Automotive Usage Based Insurance Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Automotive Usage Based Insurance Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Automotive Usage Based Insurance Market

The automotive usage based insurance market size was valued at USD 57.86 billion in 2023, and the market is now projected to grow from USD 66.8 billion in 2024 to USD 248.94 billion by 2032, exhibiting a CAGR of 17.9% during the forecast period of 2024-2032.

A major factor that was significant in 2020 was the effect of pandemic on driving behaviors. As for the impact of the pandemic on the automotive usage based insurance market growth, it can be stated that in the initial months of 2020 the growth was slowed down because of lockdown restrictions.

Thus, with automotive usage based insurance, the insurers offered a regular opportunity to establish a relationship through reports, advice and monthly statement instead of an annual update with relationship built up renewals. In an effort to realize higher revenues and grow customer base, insurers will be able to regulate and control price points for policy coverage while enhancing brand loyalty, thus buying extra new business that may well result in the rise of automotive usage based insurance market share.

In an effort to drive the change faster, event the major stakeholders are experimenting in one way or another as to how they can convince the public in the efficiency of UBI programs. Additionally, insurance providers are offering coverage by extending their networks insurance providers are also going to different dealerships and prominent auto makers to have a better presence in the vehicle insurance niche and make consumers more aware of the market.

Comprehensive Analysis of Automotive Usage Based Insurance Market

The automotive usage based insurance market is rising at an exponential rate due to its market segmentation. This market expansion effectively provides a detailed regional assessment considering the dominant supply and demand forces that impact the industry. These segmentations are methodically segregated by type, by solution, & by vehicle type. The types include: Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD). By solutions the market can be divided into: dongle, black box, embedded, and smartphones. By vehicle type the market can be fragmented into: passenger cars, & commercial vehicles.

The North America region leads the automotive usage based insurance market by benefitting a market size of USD 26.42 billion in 2023 due to the rising adoption of mobility as a service in the region.

The top players in the market play a crucial role in the industry, assuring industrial prospectus growth and setting market standards. These players include: Allstate Insurance Company (U.S.) State Farm Mutual Automobile Insurance Company (U.S.) Liberty Mutual Insurance (U.S.) AXA (France) The Progressive Corporation (U.S.) Allianz (Germany) American International Group, Inc. (AIG) (U.S.) MAPFRE (Spain) Insurethebox (U.K.) Verisk Analytics, Inc. (U.S.) Arity, LLC (U.S.) Insurance & Mobility Solutions (IMS) (Canada).

In March 2023, Liberty Mutual Insurance partnered with Ford to bring usage based insurance to connected vehicles.

Segmentation Table

Global Automotive Usage Based Insurance Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Growth Rate CAGR of 17.9% from 2024-2032

Historical Period 2019-2022

Unit Value (USD Billion)

Segmentation By Type, By Solution, and By Vehicle Type

By Type Pay-As-You-Drive (PAYD)

Pay-How-You-Drive (PHYD)

Manage-How-You-Drive (MHYD)

By Solution Dongle

Black Box

Embedded

Smartphones

By Vehicle Type Passenger Cars

Commercial Vehicles

By Region North America (By Type, Solution, Vehicle Type, and Country)

- U.S. (By Vehicle Type)

- Canada (By Vehicle Type)

Europe (By Type, Solution, Vehicle Type, and Country)

- U.K. (By Vehicle Type)

- Germany (By Vehicle Type)

- Italy (By Vehicle Type)

- Rest of Europe (By Vehicle Type)

Asia Pacific (By Type, Solution, Vehicle Type, and Country)

- China (By Vehicle Type)

- Japan (By Vehicle Type)

- India (By Vehicle Type)

- South Korea (By Vehicle Type)

- Rest of Asia Pacific (By Vehicle Type)

Rest of the World (By Type, Solution, Vehicle Type, and Country)


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