Insurance Telematics Market Outlook - 2030
The global insurance telematics market size was valued at $2.37 billion in 2020, and is projected to reach $13.78 billion by 2030, growing at a CAGR of 19.5% from 2021 to 2030.
Insurance telematics is used to track driving behavior of individuals and involves collecting, measuring, and transmitting a number of data points. Generally, it acts as a small GPS-based device placed inside a vehicle, which tracks locations and monitors a number of parameters, such as speed, distance, and location. Furthermore, by monitoring drivers performance behind the wheel, insurers can implement usage-based insurance (UBI) programs and accordingly design premium prices for auto insurance policyholders.
Rise in need for telematics devices among insurance & automotive sectors propels the market growth. This is attributed to the fact that telematic devices help in improving premium pricing, enhancing customer perception of a company, and strengthening long-term relationships through closer communication. In addition, growth in need for regulatory compliance in the automotive industry and surge in adoption of Internet of Things (IoT) technology among insurance telematics providers are major factors that notably contribute toward growth of the global market.
However, concerns associated with data security & protection and lack of awareness toward insurance telematics are some of the factors that limit the insurance telematics market growth. On the contrary, developing economies offer significant opportunities for insurance telematics companies to expand & develop their offerings, especially among emerging economies such as India, Singapore, Australia, China, and South Korea.
In addition, these countries are on the verge of developing their automotive sectors, with lack in financial resources have led to need for cost-efficient solutions is expected to offer remunerative opportunities for expansion of the market. Moreover, rapid innovation in the automotive industry is providing new opportunities for telematics providers to improve user experiences, enhance collaboration with partners, and data monetization, which is anticipated to open new avenues for the market in the coming years.
The report focuses on growth prospects, restraints, and trends of the insurance telematics market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the insurance telematics market outlook.
By Offering
Service sector Segment holds a dominant position throughout the forecast period.
Segment Review
The insurance telematics market is segmented into offering, technology, deployment, type, vehicle age, vehicle type, organization size, and region. By offering, the market is segmented into hardware, software, and service. The hardware segment is further segmented into telematics control unit (TCU), navigation system (GPS), communication devices, and others. Services segment is further classified into consulting, implementation, and maintenance. On the basis deployment the market is segmented into on-premise and cloud.
By Technology
Smartphone segment will grow at a highest CAGR of 25.1% during 2021 - 2030
On the basis of technology, the market is segmented into OBD-II, black-box, smartphone, and hybrid. By type, the market is segmented into pay-as-you-drive, pay-how-you-drive, and pay-as-you-go. Depending on vehicle age, it is segregated into new vehicle and used vehicle. The vehicle type covered in the study include light-duty vehicle (LDV) and heavy-duty vehicle (HDV). Based on organization size, the market is divided into large enterprises and small & medium enterprises (SMEs). Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Region
Asia-Pacific would exhibit the highest CAGR of 23.8% during 2021-2030
Competitive Analysis
The report analyses top insurance telematics companies operating in the market such as Agero Inc., IMS, Masternaut Limited, Meta System S.p.A., MiX Telematics, Octo Group S.p.A , Sierra Wireless, TomTom International BV., Trimble Inc., and Verizon. These players have adopted various strategies to increase their market penetration and strengthen their position in the insurance telematics industry.
COVID-19 Impact Analysis
The COVID-19 pandemic had a positive impact on the insurance telematics industry. This attributed to the fact that telematics directly addresses consumer needs to pay lower premiums when vehicles have limited utilization during the lockdown. Telematics further enhances accurate calculations and discounts on auto insurance policy, allowing reasonable premiums pricing for consumers, which is more precise for insurance companies. Therefore, demand for insurance telematics has increased significantly during the global health crisis.
Top impacting factors
Growth in Need for Regulatory Compliances and Regulations
With an increase in emphasis on technology usage, massive internet penetration across several countries and regulatory compliances toward safety measures of driving vehicle are becoming major factors promoting usage-based insurance telematics devices in the market.
Governments aim at expanding the automobiles sector with an implementation of advance telematics in vehicles, which is one of the major factors contributing toward the market growth. For instance, in U.S., the National Association of Insurance Commissioners forecasted that use of telematics may grow to 20% within the next five years. Therefore, demand for insurance telematics is experiencing continuous rise in the market, owing to massive regulatory compliance and support. This, as a result propels the insurance telematics market growth.
Privacy & Security Concerns
Concerns regarding theft & security have created a lack of trust toward digitalized tracking of vehicle information among individuals. In addition, drivers connecting vehicles to internet enables a connection between insurance company and their vehicles, which further leads to data exposing among hackers. Moreover, On Board Diagnosis (OBD)-ll dongles provide potential breach points for hackers to remotely exploit and cause damage such as remote vehicle control, car theft, and data privacy breaches. Moreover, risk of spyware, malware, and virus attacks due to usage of numerous systems in the insurance telematics hampers the market globally.
Increase in Innovation in the Automotive Industry
Technologies such as artificial intelligence (AI), internet of things (IoT), and 5G are accelerating innovations in the automotive industry and providing new opportunities for improved user experiences, collaboration with partners, and data monetization. Moreover, with implementation of telematics devices, companies have major opportunities such as data stored in telematics devices must be collected and stored to be shared with multiple parties and deriving useful insights on a massive scale. Furthermore, innovations in terms of advance telematics device implementation such as wireless telematics devices and black box technologies, which collects and transmit data on vehicle use, maintenance requirements, and automotive servicing is a major factor expected to boost the market growth in the coming years.
Key Benefits for Stakeholders
- The study provides in-depth analysis of the global insurance telematics market share along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the global insurance telematics market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the insurance telematics market.
- An extensive analysis of the key segments of the industry helps to understand the insurance telematics market trends.
- The quantitative analysis of the global insurance telematics market forecast from 2021 to 2030 is provided to determine the market potential.
Key Market Segments
By Offering
- Hardware
- Telematics Control Unit (TCU)
- Navigation System (GPS)
- Standalone Tracker
- Advanced Tracker
- Satellite
- Cellular
- Communication Devices
- Others
- Software
- Services
- Consulting
- Implementation
- Maintenance
By Technology
- OBD-II
- Smartphone
- Hybrid
- Black-box
By Deployment
- On-Premise
- Cloud
By Type
- Pay-As-You-Drive (PAYD)
- Pay-How-You-Drive (PHYD)
- Manage-How-You- Drive (MHYD)
By Vehicle Age
- New Vehicles
- Used Vehicles
By Vehicle Type
- Light-Duty Vehicles (LDV)
- Heavy-Duty Vehicles (HDV)
By Organization Size
- Large Enterprises
- Small & Medium-sized Enterprises
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Belgium
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Singapore
- Thailand
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Agero Inc.
- IMS
- Masternaut Limited
- Meta System S.p.A.
- MiX Telematics
- Octo Group S.p.A
- Sierra Wireless
- TomTom International BV.
- Trimble Inc.
- Verizon
Insurance Telematics Market Report Highlights
| Aspects | Details |
 By Offering |
|
 By Technology |
|
 By Deployment |
|
 By Type |
|
 By Vehicle Age |
|
 By Vehicle Type |
|
 By Organization Size |
|
 By Region |
|
 Key Market Players | IMS, MiX Telematics, Agero Inc., Sierra Wireless, Octo Group S.p.A, Verizon, Meta System S.p.A., TomTom International BV., Trimble Inc., Masternaut Limited |
Analyst Review
Accurate pricing of premiums & policies among insurance carriers, discounts & rewards just for signing up for a telematics program, and opportunities for cost savings of vehicle maintenance are major trends in the market. Insurance firms are aiming at enhancing data management, improving quality of services, and enhancing exiting insurance business model. With becoming a dynamic and ever-changing industry, the automotive sector is increasingly investing & adopting telematics technology to record and map the vehicle location, route, speed, and ensure safety of drivers and passengers through numerous sensors.
Moreover, during the COVID-19 health crisis, the insurance telematics market has experienced significant growth as insurance companies continue to enhance their auto insurance services in the post-pandemic scenarios and emphasizing digital transformation, migrating vehicle data on advance technology, and navigating extensive security & demands among consumers availing auto insurance in the market.
The insurance telematics market is fragmented with the presence of regional vendors such as TomTom International BV., Verizon, and IMS. Some of the key players profiled in the insurance telematics market report include Agero Inc., Masternaut Limited, Meta System S.p.A., MiX Telematics, Octo Group S.p.A , Sierra Wireless, and Trimble Inc. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With increase in awareness & demand for insurance telematics across the globe, major players are collaborating their product portfolio to provide differentiated and innovative products.
The Insurance Telematics Market is estimated to grow at a CAGR of 19.5% from 2021 to 2030.
The Insurance Telematics Market is projected to reach $13.78 billion by 2030.
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Factors such as rise in need for telematics devices among insurance & automotive sectors drives the growth of the Insurance Telematics market
The key players profiled in the report include Agero Inc., IMS, Masternaut Limited, Meta System S.p.A., MiX Telematics, Octo Group S.p.A , Sierra Wireless, TomTom International BV., Trimble Inc., and Verizon, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Insurance Telematics Market is segmented on the basis of offering, technology, deployment, type, vehicle age, vehicle type, organization size, and region.
Service sector Segment holds a dominant position throughout the forecast period.
Smartphone segment will grow at a highest CAGR of 25.1% during 2021 - 2030
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