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Usage-based Insurance (UBI) Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2026 - 2035

Publisher Global Market Insights
Published Nov 27, 2018
Length 235 Pages
SKU # GMI20763998

Description

The Global Usage-based Insurance (UBI) Market was valued at USD 62.6 billion in 2025 and is estimated to grow at a CAGR of 24.8% to reach USD 567.6 billion by 2035.

The rapid growth reflects fundamental changes in how insurance risk is assessed and priced. Insurers are increasingly shifting away from static premium models toward dynamic, behavior-linked pricing structures that better align cost with real-world usage. Strong growth is being supported by the rising adoption of connected mobility solutions, growing consumer preference for personalized insurance offerings, and broader acceptance of analytics-driven underwriting. Usage-based insurance enables insurers to improve pricing accuracy, optimize risk exposure, and strengthen customer relationships by aligning premiums with actual usage patterns. The transition toward digital insurance ecosystems has further accelerated adoption, as data-centric platforms improve transparency, flexibility, and engagement throughout the policy lifecycle. These structural changes continue to position usage-based insurance as a core growth segment within the global insurance industry.

Technological progress is reshaping the market by enabling continuous data collection, real-time risk evaluation, and automated policy management. Digital monitoring systems and advanced analytics platforms are allowing insurers to assess driving behavior more precisely and adjust pricing models dynamically. This technological foundation supports scalable insurance models that respond to changing consumer mobility patterns. Market expansion is further reinforced by rising adoption of usage-linked insurance structures, growing regulatory openness to data-driven pricing, and increasing consumer awareness of insurance solutions tied directly to usage and behavior.

The pay-as-you-drive segment accounted for 66% share in 2025 and is projected to grow at a CAGR of over 24.7% from 2026 to 2035. Its dominance is supported by straightforward implementation, transparent pricing logic, and strong appeal among drivers seeking cost alignment with actual vehicle usage.

The passenger vehicles segment held 79% share in 2025 and is expected to grow at a CAGR of 25.1% through 2035. This segment benefits from a broad insured base and strong alignment with personalized insurance structures that reflect individual driving habits and usage intensity.

U.S. Usage-based Insurance (UBI) Market held 78% share, generating USD 20 billion in 2025. The region benefits from a well-established insurance ecosystem, widespread digital adoption, and advanced implementation of data-enabled insurance platforms.

Key companies active in the Global Usage-based Insurance (UBI) Market include Progressive, Zurich Insurance, Metromile, Allianz, AXA, Liberty Mutual Insurance, UNIPOLSAI ASSICURAZIONI, State Farm Mutual Automobile Insurance Company, Octo Group, and Allstate. Companies operating in the Global Usage-based Insurance (UBI) Market are strengthening their competitive position through digital transformation, strategic partnerships, and customer-centric product design. Many insurers are investing heavily in advanced analytics and platform modernization to enhance risk modeling and pricing precision. Collaborations with mobility and technology providers are helping expand data access and improve service integration. Firms are also focusing on flexible policy structures that appeal to diverse driving behaviors and usage profiles. 

Table of Contents

235 Pages
Chapter 1 Methodology & Scope
1.1 Market scope and definition
1.2 Research design
1.2.1 Research approach
1.2.2 Data collection methods
1.3 Data mining sources
1.3.1 Global
1.3.2 Regional/Country
1.4 Base estimates and calculations
1.4.1 Base year calculation
1.4.2 Key trends for market estimation
1.5 Primary research and validation
1.5.1 Primary sources
1.6 Forecast
1.7 Research assumptions and limitations
Chapter 2 Executive Summary
2.1 Industry 360° synopsis, 2022 – 2035
2.2 Key market trends
2.2.1 Regional
2.2.2 Package
2.2.3 Vehicle
2.2.4 Technology
2.2.5 Vehicle Age
2.2.6 Distribution channel
2.3 TAM Analysis, 2026-2035
2.4 CXO perspectives: Strategic imperatives
2.4.1 Executive decision points
2.4.2 Critical success factors
2.5 Future outlook and strategic recommendations
Chapter 3 Industry Insights
3.1 Industry ecosystem analysis
3.1.1 Supplier Landscape
3.1.2 Profit Margin
3.1.3 Cost structure
3.1.4 Value addition at each stage
3.1.5 Factor affecting the value chain
3.1.6 Disruptions
3.2 Industry impact forces
3.2.1 Growth drivers
3.2.1.1 Rapid growth of connected vehicles and telematics infrastructure
3.2.1.2 Rising demand for personalized and usage-linked insurance pricing
3.2.1.3 Advancements in AI, ML, and data analytics
3.2.1.4 Insurance sector digital transformation and regulatory acceptance
3.2.2 Industry pitfalls and challenges
3.2.2.1 Data privacy and cybersecurity concerns
3.2.2.2 Customer resistance to behavioral monitoring
3.2.3 Market opportunities
3.2.3.1 Rising adoption of telematics-enabled insurance:
3.2.3.2 High deployment and integration costs
3.2.3.3 Data accuracy and standardization issues
3.2.3.4 Partnerships with automotive OEMs and technology providers
3.3 Growth potential analysis
3.4 Regulatory landscape
3.4.1 North America
3.4.1.1 U.S. NAIC Guidelines
3.4.1.2 State Insurance Departments Regulations
3.4.1.3 Canada OSFI & Provincial Insurance Guidelines
3.4.2 Europe
3.4.2.1 Germany BaFin Regulations
3.4.2.2 France ACPR & CNIL Guidelines
3.4.2.3 United Kingdom FCA & GDPR Compliance
3.4.2.4 Italy IVASS Guidelines
3.4.3 Asia Pacific
3.4.3.1 China CBIRC Guidelines
3.4.3.2 Japan FSA Compliance
3.4.3.3 South Korea FSS Regulations
3.4.3.4 India IRDAI Guidelines
3.4.4 Latin America
3.4.4.1 Brazil SUSEP Guidelines
3.4.4.2 Mexico CNSF Guidelines
3.4.5 Middle East and Africa
3.4.5.1 UAE Insurance Authority Guidelines
3.4.5.2 Saudi Arabia SAMA Regulations
3.5 Porter’s analysis
3.6 PESTEL analysis
3.7 Technology and Innovation Landscape
3.7.1 Current technological trends
3.7.2 Emerging technologies
3.8 Price trends
3.8.1 By region
3.8.2 By product
3.9 Cost breakdown analysis
3.10 Patent analysis
3.11 Sustainability and Environmental Aspects
3.11.1 Sustainable practices
3.11.2 Waste reduction strategies
3.11.3 Energy efficiency in production
3.11.4 Eco-friendly initiatives
3.11.5 Carbon footprint considerations
3.12 Use case scenarios
3.13 Actuarial modeling & risk scoring frameworks
3.13.1 Usage-based risk variables and weighting mechanisms
3.13.2 Driving behavior scoring methodologies
3.13.3 Integration of AI/ML in actuarial decision-making
3.14 Loss ratio & claims impact analysis
3.15 Customer adoption & behavioral economics analysis
3.16 Data ownership, monetization & privacy economics
3.17 OEM, telco & platform partnership models
3.18 Deployment models & operational architecture
3.19 Product differentiation & feature benchmarking
3.19.1 Feature comparison across major UBI offerings
3.19.2 Pricing, discount structures, and rewards models
3.19.3 Differentiation strategies among insurers
Chapter 4 Competitive Landscape, 2025
4.1 Introduction
4.2 Company market share analysis
4.2.1 North America
4.2.2 Europe
4.2.3 Asia Pacific
4.2.4 Latin America
4.2.5 Middle East & Africa
4.3 Competitive analysis of major market players
4.4 Competitive positioning matrix
4.5 Strategic outlook matrix
4.6 Key developments
4.6.1 Mergers & acquisitions
4.6.2 Partnerships & collaborations
4.6.3 New product launches
4.6.4 Expansion plans and funding
Chapter 5 Market Estimates & Forecast, By Package, 2022 - 2035 ($ Bn)
5.1 Key trends
5.2 Pay-How-You-Drive (PHYD)
5.3 Pay-As-You-Drive (PAYD)
5.3.1 Device- based
5.3.2 Telematics-based
5.4 Manage-How-You-Drive (MHYD)
Chapter 6 Market Estimates & Forecast, By Vehicle, 2022 - 2035 ($ Bn)
6.1 Key trends
6.2 Passenger vehicle
6.2.1 OBD-II
6.2.2 Black box
6.2.3 Smartphone
6.2.4 Embedded telematics
6.3 Commercial vehicle
6.3.1 Light commercial vehicles (LCVs)
6.3.1.1 OBD-II
6.3.1.2 Black box
6.3.1.3 Smartphone
6.3.1.4 Embedded telematics
6.3.2 Medium commercial vehicles (MCVs)
6.3.2.1 OBD-II
6.3.2.2 Black box
6.3.2.3 Smartphone
6.3.2.4 Embedded telematics
6.3.3 Heavy commercial vehicles (HCVs)
6.3.3.1 OBD-II
6.3.3.2 Black Box
6.3.3.3 Smartphone
6.3.3.4 Embedded telematics
Chapter 7 Market Estimates & Forecast, By Technology, 2022 - 2035 ($ Bn)
7.1 Key trends
7.2 OBD-II
7.3 Black box
7.4 Smartphone
7.5 Embedded telematics
Chapter 8 Market Estimates & Forecast, By Vehicle Age, 2022 - 2035 ($ Bn)
8.1 Key trends
8.2 New vehicles
8.3 Used vehicles
Chapter 9 Market Estimates & Forecast, By Distribution channel, 2022 - 2035 ($ Bn)
9.1 Key trends
9.2 Brokers and agents
9.3 Direct sales
9.4 Online platforms
9.5 Bancassurance
Chapter 10 Market Estimates & Forecast, By Region, 2022 - 2035 ($ Bn)
10.1 Key trends
10.2 North America
10.2.1 US
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 France
10.3.4 Italy
10.3.5 Spain
10.3.6 Belgium
10.3.7 Netherlands
10.3.8 Sweden
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Japan
10.4.4 Australia
10.4.5 Singapore
10.4.6 South Korea
10.4.7 Vietnam
10.4.8 Indonesia
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Argentina
10.6 MEA
10.6.1 UAE
10.6.2 South Africa
10.6.3 Saudi Arabia
Chapter 11 Company Profiles
11.1 Global Player
11.1.1 Allianz
11.1.2 Allstate
11.1.3 AXA
11.1.4 Liberty Mutual Insurance
11.1.5 Metromile
11.1.6 Octo Group
11.1.7 Progressive
11.1.8 State Farm Mutual Automobile Insurance Company
11.1.9 UNIPOLSAI ASSICURAZIONI
11.1.10 Zurich Insurance
11.2 Regional Player
11.2.1 Aviva
11.2.2 Chubb
11.2.3 Direct Line Insurance
11.2.4 Generali
11.2.5 ICICI Lombard
11.2.6 MAPFRE
11.2.7 RSA Insurance
11.2.8 Sompo
11.2.9 Suncorp
11.2.10 Tokio Marine
11.3 Emerging Players
11.3.1 By Miles
11.3.2 Cuvva
11.3.3 Noblr
11.3.4 Sureify
11.3.5 Zego

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