According to a recent report published by Allied Market Research, titled, “IoT Insurance Market by Component, Insurance Type and Application: Global Opportunity Analysis and Industry Forecast, 2020–2027,” the global IoT insurance market size was valued at $8.63 billion in 2019, and is projected to reach $304.31 billion by 2027, growing at a CAGR of 57.1% from 2020 to 2027. IoT devices used insurance industries help them to connect to their clients and to deliver better consumer services to clients. In addition, IoT insurance delivers numerous benefits to insurance service providers that includes increase in efficiency of organizations, improvement in operational services, and streamlining settlement process.
The key factors that drive the growth of the global IoT insurance market trends include growth of the global IoT insurance in adoption of IoT product among businesses to receive data from a variety of sources and increase in adoption of telematics device among automotive and transportation sectors are some the important factors that boost the market across the globe. In addition, increase in investments by insurance companies in IoT technology to improve their operational efficiency propels growth of the global IoT insurance market.
However, security and privacy issues of customer’s personal information and lack of skills among workers for using IoT devices restrict IoT insurance market growth. On the contrary, increase in adoption of advance technology such as machine learning and artificial intelligence among the insurance industry is expected to offer remunerative opportunities for expansion of the global market during the forecast period.
The automotive, transportation & logistics segment is expected to garner a significant share during the forecast period. This is attributed to integration of IoT technology among telematics device enabled monitoring of all components of a car such as general car condition, tire condition, brake condition, and car temperature with just a simple command on a screen propels growth of the market.
Moreover, business & enterprise segment has witnessed increase in adoption of IoT technology across various regions, owing to rising in adoption of intelligent automation and smart building technologies across the developing nations of the Asia-Pacific and growth in need among insurers to provide better insurance services to their business & enterprise clients.
Region wise, the IoT insurance market was dominated by North America in 2019, and is expected to retain its position during the forecast period. This is attributed to presence of high-speed internet connectivity in this region and increase in partnership between insurance provider and IoT technology companies. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to rapid adoption of IoT devices such as drones, wearables, inbuilt sensors, and Wi-Fi dongles among insurance companies across China, Japan and India.
COVID-19 Impact Analysis
The outbreak of COVID-19 is anticipated to have a positive impact on growth of the IoT insurance market share. This is attributed to increase in spending on IoT technology by insurance service providers to collect large amount of patient information during the COVID-19 outbreak. In addition, increase in spending on connected medical devices by several people across the globe to protect themselves from corona virus is considered as an important driver to boost the market during the COVID-19 outbreak. Furthermore, several vehicle users across the globe have been adopting usage-based insurance services to reduce their vehicle insurance premium. Hence, rise in need of telematics devices among vehicle users to share vehicle information with insurance providers propels the market growth.
The report focuses on growth prospects, restraints, and trends of the global IoT insurance 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 global IoT insurance industry.
Key Findings Of The Study
- By insurance type, the property and casualty (P&C) insurance segment generated the highest revenue in 2019.
- By application, the automotive, transportation & logistics segment generated the highest revenue in 2019.
- By region, North America generated the highest revenue in 2019.
The key players operating in the global IoT insurance market include Accenture PLC, Aeris Group Ltd, Cisco Systems Inc., Concirrus, Google LLC, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, SAP SE and Telit. These players have adopted various strategies to increase their market penetration and strengthen their foothold in the IoT insurance market industry.