Electric Vehicle Insurance Market Forecast 2031 | Share and Size
The electric vehicle insurance market size is expected to grow from US$ 52.3 billion in 2023 to US$ 243.5 billion by 2031; it is anticipated to expand at a CAGR of 21.2% from 2024 to 2031. The market's expansion can be attributed to several key factors, including the rising demand for convenient and environmentally friendly transportation solutions. Additionally, there is a global trend towards sustainability and a reduction in carbon emissions, which is further fueling the electric vehicle insurance market growth.
Electric Vehicle Insurance
Market Analysis
The electric vehicle insurance market growth is driven by the increasing adoption of electric vehicles. The growing embrace of EVs by consumers, propelled by environmental awareness, government incentives, and technological advancements, has resulted in a surge in demand for customized insurance products that cater specifically to the unique requirements of electric vehicle owners.
Electric Vehicle Insurance
Industry Overview
- Electric vehicle insurance refers to insurance coverage specifically designed for electric vehicles (EVs). As the adoption of EVs continues to surge, there is a growing need for insurance products that cater to the unique requirements of electric vehicle owners.
- The cost of electric vehicle insurance can vary depending on several factors, including the specific model of the EV, the driver's history, claims history, driving experience, location, coverage choices, deductible amount, and credit-based insurance score.
- Insuring an electric vehicle can be more expensive compared to insuring a conventional vehicle. This is primarily due to the higher MSRP (Manufacturer's Suggested Retail Price) of electric vehicles and the potentially higher repair costs associated with their advanced technology features.
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Electric Vehicle Insurance Market: Strategic Insights
Market Size Value in US$ 52.3 billion in 2023 Market Size Value by US$ 243.5 billion by 2031 Growth rate CAGR of 21.2% from 2024 to 2031 Forecast Period 2024-2031 Base Year 2024
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Electric Vehicle Insurance Market: Strategic Insights
| Market Size Value in | US$ 52.3 billion in 2023 |
| Market Size Value by | US$ 243.5 billion by 2031 |
| Growth rate | CAGR of 21.2% from 2024 to 2031 |
| Forecast Period | 2024-2031 |
| Base Year | 2024 |
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Electric Vehicle Insurance
Market Drivers and Opportunities
Growing adoption of electric vehicles (EVs) to Drive the Electric Vehicle Insurance
Market Growth
- The electric vehicle insurance market is experiencing significant growth due to the increasing adoption of electric vehicles. This trend is driven by factors such as environmental awareness, government incentives, and technological advancements. As more consumers embrace EVs, there is a growing demand for insurance products that cater to the unique needs of electric vehicle owners. These needs include coverage for battery replacement costs and charging infrastructure damage, prompting the development of specialized insurance policies.
- Furthermore, the global shift towards sustainability and reduced carbon emissions is motivating consumers to choose EVs, creating a substantial market for insurers to serve environmentally conscious drivers. Government regulations, including tax credits and rebates for EV owners, further encourage the transition to electric vehicles and, consequently, the need for EV insurance.
- With the expansion and maturation of the EV market, competition among insurance providers is intensifying, leading to the introduction of innovative coverage options and competitive pricing. This competition ultimately drives the growth of the EV insurance market.
Electric Vehicle Insurance
Market Report Segmentation Analysis
- Based on coverage type, the electric vehicle insurance market forecast is segmented into first party liability coverage, third party liability coverage, and comprehensive.
- The third party liability coverage segment is expected to hold a substantial electric vehicle insurance market share in 2023. The growth of the third party liability coverage segment is strongly influenced by the requirement of third-party liability coverage mandated by the Motor Vehicles Act. This coverage is compulsory for both new and existing vehicle owners during the registration process, serving as a key driver for market expansion. Additionally, the mandatory nature of third-party insurance compels all non-life insurance companies to offer this coverage, contributing significantly to the overall growth of the market on a global scale.
- Moreover, the implementation of digitalized workplaces and streamlined operations, combined with enhanced performance, is anticipated to bring new electric vehicle insurance market trends.
Electric Vehicle Insurance
Market Share Analysis by Geography
The scope of the electric vehicle insurance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific is experiencing rapid growth and is anticipated to hold a significant electric vehicle insurance market share in 2023. The rapid electrification of passenger and commercial transport, particularly in China, Japan, South Korea, and India, is expected to drive the growth of the global EV insurance market. In China, the government's initiatives to limit conventional car sales, coupled with the development of EV infrastructure and connectivity, are accelerating the adoption of EVs and increasing the demand for EV insurance. Similarly, the increasing penetration of EVs in developing economies like India is anticipated to boost the demand for this type of insurance in the coming years. These factors, combined with the mandatory requirement of third-party liability coverage under the Motor Vehicles Act, create a favorable environment for the growth of the EV insurance market in the region.
Electric Vehicle Insurance
Market Report Scope
The "Electric Vehicle Insurance Market Analysis" was carried out based on coverage type, distribution channel, application, and geography. Based on coverage type, the market is segmented into first party liability coverage, third party liability coverage, and comprehensive. Based on distribution channel, the market is segmented into insurance companies, banks, insurance agents/ brokers, and others. Based on application, the market is segmented into new vehicles and used vehicles. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Electric Vehicle Insurance
Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the electric vehicle insurance market. A few recent key market developments are listed below:
- In April 2023, the prominent Chinese electric vehicle (EV) company BYD acquired Yi'an P&C Insurance Co. This strategic move reflects BYD's intent to expand its operations in the insurance sector and potentially capitalize on synergies between the EV industry and the insurance market.
[Source: BYD, Company Website]
- In September 2022, Singlife, in collaboration with Aviva, commenced offering coverage for electric vehicles (EVs) as part of its car insurance policies, featuring exclusive discounts for EV owners. Singlife emerges as one of the select local providers offering tailored insurance solutions for EVs in line with Singapore's efforts to foster a sustainable land transport hub and expand its EV ecosystem. The Singlife Car Insurance will grant a 10% Go Green discount specifically for EV owners. Additionally, Singlife will extend EV-specific peripheral services, including arranging replacement EVs in case of accidents and providing breakdown assistance for instances of insufficient battery power. Notably, Singlife's comprehensive coverage will encompass insurability for accidental damage to charging cables, batteries, and private charging stations, thus instilling a greater sense of security for EV owners. Presently, Singlife Car Insurance encompasses a wide range of EV classes available for purchase in Singapore.
[Source: Singlife, Company Website]
Electric Vehicle Insurance
Market Report Coverage & Deliverables
The market report on “Electric Vehicle Insurance Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Coverage Type, Distribution Channel, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The electric vehicle insurance industry has experienced significant growth in recent years, primarily driven by the increasing focus on sustainability and the expansion of eco-friendly modes of transportation, which are among the major factors that propel the global electric vehicle insurance market.
The electric vehicle insurance market size is expected to grow from US$ 52.3 billion in 2023 to US$ 243.5 billion by 2031; it is anticipated to expand at a CAGR of 21.2% from 2024 to 2031.
The emergence of EV-specific insurance policies is impacting electric vehicle insurance, which is anticipated to play a significant role in the global electric vehicle insurance market in the coming years.
The key players holding majority shares in the global electric vehicle insurance market are HDFC ERGO, Beinsure Digital Media, Bajaj Allianz General Insurance Company, Lemonade, Inc., and AXA.
The global electric vehicle insurance market is expected to reach US$ 243.5 billion by 2031.
- HDFC ERGO
- Beinsure Digital Media
- Bajaj Allianz General Insurance Company
- Lemonade, Inc.
- Allstate Insurance Company
- AXA
- ACKO GENERAL INSURANCE LIMITED
- Esure Group plc
- Allianz SE
- Progressive Casualty Insurance Company
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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