Global Usage-based Insurance Market size was USD 40.0 billion in 2024 and is projected to reach USD 258.0 billion by 2033, with a CAGR of 22.0% during the forecast period.
The global usage-based insurance market is experiencing explosive growth, driven by increasing adoption of telematics for personalized premiums, rising demand for data-driven risk assessment in vehicles, and advancements in embedded and smartphone technologies for accurate tracking. Usage-based insurance, available in pay-as-you-drive, pay-how-you-drive, and manage-how-you-drive types, is valued for its fair pricing, behavior-based incentives, and integration with electric and hybrid vehicles like HEV, PHEV, and BEV. From 2021 to 2023, the market expanded due to heightened focus on safe driving post-pandemic, growth in connected vehicles, and innovations in OBD-II and black box devices for real-time data. Key trends include the dominance of pay-how-you-drive for its behavior focus, the prominence of OBD-II technology for ease, and the rise of passenger vehicles for urban mobility. Asia Pacific holds the largest market share, led by China due to its massive vehicle fleet and digital insurance initiatives. North America is the fastest-growing region, fueled by tech-savvy consumers and telematics integrations in the United States. Challenges such as privacy concerns, data accuracy issues, and high device costs persist, but opportunities in EV-specific insurance and emerging markets drive growth through 2033. Debates over data usage and fairness highlight the need for transparent solutions, with empathy for insurers balancing innovation and consumer trust.
Research Objective
MARKET SEGMENTATION
Scope of the Study
Key Questions Answered in the Report
Chapter 1 Research Methodology
1.1 Research Objective
1.2 Market Research Process
1.2.1 Data Procurement and Data Mining
1.2.2 Data Analysis and Standardization
1.2.3 Data Processing and Market Formulation
1.2.4 Data Validation
1.3 Market Research Approach
1.3.1 Residential Research
1.3.2 Commercial Research
1.3.3 Assumptions & Limitations
1.4 Year Considered for the Study
Chapter 2 Executive Summary
2.1 Global Usage-based Insurance Market Snapshot
2.2 Global Usage-based Insurance Market
Chapter 3 Market Variables and Scope
3.1 Introduction to Usage-based Insurance
3.2 Classification and Scope
Chapter 4 Market Dynamics and Trends
4.1 Global Usage-based Insurance Market Dynamics
4.2 Global Usage-based Insurance Market Dynamics, Impact Analysis
4.3 Market Drivers
4.3.1 Driver 1
4.3.2 Driver 2
4.4 Market Restraints
4.4.1 Restraint 1
4.4.2 Restraint 2
4.5 Market Opportunity
4.5.1 Opportunity 1
4.5.2 Opportunity 2
Chapter 5 Premium Insights
5.1 Porters Five Forces Analysis
5.1.1 Bargaining Power of Suppliers
5.1.2 Bargaining Power of Buyers
5.1.3 Threat of Substitute Types
5.1.4 Rivalry among Existing Firms
5.1.5 Threat of New Entrants
5.2 Supply Chain Analysis
5.3 Market Share Analysis of Key Players, 2024
5.4 Market Entry Strategy Assessment
5.5 Strategic Recommendation for Stakeholders
Chapter 6 Global Usage-based Insurance Market, By Type
6.1 Global Usage-based Insurance Market, By Type, 2025 - 2033
6.2 Pay-As-You-Drive
6.3 Pay-How-You-Drive
6.4 Manage-How-You-Drive
Chapter 7 Global Usage-based Insurance Market, By Technology
7.1 Global Usage-based Insurance Market, By Technology, 2025 - 2033
7.2 OBD-II
7.3 Smartphone
7.4 Black Box
7.5 Embedded Telematics
7.6 Others
Chapter 8 Global Usage-based Insurance Market, By Vehicle Type
8.1 Global Usage-based Insurance Market, By Vehicle Type, 2025 - 2033
8.2 Passenger Vehicles
8.3 Commercial Vehicles
8.3.1 Light Commercial Vehicles
8.3.2 Medium Commercial Vehicles
8.3.3 Heavy Commercial Vehicles
Chapter 9 Global Usage-based Insurance Market, By Vehicle Age
9.1 Global Usage-based Insurance Market, By Vehicle Age, 2025 - 2033
9.2 New Vehicles
9.3 Used Vehicles
Chapter 10 Global Usage-based Insurance Market, By Electric and Hybrid Vehicle
10.1 Global Usage-based Insurance Market, By Electric and Hybrid Vehicle, 2025 - 2033
10.2 HEV
10.3 PHEV
10.4 BEV
Chapter 11 Global Usage-based Insurance Market, By Region
11.1 Overview
11.2 North America
11.2.1 North America Usage-based Insurance Market, By Country
11.2.2 North America Usage-based Insurance Market, By Type
11.2.3 North America Usage-based Insurance Market, By Technology
11.2.4 North America Usage-based Insurance Market, By Vehicle Type
11.2.5 North America Usage-based Insurance Market, By Vehicle Age
11.2.6 North America Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.2.7 United States
11.2.7.1 United States Usage-based Insurance Market, By Type
11.2.7.2 United States Usage-based Insurance Market, By Technology
11.2.7.3 United States Usage-based Insurance Market, By Vehicle Type
11.2.7.4 United States Usage-based Insurance Market, By Vehicle Age
11.2.7.5 United States Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.2.8 Canada
11.2.8.1 Canada Usage-based Insurance Market, By Type
11.2.8.2 Canada Usage-based Insurance Market, By Technology
11.2.8.3 Canada Usage-based Insurance Market, By Vehicle Type
11.2.8.4 Canada Usage-based Insurance Market, By Vehicle Age
11.2.8.5 Canada Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.2.9 Others
11.2.9.1 Others Usage-based Insurance Market, By Type
11.2.9.2 Others Usage-based Insurance Market, By Technology
11.2.9.3 Others Usage-based Insurance Market, By Vehicle Type
11.2.9.4 Others Usage-based Insurance Market, By Vehicle Age
11.2.9.5 Others Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3 Europe
11.3.1 Europe Usage-based Insurance Market, By Country
11.3.2 Europe Usage-based Insurance Market, By Type
11.3.3 Europe Usage-based Insurance Market, By Technology
11.3.4 Europe Usage-based Insurance Market, By Vehicle Type
11.3.5 Europe Usage-based Insurance Market, By Vehicle Age
11.3.6 Europe Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3.7 United Kingdom
11.3.7.1 United Kingdom Usage-based Insurance Market, By Type
11.3.7.2 United Kingdom Usage-based Insurance Market, By Technology
11.3.7.3 United Kingdom Usage-based Insurance Market, By Vehicle Type
11.3.7.4 United Kingdom Usage-based Insurance Market, By Vehicle Age
11.3.7.5 United Kingdom Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3.8 Germany
11.3.8.1 Germany Usage-based Insurance Market, By Type
11.3.8.2 Germany Usage-based Insurance Market, By Technology
11.3.8.3 Germany Usage-based Insurance Market, By Vehicle Type
11.3.8.4 Germany Usage-based Insurance Market, By Vehicle Age
11.3.8.5 Germany Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3.9 France
11.3.9.1 France Usage-based Insurance Market, By Type
11.3.9.2 France Usage-based Insurance Market, By Technology
11.3.9.3 France Usage-based Insurance Market, By Vehicle Type
11.3.9.4 France Usage-based Insurance Market, By Vehicle Age
11.3.9.5 France Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3.10 Italy
11.3.10.1 Italy Usage-based Insurance Market, By Type
11.3.10.2 Italy Usage-based Insurance Market, By Technology
11.3.10.3 Italy Usage-based Insurance Market, By Vehicle Type
11.3.10.4 Italy Usage-based Insurance Market, By Vehicle Age
11.3.10.5 Italy Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3.11 Spain
11.3.11.1 Spain Usage-based Insurance Market, By Type
11.3.11.2 Spain Usage-based Insurance Market, By Technology
11.3.11.3 Spain Usage-based Insurance Market, By Vehicle Type
11.3.11.4 Spain Usage-based Insurance Market, By Vehicle Age
11.3.11.5 Spain Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.3.12 Others
11.3.12.1 Others Usage-based Insurance Market, By Type
11.3.12.2 Others Usage-based Insurance Market, By Technology
11.3.12.3 Others Usage-based Insurance Market, By Vehicle Type
11.3.12.4 Others Usage-based Insurance Market, By Vehicle Age
11.3.12.5 Others Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4 Asia Pacific
11.4.1 Asia Pacific Usage-based Insurance Market, By Country
11.4.2 Asia Pacific Usage-based Insurance Market, By Type
11.4.3 Asia Pacific Usage-based Insurance Market, By Technology
11.4.4 Asia Pacific Usage-based Insurance Market, By Vehicle Type
11.4.5 Asia Pacific Usage-based Insurance Market, By Vehicle Age
11.4.6 Asia Pacific Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4.7 China
11.4.7.1 China Usage-based Insurance Market, By Type
11.4.7.2 China Usage-based Insurance Market, By Technology
11.4.7.3 China Usage-based Insurance Market, By Vehicle Type
11.4.7.4 China Usage-based Insurance Market, By Vehicle Age
11.4.7.5 China Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4.8 Japan
11.4.8.1 Japan Usage-based Insurance Market, By Type
11.4.8.2 Japan Usage-based Insurance Market, By Technology
11.4.8.3 Japan Usage-based Insurance Market, By Vehicle Type
11.4.8.4 Japan Usage-based Insurance Market, By Vehicle Age
11.4.8.5 Japan Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4.9 India
11.4.9.1 India Usage-based Insurance Market, By Type
11.4.9.2 India Usage-based Insurance Market, By Technology
11.4.9.3 India Usage-based Insurance Market, By Vehicle Type
11.4.9.4 India Usage-based Insurance Market, By Vehicle Age
11.4.9.5 India Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4.10 South Korea
11.4.10.1 South Korea Usage-based Insurance Market, By Type
11.4.10.2 South Korea Usage-based Insurance Market, By Technology
11.4.10.3 South Korea Usage-based Insurance Market, By Vehicle Type
11.4.10.4 South Korea Usage-based Insurance Market, By Vehicle Age
11.4.10.5 South Korea Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4.11 Australia
11.4.11.1 Australia Usage-based Insurance Market, By Type
11.4.11.2 Australia Usage-based Insurance Market, By Technology
11.4.11.3 Australia Usage-based Insurance Market, By Vehicle Type
11.4.11.4 Australia Usage-based Insurance Market, By Vehicle Age
11.4.11.5 Australia Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.4.12 Others
11.4.12.1 Others Usage-based Insurance Market, By Type
11.4.12.2 Others Usage-based Insurance Market, By Technology
11.4.12.3 Others Usage-based Insurance Market, By Vehicle Type
11.4.12.4 Others Usage-based Insurance Market, By Vehicle Age
11.4.12.5 Others Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.5 Latin America
11.5.1 Latin America Usage-based Insurance Market, By Country
11.5.2 Latin America Usage-based Insurance Market, By Type
11.5.3 Latin America Usage-based Insurance Market, By Technology
11.5.4 Latin America Usage-based Insurance Market, By Vehicle Type
11.5.5 Latin America Usage-based Insurance Market, By Vehicle Age
11.5.6 Latin America Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.5.7 Brazil
11.5.7.1 Brazil Usage-based Insurance Market, By Type
11.5.7.2 Brazil Usage-based Insurance Market, By Technology
11.5.7.3 Brazil Usage-based Insurance Market, By Vehicle Type
11.5.7.4 Brazil Usage-based Insurance Market, By Vehicle Age
11.5.7.5 Brazil Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.5.8 Others
11.5.8.1 Others Usage-based Insurance Market, By Type
11.5.8.2 Others Usage-based Insurance Market, By Technology
11.5.8.3 Others Usage-based Insurance Market, By Vehicle Type
11.5.8.4 Others Usage-based Insurance Market, By Vehicle Age
11.5.8.5 Others Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.6 Middle East and Africa (MEA)
11.6.1 Middle East and Africa (MEA) Usage-based Insurance Market, By Country
11.6.2 Middle East and Africa (MEA) Usage-based Insurance Market, By Type
11.6.3 Middle East and Africa (MEA) Usage-based Insurance Market, By Technology
11.6.4 Middle East and Africa (MEA) Usage-based Insurance Market, By Vehicle Type
11.6.5 Middle East and Africa (MEA) Usage-based Insurance Market, By Vehicle Age
11.6.6 Middle East and Africa (MEA) Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.6.7 United Arab Emirates
11.6.7.1 United Arab Emirates Usage-based Insurance Market, By Type
11.6.7.2 United Arab Emirates Usage-based Insurance Market, By Technology
11.6.7.3 United Arab Emirates Usage-based Insurance Market, By Vehicle Type
11.6.7.4 United Arab Emirates Usage-based Insurance Market, By Vehicle Age
11.6.7.5 United Arab Emirates Usage-based Insurance Market, By Electric and Hybrid Vehicle
11.6.8 Others
11.6.8.1 Others Usage-based Insurance Market, By Type
11.6.8.2 Others Usage-based Insurance Market, By Technology
11.6.8.3 Others Usage-based Insurance Market, By Vehicle Type
11.6.8.4 Others Usage-based Insurance Market, By Vehicle Age
11.6.8.5 Others Usage-based Insurance Market, By Electric and Hybrid Vehicle
Chapter 12 Competitive Landscape
12.1 Strategic Move Analysis
12.1.1 Top Player Positioning/Market Share Analysis
12.1.2 Top Winning Strategies, By Year, 2021-2024
12.1.3 Competitive Analysis by Revenue, 2022-2024
12.2 Recent Developments by the Market Participants (2024-25)
Chapter 13 Company Profiles
13.1 Progressive Corporation
13.1.1 Company Snapshot
13.1.2 Company Overview
13.1.3 Financial Performance
13.1.4 Product Portfolio
13.1.5 Strategic Growth
13.2 Allstate Insurance Company
13.2.1 Company Snapshot
13.2.2 Company Overview
13.2.3 Financial Performance
13.2.4 Product Portfolio
13.2.5 Strategic Growth
13.3 State Farm Mutual Automobile Insurance Company
13.3.1 Company Snapshot
13.3.2 Company Overview
13.3.3 Financial Performance
13.3.4 Product Portfolio
13.3.5 Strategic Growth
13.4 Geico (Berkshire Hathaway)
13.4.1 Company Snapshot
13.4.2 Company Overview
13.4.3 Financial Performance
13.4.4 Product Portfolio
13.4.5 Strategic Growth
13.5 Liberty Mutual Insurance
13.5.1 Company Snapshot
13.5.2 Company Overview
13.5.3 Financial Performance
13.5.4 Product Portfolio
13.5.5 Strategic Growth
13.6 USAA
13.6.1 Company Snapshot
13.6.2 Company Overview
13.6.3 Financial Performance
13.6.4 Product Portfolio
13.6.5 Strategic Growth
13.7 Nationwide Mutual Insurance Company
13.7.1 Company Snapshot
13.7.2 Company Overview
13.7.3 Financial Performance
13.7.4 Product Portfolio
13.7.5 Strategic Growth
13.8 Farmers Insurance Group
13.8.1 Company Snapshot
13.8.2 Company Overview
13.8.3 Financial Performance
13.8.4 Product Portfolio
13.8.5 Strategic Growth
13.9 Travelers Companies Inc.
13.9.1 Company Snapshot
13.9.2 Company Overview
13.9.3 Financial Performance
13.9.4 Product Portfolio
13.9.5 Strategic Growth
13.10 Metromile Inc.
13.10.1 Company Snapshot
13.10.2 Company Overview
13.10.3 Financial Performance
13.10.4 Product Portfolio
13.10.5 Strategic Growth
13.11 Root Insurance Company
13.11.1 Company Snapshot
13.11.2 Company Overview
13.11.3 Financial Performance
13.11.4 Product Portfolio
13.11.5 Strategic Growth
13.12 Hugo Insurance
13.12.1 Company Snapshot
13.12.2 Company Overview
13.12.3 Financial Performance
13.12.4 Product Portfolio
13.12.5 Strategic Growth
13.13 By Miles Ltd.
13.13.1 Company Snapshot
13.13.2 Company Overview
13.13.3 Financial Performance
13.13.4 Product Portfolio
13.13.5 Strategic Growth
13.14 Aviva plc
13.14.1 Company Snapshot
13.14.2 Company Overview
13.14.3 Financial Performance
13.14.4 Product Portfolio
13.14.5 Strategic Growth
13.15 Allianz SE
13.15.1 Company Snapshot
13.15.2 Company Overview
13.15.3 Financial Performance
13.15.4 Product Portfolio
13.15.5 Strategic Growth
1. What is usage-based insurance (UBI)?
Usage-based insurance is a model where premiums are calculated based on actual driving behavior using telematics devices or smartphone apps.
2. What factors are driving the UBI market?
Key drivers include the rise of connected vehicles, growing telematics adoption, demand for personalized premiums, and advancements in AI-driven analytics.
3. Which UBI types and technologies are most popular?
Pay-how-you-drive programs and OBD-IIbased telematics devices lead the market due to accuracy and ease of installation.
4. Which regions lead the usage-based insurance market?
Asia Pacific holds the largest share, led by China, while North America is the fastest-growing region due to strong digital adoption.
5. What are the main challenges facing the UBI market?
Major challenges include data privacy concerns, high telematics device costs, and issues with tracking accuracy and reliability.
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