Usage-based Insurance for Automotive Market

Usage-based Insurance for Automotive Market by Types (PAYD, PHYD, and MHYD), Technology (OBD II, Black Box, and Smartphones), Vehicles (Passenger and Commercial), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021–2028

  • Report ID: BFSI-470
  • Author: Growth Market Reports
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  • No. Of Pages: 194
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The global usage-based insurance for automotive market is anticipated to expand at a CAGR of 20% during the forecast period, 2021 – 2028. The growth of the market is attributed to the increasing adoption of connected car services and high penetration of usage-based insurance owing to the offered benefits, such as lower insurance premium as compared to the standard ones.
 

Usage-based Insurance for Automotive Market Key Takeaways


Usage-based insurance is a type of insurance where the premium of the policy is directly linked to the usage of the vehicle. Rising sales of pre-equipped telematics vehicles and various government initiatives to ensure vehicles safety are the key factors boosting the market growth. The rise in adoption of telematic-based insurance services is owing to the changing business dynamics of the automotive insurance industry.

A telematics device is plugged into the onboard diagnostics (OBD) port of a vehicle. It is initially installed by the vehicle manufacturer. The devices collect crucial data and sends it through wireless communication to the carrier. This device allows the insurance providers to track mileage, monitor vehicle driver’s behavior, and enables communication with the insurer on a real-time basis.

Usage-based insurance offer benefits to providers such as fraud detection, pricing accuracy, stolen vehicle recovery, and automated claims management. The collected information is used to offer value-added services to consumers by lowering operating expenses.

Market Drivers, Restraints, Trends, and Opportunities

  • Increasing production and sales of automobiles across the globe is driving the market growth.
  • Rising number of middle-class population and growing concerns regarding vehicle safety are expected to boost the market growth.
  • Usage-based insurance for automotive effectively serves both customers and insurance providers, which is anticipated to drive the market growth.
  • Challenges such as low transparency in data acquisition techniques and data privacy can restrain the market growth.
  • Lack of personal integrity and complexity of design are anticipated to negatively impact the market growth.
  • The emergence of COVID-19 pandemic has adversely affected the global usage-based insurance for the automotive market. Various government restrictions on travelling owing to the spread of the disease has hampered the market growth.
  • Rapid advancement in Internet of Things (IoT) technology is projected to spur the growth of usage-based insurance automotive market during the forecast period.

Scope of the Report

The report on the global usage-based insurance for automotive market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Global Usage-Based Insurance for Automotive Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

Segmentation

Types (PAYD, PHYD and MHYD), Technology (OBD II, Black Box and Smartphones), and Vehicles (Passenger and Commercial)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

Progressive Corporation, Allstate Corporation, State Farm Automobile Mutual Insurance Company, Liberty Mutual Insurance Company, Allianz SE, and AXA S.A.

 

Usage-Based Insurance for Automotive Market Segment Insights

Pay-How-You-Drive (PHYD) segment projected to account for a significant market share.
Based on types, the market is segmented into PAYD, PHYD and MHYD. The Pay-How-You-Drive (PHYD) segment is projected to account for a significant market share during the forecast period. PHYD is a form of insurance premium that is incurred on the basis of driving pattern of the vehicle driver. Metrics such as how driver accelerate, takes turns, and brake are monitored in this type of insurance. Additionally, this type of insurance policy is adopted by consumers to ensure safe driving practices and earn rewards on the insurance premium.

The Manage-How-You-Drive (MHYD) segment is expected to expand at an impressive growth rate during the forecast period. The instant feedback of the driver about driving patterns offers real-time insurance premiums, thereby augmenting the segment growth. Additionally, introduction of connected devices, such as vehicle wellness report and theft insurance programs coupled with MHYD packages are expected to serve the segment growth.
 

Usage-based Insurance for Automotive Market By Types


OBD-II segment projected to account for a considerable market share
On the basis of technology, the market is divided into OBD II, black box, and smartphones. The On-Board Dongles (OBD)-II segment is projected to account for a considerable market share during the forecast period. An onboard dongle is plugged into a vehicle to capture real-time data about specific events such as collision, acceleration, and braking.

The smartphones segment is expected to grow at a rapid pace owing to the elimination of external telematics device that is required for vehicle monitoring. A smartphone allows insurance providers to monitor and track the driving pattern of the driver. For instance, insurance companies are collaborating with software technology providers that offers smartphone-based telematics insurance.

Passenger segment anticipated to acquire a large market share
On the basis of vehicle types, the market is divided into passenger and commercial. The passenger segment is anticipated to account for a large market share owing to the increasing sales of passenger vehicles that have a pre-installed telematics device in it. This device provides real-time information regarding the vehicle’s health and the travelled distance. Conversely, the commercial segment is expected to expand at a healthy growth rate owing to the considerable presence of commercial fleets during the forecast period.

North America expected to account for a considerable market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to account for a market share of more than 30%, in terms of revenue, owing to the presence of key players operating in this region. Additionally, rapid technological innovations and growing demand for interconnected services are speculated to spur the market growth in the region. However, the market in Asia Pacific is anticipated to expand at a substantial CAGR owing to the proliferation of smartphone technology and mobile connectivity in this region.
 

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Usage-based Insurance for Automotive Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Usage-based Insurance for Automotive Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Usage-based Insurance for Automotive Market - Supply Chain
  4.5. Global Usage-based Insurance for Automotive Market Forecast
     4.5.1. Usage-based Insurance for Automotive Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Usage-based Insurance for Automotive Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Usage-based Insurance for Automotive Market Absolute $ Opportunity
5. Global Usage-based Insurance for Automotive Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Usage-based Insurance for Automotive Market Size and Volume Forecast by Types
     5.3.1. PAYD
     5.3.2. PHYD
     5.3.3. MHYD
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Usage-based Insurance for Automotive Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Usage-based Insurance for Automotive Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Usage-based Insurance for Automotive Demand Share Forecast, 2019-2026
7. North America Usage-based Insurance for Automotive Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Usage-based Insurance for Automotive Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Usage-based Insurance for Automotive Market Size and Volume Forecast by Types
     7.4.1. PAYD
     7.4.2. PHYD
     7.4.3. MHYD
  7.5. Basis Point Share (BPS) Analysis by Types
  7.6. Y-o-Y Growth Projections by Types
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Usage-based Insurance for Automotive Demand Share Forecast, 2019-2026
8. Latin America Usage-based Insurance for Automotive Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Usage-based Insurance for Automotive Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Usage-based Insurance for Automotive Market Size and Volume Forecast by Types
     8.4.1. PAYD
     8.4.2. PHYD
     8.4.3. MHYD
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Usage-based Insurance for Automotive Demand Share Forecast, 2019-2026
9. Europe Usage-based Insurance for Automotive Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Usage-based Insurance for Automotive Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Usage-based Insurance for Automotive Market Size and Volume Forecast by Types
     9.4.1. PAYD
     9.4.2. PHYD
     9.4.3. MHYD
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Usage-based Insurance for Automotive Demand Share Forecast, 2019-2026
10. Asia Pacific Usage-based Insurance for Automotive Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Usage-based Insurance for Automotive Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Usage-based Insurance for Automotive Market Size and Volume Forecast by Types
     10.4.1. PAYD
     10.4.2. PHYD
     10.4.3. MHYD
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Usage-based Insurance for Automotive Demand Share Forecast, 2019-2026
11. Middle East & Africa Usage-based Insurance for Automotive Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Usage-based Insurance for Automotive Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Usage-based Insurance for Automotive Market Size and Volume Forecast by Types
     11.4.1. PAYD
     11.4.2. PHYD
     11.4.3. MHYD
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Usage-based Insurance for Automotive Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Usage-based Insurance for Automotive Market: Market Share Analysis
  12.2. Usage-based Insurance for Automotive Distributors and Customers
  12.3. Usage-based Insurance for Automotive Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Progressive Corporation
     12.4.2. Allstate Corporation
     12.4.3. State Farm Automobile Mutual Insurance Company
     12.4.4. Liberty Mutual Insurance Company
     12.4.5. Allianz SE
     12.4.6. AXA S.A

Segments Covered in the Report
The global usage-based insurance for automotive market has been segmented on the basis of:

Types

  • PAYD
  • PHYD
  • MHYD

Technology

  • OBD II
  • Black Box
  • Smartphones

Vehicles

  • Passenger
  • Commercial

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Some of the key players in the global usage-based insurance for automotive market are Progressive Corporation, Allstate Corporation, State Farm Automobile Mutual Insurance Company, Liberty Mutual Insurance Company, Allianz SE, and AXA S.A.

Manufacturers are focusing on mergers and acquisitions and collaborations to acquire a large market share. Additionally, the market players are enhancing their market presence by adopting various business strategies.
 

Usage-based Insurance for Automotive Market By key Players

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