Global Usage Based Insurance
Market Report
2025
The Global Usage-Based Insurance market size will be USD 44680 million in 2025. Developments in telematics, integration of IoT and AI, and the growth of connected automobiles are expected to boost sales to USD 225094.30 million by 2033, with a Compound Annual Growth Rate (CAGR) of 22.40% from 2025 to 2033.
The base year for the calculation is 2024. The historical will be 2021 to 2024. The year 2025 will be estimated one while the forecasted data will be from year 2025 to 2033. When we deliver the report that time we updated report data till the purchase date.
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According to Cognitive Market Research, the global Usage-Based Insurance market size will be USD 44680 million in 2025. It will expand at a compound annual growth rate (CAGR) of 22.40% from 2025 to 2033.
2024 | 2025 | 2032 | 2033 | CAGR | |
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Global Usage Based Insurance Market Sales Revenue | 121212 | $ 44680 Million | 121212 | $ 225094 Million | 22.4% |
North America Usage Based Insurance Market Sales Revenue | 121212 | $ 16531.6 Million | 121212 | $ 74281.1 Million | 20.7% |
Canada Usage Based Insurance Market Sales Revenue | 121212 | $ 1983.79 Million | 121212 | 121212 | 21.5% |
United States Usage Based Insurance Market Sales Revenue | 121212 | $ 13043.4 Million | 121212 | 121212 | 20.5% |
Mexico Usage Based Insurance Market Sales Revenue | 121212 | $ 1504.38 Million | 121212 | 121212 | 21.2% |
Europe Usage Based Insurance Market Sales Revenue | 121212 | $ 12957.2 Million | 121212 | $ 60775.5 Million | 21.3% |
Denmark Usage Based Insurance Market Sales Revenue | 121212 | $ 272.1 Million | 121212 | 121212 | 21.1% |
Germany Usage Based Insurance Market Sales Revenue | 121212 | $ 2565.53 Million | 121212 | 121212 | 21.5% |
Sweden Usage Based Insurance Market Sales Revenue | 121212 | $ 401.67 Million | 121212 | 121212 | 21.4% |
France Usage Based Insurance Market Sales Revenue | 121212 | $ 1192.06 Million | 121212 | 121212 | 20.5% |
Luxembourg Usage Based Insurance Market Sales Revenue | 121212 | $ 155.49 Million | 121212 | 121212 | 21.6% |
Spain Usage Based Insurance Market Sales Revenue | 121212 | $ 1062.49 Million | 121212 | 121212 | 20.4% |
United Kingdom Usage Based Insurance Market Sales Revenue | 121212 | $ 2176.81 Million | 121212 | 121212 | 22.1% |
Russia Usage Based Insurance Market Sales Revenue | 121212 | $ 2008.37 Million | 121212 | 121212 | 20.3% |
Switzerland Usage Based Insurance Market Sales Revenue | 121212 | $ 194.36 Million | 121212 | 121212 | 21% |
Italy Usage Based Insurance Market Sales Revenue | 121212 | $ 1114.32 Million | 121212 | 121212 | 20.7% |
Rest of Europe Usage Based Insurance Market Sales Revenue | 121212 | $ 1814.01 Million | 121212 | 121212 | 20% |
Asia Pacific Usage Based Insurance Market Sales Revenue | 121212 | $ 10723.2 Million | 121212 | $ 66065.2 Million | 25.5% |
Singapore Usage Based Insurance Market Sales Revenue | 121212 | $ 214.46 Million | 121212 | 121212 | 25.8% |
China Usage Based Insurance Market Sales Revenue | 121212 | $ 4503.74 Million | 121212 | 121212 | 25% |
Australia Usage Based Insurance Market Sales Revenue | 121212 | $ 557.61 Million | 121212 | 121212 | 24.8% |
South East Asia Usage Based Insurance Market Sales Revenue | 121212 | $ 707.73 Million | 121212 | 121212 | 26.3% |
India Usage Based Insurance Market Sales Revenue | 121212 | $ 1072.32 Million | 121212 | 121212 | 27.4% |
Taiwan Usage Based Insurance Market Sales Revenue | 121212 | $ 418.2 Million | 121212 | 121212 | 25.3% |
South Korea Usage Based Insurance Market Sales Revenue | 121212 | $ 1286.78 Million | 121212 | 121212 | 24.6% |
Japan Usage Based Insurance Market Sales Revenue | 121212 | $ 1479.8 Million | 121212 | 121212 | 24% |
Rest of APAC Usage Based Insurance Market Sales Revenue | 121212 | $ 482.54 Million | 121212 | 121212 | 25.3% |
South America Usage Based Insurance Market Sales Revenue | 121212 | $ 1697.84 Million | 121212 | $ 9003.8 Million | 23.2% |
Brazil Usage Based Insurance Market Sales Revenue | 121212 | $ 726.68 Million | 121212 | 121212 | 23.8% |
Chile Usage Based Insurance Market Sales Revenue | 121212 | $ 122.24 Million | 121212 | 121212 | 23.5% |
Peru Usage Based Insurance Market Sales Revenue | 121212 | $ 139.22 Million | 121212 | 121212 | 23.4% |
Colombia Usage Based Insurance Market Sales Revenue | 121212 | $ 151.11 Million | 121212 | 121212 | 23% |
Argentina Usage Based Insurance Market Sales Revenue | 121212 | $ 285.24 Million | 121212 | 121212 | 24.1% |
Rest of South America Usage Based Insurance Market Sales Revenue | 121212 | $ 273.35 Million | 121212 | 121212 | 22.3% |
Middle East Usage Based Insurance Market Sales Revenue | 121212 | $ 1787.2 Million | 121212 | $ 9904.1 Million | 23.9% |
Turkey Usage Based Insurance Market Sales Revenue | 121212 | $ 142.98 Million | 121212 | 121212 | 24.5% |
Qatar Usage Based Insurance Market Sales Revenue | 121212 | $ 142.98 Million | 121212 | 121212 | 23.4% |
Saudi Arabia Usage Based Insurance Market Sales Revenue | 121212 | $ 629.09 Million | 121212 | 121212 | 24.2% |
Egypt Usage Based Insurance Market Sales Revenue | 121212 | $ 107.23 Million | 121212 | 121212 | 23.7% |
UAE Usage Based Insurance Market Sales Revenue | 121212 | $ 368.16 Million | 121212 | 121212 | 24.4% |
Rest of Middle East Usage Based Insurance Market Sales Revenue | 121212 | $ 396.76 Million | 121212 | 121212 | 23.1% |
Africa Usage Based Insurance Market Sales Revenue | 121212 | $ 982.96 Million | 121212 | $ 5064.6 Million | 22.7% |
South Africa Usage Based Insurance Market Sales Revenue | 121212 | $ 346 Million | 121212 | 121212 | 23.6% |
Nigeria Usage Based Insurance Market Sales Revenue | 121212 | $ 78.64 Million | 121212 | 121212 | 22.9% |
Rest of Africa Usage Based Insurance Market Sales Revenue | 121212 | $ 558.32 Million | 121212 | 121212 | 21.9% |
Base Year | 2024 |
Historical Data Time Period | 2021-2024 |
Forecast Period | 2025-2033 |
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List of Competitors |
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Usage Based Insurance Market is Segmented as below. Particular segment of your interest can be provided without any additional cost. Download the Sample Pages!
With Usage-Based Insurance (UBI), rates are determined by real-time driving behavior, mileage, and vehicle usage rather than conventional demographic criteria. UBI is a telematics-driven insurance concept. The three UBI models are Manage-How-You-Drive (MHYD), Pay-As-You-Drive (PAYD), and Pay-How-You-Drive (PHYD). Developments in cloud computing, IoT, AI, and telematics have an impact on market dynamics by facilitating precise risk assessment and customized pricing. The market is expanding due to the growing consumer desire for fair, data-driven premiums, increased usage of connected vehicles, and regulatory assistance. However, obstacles include costly implementation, privacy issues with data, and complicated regulations that limit expansion. Additional innovation is encouraged by insurer-automaker partnerships and mobile-based UBI models.
In February 2020, In an effort to assist consumers save money on their auto insurance for safe driving, Liberty Mutual Insurance declared that it is partnering with Ford to provide driving incentives to Liberty Mutual customers who drive a Ford-connected vehicle. https://www.libertymutualgroup.com/about-lm/news/articles/liberty-mutual-insurance-teams-ford-bring-usage-based-insurance-connected-vehicles
The market for usage-based insurance, or UBI, is expanding significantly due to the increased use of mobile-based tracking and telematics devices. Insurers can now offer individualized premiums based on actual risk rather than conventional demographic considerations thanks to these technologies, which allow for real-time monitoring of driving behavior. Underwriting accuracy and claims processing efficiency are enhanced by the smooth data collection offered by mobile apps and embedded car telematics. UBI adoption is growing, especially among customers who are cost-conscious and safety-conscious, as smartphone penetration and IoT integration improve. Telematics is a major factor in the growth of the UBI market since it helps insurers with better risk assessment, fraud prevention, and customer engagement.
The Usage-Based Insurance (UBI) industry is expanding more quickly because of AI-driven risk assessment and IoT-enabled data collecting, which improve accuracy and efficiency. AI helps insurers to provide reasonable, behavior-based rates by analyzing driving trends, identifying dangerous habits, and forecasting the likelihood of accidents. Telematics and connected car sensors are examples of IoT devices that offer real-time information on position, speed, braking, and distance, guaranteeing accurate risk assessment. Customer experience is enhanced, fraud is decreased, and this technology streamlines claims processing. The growing use of AI and IoT gives insurers a better understanding of driver behavior, which boosts customer confidence in UBI models and allows for more competitive pricing and customized insurance.
One major obstacle to the expansion of the Usage-Based Insurance (UBI) sector is the high initial implementation costs. To facilitate real-time tracking and risk assessment, insurers need to make significant investments in telematics infrastructure, IoT devices, data analytics platforms, and cybersecurity safeguards. Furthermore, significant financial and technological resources are needed to integrate UBI with legacy insurance systems. Additionally, telematics devices may be expensive upfront for consumers, which would deter adoption. Due to their financial difficulties, smaller insurers have less competition in the market. UBI adoption is slowed by the overall cost burden, even though mobile-based tracking lowers some costs. This is especially true in emerging nations where insurance companies might not have the funds for widespread implementation.
Cloud computing advancements are revolutionizing the Usage-Based Insurance (UBI) sector by making data management scalable, safe, and effective. Cloud platforms enhance risk assessment and customized pricing by enabling insurers to evaluate massive volumes of telemetry data in real-time. Cloud environments facilitate the smooth operation of advanced analytics, AI integration, and machine learning models, improving the precision of fraud detection and claims processing. Additionally, cloud-based solutions lower infrastructure costs, increasing UBI's accessibility for insurers of all sizes. Cloud computing also improves data security, regulatory compliance, and IoT device interoperability, which spurs innovation and speeds up the implementation of UBI models around the world.
One major trend propelling the expansion of the Usage-Based Insurance (UBI) sector is partnerships between insurers and automakers. To facilitate smooth data sharing with insurance companies for real-time risk assessment, automakers are incorporating telematics technology straight into their cars. Without the need for further hardware installations, these collaborations enable insurers to provide behavior-based, customized premiums. Through bundled insurance choices, automakers may improve customer retention and improve car safety features. These partnerships expedite underwriting, claims processing, and fraud detection as the use of linked cars increases. This trend speeds up the adoption of UBI, especially in areas where there is a strong need for cutting-edge in-car technology and digital insurance solutions.
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Key competitors in the fiercely competitive Usage-Based Insurance (UBI) sector include Octo Telematics, Progressive, Allstate, AXA, Liberty Mutual, State Farm, Metromile, UnipolSai, Zubie, and Vodafone Automotive. AI-driven data, consumer interaction tactics, and telematics technologies are the main ways that insurers compete. Enhancing market positioning includes alliances with cloud computing companies, IoT providers, and automakers. Startups such as Root Insurance use tracking via smartphones to provide affordable UBI solutions. Regional players customize offerings according to customer preferences and legal requirements. The industry is being disrupted by new entrants with creative pricing strategies and data-driven insights, which are propelling further developments in risk assessment and premium tailoring even as incumbent insurers continue to dominate.
In June 2023, BeRebel, a new pay-per-use auto insurance plan, was unveiled by UnipolSai. In Italy and throughout Europe, BeRebel is the first of its type. It is a fully digital, monthly, kilometer-based auto insurance coverage. It costs roughly USD 10.69 each month, which covers 200 km of travel. Every additional kilometer is charged at a rate of roughly 2 cents per km. https://www.unipol.com/en/unipolsai-introduces-berebel-first-monthly-pay-you-car-policy-motor-tpl#:~:text=Tpl%20%7C%20Gruppo%20Unipol-,UnipolSai%20introduces%20BeRebel%2C%20the%20first%20monthly%20%E2%80%9Cpay%2Dper%2D,policy%20on%20the%20motor%20Tpl&text=The%20formula%20is%20unique%20in,style%20of%20use%20and%20driving. In June 2021, The Progressive Corporation declared that Protective Insurance Corporation had been successfully acquired. https://investors.progressive.com/financials/financial-news-releases/news-details/2021/Progressive-Completes-Acquisition-of-Protective-Insurance/default.aspx#:~:text=Under%20the%20terms%20of%20the,announced%20on%20February%2016%2C%202021.
Top Companies Market Share in Usage Based Insurance Industry: (In no particular order of Rank)
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According to Cognitive Market Research, North America currently dominates the Usage Based Insurance market, and the region is expected to have significant growth during the projected period. The increased use of connected automobiles, telematics innovations, and AI-driven risk assessment are all driving growth in the North American usage-based insurance (UBI) sector. Pay-as-you-drive (PAYD) and pay-how-you-drive (PHYD) insurance are in high demand because consumers favor tailored, behavior-based pricing over traditional models. Automaker-insurer collaborations lower hardware costs while improving embedded telematics systems. UBI apps for mobile devices increase accessibility, and real-time data analytics and fraud detection are enhanced by AI and IoT integration. Adoption is further accelerated by regulatory support for environmentally beneficial and safe driving practices. With significant prospects in electric vehicle (EV) insurance, fleet management, and smartphone-based tracking systems, UBI is a high-growth market.
Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). The market for usage-based insurance (UBI) in the Asia-Pacific region is expanding quickly due to factors such as rising car ownership, urbanization, and developments in telematics and artificial intelligence. As consumers look for transparent and reasonably priced insurance options, nations like China, Japan, and India are witnessing a surge in demand for customized, data-driven premiums. The growing use of connected and electric automobiles presents opportunities for UBI models geared toward environmentally sustainable driving. The rising use of smartphones and mobile-based tracking applications increases UBI accessibility. There are opportunities to integrate UBI into car sales, especially in emerging economies, through partnerships between automakers and insurers, governmental support for telematics, and the expansion of fleet insurance.
The current report Scope analyzes Usage Based Insurance Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com
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According to Cognitive Market Research, the global Usage-Based Insurance market size was estimated at USD 43521.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 16531.60 million in 2025 and will grow at a compound annual growth rate (CAGR) of 20.7% from 2025 to 2033.
According to Cognitive Market Research, the US had a major share in the Usage-Based Insurance market with a market size of USD 13043.43 million in 2025 and is projected to grow at a CAGR of 20.5% during the forecast period. UBI expansion in the US is being driven by the widespread use of linked cars and developments in telematics technology, such as tracking apps that run on smartphones.
The Canadian Usage Based Insurance market had a market share of USD 1983.79 million in 2025 and is projected to grow at a CAGR of 21.5% during the forecast period. The growing interest in flexible insurance arrangements, particularly in Canadian areas with large car densities, is driving the adoption of Usage-Based Insurance.
The Mexico Usage-Based Insurance market is projected to witness growth at a CAGR of 21.2% during the forecast period, with a market size of USD 1504.38 million in 2025..
According to Cognitive Market Research, the global Usage-Based Insurance market size was estimated at USD 44680 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 12957.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 21.3% from 2025 to 2033.
The United Kingdom Usage Based Insurance market had a market share of USD 2176.81 million in 2025 and is projected to grow at a CAGR of 22.1% during the forecast period. The UK's emphasis on sustainability and lowering traffic accidents increases demand for Usage Based Insurance.
The France Usage-Based Insurance market is projected to witness growth at a CAGR of 20.5% during the forecast period, with a market size of USD 1192.06 million in 2025.
According to Cognitive Market Research, the German Usage-Based Insurance market size was valued at USD 2565.53 million in 2025 and is projected to grow at a CAGR of 21.5% during the forecast period. The development of UBI is further aided by Germany's developed automotive sector, which has many linked automobiles.
The Italy Usage-Based Insurance market is projected to witness growth at a CAGR of 20.7% during the forecast period, with a market size of USD 1114.32 million in 2025.
The Russian Usage-Based Insurance market is projected to witness growth at a CAGR of 20.3% during the forecast period, with a market size of USD 2008.37 million in 2025
The Spain Usage-Based Insurance market is projected to witness growth at a CAGR of 20.4% during the forecast period with a market size of USD 1062.49 million in 2025
The Sweden Usage-Based Insurance market is projected to witness growth at a CAGR of 21.4% during the forecast period, with a market size of USD 401.67 million in 2025.
The Denmark Usage-Based Insurance market is projected to witness growth at a CAGR of 21.1% during the forecast period, with a market size of USD 272.10 million in 2025
The Switzerland Usage-Based Insurance market is projected to witness growth at a CAGR of 21.0% during the forecast period, with a market size of USD 194.36 million in 2025.
The Luxembourg Usage-Based Insurance market is projected to witness growth at a CAGR of 21.6% during the forecast period, with a market size of USD 155.49 million in 2025.
The Rest of Europe's Usage-Based Insurance market is projected to witness growth at a CAGR of 20.0% during the forecast period, with a market size of USD 1814.01 million in 2025.
According to Cognitive Market Research, the global Usage-Based Insurance market size was estimated at USD 44680 Million, out of which APAC held the market share of around 23% of the global revenue with a market size of USD 10723.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 25.5% from 2025 to 2033.
According to Cognitive Market Research, the China Usage-Based Insurance market size was valued at USD 4503.74 million in 2025 and is projected to grow at a CAGR of 25.0% during the forecast period. A key factor contributing to China's developing UBI industry is the rising usage of smartphones and mobile technology.
The Japan Usage-Based Insurance market is projected to witness growth at a CAGR of 24.0% during the forecast period, with a market size of USD 1479.80 million in 2025
The South Korean Usage-Based Insurance market had a market share of USD 1286.78 million in 2025 and is projected to grow at a CAGR of 24.6% during the forecast period.
The Indian Usage Based Insurance market is projected to witness growth at a CAGR of 27.4% during the forecast period, with a market size of USD 1072.32 million in 2025. The main forces for usage-based insurance in India include rising car ownership, urbanization, and smartphone adoption.
The Australian Usage-Based Insurance market is projected to witness growth at a CAGR of 24.8% during the forecast period, with a market size of USD 557.61 million in 2025.
The Singapore Usage-Based Insurance market is projected to witness growth at a CAGR of 25.8% during the forecast period, with a market size of USD 214.46 million in 2025.
The Taiwan Usage-Based Insurance market is projected to witness growth at a CAGR of 25.3% during the forecast period, with a market size of USD 418.20 million in 2025.
The South East Asia Usage-Based Insurance market is projected to witness growth at a CAGR of 26.3% during the forecast period, with a market size of USD 707.73 million in 2025.
The Rest of APAC Usage-Based Insurance market is projected to witness growth at a CAGR of 25.3% during the forecast period, with a market size of USD 482.54 million in 2025.
According to Cognitive Market Research, the global Usage-Based Insurance market size was estimated at USD 44680 Million, out of which South America held the market share of around 5% of the global revenue with a market size of USD 1697.84 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.2% from 2025 to 2033.
According to Cognitive Market Research, the Brazil Usage Based Insurance market size was valued at USD 726.68 million in 2025 and is projected to grow at a CAGR of 23.8% during the forecast period. UBI development in Brazil is driven by rising car ownership and increased knowledge of customized insurance solutions.
Argentina's Usage Based Insurance market had a market share of USD 285.24 million in 2025 and is projected to grow at a CAGR of 24.1% during the forecast period. Argentina's economic difficulties have raised demand for more flexible, reasonably priced insurance choices, such as UBI.
Colombia Usage-Based Insurance market is projected to witness growth at a CAGR of 23.0% during the forecast period, with a market size of USD 151.11 million in 2025
Peru Usage-Based Insurance market is projected to witness growth at a CAGR of 23.4% during the forecast period, with a market size of USD 139.22 million in 2025.
Chile Usage-Based Insurance market is projected to witness growth at a CAGR of 23.5% during the forecast period, with a market size of USD 122.24 million in 2025
The Rest of South America's Usage-Based Insurance market is projected to witness growth at a CAGR of 22.3% during the forecast period, with a market size of USD 273.35 million in 2025.
According to Cognitive Market Research, the global Usage-Based Insurance market size was estimated at USD 44680 Million, out of which the Middle East held the major market share of around 2% of the global revenue with a market size of USD 1787.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.9% from 2025 to 2033.
The Qatar Usage Based Insurance market is projected to witness growth at a CAGR of 23.4% during the forecast period, with a market size of USD 142.98 million in 2025. The desire for usage-based insurance (UBI) is being driven by rising car ownership, a tech-savvy populace, and high disposable income.
The Saudi Arabia Usage-Based Insurance market is projected to witness growth at a CAGR of 24.2% during the forecast period, with a market size of USD 629.09 million in 2025.
The Turkey Usage Based Insurance market is projected to witness growth at a CAGR of 24.5% during the forecast period, with a market size of USD 142.98 million in 2025. A youthful, tech-savvy populace, rising car ownership, and legislative encouragement of safer driving are the main drivers of UBI expansion.
The UAE Usage-Based Insurance market is projected to witness growth at a CAGR of 24.4% during the forecast period, with a market size of USD 368.16 million in 2025.
The Egypt Usage-Based Insurance market is projected to witness growth at a CAGR of 23.7% during the forecast period, with a market size of USD 107.23 million in 2025.
The Rest of the Middle East Usage-Based Insurance market is projected to witness growth at a CAGR of 23.1% during the forecast period, with a market size of USD 396.76 million in 2025
According to Cognitive Market Research, the global Usage-Based Insurance market size was estimated at USD 44680 Million, out of which Africa held the major market share of around 2% of the global revenue with a market size of USD 982.96 million in 2025 and will grow at a compound annual growth rate (CAGR) of 22.7% from 2025 to 2033.
The Nigeria Usage Based Insurance market is projected to witness growth at a CAGR of 22.9% during the forecast period, with a market size of USD 78.64 million in 2025. There is a growing need for flexible and reasonably priced insurance options due to the young population and rising car ownership rates.
The South Africa Usage Based Insurance market is projected to witness growth at a CAGR of 23.6% during the forecast period, with a market size of USD 346.00 million in 2025. The flourishing demand for connected cars in South Africa and rising telematics technology knowledge help UBI expand, especially among companies that require fleet insurance.
The Rest of Africa Usage Based Insurance market is projected to witness growth at a CAGR of 21.9% during the forecast period, with a market size of USD 558.32 million in 2025.
Global Usage Based Insurance Market Report 2025 Edition talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing Usage Based Insurance Industry growth. Usage Based Insurance market has been segmented with the help of its Policy Type Outlook:, Device Type Outlook: Vehicle Type Outlook:, and others. Usage Based Insurance market analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
How are Segments Performing in the Global Usage-Based Insurance Market?
According to Cognitive Market Research, the Pay How You Drive (PHYD) policy is likely to dominate the Usage-Based Insurance Market. As customers look for more individualized and flexible insurance alternatives, the demand for Pay-How-You-Drive (PHYD) products in the Usage-Based Insurance (UBI) market is rising. PHYD plans to provide safer drivers with reduced premiums by evaluating driving behavior, such as speed, braking, and cornering, rather than just mileage. Tech-savvy customers who favor data-driven pricing will find this model appealing, and insurers will gain from a more precise risk assessment. The growing use of smartphones, telematics devices, and linked cars further accelerates the demand for PHYD. PHYD insurance is anticipated to increase its market share significantly on a worldwide scale as insurers improve AI-driven analytics and customer awareness of the benefits of safe driving increases.
Pay as You Drive (PAYD) policy is the fastest-growing segment in the Usage-Based Insurance Market. In the Usage-Based Insurance (UBI) industry, consumers are looking for flexible, affordable insurance options based on actual mileage, which is driving up demand for Pay-As-You-Drive (PAYD) products. Policyholders who seldom drive or have little mileage might benefit greatly from PAYD models, which enable them to pay premiums based on distance travel. Fairer pricing results from insurers being able to precisely track mileage as connected car technology and telematics devices proliferate. This strategy is particularly well-liked in cities where a large percentage of people own cars yet have short commutes. The growing popularity of eco-friendly driving and sustainability also encourages the use of PAYD policies.
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According to Cognitive Market Research, the Black Box device type segment holds the largest share of the market. Black box devices are becoming more and more popular in the Usage-Based Insurance (UBI) industry as insurers look for more precise ways to evaluate the risk and behavior of drivers. By tracking variables like speed, braking patterns, and mileage, these devices—which are frequently combined with telematics—allow insurers to provide individualized premiums. Black box devices assist in lowering fraud, improving claims processing, and increasing underwriting accuracy. The adoption of these devices is in tandem with customer interest in behavior-based pricing, especially in areas where vehicle ownership is prevalent. Black box technology in UBI is in high demand due to the growing market for linked cars and IoT developments.
In the Usage-Based Insurance Market, the Smartphone segment has been expanding at a rapid pace. Because mobile apps for telematics-based insurance are becoming more and more popular, the demand for smartphones in the Usage-Based Insurance (UBI) sector is expanding quickly. Through GPS and sensors, smartphones allow insurers to gather real-time data on driving behavior, including acceleration, braking, and speed, without the need for further gear. Particularly for customers who favor flexible, reasonably priced, and readily controllable coverage, this mobile-based universal basic income (UBI) concept increases access to insurance. Because they are more affordable than traditional black box devices, mobile UBI apps are growing in popularity as smartphone usage increases worldwide, especially in emerging nations. This development is greatly increasing the market potential for UBI.
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According to Cognitive Market Research, The Passenger Vehicle segment holds the largest market share. Since people look for individualized, affordable insurance based on their driving habits, the necessity for Usage-Based Insurance (UBI) in passenger cars is booming. To encourage responsible drivers with reduced rates, UBI models like Pay-As-You-Drive (PAYD) and Pay-How-You-Drive (PHYD) offer premiums depending on variables including mileage, speed, and braking habits. Increased use of telematics devices and connected cars makes it simpler for insurers to collect precise data, which propels market growth. Meanwhile, consumer preferences for flexible, transparent insurance alternatives and growing knowledge of the advantages of UBI are driving growth in the passenger car sector, particularly in urban areas.
In the Usage-Based Insurance market, the rapidly growing sector is the Commercial Vehicle. Usage-Based Insurance (UBI) for commercial vehicles is becoming more and more popular as companies look for affordable fleet insurance management solutions. To lower insurance costs for fleets with low mileage or safe driving, UBI models like Pay-As-You-Drive (PAYD) and Pay-How-You-Drive (PHYD) enable businesses to customize premiums based on actual usage, driving behavior, and distance. Real-time driver performance monitoring is made possible by telematics devices, which increase fleet safety and operational effectiveness. UBI use in commercial fleets is increasing as companies prioritize risk mitigation and cost control. This is due in large part to the emergence of connected vehicle technologies, which present potential in the areas of logistics, transportation, and delivery services.
Senior Research Analyst at Cognitive Market Research
Catering to tailored needs of clients in Consulting, Business Intelligence, Market Research, Forecasting, Matrix-Modeling, Data Analytics, Competitive Intelligence, Primary research and Consumer Insights.
Catering to tailored needs of clients in Consulting, Business Intelligence, Market Research, Forecasting, Matrix-Modelling, Data Analytics, Competitive Intelligence, Primary research and Consumer Insights. Experience in analyzing current trends, market demand, market assessment, growth indicators, competitors' strategy, etc. to help top management & investors to make strategic and tactical decisions in the form of market reports and presentations. Successfully delivered more than 500+ client & consulting assignments across verticals. Ability to work independently as well as with a team with confidence and ease.
I am committed to continuous learning and staying at the forefront of emerging trends in research and analytics. Regularly engaging in professional development opportunities, including workshops and conferences, keeps my skill set sharp and up-to-date. I spearheaded research initiatives focused on market trends and competitive landscapes. I have a proven track record of conducting thorough analyses, distilling key insights, and presenting findings in a way that resonates with diverse stakeholders. Through collaboration with cross-functional teams, I played a pivotal role in shaping business strategies rooted in robust research.
Conclusion
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Disclaimer:
Policy Type Outlook: | Pay How You Drive (PHYD), Pay As You Drive (PAYD), Manage How You Drive (MHYD) |
Device Type Outlook: | Black Box, OBD Dongle, Smartphone, Others |
Vehicle Type Outlook: | Passenger Vehicle, Commercial Vehicle |
List of Competitors | Unipolsai Assicurazioni S.P.A, Progressive Casualty Insurance Company, Allstate Insurance Company, State Farm Mutual Automobile Insurance Company, Liberty Mutual Insurance Company, AXA, Assicurazioni Generali S.P.A, Allianz, Webfleet Solutions, Verizon, Nationwide Mutual Insurance Company, Zubie Inc., Cambridge Mobile Telematics, Modus Group LLC, Metromile Inc., Amica, Sierra Wireless, Octo Group S.P.A, Trak Global Group, Insure The Box Limited, Mapfre, The Floow Limited, Onstar Llc. (General Motors), Tesla, Hyundai Motor Company, LexisNexis, CCC Intelligent Solutions Inc., Verisk Analytics, Inc. |
This chapter will help you gain GLOBAL Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review Global Usage Based Insurance Market Split by various segments and Geographical Split.
Chapter 1 Global Market Analysis
Global Market has been segmented on the basis 5 major regions such as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
You can purchase only the Executive Summary of Global Market (2019 vs 2024 vs 2031)
Global Market Dynamics, Trends, Drivers, Restraints, Opportunities, Only Pointers will be deliverable
This chapter will help you gain North America Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review North America Usage Based Insurance Market Split by various segments and Country Split.
Chapter 2 North America Market Analysis
This chapter will help you gain Europe Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review Europe Usage Based Insurance Market Split by various segments and Country Split.
Chapter 3 Europe Market Analysis
This chapter will help you gain Asia Pacific Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review Asia Pacific Usage Based Insurance Market Split by various segments and Country Split.
Chapter 4 Asia Pacific Market Analysis
This chapter will help you gain South America Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review South America Usage Based Insurance Market Split by various segments and Country Split.
Chapter 5 South America Market Analysis
This chapter will help you gain Middle East Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review Middle East Usage Based Insurance Market Split by various segments and Country Split.
Chapter 6 Middle East Market Analysis
This chapter will help you gain Middle East Market Analysis of Usage Based Insurance. Further deep in this chapter, you will be able to review Middle East Usage Based Insurance Market Split by various segments and Country Split.
Chapter 7 Africa Market Analysis
This chapter provides an in-depth analysis of the market share among key competitors of Usage Based Insurance. The analysis highlights each competitor's position in the market, growth trends, and financial performance, offering insights into competitive dynamics, and emerging players.
Chapter 8 Competitor Analysis (Subject to Data Availability (Private Players))
(Subject to Data Availability (Private Players))
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
This chapter would comprehensively cover market drivers, trends, restraints, opportunities, and various in-depth analyses like industrial chain, PESTEL, Porter’s Five Forces, and ESG, among others. It would also include product life cycle, technological advancements, and patent insights.
Chapter 9 Qualitative Analysis (Subject to Data Availability)
Segmentation Policy Type Outlook: Analysis 2019 -2031, will provide market size split by Policy Type Outlook:. This Information is provided at Global Level, Regional Level and Top Countries Level The report with the segmentation perspective mentioned under this chapters will be delivered to you On Demand. So please let us know if you would like to receive this additional data as well. No additional cost will be applicable for the same.
Chapter 10 Market Split by Policy Type Outlook: Analysis 2021 - 2033
The report with the segmentation perspective mentioned under this chapters will be delivered to you On Demand. So please let us know if you would like to receive this additional data as well. No additional cost will be applicable for the same.
Chapter 11 Market Split by Device Type Outlook: Analysis 2021 - 2033
The report with the segmentation perspective mentioned under this chapters will be delivered to you On Demand. So please let us know if you would like to receive this additional data as well. No additional cost will be applicable for the same.
Chapter 12 Market Split by Vehicle Type Outlook: Analysis 2021 - 2033
This chapter helps you understand the Key Takeaways and Analyst Point of View of the global Usage Based Insurance market
Chapter 13 Research Findings
Here the analyst will summarize the content of entire report and will share his view point on the current industry scenario and how the market is expected to perform in the near future. The points shared by the analyst are based on his/her detailed in-depth understanding of the market during the course of this report study. You will be provided exclusive rights to interact with the concerned analyst for unlimited time pre purchase as well as post purchase of the report.
Chapter 14 Research Methodology and Sources
Why Pay How You Drive (PHYD) have a significant impact on Usage Based Insurance market? |
What are the key factors affecting the Pay How You Drive (PHYD) and Pay As You Drive (PAYD) of Usage Based Insurance Market? |
What is the CAGR/Growth Rate of Black Box during the forecast period? |
By type, which segment accounted for largest share of the global Usage Based Insurance Market? |
Which region is expected to dominate the global Usage Based Insurance Market within the forecast period? |
Segmentation Level Customization |
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Global level Data Customization |
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Region level Data Customization |
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Country level Data Customization |
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Company Level |
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Additional Data Analysis |
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Additional Qualitative Data |
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Additional Quantitative Data |
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Service Level Customization |
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Report Format Alteration |
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