The “Automotive Usage Based Insurance Market Forecast to 2027 – COVID-19 Impact and Global Analysis by Technology Fitted; and Geography” report has been added to ResearchAndMarkets.com’s offering.
Dongles Segment is Expected to Dominate the Automotive Usage Based Insurance Market in 2027
The market is estimated to reach US$ 124.02 billion by 2027 from US$ US$ 19.64 billion in 2019. The report include key understanding on the driving factors of this growth and also highlights the prominent players in the market and their developments.
At present, the insurance providers are following either installation of hardware devices, where devices are equipped to the policyholders’ cars or the low-priced smartphone app route. Both of these methods of tracking information have their advantages and disadvantages; however, they are not commonly exclusive. An insurance provider might want a customer to download an app and later shift to a plug-in device.
To stay competitive in the market, the insurance providers need to build internal capability, i.e. significant investment and efforts are required to establish liaison with telematics service providers. Before selecting an appropriate method to track information, an insurance provider needs to make several considerations. Most of the insurance providers use on-board diagnostics systems, i.e. OBDII (black boxes or dongles). However, they also offer smartphone apps that are easier to access and are economical. Comparatively very few of the insurance providers offer both the hardware and smartphone app.
Based on technology fitted, the global automotive usage based insurance market is segmented into smartphones, black box, dongles, and others. The dongles segment is expected to dominate the market by 2027. Dongles are a type of telematics hardware, commonly known as on-board devices (OBD). They are provided to customers either by the insurance company or third-party providers. Generally, they are owned by the insurance companies themselves. Dongles are plugged into vehicle’s on-board computer to capture real-time data around particular events. Dongles are capable of measuring almost all vehicle mechanisms from acceleration and braking pattern to speeding and crashes.
Due to the outbreak of COVID-19, the count of car trips has dropped drastically across the world. Therefore, the drivers and the vehicle owners are seeking for different criteria for making payment of insurance instead of making a flat rate, as the cars have been parked idle in the garages since last few months. Due to reduced trip of vehicles, the usage-based insurance is expected to be adopted highly. Thus, the companies are carefully monitoring the driving behavior because of restrictions imposed to curb the spread of COVID-19. To encourage safe driving in this pandemic situation, the need to measure the user’s driving behavior is a must. This pandemic situation would assist in stimulating the use of telematics more in the auto insurance industry.
Key Topics Covered:
1.1 Scope of the Study
1.2 Research Report Guidance
1.3 Market Segmentation
2. Key Takeaways
3. Research Methodology
4. Automotive Usage Based Insurance Market Landscape
4.1 Market Overview
4.2 Ecosystem Analysis
4.3 PEST Analysis
5. Automotive Usage Based Insurance Market –