Market Definition
In order to track the real-time driving behavior of drivers telematics insurance is a solution used by motor insurance companies and accordingly decide their policy premiums. It works by setting up a device, known as a Black Box, in the vehicle, which monitors & stores its different parameters like speed, braking pattern, driving style, distance, and the type of road one travels. Telematics insurance is a potential system to evaluate the ongoing situation of motor insurance and positively impact policy claims, risk selection, & fraud detection. Numerous research & developments are being conducted toward expanding its utilization globally.
Market Insights
The Global Telematics Insurance Market is anticipated to grow at a CAGR of around 34% during the forecast period, i.e., 2023-28. Reduced costs of connected car solutions, stringent norms imposed by governments of different countries worldwide associated with driver safety, growing consumer inclination toward in-car connectivity, and the mounting penetration of smartphones worldwide are the prime aspects likely to drive the market through 2028. Besides, various technological advancements in the automotive insurance sector, such as the integration of telematics into vehicles are also fueling the market growth.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 34% |
| Regions Covered | North America: USA, Canada, Mexico |
| South America: Brazil, Argentina | |
| Europe: The UK, Germany, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia | |
| Middle East & Africa: Saudi Arabia, UAE, South Africa | |
| Key Companies Profiled | Octo Group SpA, Insurance Mobility Solutions, Agero Inc, Webfleet Solutions BV, Verizon Communications Inc, AXA Group, The Progressive Corporation, Amodo Ltd, Cambridge Mobile Telematics, Generali Group, The Floow Limited, TrueMotion Inc, Insurethebox Ltd, Insure Telematics Solutions, CalAmp Corp |
| Unit Denominations | USD Million/Billion |
Automotive telematics aid in improving driving behavior & road safety, positioning insurance premiums with actual requirements through UBI (Usage-Based Insurance), and enhancing the profitability of motor insurance companies. Besides insurance & road safety improvements, telematics offers added benefits to individuals, governments, & organizations, including driving-style improvements to foster fuel economy, location-based services like real-time tracking, vehicle maintenance alerts, & recovery of stolen vehicles, among others.
The mounting demand of customers for extraordinary connectivity & intellect in their vehicles and several government initiatives for encouraging telematics services in their respective countries would create profitable prospects for the market in the coming years. Furthermore, low policy premiums and providing personalized & value-added services in insurance to effectively suffice consumer requirements are other prominent advantages of telematics insurance that would fuel the expansion of the industry during 2023-28.
