The global insurance telematics market size was predicted to reach over USD 1.9 billion in 2020 and projected to grow at a CAGR of 19.3% over the forecast period 2021-2028.
Telematics (or a telematics system) is a technology that collects information about your driving habits and mileage. Insurers frequently employ telematics data to deliver individualised driving feedback, safe-driving rewards, or potential cost savings on auto insurance plans for safe driving.
Using Telematics motor insurance or UBI, insurance companies will understand the car owner's risk profile based on the distance travelled, the vehicle's average speed, frequency of use, and overall driving skills. This information is used to determine the correct premium. As a result, a safe driver will pay a lesser premium than someone who drives erratically and frequently, increasing the chances of an accident and, as a result, a claim.
An growth in the number of laws and regulations connected to driver safety, as well as decreasing connectivity solution costs, are likely to boost the market. Market growth is being accelerated by technological advancements in the automobile insurance industry, which are assisted by the integration of telematics technology. In addition, in the worldwide general insurance sector, insurance telematics and Usage Based Insurance (UBI) have carved out a niche.
Market trends such as carpooling, vehicle sharing, and ridesharing have gained traction in recent years. Carpooling has a low acceptance rate in developed countries, but as millennials' attitudes toward commuting shift, it is projected to gain a lot of traction in the near future. Additionally, rising customer demand for high connectivity and intelligence in their vehicles, as well as enhanced government efforts to promote telematics services in their respective countries, are driving market expansion.
The report also emphasizes several distinctiveness of the global insurance telematics industry by valuing the market from value chain breakdown. Moreover, the report encompasses numerous qualitative features of the insurance telematics industry which comprises market restraints, drivers, as well as key industry opportunities. Furthermore, the report offers an inclusive evaluation of the company profiling along with the market rivalry of local and global vendors.
The insurance telematics market has tough competition among the new emerging and pre-established market vendors. Besides, the insurance telematics industry vendors are trying to capture the prospective markets to grab a competitive advantage over the remaining industry vendors. To capture the market, market players are forming agreements, acquiring other companies & startups, mergers & acquisitions, partnerships & collaboration, and escalating their business existence.
The market is divided into two categories based on the end use: passenger vehicles and commercial vehicles. The passenger vehicle sector dominated the market in 2020. As part of a digital supply chain, telematics businesses are involved in the administration of a fleet of insured cars. As a result, fleet management for passenger vehicles is expected to be profitable in the near future. Custom-designed apps for passenger autos are responsive and engaging for conducting a claim transaction inside a UBI service model.
North America led the market in 2020, and it is predicted to continue to do so throughout the forecast period. This dominance is fueled by the presence of major players, technological advancements, and a strong demand for interconnected services. North American insurance companies have been eager to adopt cloud technology and shift apps and data to the cloud. Insurance companies are significantly relying on the cloud network to maintain a competitive advantage by adopting cutting-edge technologies and setting themselves apart from competitors.
The major players of the global Insurance Telematics market are Agero Inc., Aplicom, Intelligent Mechatronic System, Masternaut Ltd., Meta System S.p.A, MiX Telematics Ltd., Octo Telematics S.p.A, Sierra Wireless Inc., TomTom Telematics BV, TRIMBLE INC., and others. Renowned companies are offering new and modern Insurance Telematics software solutions. In addition, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.
Segment Overview of Global Insurance Telematics Market
Component Overview, 2019-2028 (USD Billion)
Deployment Mode Overview, 2019-2028 (USD Billion)
End Use Overview, 2019-2028 (USD Billion)
- Passenger Vehicle
- Commercial Vehicle
Regional Overview, 2019-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- Rest of South America