The global insurance telematics market is anticipated to register a considerable CAGR during the forecast period, 2021-2028. The growth of the market is attributed to the growing need for regulatory compliance & regulations.
Insurance telematics is used to track driving pattern and behavior of individuals and involves measuring, collecting, and transmitting numerous data points. It acts as a GPS-based device positioned inside a vehicle to monitors several parameters, such as distance, speed, and location. Moreover, by monitoring drivers’ performance as per their pattern, insurers can apply Usage-based insurance (UBI) programs and accordingly design structured prices for auto insurance policyholders.
The COVID-19 pandemic outbreak has brought a positive impact on the market as demand of insurers have moved from traditional models to pay-as-you-drive (PAYD) models. Furthermore, rising consumer adoption of digital technologies in the claim process & policy binding along with the necessity for insurers to construct premium policies more accurately are major factors driving market expansion.
Market Trends, Drivers, Restraints, and Opportunities
- Technological advancement in automotive insurance industry led by integration with telematics technology is expected to drive the market growth.
- Reduction in the extra cost affiliated with data storage, compared to on-premise is expected to boost the adoption of cloud-based service. This is projected to fuel the market growth in the coming years.
- Issues related to data theft and low transparency in data acquisition techniques are expected to hamper the growth of the market during the projected timeline.
- Low internet connectivity affects the outcome of real-time monitoring systems, which is likely to hinder the market growth during the forecast period.
- Rise in implementation of the Internet of Things technology into commercial & passenger vehicles and propelling the utilization of cloud services in insurance telematics are expected to create a significant growth opportunity for the market in the near future.
Scope of the Report
The report on the global insurance telematics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Insurance Telematics Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Deployments (Cloud and On-premise), Offerings (Software and Hardware), Enterprise Sizes (Small & Medium Enterprise and Large Enterprise), Types (Pay-as-you-go, Pay-how-you-drive, and Pay-as-you-drive), and End-users (Commercial Vehicle and Passenger Vehicle)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Telematics Ltd.; TRIMBLE INC.; Masternaut Ltd.; Aplicom; Intelligent Mechatronic System; Meta System S.p.A; MiX Octo Telematics S.p.A; Sierra Wireless Inc.; TomTom Telematics BV; and Agero Inc.
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Market Segment Insights
On-premise segment is expected to grow at a rapid pace
Based on deployments, the global insurance telematics market is bifurcated into cloud and on-premise. The on-premise segment is expected to grow at a rapid pace during the forecast period owing to the connectivity parameters such as software upgrade and turnaround time. However, the cloud segment is anticipated to hold a key share of the market in the coming years due to the preferred use for cloud platforms and innovative practices in the industry.
Commercial importance to drive the software segment
On the basis of offering, the market is bifurcated into software and hardware. The software segment is projected to expand at a considerable CAGR during the forecast period attributed to the commercial importance and connectivity requirement across the market. On the other hand, the hardware segment is anticipated to account for a major market share during the forecast period due to importance of cellular devices and Machine-to-Machine connectivity for UBI.
Large enterprise segment is anticipated to hold significant market share
In terms of enterprise sizes, the global insurance telematics market is bifurcated into small & medium enterprise and large enterprise. The large enterprise segment is anticipated to hold significant market share owing to rising adoption of mobile telematics systems, which has created a major impact in the automotive insurance telematics sector. However, the small & medium enterprise segment is expected to constitute a considerable CAGR during the projected period attributed to the cost-effective services pertaining to claims and retention of clients.
Rising adoption of UBI to drive PAYD segment
On the basis of types, the market is segmented into pay-as-you-go, pay-how-you-drive, and pay-as-you-drive. The pay-as-you-drive segment is expected to hold major market share in the projected timeline owing to rise in adoption of UBI, which is gaining commercial importance across the region. On the other hand, the pay-how-you-drive segment is expected to grow at a significant rate during the forecast period due to the cost of the premium based on incentive programs.
Passenger vehicle segment to constitute robust market share
Based on end-users, the global insurance telematics market is bifurcated into commercial vehicle and passenger vehicle. The passenger vehicle segment is expected to constitute robust market share during the forecast period attributed to interactive & custom-designed apps for passenger vehicles to complete a claim transaction within a UBI service model. However, the commercial vehicle segment to grow at a significant rate during the projected timeline due to the significant presence of key players in the segment, which is expected to increase the usage of insurance telematics.
North America is anticipated to constitute a key market share
In terms of regions, the global insurance telematics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period owing to the technological advancements, presence of key players, and a huge demand for interconnected services. However, the Asia Pacific market is anticipated to expand at a rapid pace during the forecast period attributed to growing investments & collaborations between major companies across the region.
Segments
The global insurance telematics market has been segmented on the basis of
Deployments
Offerings
Enterprise Sizes
- Small & Medium Enterprise
- Large Enterprise
Types
- Pay-as-you-go
- Pay-how-you-drive
- Pay-as-you-drive
End-users
- Commercial Vehicle
- Passenger Vehicle
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Telematics Ltd.
- TRIMBLE INC.
- Masternaut Ltd.
- Aplicom
- Intelligent Mechatronic System
- Meta System S.p.A
- MiX Octo Telematics S.p.A
- Sierra Wireless Inc.
- TomTom Telematics BV
- Agero Inc.
Competitive Landscape
Key players competing in the global insurance telematics market are Telematics Ltd.; TRIMBLE INC.; Masternaut Ltd.; Aplicom; Intelligent Mechatronic System; Meta System S.p.A; MiX Octo Telematics S.p.A; Sierra Wireless Inc.; TomTom Telematics BV; and Agero Inc. As part of their efforts to grow their client base and acquire a competitive advantage over competitors, manufacturers operating in the market are adopting various strategic initiatives such as partnerships, collaborations, mergers & acquisitions, and new product development
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