Dublin, March 04, 2025 (GLOBE NEWSWIRE) — The “Usage-Based Insurance Market Strategic Trends and Opportunities, by Type (Pay-as-You-Drive, Pay-How-You-Drive, and Manage-How-You-Drive), Hardware (Smartphones and Telematics), and Region (North America, Europe and Asia Pacific) – Global Forecast 2030” report has been added to ResearchAndMarkets.com’s offering.
The usage-based insurance market is projected to reach USD 70.46 billion by 2030 from USD 43.38 billion in 2024, at a CAGR of 7.2% during the forecasted period.
The affordability and low premium compared to traditional insurance is driving the UBI market. In regional trend, the UBI adoption is high in North America and Europe, whereas it is rising slowly in Asia Pacific region due to growing awareness for road safety. Also, the automakers are restricted to Europe and US are entering into UBI business to develop a new revenue stream by calculating UBI premiums in-house.
The usage-based insurance is dominated by global players such as Octo Group S.p.A (Italy), Cambridge Telematics (US), Lexis Nexis (US), The Floow (UK), Allianz (Germany), AXA (France), Zurich (Switzerland), Liberty Mutual Insurance (US), Allstate Insurance Company (US), and Farmers Insurance (US). These companies adopted strategies such as product developments, deals, and others to gain traction in the market.
Smartphones holds the largest market in hardware for UBI
Smartphone dominates the hardware segment due to its widespread adoption and affordability across the globe. In the older vehicles the OBD-II devices were preferred device for calculating the UBI premiums. Going ahead, as the technology advanced the adoption for smartphone increased due to digital UBI application which was accessible on smartphones to which the vehicle owner started opting for smartphones instead of OBD-II device as it saved the installation cost in the vehicles.
Hence due to increase in adoption for smartphones, the market for OBD-II device is lowering gradually and are limited to only older vehicles. Adding more, the smartphone is user friendly to monitor their driving habits, receive real-time feedback, and earn rewards for safe behavior. Hence due to these factors the market for smartphones is high and will dominate the market in coming future.
PHYD type segment is the second fastest growing market for UBI
Pay-How-You-Drive (PHYD) type service usually leverages embedded telematics and smartphones for calculating personalized UBI premiums. The adoption for PHYD has increased as customers are ready to share their personal data to the insurance company due to strict regulation in Europe and North America for data privacy and transparency such as GDPR and CCPA respectively.
The PHYD utilizes real-time driving data for formulating UBI policy by tracking parameters such as cornering, speed, acceleration, braking, phone distraction etc to calculate the UBI premium. Hence as the demand for connected car increases, the demand for PHYD will increase across the globe ultimately driving the market for PHYD type.
Asia Pacific is the fastest growing market during the forecast period
Asia Pacific is an emerging market for Usage based insurance with the widespread adoption for smartphone and built-in telematics device fuelling the demand for UBI program. The UBI Insurer companies are adhering to the regulations for data privacy and transparency which was set by the governing bodies by each country respectively. In Asia Pacific, China holds the largest market for UBI penetration due to high sales of EVs, creating a bigger market for implementing UBI insurance.
For increasing the adoption for UBI in APAC region, key players in insurance are actively partnering with other insurance companies. For instance, In August 2023, Citroen (India) had launched a Usage-based insurance program in partnership with ICICI Lombard General Insurance (India) for Pay-As-You-Drive type policy specifically for their model eC3. This initiative encourages safe driving practices by lower the UBI insurance premiums based on individual driving behaviour monitored through telematics. Hence these developments in Asia Pacific region are driving the market for usage-based insurance.
Research Coverage
This research report categorizes usage-based insurance by type [Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD)] and by hardware (OBD-II, smartphone, and embedded telematics box), and by Region (Asia Pacific, Europe, and North America).
The report’s scope covers detailed information regarding the major factors, such as influencing factors for the growth of the usage-based insurance market. A detailed analysis of the key industry players has been done to provide insights into their business hardware and UBI parameters tracked, drivers & restraining factors, laws and regulation trend globally, data pointers collected from connected car and its hardware, UBI market ecosystem, regional market landscape.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 65 |
| Forecast Period | 2024-2030 |
| Estimated Market Value (USD) in 2024 | $43.38 Billion |
| Forecasted Market Value (USD) by 2030 | $70.46 Billion |
| Compound Annual Growth Rate | 7.2% |
| Regions Covered | Global |
Key Topics Covered
1 Executive Summary
1.1 Global UBI Penetration
1.2 Global Connected Vehicle Regulations Impacting UBI
1.3 Ecosystem for UBI Market
1.4 Market Trends and Technologies
2 Study Objectives, Scope, and Methodology
2.1 Study Objectives and Methodology
2.2 Study Scope
3 Types of UBI and Hardware
3.1 Types of UBI Programs
3.2 Parameters Tracked by Various UBI Types
3.3 Hardware Types of UBI Programs
3.4 Data Collected by Various UBI Hardware
4 Drivers and Restraints
4.1 Drivers and Restraints for UBI Market
4.2 OEM Business Model
5 Market Landscape
5.1 Global UBI Penetration and Average Premium, 2023-2030
5.2 Global UBI Market, by Type, 2023-2030
5.3 Global UBI Market, by Hardware, 2023-2030
5.4 North America: UBI Penetration and Average Premium, 2023-2030
5.5 North America: UBI Market, by Type, 2023-2030
5.6 North America: UBI Revenue, by Hardware, 2023-2030
5.7 Europe: UBI Penetration and Average Premium, 2023-2030
5.8 Europe: UBI Revenue, by Type, 2023-2030
5.9 Europe: UBI Revenue, by Hardware, 2023-2030
5.10 Asia-Pacific: UBI Penetration and Average Premium, 2023-2030
5.11 Asia-Pacific: UBI Revenue, by Type, 2023-2030
5.12 Asia-Pacific: UBI Revenue, by Hardware, 2023-2030
6 Company Profiling
6.1 Global Tsp Players
6.1.1 Lexisnexis
6.1.2 Octo Group S.p.A
6.1.3 Cambridge Mobile Telematics
6.1.4 The Floow Limited
6.1.5 Insurance & Mobility Solutions (IMS)
6.2 UBI Insurance Providers from Europe
6.1.1 Allianz
6.1.2 AXA
6.1.3 Zurich
6.3 UBI Insurance Providers from North America
6.1.1 Liberty Mutual Insurance
6.1.2 Allstate Insurance
6.1.3 Farmers
6.4 UBI Insurance Offered by OEMs
6.1.1 Tesla
6.1.2 Mercedes-Benz
7 Appendix
7.1 Forecast Assumptions for UBI, 2023-2030
8 About the Analyst
For more information about this report visit https://www.researchandmarkets.com/r/73ogbf
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- Usage-Based Insurance Market
