The Insurance Telematics market is expected to grow at a CAGR of 21.01 % to reach USD 7622.47 Million in 2028.
The market for insurance telematics is gaining substantial traction around the world, owing to the growing urban population. Because insurance telematics is one of the few ways to ensure the future security of a majority of enterprises, its demand is expected to explode in the next years. Customers' increased desire for connectivity in the automobile, regardless of where they are travelling, the rapid ubiquity of smartphones, which puts information at their fingertips, and government rules and regulations that support consumers, particularly when it comes to vehicle safety and security. Furthermore, the Internet of Things (IoT) and cloud computing are proving to be quite profitable for the worldwide insurance telematics business. 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.
This can be ascribed to the consumer’s enthusiasm for in-car connectivity and growth of smartphone penetration. It offers new opportunities for key players operating in the global insurance telematics market. Besides, the implementation of the increased demand of insurance telematics across the insurance and automotive sector is affecting the market in a positive manner.
However, privacy concerns associated with private data of individuals and lack of standardized system are hampering the market growth. Furthermore, the growing impetus to iot and increased demand of insurance telematics across the insurance and automotive sector is likely to provide lucrative development opportunities for the insurance telematics market in the forthcoming years.
Insurance Telematics Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 7622.47 Million|
|Growth Rate||CAGR of 21.01 % during 2021-2028|
|Segment Covered||By Organization Size, By Deployment Mode, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||TOMTOM Telematics, Trimble Navigation, Verizon Enterprise Solutions, Mix Telematics, Sierra Wireless, Octo Telematics, Masternaut Limited, Agero Inc., Aplicom OY and Telogis.|
Key Segments of the Global Insurance Telematics Market
Component Overview, 2021-2028 (USD Million)
Deployment Overview, 2021-2028 (USD Million)
End-Use Overview, 2021-2028 (USD Million)
- Passenger Vehicle
- Commercial Vehicle
Regional Overview, 2021-2028 (USD Million)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global insurance telematics market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global insurance telematics market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the insurance telematics market industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Components, Deployment, and End User. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global insurance telematics market. The report will benefit Every stakeholder involved in the insurance telematics market.
- Managers within the insurance telematics market industry looking to publish recent and forecasted statistics about the global insurance telematics market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global insurance telematics market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
Insurance telematics is used to track driving behavior of individuals and involves collecting, measuring, and transmitting a number of data points. 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. Decreasing cost of connectivity solutions, increase in regulatory compliance and regulations, consumer’s interest for in-car connectivity, and rise in smartphone penetration are driving the market.
Insurance and automotive companies are rapidly deploying insurance telematics solutions to monitor driver behavior, simplify road side assistance, effectively manage the claims, improve their security of insurance data, and achieve competitive advantage. Furthermore, consumer’s enthusiasm for in-car connectivity and growth of smartphone penetration are driving the market.
Market trends such as carpooling, car sharing, and ridesharing have gained traction in the recent years. Although, the current adoption rates for carpooling tends to remain low in developed countries, it is anticipated that it will soon gain a huge prominence owing to changing millennials approach to commuting. Furthermore, increasing government initiatives to encourage telematics services in their respective countries and rising consumer demand for high connectivity and intelligence within their vehicles is contributing to the market growth.
However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Based on components, the global insurance telematics market has been divided into hardware and software. The software segment captured the largest share of the global market because of connectivity and network bandwidth requirements are always changing, the software component is becoming increasingly important commercially.
Based on the organization size, the market is segmented into on-premise and cloud. The on-premise segment dominated the market, and it is predicted to continue to rise steadily over the forecast period. Because telematics and UBI are so important in the auto insurance industry, on-premise implementation provides real-time data. Because the number of connected automobiles is predicted to rise in the near future, on-premise deployment is expected to meet connection requirements such as software upgrades and turnaround time. As a result, the telematics industry's on-premise service and deployment will remain dominant during the projected period.
End User Segment
Based on the end user, the market is segmented into passenger vehicle and commercial vehicle. In the year 2020, the passenger vehicle segment dominated the market. Telematics companies are involved in the management of a fleet of insured cars as part of a digital supply chain. As a result, profitable prospects in fleet management for passenger vehicles are predicted in the near future. To conduct a claim transaction inside a UBI service model, custom-designed apps for passenger automobiles are responsive and interactive.
North America is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the insurance telematics market in this region is mostly ascribed to the presence of key players, technological advancements, and the huge demand for interconnected devices. The insurance companies in this region have been rapidly adopting cloud solutions and shifting data and applications to the cloud network. However, the growth in Asia Pacific region is likely due to the increase in adoption of telematics and IoT technologies that depend on third party mobile devices is highly witnessed in these markets.
The major players of the global insurance telematics market are TOMTOM Telematics, Trimble Navigation, Verizon Enterprise Solutions, Mix Telematics, Sierra Wireless, Octo Telematics, Masternaut Limited, Agero Inc., Aplicom OY Telogis, Allstate Insurance, Aviva, Davis Instruments, Meta Systems and General Motors. In addition, the previously recognized as well as new market players are approaching the market with advanced and new strategic solutions and to remain competitive in the global market.