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Industry Insights, Market Size, CAGR, High-Level Analysis: Global Insurance Telematics Market The global insurance telematics market size was valued at USD 1.6 billion in 2018. Increasing number of laws and regulations related to the driver safety and decreased cost of connectivity solutions are expected to drive the market over the forecast period. Technological advances in automotive insurance industry led by integration with telematics technology is accelerating the market progression. Furthermore, insurance telematics and Usage Based Insurance (UBI) have created a niche in the general insurance market across the globe. Market trends such as carpooling, car sharing, and ridesharing have gained traction in the recent years. Although, the current adoption rates for carpooling tends to remain low in developed countries, it is anticipated that it will soon gain a huge prominence owing to changing millennials approach to commuting. Furthermore, increasing government initiatives to encourage telematics services in their respective countries and rising consumer demand for high connectivity and intelligence within their vehicles is contributing to the market growth. For instance, in October 2018, the federal government mandated that all commercial trucks in the U.S. need to have electronic logging devices, which allow insurance providers to implement UBI programs for commercial trucks. Mandates for automotive insurance, categorized into collision, liability, and third-party insurance in both developed and emerging economies, is creating a foothold in the global market. The market is witnessing remarkable growth in emerging economies such as India, China, and Singapore, which is anticipated to gain more traction over the forecast period. Factors such as low insurance premium, vehicle tracking in case of theft, and providing personalized and value-added services in insurance plans to serve customer interests more effectively are some of the major benefits of insurance telematics in the automotive industry. Emergence of Internet of Things (IoT) and cloud computing exhibits lucrative opportunities for robust market development. For instance, telematics and IoT technologies are driving digital supply chains and third-party vendors are playing a pivotal role in the commercial vehicle transportation industry. Thus, insurance telematics is currently trending in retail and fleet leasing under interconnected digital supply chain models. Increasing penetration of smartphones and the rising interest of the global consumer in in-car connectivity has also led to the growth of the market. Insurance companies offer discounts on standard premiums based on real-time monitoring of vehicle driver. However, challenges such as data theft and low transparency in data acquisition techniques are expected to hinder the market growth. The low internet connectivity affect the outcome from the real-time monitoring systems and minimize the customers’ chances to get discount on premiums offered by insurance companies. Other challenges such as design complexity and lack of personal integrity are adversely impacting the market. Telematics car insurance aimed at individual customer won’t usually be able to tell who is driving the insured vehicle. This means that if there’s an infrequent secondary driver, then it may negatively affect the entire insurance policy premiums. Offering Insights Software is the leading segment owing to a high market share in the recent years. As the connectivity and network bandwidth requirements need a constant upgrade, the software segment is gaining a high commercial importance. Telematics software is an umbrella term for informatics and telecommunications blended together. Under this design, in vehicle electronic device communicates with other devices over a network, therefore augmenting the term telematics owing to significant use of the communication devices in vehicles. Hardware is expected to register considerable growth over the forecast period. Cellular devices and machine-to-machine (M2M) connectivity proves crucial for UBI and automobile IoT. With a widened reach, diligence, and low maintenance costs, OEMs and Telematics Service Providers (TSPs) can successfully deliver insurance telematics and in-vehicle services with a cost-effective approach. For instance, Octo Telematics is now coordinating with Sierra Wireless to offer innovative UBI services to their European customers. Super Easy Telematics Box is the first of its kind that allows customers to install it without any professional support. Type Insights of Global Insurance Telematics Market Pay-as-you-drive (PAYD) dominated the insurance telematics market in 2018. High adoption of UBI is gaining commercial importance all across the globe. Customization features such as payment of insurance premium based on driving behavior and degree of exposure has driven significant results under this model. For instance, there is a significant level of potential witnessed in terms of traffic safety. This is evident as there are incentive programs for drivers with improved driving behavior such as speeding within prescribed limits and following traffic rules. Pay-how-you-drive (PHYD) is expected to register highest growth rate over the forecast period. It is also known as black box insurance with most lookalike features as PAYD. These plans are highly distinct from the traditional auto insurance plans wherein the insurance premium depends upon the driving skills of the driver and also covers other facilities such as roadside assistance and vehicle theft. Moreover, under PHYD model, a high accuracy in price of the premium is achieved and it enables the drivers to control the cost of their premium based on incentive programs. Deployment Insights of Global Insurance Telematics Market On-premise segment dominated the market in 2018 and is expected to witness a steady growth over the forecast period. Since telematics and UBI form an integral part in the auto insurance sector, on-premise deployment delivers real-time insights. As the number of connected cars is expected to increase in the near future, it is anticipated that on-premise deployment will suffice the connectivity parameters such as software upgrade and turnaround time. Hence, on-premise service and deployment for the telematics industry would continue to be dominant throughout the forecast period. Cloud deployment is gaining a traction owing to preferred use for cloud platforms and innovative practices in the industry. Various key players are now emphasizing on cloud platforms to offer UBI services. For instance, Octo Telematics, a provider of data analytics and telematics solutions for auto insurance industry, uses a cloud platform from Cloudera Enterprise to obtain insurers insights for assessing driver risk, claim services, and manage customer relationship. It has a massive cloud network with five billion connected cars on Cloudera Enterprise. Enterprise Size Insights The large enterprises segment dominated the market in 2018 and is expected to maintain its dominance over the forecast period. The rising adoption of mobile telematics systems has created a huge impact in the automotive insurance telematics sector. For instance, LexisNexis Risk Solutions continue to offer insurance telematics via mobile apps along with a wide range of services pertaining to regional and national insurers. The services include driving scores and score models, product development, and underwriting confidence. Small and medium enterprises are expected to witness a significant growth in the coming years. Major growth factors for small and medium enterprises are client retention and cost-effective services pertaining to claims. Incentive programs run by small and medium enterprises resulted in attaining approximately 50% reduction in claim costs. In addition, small and medium enterprises are also actively offering app based virtual services to clients. Additionally, telematics startups in emerging economies are gaining a huge traction owing to significant investments. End Use Insights The passenger vehicle segment dominated the market in 2018 and was valued at USD 1.1 billion. Enterprises in the telematics sector are active in managing fleet of insured cars within an interconnected digital supply chain. Therefore, fleet management practices for passenger vehicles is expected to witness lucrative opportunities in the near future. Custom-designed apps for passenger vehicles are responsive and interactive to complete a claim transaction within a UBI service model. The commercial vehicle segment is expected to gain momentum in the near future due to significant presence of commercial fleets. Key players in the commercial telematics segment are likely to catalyze the growth of segment. For instance, Octo Fleet by Octo Telematics, offers a complete package for commercial insurance telematics. It enables an exclusive portfolio of telematics services for commercial automobiles to make them more profitable. Regional Insights of Global Insurance Telematics Market North American region dominated the market in 2018 and is anticipated to retain its dominance throughout the forecast period. This dominance can be attributed to the presence of key players, technological advancements, and a huge demand for interconnected services. The North America insurance companies have paced up in adopting cloud solutions and shifting applications and data to the cloud network. In order to have state-of-the-art technology and differentiate themselves from competitions, insurance companies are significantly adopting the cloud network to maintain a high competitive advantage. For instance, Accenture’s cloud based solutions offer cost-effective telematics services by adapting to their insurance cloud programs. Asia Pacific is expected to emerge as the fastest growing region, led by China and Japan. Increase in adoption of telematics and IoT technologies that depend on third party mobile devices is highly witnessed in these markets. Additionally, the Asia Pacific market is in nascent stages owing to prevailing challenges such as lack of data protection and lack of awareness among consumers. However, proliferation of smartphone technology and mobile connectivity is expected to boost the UBI model. Additionally, the growing investments and collaborations will help in supplementing the market growth. For instance, in November 2017, Toyota Motor Corporation collaborated with MS&AD Insurance Group Holdings, Inc. to develop driving behavior-based insurance telematics in Japan. Insurance Telematics Market Share Insights Key players in the market include Agero Inc.; Aplicom; Intelligent Mechatronic System; Masternaut Ltd.; Meta System S.p.A; MiX Telematics Ltd.; Octo Telematics S.p.A; Sierra Wireless Inc.; TomTom Telematics BV, and TRIMBLE INC. Product launches, mergers and acquisitions, and mutual agreements are some of the key strategies adopted by major vendors in order to gain a high competitive advantage and to strengthen their market position. The market trends for 2019 highlighted by Octo Telematics reveals a lot of emphasis being laid on data aggregation by major companies. It is also expected that the adoption of insurance telematics within consumers will witness a surge as personalized services would be preferred for managing the insurance portfolio. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Insurance Telematics Market Research Report This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global insurance telematics market report based on offering, type, deployment, enterprise size, end use, and region: Offering Outlook (Revenue, USD Million, 2019 - 2030) Hardware Software Type Outlook (Revenue, USD Million, 2019 - 2030) Pay-as-you-drive Pay-how-you-drive Pay-as-you-go Deployment Outlook (Revenue, USD Million, 2019 - 2030) On-premise Cloud Enterprise Size Outlook (Revenue, USD Million, 2019 - 2030) Large Enterprises Small & Medium Enterprises End Use Outlook (Revenue, USD Million, 2019 - 2030) Passenger Vehicle Commercial Vehicle
Table of Contents Chapter 1 Methodology and Scope 1.1 Research Methodology 1.2 Research Scope and Assumptions 1.3 List of Data SourcesChapter 2 Executive Summary 2.1 Insurance Telematics Market - Industry Snapshot & Key Buying Criteria, 2014 - 2025 2.2 Global Insurance Telematics Market, 2014 - 2025 2.2.1 Global insurance telematics market, by region, 2014 - 2025 2.2.2 Global insurance telematics market, by offering, 2014 - 2025 2.2.3 Gl | read more...