Global Automotive Usage-Based Insurance Market 2017-2021
Overview of the global automotive UBI market
The global automotive UBI market is anticipated to grow at a steady rate and will post a CAGR of close to 8% during the forecast period. The increasing government initiatives to encourage the use of telematics will drive the growth prospects for the global automotive UBI market until the end of 2021. According to the industry research report, the increasing demand for vehicle tracking and navigation services in passenger vehicle drives the demand for telematics systems in the passenger vehicles sector. Also, a large number of regulatory bodies across the globe focus on key functions such as emergency call (eCall) and stolen vehicle tracking systems besides other services offered by telematics solutions. Moreover, the increasing demand for these functions is driving the adoption of connected services by automotive original equipment manufacturers (OEMs). Since the major purpose of eCall is to address and assist passengers involved in accidents, the demand for telematics is gaining traction in the market. In addition, the installation of telematic devices enables the safety bodies to communicate the information to roadside assistance teams about factors such as GPS coordinates, airbag deployment, and impact sensor information when the vehicle meets with an accident. Furthermore, authorities that are responsible for tracking down stolen vehicles use stolen vehicle tracking systems. Some of the regulations mandated by transportation and safety bodies around the world are Event Data Recorder Legislation, Era-Glonass Project, and Satellite Positioning and Telematics Systems.
The growing number of initiatives by OEMs to reduce customer dependency on smartphones will drive the growth prospects for the global automotive UBI market in the forthcoming years. The two ways employed to reduce this dependence include the development of third party applications for the infotainment OS and adoption of thin client or web-based applications.
Competitive landscape and key vendors
The global automotive UBI market is quite competitive due to the presence of a limited number of regional and international vendors across the globe. However, with the rising demand for UBI solutions in the automotive segment, the number of vendors in the market is gradually increasing. According to the global market research, some of these vendors offer UBI solutions for the automotive, personal, and home insurance sectors, whereas, they offer app-based pay-as-you-drive solutions in the automotive category. Similarly, few other vendors offer solutions in fleet management, connected car, UBI, and consumer telematics.
Key vendors in this market are -
- Intelligent Mechatronic System
- Octo Telematics
- Sierra Wireless
Other prominent vendors in the market include Baseline Telematics, Masternaut, and TomTom Telematics.
Segmentation by UBI type and analysis of the automotive UBI market
- Embedded UBI
- App-based UBI
The app-based UBI solutions segment accounted for the maximum market share during 2016 and will continue to dominate the market for the next few years. Some of the major factors responsible for the market segment’s growth include the entry of new players in the segment and low penetration of embedded solutions in the automotive industry. However, the segment’s share is expected to decline during the next four years due to rising use of embedded systems.
Segmentation by geography and analysis of the automotive UBI market
- North America
In terms of geography, Europe accounted for the maximum market share in 2016 and will continue to dominate the market in the forthcoming years. The market witnesses a high number of insurers in various countries such as Germany, France, Italy, Spain, and the UK that adopts UBI for automotive insurance solutions.
Key questions answered in the report include
- What will the market size and the growth rate be in 2021?
- What are the key factors driving the global automotive usage-based insurance (UBI) market?
- What are the key market trends impacting the growth of the global automotive usage-based insurance (UBI) market?
- What are the challenges to market growth?
- Who are the key vendors in the global automotive usage-based insurance (UBI) market?
- What are the market opportunities and threats faced by the vendors in the global automotive usage-based insurance (UBI) market?
- What are the trending factors influencing the market shares of APAC, Europe, and North America?
- What are the key outcomes of the five forces analysis of the global automotive usage-based insurance (UBI) market?
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