Telematics Market in Insurance Industry by Deployment and Geography - Forecast and Analysis 2022-2026

The telematics market share in the insurance industry is expected to increase by USD 3.96 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 19.36%.

This telematics market in the insurance industry 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 extensively covers the telematics market in the insurance industry segmentation by deployment (on-premise and cloud) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The insurance telematics market report also offers information on several market vendors, including Admiral Group plc, Agero inc., Aplicom Ltd., Aviva Plc, AXA Group, Masternaut Ltd., Mercedes Benz Group AG, Meta System S.p.A, MiX Telematics Ltd., Octo Group S.p.A, Sierra Wireless inc., The Allstate Corp., TomTom International BV, Trak Global Group, Trimble inc., Verizon Communications inc., and Zurich Insurance Co. Ltd. among others.

What will the Telematics Market in Insurance Industry Size be During the Forecast Period?

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Telematics Market in Insurance Industry: Key Drivers, Trends, and Challenges

The cost savings due to the adoption of telematics-enabled UBI is notably driving the telematics market growth in the insurance industry, although factors such as safety and security concerns may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the telematics industry in insurance. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Telematics Market Driver in Insurance Industry

• The cost savings due to the adoption of telematics-enabled UBI is one of the key drivers supporting the telematics market growth in the insurance industry.
• UBI allows insurers to create risk profiles based on real-time driving behavior tracked by onboard units (OBU) for individual customers.
• As UBI benefits drivers and insurers, it is registering high growth in several countries such as the US and Canada. Hence, it will be advantageous for fleet operators to adopt UBI and reduce the premium amount by encouraging safe driving behavior.
• The factors such as reduced insurance premium amount and increased awareness about the risks of unsafe driving behavior encourage consumers to upgrade their vehicles with UBI technology or buy vehicles with this system. 
• Growing functions in-vehicle telematics systems for tracking various vehicle-related information for increased safety and control are fueling the adoption of embedded solutions in commercial vehicles globally. This will prompt UBI suppliers to increase the usage of the system for broader functions by partnering with other telematics function participants for data sharing during the forecast period.

Key Telematics Market Trend in Insurance Industry

• Optimized customer communication with insurance telematics is one of the key insurance telematics market trends contributing to the market growth.
• Insurance companies maintaining constant and reliable interpersonal relationships with customers can improve customer retention rates.
• Insurers have discovered a way to reinvent customer engagement for business transformation with the advent of IoT.
• The automated communication strategy helps insurance companies to be highly efficient and provide cost-effective content that is valuable and relevant to the customers. Thus, the increase in optimized customer communication with insurance telematics will drive market growth in the coming years.

Key Telematics Market Challenge in Insurance Industry

• Safety and security concerns is one of the factors impeding the telematics market growth in the insurance industry.
• Telematics applications in in-vehicle information systems use wireless communication systems prone to hacking and information theft. These modern systems offer internet connectivity combined with real-time updates and information. Hence, they pose the risk of information breaches and the threat of malicious software.
• The primary concern is the transfer of malware through in-vehicle infotainment systems to other in-car networks, such as the controller area network (CAN) bus. This malware may pass through the in-vehicle infotainment systems to the vehicle's critical functions, thereby assisting hackers in getting control of the vehicle's central functions, such as the engine and brakes.
• The latest systems require an exchange of personal information between drivers or passengers and the automobile manufacturer service center, which can be hacked easily. Such issues raise questions regarding the security of commercial vehicle telematics and are hindering the growth of the telematics market in the insurance industry.

This telematics market in the insurance industry analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global telematics market in the insurance industry as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the telematics market in the insurance industry during the forecast period.

Who are the Major Telematics Market Vendors in Insurance Industry?

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

 

• Admiral Group plc
• Agero inc.
• Aplicom Ltd.
• Aviva Plc
• AXA Group
• Masternaut Ltd.
• Mercedes Benz Group AG
• Meta System S.p.A
• MiX Telematics Ltd.
• Octo Group S.p.A
• Sierra Wireless inc.
• The Allstate Corp.
• TomTom International BV
• Trak Global Group
• Trimble inc.
• Verizon Communications inc.
• Zurich Insurance Co. Ltd.

 

This statistical study of the telematics market in the insurance industry encompasses successful business strategies deployed by the key vendors. The insurance telematics market is fragmented and the vendors are deploying growth strategies such as price, quality, innovation, reputation, brand identity, and distribution to compete in the market.

Product Insights and News

• masternaut.com - Through the unified segment, the company offers a unique combination of vehicle tracking devices, user-friendly software, and consultancy services.
• masternaut.com - The company offers telematic solutions in the insurance industry by providing visibility of one's fleet so one can manage effectively and save fuel by idling, speeding, and over-revving as well as eliminating unauthorized journeys.

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.

The telematics market in the insurance industry forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Telematics Market in Insurance Industry Value Chain Analysis

Our report provides extensive information on the value chain analysis for the telematics market in the insurance industry, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Telematics Market in Insurance Industry?

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34% of the market’s growth will originate from North America during the forecast period. The US is the key market for the telematics market in the insurance industry in North America. Market growth in this region will be faster than the growth of the market in Europe and South America.

The growing urban population will facilitate the telematics market in the insurance industry growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the regional market recorded a decline in market growth. However, due to the initiation of large-scale COVID-19 vaccination drives and a decline in the number of COVID-19 cases, there was a rebound in manufacturing activities in the second half of 2021. Hence, with the increase in production and the use of commercial and passenger vehicles in North America, the demand for telematics in the insurance industry will rise during the forecast period.

What are the Revenue-generating Deployment Segments in the Telematics Market in Insurance Industry?

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The telematics market share growth in the insurance industry by the on-premise segment will be significant during the forecast period. Telematics and UBI have become an integral part of the vehicle insurance sector. As the number of connected cars is predicted to increase soon, it is anticipated that on-premise deployment will suffice the connectivity parameters such as software upgradation and turnaround time. Hence, on-premise service and deployment for global telematics in the insurance industry will continue to be the dominant segment of the market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the telematics market size in the insurance industry and actionable market insights on post COVID-19 impact on each segment.

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Commercial Telematics market - The market share is expected to increase by USD 23.15 billion from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 9.62%.

Telematics Market Scope in Insurance Industry
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 19.36%
Market growth 2022-2026	$ 3.96 billion
Market structure	Fragmented
YoY growth (%)	17.92
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 34%
Key consumer countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Admiral Group plc, Agero inc., Aplicom Ltd., Aviva Plc, AXA Group, Masternaut Ltd., Mercedes Benz Group AG, Meta System S.p.A, MiX Telematics Ltd., Octo Group S.p.A, Sierra Wireless inc., The Allstate Corp., TomTom International BV, Trak Global Group, Trimble inc., Verizon Communications inc., and Zurich Insurance Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Telematics Market in Insurance Industry Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive telematics market growth in the insurance industry during the next five years
• Precise estimation of the telematics market size in the insurance industry and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the telematics industry in insurance across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of telematics market vendors in the insurance industry 

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