Insurance Telematics Market by Deployment Type, End User (Small and Medium Enterprises, and Large Enterprises), and by Region (North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America) - Global Forecast and Analysis to 2020
“Smartphone penetration and consumer’s enthusiasm for in-car connectivity to drive the insurance telematics market”
The insurance telematics market size is expected to grow from USD 857.2 million in 2015 to USD 2.21 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 20.9%. Consumer’s enthusiasm for in-car connectivity and growth of smartphone penetration in insurance and automobile sector are among the factors driving the insurance telematics market. The other factor driving the growth of the insurance telematics market is the increase in regulatory compliances and regulations. Furthermore, the market is expected to be driven by opportunities such as the growth in IoT and increased demand for telematics solutions in insurance and automotive sector.
“Large enterprises are estimated to contribute the largest market share duing the forecast period”
Owing to the emergence of digital channels and evolution of technological advancement in cloud and mobile business operations, data infringement issues, and operational risks, large enterprises are investing heavily in these solutions to simplify their insurance process and sustain competitive advantage. Insurance telematics cloud deployment is expected to grow with the highest rate from 2015 to 2020. However, on-premises deployment is expected to contribute the largest market share during the forecast period.
Asia-Pacific (APAC) is expected to be the fastest growing market in the insurnace telematics market
In terms of regions, the insurance telematics market is segmented into five major regional segments, namely, North America, APAC, Europe, Latin America, and Middle East and Africa (MEA). Out of the five major regions, APAC is likely to lead the market in terms of market growth, followed by Latin America. Whereas, North America will continue to have the largest market share during the forecast period. However, the increased need to introduce innovative insurance plans such as UBI, PAYDAYS, and PHYD and induce control and visibility mechanisms has led to a wider demand among insurance and automotive enterprises for insurance telematics applications in the APAC region.
Breakdown of Primaries:
In the process of determining and verifying the market size for several segments and sub-segments gathered using secondary research, extensive primary interviews were conducted. Various key people in Tier 1, Tier 2, and Tier 3 companies were contacted for primary interviews. The interviews were conducted with CEOs, CIOs, vice presidents, marketing directors, insurance telematics technologists, and other innovation and technology directors and executives from various key organizations operating in the insurance telematics marketplace. Primary interviews were conducted worldwide covering North America, Europe, APAC, MEA, and Latin America.
Distribution of primary interviews is as follows
By Company Type: Tier 1- 55%, Tier2-20%, and Tier 3-25%
By Designation: C-Level-60%, Director Level-25%, and Others*-15%
By Region: North America-10%, Europe-20%, Asia-Pacific-40%, and RoW-30%
Note: *Others include sales managers, marketing managers, and product managers
The tier of the companies is defined on the basis of their total revenue, as of 2013: Tier 1 = >USD 10 billion, Tier 2 = USD 1 billion to USD 10 billion and Tier 3 = <USD 1 billion
Various key insurance telematics vendors and service providers profiled in the report are as follows:
1. Octo Telematics
2. Sierra Wireless, Inc.
3. Agero Inc.
5. TomTom Telematics.
6. Trimble Navigation
7. Verizon Enterprise Solutions
9. MiX Telematics
10. Masternaut Limited
The report will help the market leaders/new entrants in this market in the following ways:
1. This report segments the insurance telematics market comprehensively and provides the closest approximations of the revenue numbers for the overall market and the sub-segments across different verticals and regions.
2. The report helps stakeholders to understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.
3. This report will help stakeholders to better understand the competitors and gain more insights to better their position in the business. The competitive landscape section includes competitor ecosystem, new product developments, partnerships, mergers and acquisitions.
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