The study involved analyzing the UBI market trend, regualtions, and the recent development by the TSP and insurer and automakers to determin the UBI market for 2023 with a forecast projection till 2030. The study is also based on data collected by OEMs from connected cars. Subsequently, these findings, along with assumptions, were corroborated and validated through primary research involving industry experts across the value chain. Employing bottom-up methodology, the complete market size was estimated. Following this, a market breakdown and data triangulation approach were utilized to determine the size of specific segments and subsegments within the market.
Secondary Research
The secondary sources referred for this research study include automotive OEMs, Tier I/II companies, and publication from government sources, automotive associations & databases: [such as country level automotive associations and organizations, International Energy Agency (IEA), MarkLines and others] trade, business, and automotive associations. Secondary data has been collected and analysed to arrive at the overall sales volume.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews have been conducted to gather insights such as Usage-Based Insurance market sizing estimation and forecast.
Note: *Others include sales managers, marketing managers, and product managers.
UBI policy providers are companies that provide UBI packages/programs, while UBI technology providers are companies that provide UBI apps/hardware to UBI providers and OEMs.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
As mentioned below, a detailed market estimation approach was followed to estimate and validate the value and volume of the usage-based insurance market and other dependent submarkets
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The bottom-up approach was used to estimate and validate the light duty vehicles unit market size. The country-level sales for light duty vehicles (Car, SUVs, Pickup Trucks, Vans, MPVs and Minivans) were referred from country-level manufacturing associations and secondary sources (company publications, articles, etc.).
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The sales forecast for this vehicle type is based on factors such as country-wise macroeconomic indicators, emission regulations, growth in the automotive industry, GDP growth, and government spending.
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The UBI premiums for new and VIO was calculated by reducing certain percentage from the traditional insurance form each country and forecasted accordingly.
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The UBI policy adoption rate for each country was referred to from the secondary sources and then validated through primary interviews and industry experts.
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The UBI adoption rate was then multiplied with the unit sales of light duty vehicles by country to get the unit shipment at the country level.
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The country level UBI shipment was then multiplied by the country-level average selling price (ASP) of UBI policy to get the revenue for each country .
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The summation of the country-level market would give the global unit shipment for UBI in terms of million and revenue in terms of billion .
Market Definition
As per the National Association of Insurance Commissioners (NAIC), usage-based insurance (UBI) is a type of auto insurance that tracks mileage and driving behavior. UBI is often powered by in-vehicle telecommunication devices (telematics)—technology that is available in a vehicle and is self-installed using a plug-in device or already integrated into the original equipment installed by car manufacturers. It can also be available through mobile applications. The basic idea of UBI is that a driver's behavior is monitored in real time, allowing insurers to align driving behavior more closely with premium rates.
Stakeholders
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Automotive OEMs
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Technology Service Providers
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Automotive insurance providers
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Telematics Technology Providers (TTP)
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Aftermarket Telematics Providers
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Technology investors
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National and Regional Environmental Regulatory Agencies or Organizations
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Technology standards organization, forum, alliances, and associations
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Agents and brokers of usage usage-based insurance market
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Regional Automobile Associations
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Telematics device suppliers for OEMs and Automotive Tier
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Traders, distributors, and suppliers of telematics components and raw material suppliers
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Organized and unorganized aftermarket suppliers of telematics devices
Report Objectives
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To define, describe, and forecast the usage-based insurance market, in terms of unit shipment (Million) and revenue (USD billion), based on the following segments:
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By type [Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD)]
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By hardware [OBD-II, smartphones, and embedded telematics box].
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By region {Asia Pacific, North America, and Europe}
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To understand the market dynamics (drivers and restraints), regulatory analysis, and ecosystem analysis.
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To strategically analyze markets with respect to individual growth trends, prospects, and contributions to the total market
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To understand how data is tracked from the connected cars.
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Company profiling of TSP, OEMs and Insurance providers with details to what hardware they use for tracking and what parameters do they track.
HIGHEST CAGR MARKET IN 2024-2030
US FASTEST GROWING MARKET IN THE REGION
Genelia
Jul, 2022
We are reviewing different Usage-Based Insurance scenarios, as part of the strategy for this topic we are looking for a strategic partner to help us understand how to introduce UBI solutions in the Mexican market. We would like to know and understand the needs of the Mexican market to enter with UBI solutions, here are a couple of points that we would like to know: 1. Evaluate the Mexican UBI market opportunity 2. Understand the Mexican personal auto insurance market 3. Understand Mexican personal line insurance companies’ key needs and challenges 4. Identify opportunities for telematics in the personal line market 5. Understand the Mexican commercial auto insurance market 6. Understand Mexican commercial line insurance companies’ key needs and challenges 7. Identify opportunities for telematics in the commercial line market.
Laura
Jul, 2022
Usage-Based Insurance Market report was published and updated early last month and is the most updated market report available with us on the Usage-Based Insurance Market. The report breaks-down the market size and growth forecast for ICE vehicles and for Battery Electric Vehicle (BEV), Plug-in Hybrid Vehicle (PHEV) and Fuel-cell Electric Vehicle (FCEV), further broken down by 1) By Package Type: Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD) 2) By Technology: OBD-II, Smartphone, Black Box, Embedded, Other technologies 3) By Vehicle Type: Light-duty Vehicle (LDV), Heavy-duty Vehicle (HDV) 4 By Vehicle Age: New Vehicle, Old Vehicle 5) By Device Offering: Bring Your Own Device (BYOD), Company Provided Market share analysis of top players, including their business and service portfolio, last three year financials, contracts awarded, organic and in-organic growth strategies, SWOT analysis, key investments, and MnM view point of each company, is covered for all global and regional players..