Insurance Telematics Market Projected to Reach $13.78 Billion by 2030
The global insurance telematics market is expected to grow from $2.37 billion in 2020 to $13.78 billion by 2030, driven by increased technology adoption and industry demands. The market is projected to grow at a CAGR of 19.5%.
The global insurance telematics market was valued at $2.37 billion in 2020 and is projected to reach $13.78 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 19.5% from 2021 to 2030, according to a new report. The market is expanding due to factors such as the need for accurate pricing, risk reduction, and enhanced efficiency in policy administration, underwriting, and claims processing.
Insurance telematics, encompassing both hardware and software, provides personalized driving feedback, rewards for safe driving, and enables pay-per-mile insurance models. "Surge in adoption of advanced technologies such as OBD-II & black-box and increased deployment of telematics among insurance companies aiming at digital transformation, data personalization, and transparency of business operations are some of the major insurance telematics market trends," stated Pramod Borasi, Research Analyst, BFSI at Allied Market Research.
Regionally, Europe dominated the market in 2020 and is expected to maintain its leadership. However, the Asia-Pacific region is anticipated to experience the highest growth rate, as insurance and automotive sectors increasingly invest in telematics devices and technology to improve business efficiency and transparency.
The report identifies key players in the market, including Agero Inc., IMS, Masternaut Limited, and Verizon, who are employing various strategies to enhance their market penetration and industry position. The COVID-19 pandemic also accelerated demand for these services, as telematics-based policies showed higher retention and customer satisfaction.