Global Usage-Based Insurance Market to Reach USD 355.5 Billion by 2033, Propelled by the Exponential Growth in the Automotive Industry

January 03, 2025 | BFSI

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The latest report by IMARC, titled “Usage-Based Insurance Market Report by Type (Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD), and Others), Technology (OBD II, Black Box, Smartphones, and Others), Vehicle Type (Light-Duty Vehicle (LDV), Heavy-Duty Vehicle (HDV)), Vehicle Age (New Vehicles, Used Vehicles), and Region 2025-2033”, finds that the global usage-based insurance market size reached USD 62.4 Billion in 2024. Usage-based insurance (UBI), also known as telematics insurance, refers to a specialized automobile insurance policy where the premium is linked with the usage of the consumer’s driving behavior or usage of the vehicle. It is also used to align the driving behavior of individuals. It is generally available in pay-per-mile (PPM) and pay-how-you-drive (PHYD) formats. A wireless device is installed in the car, which transmits data to the insurer each time premium is due. In recent years, UBI has gained traction as it is more personalized, reduces the instances of road accidents, and provides better satisfaction to the policyholder compared to conventional insurance policies.

Global Usage-Based Insurance Market Trends:

One of the primary factors driving the market is the exponential growth in the automotive industry. Additionally, the extensive employment of remote diagnostics to observe consumer driving is creating a positive market outlook. Other than this, usage-based insurance provides numerous advantages, including accurate and timely data collection methods and flexible insurance premiums. Besides this, the adoption of advanced technology, such as hybrid-based UBI and smartphone-based UBI, and the increasing concerns regarding driver’s safety, are propelling the market growth. In line with this, telematics is being employed in the automotive industry to align insurance prices and improve driving behavior and road safety. Furthermore, key players are integrating advanced telematics-based platforms in light-duty vehicles (LDV) to monitor the driving habits of the consumer. Apart from this, UBI insurance almost eliminates the need for installing an additional black-box in the vehicles to record vehicular data, which is catalyzing the market growth. Looking forward, IMARC Group expects the market value to reach USD 355.5 Billion by 2033, expanding at a CAGR of 20.27% during the forecast period (2025-2033).

Market Summary:

Based on the type, the market has been divided into pay-as-you-drive, pay-how-you-drive, manage-how-you-drive, and others.
On the basis of technology, the market has been segmented into OBD II, black box, smartphones, and others.
Based on the vehicle type, the market has been segregated into light-duty vehicle (LDV) and heavy-duty vehicle (HDV).
On the basis of the vehicle age, the market has been bifurcated into new and used vehicles.
Region-wise, the market has been segregated into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
The competitive landscape of the market has also been analyzed, with some of the key players being Aioi Nissay Dowa Insurance UK Ltd, Allianz SE, Allstate Insurance Company, American International Group Inc., Assicurazioni Generali S.p.A., AXA, Liberty Mutual Insurance Company, Mapfre S.A., Progressive Casualty Insurance Company, State Farm Automobile Mutual Insurance Company, TomTom International BV. and UnipolSai Assicurazioni S.p.A. (Unipol Gruppo S.p.A).

Report Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Billion USD
Segment Coverage	Type, Technology, Vehicle Type, Vehicle Age, Region
Region Covered	North America, Asia Pacific, Europe, Latin America, Middle East and Africa
Countries Covered	United States, Canada, China, Japan, India, South Korea, Australia, Indonesia, Germany, France, United Kingdom, Italy, Spain, Russia, China, Brazil, Mexico
Companies Covered	Aioi Nissay Dowa Insurance UK Ltd, Allianz SE, Allstate Insurance Company, American International Group Inc., Assicurazioni Generali S.p.A., AXA, Liberty Mutual Insurance Company, Mapfre S.A., Progressive Casualty Insurance Company, State Farm Automobile Mutual Insurance Company, TomTom International BV. and UnipolSai Assicurazioni S.p.A. (Unipol Gruppo S.p.A)
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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Global Usage-Based Insurance Market to Reach USD 355.5 Billion by 2033, Propelled by the Exponential Growth in the Automotive Industry

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