Automotive Usage-based Insurance Market by Pricing Scheme, Application, and Geography - Forecast and Analysis 2021-2025

  • Published: Mar 2021
  • Pages: 120
  • SKU: IRTNTR40064

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The automotive usage-based insurance (UBI) market has the potential to grow by 46.50 million units during 2021-2025, and the market’s growth momentum will accelerate at a CAGR of 7.18%.

This automotive usage-based insurance market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report provides extensive insights on segmentation by pricing scheme (PHYD, PAYD, and MHYD), application (embedded UBI and app-based UBI), and geography (Europe, North America, APAC, MEA, and South America). The report also offers information on several market vendors, including Allianz Partners SAS, AXA Group, and Howden Broking Group Plc, among others.

What will the Automotive Usage-Based Insurance Market Size be in 2021?


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Automotive Usage-Based Insurance Market: Key Drivers and Trends

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growth in smartphone-enabled programs and their usage is notably driving the automotive usage-based insurance market growth, although factors such as high installation cost of telematics devices may impede market growth. To unlock information on the key market drivers and the COVID-19 pandemic impact on the automotive usage-based insurance industry get your FREE report sample now.

  • The growth in smartphone-enabled programs and their use is a significant factor driving the automotive usage-based insurance market growth.
  • Automotive OEMs are increasingly collaborating with smartphone and tablet manufacturers to provide in-vehicle products and services.
  • The growing demand for electric vehicles (EVs) has also encouraged the development of applications that allow consumers to connect their smartphones with their cars to check the real-time status of vehicle batteries.
  • The rising penetration of smartphones has also resulted in the development of app-based UBI systems for the automotive industry.
  • The sensors in smartphones, such as GPS, gyro, heading, and accelerometer will further support the adoption of app-based UBI solutions.
  • Free resources provided by these smartphone apps will help in enhancing insurance risk assessment and optimizing UBI costing.
  • The increase in LTE data connections in cars to support Ethernet adoption will be one of the critical automotive usage-based insurance market trends contributing to market growth.
  • The demand for high internet connectivity to support the seamless operation of safety systems such as ADAS and entertainment systems in connected cars is increasing.
  • Automotive manufacturers are focusing on the development and installation of sophisticated in-vehicle electronics that require high internet connectivity.
  • Infotainment systems with Ethernet Audio Video Bridging (AVB) that support real-time data transport throughout vehicles is also under development.
  • The adoption of Ethernet connectivity in luxury cars is expected to increase in the upcoming years, which will allow vehicles to have in-vehicle internet access of up to 100 Mbps.
  • Several telecom operators are providing 4G LTE connections for the automotive industry.

This automotive usage-based insurance market analysis report also provides detailed information on upcoming trends and challenges that will have a far-reaching effect on the market growth. Get detailed insights on market drivers, trends, and challenges, which will help companies evaluate and develop growth strategies.

Who are the Major Automotive Usage-Based Insurance Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:


  • Allianz Partners SAS
  • AXA Group
  • Howden Broking Group Plc
  • Liberty Mutual Holding Co. Inc.
  • OCTO Group Spa
  • Sierra Wireless Inc.
  • The Progressive Corp.
  • Trak Global Group
  • Verizon Communications Inc.
  • Vodafone Group Plc


The automotive UBI market is fragmented and the vendors are deploying growth strategies such as adopting UBI solutions for optimized premium pricing to compete in the market. Click here to uncover other successful business strategies deployed by the vendors. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

Download a free sample of the automotive usage-based insurance market forecast report for insights on complete key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies. 

Which are the Key Regions for Automotive Usage-Based Insurance Market?


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44% of the market’s growth will originate from Europe during the forecast period. Germany, the UK, and France are the key markets for automotive usage-based insurance in Europe. However, market growth in Europe will be slower than the growth of the market in other regions.

The high demand for luxury electric cars will facilitate the automotive UBI market growth in Europe over the forecast period. To garner further competitive intelligence and regional opportunities in store for vendors, view our sample report.

What are the Revenue-generating Pricing Scheme Segments in the Automotive Usage-Based Insurance Market?

Automotive-Usage-Based-Insurance-Market-Market-Share-by-Pricing Scheme-2020-2025

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The automotive usage-based insurance market share growth by the PHYD segment will be significant during the forecast period. Continuous growth in vehicle ownership, growth in customer demand for vehicles, advancement in technology, and increased availability of data are key factors that will propel the PHYD segment.

Fetch actionable market insights on post COVID-19 impact on each segment. This report provides an accurate prediction of the contribution of all the segments to the growth of the automotive usage-based insurance market size.



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What are the Key Factors Covered in this Automotive Usage-Based Insurance Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive automotive usage-based insurance market growth during the next five years
  • Precise estimation of the automotive UBI market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the automotive usage-based insurance industry across Europe, North America, APAC, MEA, and South America
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of automotive usage-based insurance market vendors

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Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.


Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases


Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts



  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis


  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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The automotive usage-based insurance market growth will increase by $46.50 million units during 2020-2025.
The automotive usage-based insurance market is expected to grow at a CAGR of 7.18% during 2020-2025.
Technavio has segmented the automotive usage-based insurance market by other1 (PHYD, PAYD, and MHYD) and geographic (Europe, North America, APAC, MEA, and South America).
Allianz Partners SAS, AXA Group, Howden Broking Group Plc, Liberty Mutual Holding Co. Inc., OCTO Group Spa, Sierra Wireless Inc., The Progressive Corp., Trak Global Group, Verizon Communications Inc., Vodafone Group Plc are a few of the key vendors in the automotive usage-based insurance market.
Europe will register the highest growth rate of 43.68% among the other regions. Therefore, the automotive usage-based insurance market in Europe is expected to garner significant business opportunities for the vendors during the forecast period.
The key factors driving the automotive usage-based insurance market growth are:
  • Flexible pricing schemes
  • Shared data plans to reduce the number of data subscriptions per user
The automotive usage-based insurance market vendors should focus on grabbing business opportunities from the phyd segment as it accounted for the largest market share in the base year.
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