[ad_1]
Download Free Sample: https://www.datamintelligence.com/download-sample/usage-based-insurance-market
Market Dynamics
Rising Road Accidents and Connected Cars Drive Usage-Based Insurance (UBI) Market Growth
The increasing number of road accidents is expected to fuel the growth of the usage-based insurance (UBI) market during the forecast period. According to the World Health Organization (WHO), approximately 1.35 million people die in road traffic crashes each year, while 2050 million people suffer non-fatal injuries, many of which result in long-term disabilities. In some countries, road traffic accidents cost up to 3% of their gross domestic product (GDP).
A key driver of UBI adoption is the growing popularity of on-board diagnostics (OBD) dongles. In 2020, around 27 million vehicles were equipped with OBD dongles, creating a $475 million annual market for manufacturers a figure expected to rise, further accelerating UBI market expansion.
Additionally, the increasing number of passenger car registrations is expected to contribute to market growth. Industry data shows that approximately 5,934,450 cars were registered in January 2021. The rise of connected vehicles presents new opportunities for UBI, enabling insurers to offer personalized policies based on real-time driving data.
However, privacy concerns regarding mileage and behavior tracking in UBI programs remain a challenge. Some states have implemented legislation requiring transparency in tracking practices, and certain insurers limit the data they collect. Despite these concerns, consumer willingness to share driving data is growing, driven by the widespread adoption of connected devices such as smartphones, GPS systems, and social media platforms. As technology advances and regulatory frameworks evolve, the UBI market is poised for significant expansion.
Market Segments
By Type (Pay-as-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD), Distance-Based Insurance, Others)
By Vehicle Type (Passenger Vehicles, Commercial Vehicles)
By Technology (OBD I-II, Smartphones, Black Box, Hybrid, Others)
By Application (IoT Based Fleet Management, Semi-Autonomous & Autonomous Car, Artificial Intelligence and HMI in Transportation, Others)
By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa)
Read Our Report: https://www.datamintelligence.com/research-report/usage-based-insurance-market
Market Regional Share
North America Leads the Usage-Based Insurance Market, While APAC Sees Rapid Growth
North America holds the largest market share in the usage-based insurance (UBI) sector for cars, driven by the increasing adoption of connected vehicles. The U.S. dominates the regional market, and by 2035, over 330 million vehicles in the country are expected to be connected to the internet either through embedded systems, tethered connections, or smartphone integration. The U.S. is projected to have the highest penetration rate of connected vehicles at approximately 97%, further fueling UBI market growth.
Meanwhile, the Asia-Pacific (APAC) region is expected to be the fastest-growing UBI market during the forecast period. This growth is driven by the expansion of major automotive manufacturing companies and the rising number of road accidents. China, the worlds largest automobile market in both supply and demand, saw vehicle registrations decline to 21 million units in 2019. However, registrations are projected to rebound, further supporting market expansion.
Additionally, Europe and other regions are expected to contribute significantly to UBI market growth due to increasing government regulations promoting telematics-based insurance models. These global trends highlight the growing role of connected vehicles and data-driven insurance solutions in shaping the future of the automotive insurance industry.
Key Market Players
Key players are Cambridge Mobile Telematics, Allianz SE, AXA, Aviva, Allstate Corporation, Insure The Box Limited, Liberty Mutual Insurance, Progressive corporation, UNIPOLSAI ASSICURAZIONI S.P.A, Nationwide Mutual Insurance Company.
[ad_2]
Source link
