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, rising demand for personalized premiums, and advancements in AI-driven analytics and embedded technologies. UBI solutions, available in pay-as-you-drive, pay-how-you-drive, and manage-how-you-drive types, are valued for their data-based risk assessment, cost savings for safe drivers, and integration with vehicle telematics in passenger and commercial vehicles. From 2021 to 2023, the market expanded due to heightened focus on road safety post-pandemic, growth in connected cars, and innovations in smartphone and OBD-II devices for accurate tracking. Key trends include the dominance of pay-how-you-drive for its behavior-focused approach, the prominence of OBD-II technology for ease, and the rise of passenger vehicles for urban mobility. North America holds the largest market share, led by the United States due to advanced insurance tech and high vehicle ownership. Asia Pacific is the fastest-growing region, fueled by rising insurance penetration and digitalization in China. Challenges such as privacy concerns, data accuracy issues, and high device installation costs persist, but opportunities in EV integration 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 (UBI) Market Snapshot
2.2 Global Usage-based Insurance (UBI) Market
Chapter 3 Market Variables and Scope
3.1 Introduction to Usage-based Insurance (UBI)
3.2 Classification and Scope
Chapter 4 Market Dynamics and Trends
4.1 Global Usage-based Insurance (UBI) Market Dynamics
4.2 Global Usage-based Insurance (UBI) 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 (UBI) Market, By Type
6.1 Global Usage-based Insurance (UBI) 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 (UBI) Market, By Technology
7.1 Global Usage-based Insurance (UBI) 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 (UBI) Market, By Vehicle Type
8.1 Global Usage-based Insurance (UBI) 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 (UBI) Market, By Vehicle Age
9.1 Global Usage-based Insurance (UBI) Market, By Vehicle Age, 2025 - 2033
9.2 New Vehicles
9.3 Used Vehicles
Chapter 10 Global Usage-based Insurance (UBI) Market, By Region
10.1 Overview
10.2 North America
10.2.1 North America Usage-based Insurance (UBI) Market, By Country
10.2.2 North America Usage-based Insurance (UBI) Market, By Type
10.2.3 North America Usage-based Insurance (UBI) Market, By Technology
10.2.4 North America Usage-based Insurance (UBI) Market, By Vehicle Type
10.2.5 North America Usage-based Insurance (UBI) Market, By Vehicle Age
10.2.6 United States
10.2.6.1 United States Usage-based Insurance (UBI) Market, By Type
10.2.6.2 United States Usage-based Insurance (UBI) Market, By Technology
10.2.6.3 United States Usage-based Insurance (UBI) Market, By Vehicle Type
10.2.6.4 United States Usage-based Insurance (UBI) Market, By Vehicle Age
10.2.7 Canada
10.2.7.1 Canada Usage-based Insurance (UBI) Market, By Type
10.2.7.2 Canada Usage-based Insurance (UBI) Market, By Technology
10.2.7.3 Canada Usage-based Insurance (UBI) Market, By Vehicle Type
10.2.7.4 Canada Usage-based Insurance (UBI) Market, By Vehicle Age
10.2.8 Others
10.2.8.1 Others Usage-based Insurance (UBI) Market, By Type
10.2.8.2 Others Usage-based Insurance (UBI) Market, By Technology
10.2.8.3 Others Usage-based Insurance (UBI) Market, By Vehicle Type
10.2.8.4 Others Usage-based Insurance (UBI) Market, By Vehicle Age
10.3 Europe
10.3.1 Europe Usage-based Insurance (UBI) Market, By Country
10.3.2 Europe Usage-based Insurance (UBI) Market, By Type
10.3.3 Europe Usage-based Insurance (UBI) Market, By Technology
10.3.4 Europe Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.5 Europe Usage-based Insurance (UBI) Market, By Vehicle Age
10.3.6 United Kingdom
10.3.6.1 United Kingdom Usage-based Insurance (UBI) Market, By Type
10.3.6.2 United Kingdom Usage-based Insurance (UBI) Market, By Technology
10.3.6.3 United Kingdom Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.6.4 United Kingdom Usage-based Insurance (UBI) Market, By Vehicle Age
10.3.7 Germany
10.3.7.1 Germany Usage-based Insurance (UBI) Market, By Type
10.3.7.2 Germany Usage-based Insurance (UBI) Market, By Technology
10.3.7.3 Germany Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.7.4 Germany Usage-based Insurance (UBI) Market, By Vehicle Age
10.3.8 France
10.3.8.1 France Usage-based Insurance (UBI) Market, By Type
10.3.8.2 France Usage-based Insurance (UBI) Market, By Technology
10.3.8.3 France Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.8.4 France Usage-based Insurance (UBI) Market, By Vehicle Age
10.3.9 Italy
10.3.9.1 Italy Usage-based Insurance (UBI) Market, By Type
10.3.9.2 Italy Usage-based Insurance (UBI) Market, By Technology
10.3.9.3 Italy Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.9.4 Italy Usage-based Insurance (UBI) Market, By Vehicle Age
10.3.10 Spain
10.3.10.1 Spain Usage-based Insurance (UBI) Market, By Type
10.3.10.2 Spain Usage-based Insurance (UBI) Market, By Technology
10.3.10.3 Spain Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.10.4 Spain Usage-based Insurance (UBI) Market, By Vehicle Age
10.3.11 Others
10.3.11.1 Others Usage-based Insurance (UBI) Market, By Type
10.3.11.2 Others Usage-based Insurance (UBI) Market, By Technology
10.3.11.3 Others Usage-based Insurance (UBI) Market, By Vehicle Type
10.3.11.4 Others Usage-based Insurance (UBI) Market, By Vehicle Age
10.4 Asia Pacific
10.4.1 Asia Pacific Usage-based Insurance (UBI) Market, By Country
10.4.2 Asia Pacific Usage-based Insurance (UBI) Market, By Type
10.4.3 Asia Pacific Usage-based Insurance (UBI) Market, By Technology
10.4.4 Asia Pacific Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.5 Asia Pacific Usage-based Insurance (UBI) Market, By Vehicle Age
10.4.6 China
10.4.6.1 China Usage-based Insurance (UBI) Market, By Type
10.4.6.2 China Usage-based Insurance (UBI) Market, By Technology
10.4.6.3 China Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.6.4 China Usage-based Insurance (UBI) Market, By Vehicle Age
10.4.7 Japan
10.4.7.1 Japan Usage-based Insurance (UBI) Market, By Type
10.4.7.2 Japan Usage-based Insurance (UBI) Market, By Technology
10.4.7.3 Japan Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.7.4 Japan Usage-based Insurance (UBI) Market, By Vehicle Age
10.4.8 India
10.4.8.1 India Usage-based Insurance (UBI) Market, By Type
10.4.8.2 India Usage-based Insurance (UBI) Market, By Technology
10.4.8.3 India Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.8.4 India Usage-based Insurance (UBI) Market, By Vehicle Age
10.4.9 South Korea
10.4.9.1 South Korea Usage-based Insurance (UBI) Market, By Type
10.4.9.2 South Korea Usage-based Insurance (UBI) Market, By Technology
10.4.9.3 South Korea Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.9.4 South Korea Usage-based Insurance (UBI) Market, By Vehicle Age
10.4.10 Australia
10.4.10.1 Australia Usage-based Insurance (UBI) Market, By Type
10.4.10.2 Australia Usage-based Insurance (UBI) Market, By Technology
10.4.10.3 Australia Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.10.4 Australia Usage-based Insurance (UBI) Market, By Vehicle Age
10.4.11 Others
10.4.11.1 Others Usage-based Insurance (UBI) Market, By Type
10.4.11.2 Others Usage-based Insurance (UBI) Market, By Technology
10.4.11.3 Others Usage-based Insurance (UBI) Market, By Vehicle Type
10.4.11.4 Others Usage-based Insurance (UBI) Market, By Vehicle Age
10.5 Latin America
10.5.1 Latin America Usage-based Insurance (UBI) Market, By Country
10.5.2 Latin America Usage-based Insurance (UBI) Market, By Type
10.5.3 Latin America Usage-based Insurance (UBI) Market, By Technology
10.5.4 Latin America Usage-based Insurance (UBI) Market, By Vehicle Type
10.5.5 Latin America Usage-based Insurance (UBI) Market, By Vehicle Age
10.5.6 Brazil
10.5.6.1 Brazil Usage-based Insurance (UBI) Market, By Type
10.5.6.2 Brazil Usage-based Insurance (UBI) Market, By Technology
10.5.6.3 Brazil Usage-based Insurance (UBI) Market, By Vehicle Type
10.5.6.4 Brazil Usage-based Insurance (UBI) Market, By Vehicle Age
10.5.7 Others
10.5.7.1 Others Usage based Insurance Market, By Type
10.5.7.2 Others Usage based Insurance Market, By Technology
10.5.7.3 Others Usage based Insurance Market, By Vehicle Type
10.5.7.4 Others Usage based Insurance Market, By Vehicle Age
10.6 Middle East and Africa (MEA)
10.6.1 Middle East and Africa (MEA) Usage based Insurance Market, By Country
10.6.2 Middle East and Africa (MEA) Usage based Insurance Market, By Type
10.6.3 Middle East and Africa (MEA) Usage based Insurance Market, By Technology
10.6.4 Middle East and Africa (MEA) Usage based Insurance Market, By Vehicle Type
10.6.5 Middle East and Africa (MEA) Usage based Insurance Market, By Vehicle Age
10.6.6 United Arab Emirates
10.6.6.1 United Arab Emirates Usage based Insurance Market, By Type
10.6.6.2 United Arab Emirates Usage based Insurance Market, By Technology
10.6.6.3 United Arab Emirates Usage based Insurance Market, By Vehicle Type
10.6.6.4 United Arab Emirates Usage based Insurance Market, By Vehicle Age
10.6.7 Others
10.6.7.1 Others Usage based Insurance Market, By Type
10.6.7.2 Others Usage based Insurance Market, By Technology
10.6.7.3 Others Usage based Insurance Market, By Vehicle Type
10.6.7.4 Others Usage based Insurance Market, By Vehicle Age
Chapter 11 Competitive Landscape
11.1 Strategic Move Analysis
11.1.1 Top Player Positioning/Market Share Analysis
11.1.2 Top Winning Strategies, By Year, 2021-2024
11.1.3 Competitive Analysis by Revenue, 2022-2024
11.2 Recent Developments by the Market Participants (2024-25)
Chapter 12 Company Profiles
12.1 Progressive Corporation
12.1.1 Company Snapshot
12.1.2 Company Overview
12.1.3 Financial Performance
12.1.4 Product Portfolio
12.1.5 Strategic Growth
12.2 Allstate Insurance Company
12.2.1 Company Snapshot
12.2.2 Company Overview
12.2.3 Financial Performance
12.2.4 Product Portfolio
12.2.5 Strategic Growth
12.3 State Farm Mutual Automobile Insurance Company
12.3.1 Company Snapshot
12.3.2 Company Overview
12.3.3 Financial Performance
12.3.4 Product Portfolio
12.3.5 Strategic Growth
12.4 Geico (Berkshire Hathaway)
12.4.1 Company Snapshot
12.4.2 Company Overview
12.4.3 Financial Performance
12.4.4 Product Portfolio
12.4.5 Strategic Growth
12.5 Liberty Mutual Insurance
12.5.1 Company Snapshot
12.5.2 Company Overview
12.5.3 Financial Performance
12.5.4 Product Portfolio
12.5.5 Strategic Growth
12.6 USAA
12.6.1 Company Snapshot
12.6.2 Company Overview
12.6.3 Financial Performance
12.6.4 Product Portfolio
12.6.5 Strategic Growth
12.7 Nationwide Mutual Insurance Company
12.7.1 Company Snapshot
12.7.2 Company Overview
12.7.3 Financial Performance
12.7.4 Product Portfolio
12.7.5 Strategic Growth
12.8 Farmers Insurance Group
12.8.1 Company Snapshot
12.8.2 Company Overview
12.8.3 Financial Performance
12.8.4 Product Portfolio
12.8.5 Strategic Growth
12.9 Travelers Companies Inc.
12.9.1 Company Snapshot
12.9.2 Company Overview
12.9.3 Financial Performance
12.9.4 Product Portfolio
12.9.5 Strategic Growth
12.10 Metromile Inc.
12.10.1 Company Snapshot
12.10.2 Company Overview
12.10.3 Financial Performance
12.10.4 Product Portfolio
12.10.5 Strategic Growth
12.11 Root Insurance Company
12.11.1 Company Snapshot
12.11.2 Company Overview
12.11.3 Financial Performance
12.11.4 Product Portfolio
12.11.5 Strategic Growth
12.12 Hugo Insurance
12.12.1 Company Snapshot
12.12.2 Company Overview
12.12.3 Financial Performance
12.12.4 Product Portfolio
12.12.5 Strategic Growth
12.13 By Miles Ltd.
12.13.1 Company Snapshot
12.13.2 Company Overview
12.13.3 Financial Performance
12.13.4 Product Portfolio
12.13.5 Strategic Growth
12.14 Aviva plc
12.14.1 Company Snapshot
12.14.2 Company Overview
12.14.3 Financial Performance
12.14.4 Product Portfolio
12.14.5 Strategic Growth
12.15 Allianz SE
12.15.1 Company Snapshot
12.15.2 Company Overview
12.15.3 Financial Performance
12.15.4 Product Portfolio
12.15.5 Strategic Growth
1. What is usage-based insurance (UBI)?
Usage-based insurance is a model where premiums are determined by actual driving behavior using telematics devices or apps.
2. What is the market size of the Usage based Insurance Market industry?
The global UBI market was valued at USD 40.0 billion in 2024 and is expected to reach USD 258.0 billion by 2033, growing at 22.0% CAGR.
3. Which factors are driving the Usage based Insurance Market growth?
Increasing adoption of telematics, personalized premium structures, and AI-driven risk assessment tools are key drivers.
4. Which UBI type dominates the market?
The Pay-How-You-Drive segment leads due to its accuracy in linking driving behavior with insurance costs.
5. Which region holds the largest market share?
North America leads the global market, while Asia Pacific is witnessing the fastest growth due to rapid digitalization.
6. What challenges affect the market?
Privacy concerns, high telematics device costs, and data accuracy limitations continue to challenge adoption.
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