty Mutual
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Aviva plc
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies

The Last Word

• Future Impact
• About Us
• Contact