Usage-Based Insurance (UBI) Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 39.12 Billion |
| Market Size (2029) | USD 66.94 Billion |
| CAGR (2024 - 2029) | 11.34 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Usage-Based Insurance (UBI) Market Analysis
The Usage-Based Insurance Market size in terms of premium value is expected to grow from USD 39.12 billion in 2024 to USD 66.94 billion by 2029, at a CAGR of 11.34% during the forecast period (2024-2029).
The usage-based insurance (UBI) market has witnessed steady growth globally, driven by advancements in telematics technology, increased customer demand for personalized insurance, and the potential for cost savings. Telematics technology plays a crucial role in UBI programs. It involves using devices installed in vehicles or mobile apps that collect driving behavior data, including mileage, speed, acceleration, braking, and location. UBI presents several benefits for insurance companies, including improved risk assessment, better pricing accuracy, reduced claims costs, and enhanced customer engagement. Insurers can leverage UBI data to develop more tailored insurance products and services. UBI programs offer benefits to policyholders as well. Safe drivers with responsible driving habits can receive discounted premiums or other incentives. UBI also allows customers to monitor their driving behavior and make improvements to enhance safety.
Usage-Based Insurance (UBI) Market Trends
Rise in Smartphone Penetration is Fuelling the Market
Mobile telecommunication technology is the latest tool in telematics, with smartphones working as stand-alone devices or linked to vehicle systems to transmit various information to and from the car. Smartphones are an ideal telematics solution as they are typically equipped with multiple relevant sensors, such as GPS, accelerometers, and gyroscopes. They also have extensive data storage capacity, or infinite with the cloud, and superior communication capabilities. There are no device, installation, or data connectivity costs to the insurers with smartphone-based UBI programs. Smartphone computing power allows a big part of the data processing on the device, helping to lower data handling and storage costs. The extensive manufacturing volumes for smartphones exploiting economies of scale make the price–performance metric of the technical capabilities of the smartphone superior to many rivals, and it is still continuously improving over time.
Increasing Usage-based Car Insurance Accelerates in North America
The insurance industry is rapidly shifting from standard auto insurance to premium auto insurance plans driven by telematics data. Usage-based insurance, or UBI, has been gaining support in the US and has recently become increasingly difficult to ignore. About 20 million of the 875 million motor insurance plans in force last year were usage-based, according to Ptolemus, a mobility-focused research and strategic consulting organization with headquarters in Brussels. The auto insurance industry, too, has undergone a transformative shift in the United States with the advent of Usage-Based Insurance (UBI). This innovative approach to underwriting auto policies leverages telematics technology to collect real-time data on individual driving behaviors, allowing insurers to tailor premiums more accurately and reward safe driving habits.
Usage-Based Insurance (UBI) Industry Overview
The Usage-based insurance market is fragmented, with many players. Some of the major players in the global market include Progressive Corporation, Allstate Corporation, Statefarm Insurance, Liberty Mutual Insurance, and Aviva PLC, among others. In the study period, market players were also involved in mergers and acquisitions, and partnerships focused on expanding their presence in the market. The market presents opportunities for growth during the forecast period, which is expected to drive the market competition further. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.
Usage-Based Insurance (UBI) Market Leaders
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Progressive Corporation
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Allstate Corporation
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Statefarm Insurance
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Liberty Mutual Insurance
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Aviva plc
*Disclaimer: Major Players sorted in no particular order
Usage-Based Insurance (UBI) Market News
- In September 2023: Definity launched a new usage-based insurance (UBI) offering to provide drivers unprecedented control over their premiums while promoting safer driving practices.
- In August 2023: Citroen India, with the help of ICICI Lombard General Insurance, has introduced Usage-Based Insurance For EC3 Customers to encourage safe driving among owners.
Usage-Based Insurance (UBI) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increasing Adoption of Telematics and Connected Cars
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4.3 Market Restraints
- 4.3.1 Privacy and Data Security is Restraining the Market
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4.4 Market Opportunities
- 4.4.1 The Insurance Companies to Offer Personalized Premiums Based on Individual Driving Behavior
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4.5 Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Insights on Technological Innovations in the Market
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Package
- 5.1.1 Pay-How-You-Drive
- 5.1.2 Pay-As-You-Drive
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5.2 By Technology
- 5.2.1 OBD-II
- 5.2.2 Smartphone
- 5.2.3 Black Box
- 5.2.4 Embedded Telematics
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5.3 By Vehicle Type
- 5.3.1 Passenger Vehicle
- 5.3.2 Commercial Vehicle
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.1.4 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Russia
- 5.4.2.5 Spain
- 5.4.2.6 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 India
- 5.4.3.2 China
- 5.4.3.3 Japan
- 5.4.3.4 Rest of Asia-Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East
- 5.4.5.1 United Arab Emirates
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 Rest of Middle East
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
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6.2 Company Profiles
- 6.2.1 Progressive Corporation
- 6.2.2 Allstate Corporation
- 6.2.3 State Farm Insurance
- 6.2.4 Liberty Mutual Insurance
- 6.2.5 Aviva PLC
- 6.2.6 Generali Group
- 6.2.7 AXA Group
- 6.2.8 Desjardins Insurance
- 6.2.9 MAPFRE SA
- 6.2.10 Zurich Insurance*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityUsage-Based Insurance (UBI) Industry Segmentation
Usage-based insurance (UBI) is auto insurance that uses data collected from the insured vehicle to determine the premium. This report aims to provide a detailed analysis of the usage-based insurance market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights into the various product and application types. Also, it analyses the key players and the competitive landscape. The usage-based insurance (UBI) market is segmented by the package, which includes PHYD and PAYD; by technology, including OBD-II, smartphone, black box, and embedded telematics; by vehicle type, including passenger vehicle and commercial vehicle; and by geography, including North America, Europe, Asia-Pacific, South America, and the Middle East. The report offers market size and forecasts for the usage-based insurance markets in terms of revenue (USD) for all the above segments.
| By Package | Pay-How-You-Drive | |
| Pay-As-You-Drive | ||
| By Technology | OBD-II | |
| Smartphone | ||
| Black Box | ||
| Embedded Telematics | ||
| By Vehicle Type | Passenger Vehicle | |
| Commercial Vehicle | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East | United Arab Emirates |
| Saudi Arabia | ||
| Rest of Middle East |
Usage-Based Insurance (UBI) Market Research FAQs
How big is the Usage-Based Insurance Market?
The Usage-Based Insurance Market size is expected to reach USD 39.12 billion in 2024 and grow at a CAGR of 11.34% to reach USD 66.94 billion by 2029.
What is the current Usage-Based Insurance Market size?
In 2024, the Usage-Based Insurance Market size is expected to reach USD 39.12 billion.
Who are the key players in Usage-Based Insurance Market?
Progressive Corporation, Allstate Corporation, Statefarm Insurance, Liberty Mutual Insurance and Aviva plc are the major companies operating in the Usage-Based Insurance Market.
Which is the fastest growing region in Usage-Based Insurance Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Usage-Based Insurance Market?
In 2024, the North America accounts for the largest market share in Usage-Based Insurance Market.
What years does this Usage-Based Insurance Market cover, and what was the market size in 2023?
In 2023, the Usage-Based Insurance Market size was estimated at USD 34.68 billion. The report covers the Usage-Based Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Usage-Based Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Usage-Based Insurance (UBI) Industry Report
Statistics for the 2024 Usage-Based Insurance (UBI) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Usage-Based Insurance (UBI) analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
