North America Automotive Usage-Based Insurance (UBI) Market 2027 By Technology Fitted, and Policy Type

Automotive UBI market in North America is expected to grow from US$ 7.24 Bn in 2018 to US$ 44.45 Bn by the year 2027 with a CAGR of 22.4% from the year 2019 to 2027.

The increase in Acceptance of Mobility-as-a-Service (MaaS) is fueling the growth of the Automotive Usage-Based Insurance market. Moreover, the increase in collaborations among telematics companies and insurance companies is anticipated to boost Automotive UBI market growth in the forecast period. Mobility-as-a-Service aims to provide consumer an end-to-end transportation with the use of different modes of transportation, thereby, making substantial use of the existing transportation infrastructure in an area. The increasing traction of MaaS among the consumers is leading the third party service providers to procure increased count of vehicles to enhance the customer experience. This factor is also increasing the number of service providers across the globe; some of the prominent mobility-as-a-service providers are Uber, Lyft, Zipcar, Car2go, Beeline Singapore, UbiGo AB, and Smile Mobility among others. The increasing procurement of vehicles by these car service providers is further influencing the telematics technology providers (TTP), telematics service providers (TSP), and auto insurers to develop advanced insurance solutions. Moreover, several telematics providers and insurance companies are partnering with each other to introduce advanced and robust insurance solutions. This is expected to ramp up the market growth of telematics insurance or automotive UBI.

The smartphone segment is expected to be one of the leading technology with the highest market share in the North America Automotive UBI market during the forecast period. A smartphone app can have powerful GPS and accelerometer competences. The app offers a compelling interface for the insurance provider to communicate with the customer and provide other services including, weather updates, traffic reports, and breakdown services. Generally, customers are more comfortable to use smartphone apps, although OBDII devices are easier to install. Smartphone apps are suitable for insurance providers that are targeting particular groups hence, acquiring niche market share. As their UBI business grows, insurance providers may invest in OBDII and offer this on a long-term basis to specific customer segments.

The US dominated the Automotive UBI market in 2018 and is anticipated to lead the market across the North American region through the forecast period, followed by Canada. The figure given below highlights the revenue share of the Canada in the North American Automotive UBI market in the forecast period:

Canada Automotive UBI Market Revenue and Forecasts to 2027 (US$ Bn)

NORTH AMERICA AUTOMOTIVE UBI MARKET SEGMENTATION

By Technology Fitted

• Smartphones• Black Box • Dongles• Others

By Policy Type

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

By Country

• U.S.
• Canada
• Mexico

Automotive UBI Market - Companies Mentioned

• Allstate Insurance Company• Allianz SE • Metromile, Inc.• Octo Telematics S.p.A• Vodafone Automotive S.P.A.• AXA SA• Liberty Mutual Insurance Company• TomTom Telematics BV• Sierra Wireless, Inc.• Unipolsai Assicurazioni S.p.A.

North America Automotive Usage-Based Insurance (UBI) Market Report Scope