Usage-Based Insurance Market Size, Share and Analysis 2034
Usage-Based Insurance Market Growth, Size, Trends Analysis- By Package, By Technology, By Vehicle, By Vehicle Age, By Distribution Channel - Regional Outlook, Competitive Strategies and Segment Forecast to 2034
| Published: Sep-2025 | Report ID: AMIN2570 | Pages: 1 - 240 | Formats*: |
| Category : Automotive & Transportation | |||
Usage-Based Insurance Market Introduction and Overview
According to SPER Market Research, the Global Usage-Based Insurance Market is estimated to reach USD 567.67 billion by 2034 with a CAGR 24.25%.
The report includes an in-depth analysis of the Global Usage-Based Insurance Market, including market size and trends, product mix, Applications, and supplier analysis. The global Usage-Based Insurance Market, valued at USD 64.73 billion in 2024, is projected to grow at a CAGR of 24.25% from 2025 to 2034. Usage-based insurance (UBI) uses in-vehicle telematics to track mileage and driving habits, allowing insurers to adjust premiums based on real-time risk assessment. Driven by profitability goals, insurers are adopting UBI systems that leverage advanced machine-to-machine technologies to collect real-time driving data. This shift enables personalized premium pricing based on behavior, not just historical claims, reducing costs and improving revenue. Technological advances, including integrated GPS and speed monitoring in vehicles and mobile devices, are reshaping risk evaluation and policy pricing, allowing for more accurate and dynamic insurance models.
By Technology:
The market is segmented into OBD-II, black box, smartphone, and embedded telematics systems, with OBD-II currently holding the largest share. The growing popularity of connected cars has led to a surge in driver data, making telematics technology increasingly vital. It enables insurers to access detailed insights into driving behavior, vehicle maintenance, and performance. As connected car adoption expands, future vehicles are expected to feature built-in data connectivity. This advancement will provide insurers with comprehensive usage and location data, essential for developing more accurate and personalized Usage-Based Insurance (UBI) policies and programs.
By Vehicle:
The usage-based insurance (UBI) market is divided into passenger and commercial vehicles, with passenger vehicles dominating due to their widespread use by private individuals. Their high ownership rate makes them a prime target for UBI products. Telematics-based UBI is especially effective for passenger vehicles, as it can accurately monitor driving behavior, including speed, braking, and mileage. These factors are more relevant to personal driving patterns than commercial fleets. This data-driven approach allows insurers to personalize premiums, making passenger vehicles ideal for UBI policies and contributing significantly to market growth.
Regional Insights:
North America holds a major share of the usage-based insurance (UBI) market, driven by growing demand for personalized policies and strong telematics infrastructure. Regional initiatives, such as Mercury Insurance launching its UBI app in New Jersey, reflect the rising interest in behavior-based premiums. Meanwhile, the Asia Pacific market is expanding rapidly, fueled by increasing traffic, technological advancements, and improved infrastructure in countries like China and India. However, growth faces challenges, including privacy concerns and varying technology adoption patterns across regions, which can impact the pace and consistency of UBI implementation.
Market Competitive Landscape:
The global Usage-Based Insurance Market is moderately consolidated, with several prominent players shaping the industry. Key companies include: UNIPOLSAI Assicurazioni S.p.A, Progressive Insurance, Allstate Insurance Company, State Farm, Liberty Insurance, Nationwide, Allianz SE, Aviva, AXA, MAPFRE SA.
Recent Developments:
In January 2024, Zendrive announced the expansion of its Lens (IQL) insurance program through a partnership with Progressive.
In November 2023, NEXT Insurance partnered with Allstate to leverage their combined expertise in small business insurance, aiming to develop and deliver innovative products for a largely underserved market. The partnership also reinforced NEXT Insurance’s ongoing commitment to strengthening its relationship with Allianz.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2021-2034 |
| Base year considered | 2024 |
| Forecast period | 2025-2034 |
| Segments covered | By Package, By Technology, By Vehicle, By Vehicle Age, By Distribution Channel |
| Regions covered | North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa |
| Companies Covered | UNIPOLSAI Assicurazioni S.p.A, Progressive Insurance, Allstate Insurance Company, State Farm, Liberty Insurance, Nationwide, Allianz SE, Aviva, AXA, MAPFRE SA. |
- Global Usage-Based Insurance Market Size (FY 2021-FY 2034)
- Overview of Global Usage-Based Insurance Market
- Segmentation of Global Usage-Based Insurance Market By Package {Pay-How-You-Drive (PHYD), Pay-As-You-Drive (PAYD), Manage-How-You-Drive (MHYD)}
- Segmentation of Global Usage-Based Insurance Market By Technology (OBD-II, Black Box, Smartphone, Embedded telematics)
- Segmentation of Global Usage-Based Insurance Market By Vehicle (Passenger Vehicle, Commercial Vehicle)
- Segmentation of Global Usage-Based Insurance Market By Vehicle age (New Vehicles, Used Vehicles)
- Segmentation of Global Usage-Based Insurance Market By Distribution channel (Direct Sales, Brokers and Agents, Bancassurance, Online Platforms)
- Statistical Snap of Global Usage-Based Insurance Market
- Expansion Analysis of Global Usage-Based Insurance Market
- Problems and Obstacles in Global Usage-Based Insurance Market
- Competitive Landscape in the Global Usage-Based Insurance Market
- Details on Current Investment in Global Usage-Based Insurance Market
- Competitive Analysis of Global Usage-Based Insurance Market
- Prominent Players in the Global Usage-Based Insurance Market
- SWOT Analysis of Global Usage-Based Insurance Market
- Global Usage-Based Insurance Market Future Outlook and Projections (FY 2025-FY 2034)
- Recommendations from Analyst
1. Introduction
- 1.1. Scope of the report
- 1.2. Market segment analysis
2. Research Methodology
- 2.1. Research data source
- 2.1.1. Secondary Data
- 2.1.2. Primary Data
- 2.1.3. SPERs internal database
- 2.1.4. Premium insight from KOLs
- 2.2. Market size estimation
- 2.2.1. Top-down and Bottom-up approach
- 2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
- 4.1. Driver, Restraint, Opportunity and Challenges analysis
- 4.1.1. Drivers
- 4.1.2. Restraints
- 4.1.3. Opportunities
- 4.1.4. Challenges
5. Market variable and outlook
- 5.1. SWOT Analysis
- 5.1.1. Strengths
- 5.1.2. Weaknesses
- 5.1.3. Opportunities
- 5.1.4. Threats
- 5.2. PESTEL Analysis
- 5.2.1. Political Landscape
- 5.2.2. Economic Landscape
- 5.2.3. Social Landscape
- 5.2.4. Technological Landscape
- 5.2.5. Environmental Landscape
- 5.2.6. Legal Landscape
- 5.3. PORTERs Five Forces
- 5.3.1. Bargaining power of suppliers
- 5.3.2. Bargaining power of buyers
- 5.3.3. Threat of Substitute
- 5.3.4. Threat of new entrant
- 5.3.5. Competitive rivalry
- 5.4. Heat Map Analysis
6. Competitive Landscape
- 6.1. Global Usage-Based Insurance Market Manufacturing Base Distribution, Sales Area, Product Type
- 6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global Usage-Based Insurance Market
7. Global Usage-Based Insurance Market, By Package, (USD Million) 2021-2034
- 7.1. Pay-How-You-Drive (PHYD)
- 7.2. Pay-As-You-Drive (PAYD)
- 7.2.1. Device- based
- 7.2.2. Telematics-based
- 7.3. Manage-How-You-Drive (MHYD)
8. Global Usage-Based Insurance Market, By Technology, (USD Million) 2021-2034
- 8.1. OBD-II
- 8.2. Black Box
- 8.3. Smartphone
- 8.4. Embedded telematics
9. Global Usage-Based Insurance Market, By Vehicle, (USD Million) 2021-2034
- 9.1. Passenger vehicle
- 9.1.1. OBD-II
- 9.1.2. Black Box
- 9.1.3. Smartphone
- 9.1.4. Embedded telematics
- 9.2. Commercial vehicle
- 9.2.1. Light Commercial Vehicles (LCVs)
- 9.2.2. Medium Commercial Vehicles (MCVs)
- 9.2.3. Heavy Commercial Vehicles (HCVs)
10. Global Usage-Based Insurance Market, By Vehicle age, (USD Million) 2021-2034
- 10.1. New Vehicles
- 10.2. Used Vehicles
11. Global Usage-Based Insurance Market, By Distribution channel, (USD Million) 2021-2034
- 11.1. Direct Sales
- 11.2. Brokers and Agents
- 11.3. Bancassurance
- 11.4. Online Platforms
12. Global Usage-Based Insurance Market, (USD Million) 2021-2034
- 12.1. Global Usage-Based Insurance Market Size and Market Share
13. Global Usage-Based Insurance Market, By Region, 2021-2034 (USD Million)
- 13.1. Asia-Pacific
- 13.1.1. Australia
- 13.1.2. China
- 13.1.3. India
- 13.1.4. Japan
- 13.1.5. South Korea
- 13.1.6. Rest of Asia-Pacific
- 13.2. Europe
- 13.2.1. France
- 13.2.2. Germany
- 13.2.3. Italy
- 13.2.4. Spain
- 13.2.5. United Kingdom
- 13.2.6. Rest of Europe
- 13.3. Middle East and Africa
- 13.3.1. Kingdom of Saudi Arabia
- 13.3.2. United Arab Emirates
- 13.3.3. Qatar
- 13.3.4. South Africa
- 13.3.5. Egypt
- 13.3.6. Morocco
- 13.3.7. Nigeria
- 13.3.8. Rest of Middle-East and Africa
- 13.4. North America
- 13.4.1. Canada
- 13.4.2. Mexico
- 13.4.3. United States
- 13.5. Latin America
- 13.5.1. Argentina
- 13.5.2. Brazil
- 13.5.3. Rest of Latin America
14. Company Profile
- 14.1. UNIPOLSAI ASSICURAZIONI S.P.A
- 14.1.1. Company details
- 14.1.2. Financial outlook
- 14.1.3. Product summary
- 14.1.4. Recent developments
- 14.2. Progressive Insurance
- 14.2.1. Company details
- 14.2.2. Financial outlook
- 14.2.3. Product summary
- 14.2.4. Recent developments
- 14.3. AllState Insurance Company
- 14.3.1. Company details
- 14.3.2. Financial outlook
- 14.3.3. Product summary
- 14.3.4. Recent developments
- 14.4. State Farm
- 14.4.1. Company details
- 14.4.2. Financial outlook
- 14.4.3. Product summary
- 14.4.4. Recent developments
- 14.5. Liberty Inusrance
- 14.5.1. Company details
- 14.5.2. Financial outlook
- 14.5.3. Product summary
- 14.5.4. Recent developments
- 14.6. Nationwide
- 14.6.1. Company details
- 14.6.2. Financial outlook
- 14.6.3. Product summary
- 14.6.4. Recent developments
- 14.7. ALLIANZ SE
- 14.7.1. Company details
- 14.7.2. Financial outlook
- 14.7.3. Product summary
- 14.7.4. Recent developments
- 14.8. AVIVA
- 14.8.1. Company details
- 14.8.2. Financial outlook
- 14.8.3. Product summary
- 14.8.4. Recent developments
- 14.9. AXA
- 14.9.1. Company details
- 14.9.2. Financial outlook
- 14.9.3. Product summary
- 14.9.4. Recent developments
- 14.10. MAPFRE SA
- 14.10.1. Company details
- 14.10.2. Financial outlook
- 14.10.3. Product summary
- 14.10.4. Recent developments
- 14.11. Others
15. Conclusion
16. List of Abbreviations
17. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
Frequently Asked Questions About This Report
Usage-Based Insurance Market is projected to reach USD 567.67 billion by 2034, growing at a CAGR of of 24.25% during the forecast period.
Usage-Based Insurance Market grew in Market size from 2025. The Market is expected to reach USD 567.67 billion by 2034, at a CAGR of 24.25% during the forecast period.
Usage-Based Insurance Market CAGR of 24.25% during the forecast period.
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Usage-Based Insurance Market size is USD 567.67 billion from 2025 to 2034.
Usage-Based Insurance Market is covered By Package, By Technology, By Vehicle, By Vehicle Age, By Distribution Channel
The North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa is the highest Market share in the Usage-Based Insurance Market.
UNIPOLSAI Assicurazioni S.p.A, Progressive Insurance, Allstate Insurance Company, State Farm, Liberty Insurance, Nationwide, Allianz SE, Aviva, AXA, MAPFRE SA.
The report includes an in-depth analysis of the Global Usage-Based Insurance Market, including market size and trends, product mix, Applications, and supplier analysis.
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