The Telematics-based Auto Insurance Market Worth US$ 13,998.3 Million by 2033 Globally, at a CAGR of 18.7%, Says Future Market Insights, Inc.

The market is expected to progress at a CAGR of 18.7% from 2023 to 2033. The telematics-based auto insurance market is predicted to be worth US$ 2,513.9 million in 2023 and rise to US$ 13,998.3 million by 2033. The global industry was expanding at a CAGR of 16.6% from 2018 to 2022.

Governments want to develop the automotive industry by implementing cutting-edge telematics in cars. This is one of the key drivers of global market expansion. However, on-board Diagnosis (OBD)-ll dongles offer possible entry points that hackers use to steal information, cars, and remotely operate vehicles.

The use of various systems in the insurance telematics industry increases the risk of malware and virus assaults. This may hurt the market internationally.

Potential Market Opportunity

AI, IoT, and 5G technologies are speeding innovation in the automotive sector and opening up new possibilities for enhanced user experiences and data monetization. Additionally, businesses have tremendous opportunities to exchange data from telematics devices with numerous parties. Moreover, gain insightful data on a large scale by implementing telematics devices.

Key Takeaways

• By 2033, the telematics-based auto insurance market in the United Kingdom is likely to expand, with a CAGR of 18.2%.
• In 2022, the United States dominated the telematics-based auto insurance sector, with a share of 18.5%.
• The telematics-based auto insurance market was significantly expanding, with a size of US$ 2,146.8 million in 2022.
• By 2033, the telematics-based auto insurance market in China is likely to expand, with a CAGR of 17.7%.
• In 2022, Germany expanded the telematics-based auto insurance business, with an expected share of 7.6%.
• The market is expected to grow at a US$ 4,204.02 million valuation by 2026, with a rise in passenger vehicles.
• By 2033, India is projected to expand significantly in the telematics-based auto insurance market, with a share of 19.3%.
• Japan’s telematics-based auto insurance industry share expanded significantly, with a 9.6% share in 2022.
• In 2022, the passenger car dominated the market with a share of 48.5%. It is anticipated to control the market by 2033 in terms of vehicle type.
• Based on vehicle age, used vehicles dominated the market with a share of 54.5% in 2022.

Effective Approaches by Key Players

Insurance regulators are used to selling and delivering packaged products to families both directly through digital and ‘captive agent’ channels. As well as indirectly through agencies, brokers, and other intermediaries. This practice necessitates a huge marketing and commission investment.