Usage-Based Insurance (UBI) Market Size (2024 - 2029)

The Usage-Based Insurance market is experiencing steady growth, driven by advancements in telematics technology and a rising demand for personalized insurance solutions. This market expansion is supported by the ability of telematics to collect detailed driving behavior data, which enhances risk assessment and pricing accuracy for insurers. The integration of UBI programs allows insurance companies to offer more tailored products, while also providing policyholders with incentives for safe driving, such as discounted premiums. This dual benefit of improved risk management for insurers and enhanced safety monitoring for customers contributes to the increasing market size of Usage-Based Insurance.

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Market Size of Usage-Based Insurance (UBI) Industry

Usage-Based Insurance (UBI) Market Summary
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

Usage-Based Insurance (UBI) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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) 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
Europe
Germany
United Kingdom
France
Russia
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East
United Arab Emirates
Saudi Arabia
Rest of Middle East
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Usage-Based Insurance (UBI) Market Size Summary

The Usage-Based Insurance (UBI) market is experiencing significant growth, driven by advancements in telematics technology and a rising demand for personalized insurance solutions. This innovative approach utilizes devices and mobile apps to collect data on driving behaviors, such as speed and location, enabling insurers to offer more accurate pricing and improved risk assessment. UBI programs benefit both insurers and policyholders; insurers can reduce claims costs and enhance customer engagement, while safe drivers can enjoy discounted premiums. The integration of mobile telecommunication technology, particularly smartphones, has further streamlined UBI implementation by eliminating device and installation costs, leveraging existing sensors and communication capabilities.

In the United States, the shift towards UBI is reshaping the auto insurance landscape, with a growing number of policies incorporating telematics data to tailor premiums and reward safe driving. The market is characterized by fragmentation, with major players like Progressive Corporation, Allstate Corporation, and Statefarm Insurance leading the charge. The competitive landscape is further intensified by mergers, acquisitions, and partnerships aimed at expanding market presence. Despite the dominance of larger companies, mid-size and smaller firms are gaining traction by securing new contracts and exploring untapped markets, indicating a dynamic and evolving industry environment.

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Usage-Based Insurance (UBI) Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Adoption of Telematics and Connected Cars

    3. 1.3 Market Restraints

      1. 1.3.1 Privacy and Data Security is Restraining the Market

    4. 1.4 Market Opportunities

      1. 1.4.1 The Insurance Companies to Offer Personalized Premiums Based on Individual Driving Behavior

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Technological Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Package

      1. 2.1.1 Pay-How-You-Drive

      2. 2.1.2 Pay-As-You-Drive

    2. 2.2 By Technology

      1. 2.2.1 OBD-II

      2. 2.2.2 Smartphone

      3. 2.2.3 Black Box

      4. 2.2.4 Embedded Telematics

    3. 2.3 By Vehicle Type

      1. 2.3.1 Passenger Vehicle

      2. 2.3.2 Commercial Vehicle

    4. 2.4 Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Mexico

        4. 2.4.1.4 Rest of North America

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Russia

        5. 2.4.2.5 Spain

        6. 2.4.2.6 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 India

        2. 2.4.3.2 China

        3. 2.4.3.3 Japan

        4. 2.4.3.4 Rest of Asia-Pacific

      4. 2.4.4 South America

        1. 2.4.4.1 Brazil

        2. 2.4.4.2 Argentina

        3. 2.4.4.3 Rest of South America

      5. 2.4.5 Middle East

        1. 2.4.5.1 United Arab Emirates

        2. 2.4.5.2 Saudi Arabia

        3. 2.4.5.3 Rest of Middle East

Usage-Based Insurance (UBI) Market Size FAQs

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.

In 2024, the Usage-Based Insurance Market size is expected to reach USD 39.12 billion.

Usage-Based Insurance (UBI) Market Report Snapshots

Usage-Based Insurance (UBI) Market Size & Share Analysis - Growth Trends & Forecasts (2024-2029)