Global Telematics Insurance

Global Telematics Insurance Market Research Report: Forecast (2023-2028)

By Deployment Type (Cloud, On-Premises), By Offering (Hardware, Software), By Type (Pay-as-you-drive, Pay-how-you-drive), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By End-Use Read more

  • ICT & Electronics
  • Nov 2022
  • 211
  • IT44003

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 CorpOcto 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.

Market Segmentation

Based on Deployment Type:

  • Cloud
  • On-Premise

Of both, Cloud-based deployment is more likely to witness an upward demand trend in the Global Telematics Insurance Market. The growing integration of the Internet of Things (IoT) into vehicles is the prime aspect propelling the utilization of cloud-based solutions in telematics insurance. With soaring preferences toward cloud platforms & innovative practices in the automotive sector, most market players are now offering cloud-based UBI services.

Cloud-based telematics insurance also provides insights into various risks related to driving patterns, which can help keep track of the vehicle's running activity. Additionally, it incurs lesser data storage costs than On-Premise deployment, i.e., another crucial aspect projected to fuel the adoption of these services and propel the overall growth of the telematics insurance market in the coming years.

Based on Type:

  • Pay-As-You-Drive (PAYD)
  • Pay-How-You-Drive (PHYD)

Here, PHYD (Pay-How-You-Drive) model is expected to witness a rapidly rising demand during 2023-28. PHYD, also known as Black Box insurance, uses real-time driving data like cornering, speed, & distracted driving, among others, to more accurately compute premiums. It highly varies from conventional motor insurance policies since, with PHYD, the policy premium relies entirely upon the driving pattern while comprising other facilities like vehicle theft & roadside assistance. Moreover, it offers impressive discounts & frequent rewards for decent driving behavior.

The burgeoning demand for PHYD insurance models is primarily due to automotive manufacturers actively developing faster & more powerful vehicles that are connected & some of them even have autopilot modes. Because of this, insurance providers are offering newer & upgraded policies by swiftly adopting advanced technologies & seeking ways to reduce costs to promote the emerging connected cars sector. Many players across different nations like the United States, Canada, Japan, Germany, & France, among others, have now begun utilizing PHYD telematics to efficiently tackle the insurance costs for fleets like public transportation, driving schools, government & commercial, etc. Hence, based on these aspects, PHYD insurance offerings are projected to grab significant momentum at the global level over the coming years.

Regional Projection:

Geographically, the Global Telematics Insurance Market expands across:

  • North America
  • South America
  • Europe
  • Middle East & Africa
  • Asia-Pacific

Of them, Europe & North America are the largest Telematics Insurance Markets. Stringent regulations for insurance providers to deploy telematics devices in vehicles are driving the Europe Telematics Insurance Market, mainly in Italy & the UK. Italy-based companies use Black Box & smartphone application telematics to examine driving patterns. The data generated is used for formulating risk modes, which, as a result, leads to cost-effective policy premiums for customers, especially the young generation, as premium prices for them are significantly high. Furthermore, mobile apps with ADAS (Advanced Driver Assistance Systems) technologies are a crucial headway for fleet management in Italy since it has been facing a few challenges over the past few years. Hence, the above-cited aspects project remunerative opportunities for the telematics insurance market across Europe over the forecast years.

On the other front, with the vast presence of leading market players, rapid technological advancements, and tremendous demand for interconnected services in vehicles, North America is another notable contributor to the telematics insurance market growth. Automotive insurance providers across the region are increasingly adopting cloud-based solutions and shifting applications & data to the cloud network in order to stay ahead in a highly competitive market. Moreover, the mounting adoption of Mobility-as-a-Service and increasing collaborations between OEMs, insurers, and telematics providers across the US & Canada are other crucial aspects driving the regional market.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Telematics Insurance Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Telematics Insurance Market?
  4. Who are the key competitors, their strengths & weaknesses, and how do they perform in the Global Telematics Insurance Market based on competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Global Telematics Insurance Market study?

Frequently Asked Questions

A. The Telematics Insurance Market is projected to grow at a CAGR of around 34% during 2023-28.

A. The growing consumer inclination toward in-car connectivity and stringent norms imposed by governments of different countries worldwide associated with driver safety are the most prominent aspects projected to drive the Telematics Insurance Market in the coming years.

A. PHYD (Pay-How-You-Drive) is anticipated to emerge as an area of remunerative opportunities for the leading players in the Telematics Insurance Market through 2028.

A. Agero Inc., Aplicom, Intelligent Mechatronic System, Masternaut Ltd., Meta System S.p.A, MiX Telematics Ltd., Octo Telematics S.p.A, Sierra Wireless Inc., Trimble Inc., Webfleet Solutions GB, Verizon Enterprise Solutions, Telogis, Admiral, Achmea, and AXA Assistance are the key companies operating in the Telematics Insurance Market.

A. Europe & North America would continue creating remunerative prospects for the Telematics Insurance Market during 2023-28.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Market Segmentation
    4. Assumptions
  2. Preface
  3. Executive Summary
  4. Impact of COVID-19 on Global Telematics Insurance Market
  5. Global Telematics Insurance Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Distribution Channel
        1. OEM
        2. Aftermarket
      2. By Device Type
        1. Smartphone
        2. On Board Device
        3. Blackbox
        4. OEM Embedded
      3. By Type
        1. Pay-as-you-drive (PAYD)
        2. Pay-how-you-drive (PHYD)
      4. By Enterprise Size
        1. Large Enterprises
        2. Small & Medium Enterprises
      5. By End User
        1. Passenger Vehicle
        2. Commercial Vehicle
      6. By Region
        1. North America
        2. South America
        3. Europe
        4. Middle East & Africa
        5. Asia-Pacific
      7. By Company
        1. Competition Characteristics
        2. Market Share & Analysis
        3. Competitive Matrix
  6. North America Telematics Insurance Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Distribution Channel
      2. By Device Type
      3. By Type
      4. By Enterprise Size
      5. By End User
      6. By Country
        1. The US Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        2. Canada Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        3. Mexico Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
  7. South America Telematics Insurance Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Distribution Channel
      2. By Device Type
      3. By Type
      4. By Enterprise Size
      5. By End User
      6. By Country
        1. Brazil Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        2. Argentina Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
  8. Europe Telematics Insurance Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Distribution Channel
      2. By Device Type
      3. By Type
      4. By Enterprise Size
      5. By End User
      6. By Country
        1. The UK Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        2. Italy Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        3. Germany Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        4. France Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        5. Spain Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
  9. Middle East & Africa Telematics Insurance Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Distribution Channel
      2. By Device Type
      3. By Type
      4. By Enterprise Size
      5. By End User
      6. By Country
        1. Saudi Arabia Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        2. UAE Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        3. South Africa Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
  10. Asia-Pacific Telematics Insurance Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Distribution Channel
      2. By Device Type
      3. By Type
      4. By Enterprise Size
      5. By End User
      6. By Country
        1. China Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        2. Japan Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        3. India Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        4. South Korea Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
        5. Australia Telematics Insurance Market Outlook, 2018-2028F
          1. Market Size & Analysis
            1. Revenues
          2. Market Share & Analysis
            1. By End User
  11. Global Telematics Insurance Market Policies, Regulations, Product Standards
  12. Global Telematics Insurance Market Trends & Insights
  13. Global Telematics Insurance Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  14. Global Telematics Insurance Market Hotspot & Opportunities
  15. Global Telematics Insurance Market Key Strategic Imperatives for Success & Growth
  16. Competition Outlook
    1. Competition Matrix
      1. Product/ Solution Portfolio
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles of Top Companies (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Octo Group SpA
      2. Insurance Mobility Solutions
      3. Agero Inc
      4. Webfleet Solutions BV
      5. Verizon Communications Inc
      6. AXA Group
      7. The Progressive Corporation
      8. Amodo Ltd
      9. Cambridge Mobile Telematics
      10. Generali Group
      11. The Floow Limited
      12. TrueMotion Inc
      13. Insurethebox Ltd
      14. Insure Telematics Solutions
      15. CalAmp Corp
  17. Disclaimer
Telematics Insurance Market Segmentation