Market Overview

Global Automotive Telematics Insurance Market to 2022 - Market to Reach 169 Million Units

Share:

Global Automotive Telematics Insurance Market to 2022 - Market to Reach 169 Million Units

PR Newswire

DUBLIN, Aug. 13, 2018 /PRNewswire/ --

The "Global Automotive Telematics Insurance Market: Focus on Usage-based Insurance (UBI) , Smartphone, Hardwired, OBD, Aftermarket, OEM Fitment, Supply Chain, Passenger Vehicle, and Commercial Vehicle - Analysis and Forecast, 2018-2022" report has been added to ResearchAndMarkets.com's offering.

Research and Markets Logo

The automotive industry faces several issues such as control on environmental emissions, growing road safety concerns, and cost optimization of various resources within the supply chain - all of which together account for a major share of research investment. These issues can be resolved by understanding the customers' (drivers) and their driving ecosystem. In-cabin smart service integration is one of the solutions that aim to reduce a commuter's effort to perform various activities while traveling in the vehicle. The key for the automotive industry is telematics, which has the ability to drive smart vehicle system design. Telematics is a platform of communication which collects data from a vehicle in real time and transmits it to the data analytics center from which the data is then processed and sent back to the vehicle as per the selected service application.

There are several threats which the automotive insurance market has to deal with. The automotive insurance market has not witnessed any major innovation since the time of its inception. A conventional insurer safeguards itself by modifying the policy underwriting and premium recalculation processes. The overall insurance process and product structure have remained the same with no evident struggle for change/innovation. The prime reason for it is that an insurance policy for automotive vehicle is a necessity (as regulated by regional government). The need for change was pushed into the conventional automotive insurance market by some of the outside third-party telematics players during the 1990s. Octo Telematics was one of the leading players which led the market for telematics-based insurance products in the initial phase of the revolution. A telematics insurance market in the automotive domain is very complex with a high rate of co-dependency. Factors which have compelled the insurers to integrate telematics solution in their services are:

  • Growing numbers of fraud automotive insurance claims
  • The need for optimizing the premium pricing policies based on actual driving behaviors
  • To identify driving behavior and implement an analogy for self-correction for driving improvement

Telematics insurance is expected to grow into a mainstream automotive insurance option. In the current market ecosystem, the major drivers for the global automotive telematics insurance market are dominated by the growth in technology reforms in vehicle design, thus enabling the integration of various smart services. Some of the drivers for the industry are high customer engagement through usage-based insurance (UBI), which offers better pricing and feature flexibility for end users, growing number of fraud claims, and increasing insurance premium. Some of the major challenges for the industry are data management and automotive insurance industry's resistance to the innovative model. The automotive telematics insurance market has a low penetration ratio in the automotive insurance market majorly due to misconceptions such as the insurance claim process, the data recording and tracking methods, and privacy issues, among others.

Many of the developing economies such as China, India, and others strive in the automobile sector for a growing GDP. The global volumes of automotive vehicles are expected to grow at a CAGR of 3% during the forecast period. The global parked vehicle volume is one of the keys to analyze the global potential of the automotive telematics insurance market. The following figure depicts the recorded volume for 2016 and 2017 and expected volume for the forecast 2018-2022. The global parked vehicle volume is expected to increase at a sustained growth rate. A high gradient for Passenger Vehicle (PV) indicates higher growth as compared to Commercial Vehicle (CV).

In 2017, the global automotive telematics insurance market volume was estimated 24.7 million units, which is expected to reach 169.8 million units by 2022. Factors owing to this growth are an increase in the availability of digital technology, growing safety concerns related to driving behavior, and an increase in the competition in the automotive insurance market, among others. The estimated CAGR for the forecast period 2018-2022 is 37.20%.

The market estimation considers a detailed, in-depth analysis of factors impacting various regional markets and industrial trends. The highest growth period is 2017-2019, and the estimated cumulative growth rate for the period would be ~245%, which is led by the surge in the number of new market entrants and automotive telematics insurance product launches.

The global automotive telematics insurance market is expected to be driven by the various global technological companies that accelerate the growth of automotive telematics insurance policies. Octo Telematics is one of the major global players which operate in all the three regions. Some of the key strategies adopted by the company were that of partnerships, joint ventures, and mergers and acquisitions (M&A). A major acquisition by Octo Telematics was of the UBI asset of Wills Tower which developed a strong technology research and solution development partnership for telematics-based products. CalAmp is an electronic manufacturing-based company which ventured into telematics products. Its main strategies have been M&As and utilizing its own capability to enhance products. CalAmp invested in equity stakes in ThinkNet GmbH to develop connected vehicle solution for the Europe automotive market. Another strategic acquisition by CalAmp was that of LoJack, which provides vehicle tracking, location, and retrieval services to the automotive market in the U.S. This acquisition gave CalAmp access to the vast customer base in the U.S. and additional market capabilities. Cambridge Mobile Telematics is also one of the key service providers in the U.S. It has collaborated with multiple insurance companies to provide telematics driver solutions and backend supports. Some of the emerging automotive telematics insurance solution providers such as Amodo Ltd, Insure Telematics Solution, and The Floow Ltd. originate from the European region. The overall environment of the automotive telematics insurance market is highly co-dependent which enables healthy competition as well as market development at an optimum time and cost.

Key Topics Covered:

Executive Summary

1 Market Dynamics
1.1 Global Automotive Telematics Insurance Market Definition
1.1.1 Introduction
1.1.2 Market Drivers
1.1.2.1 High Customer Engagement through UBI Platform
1.1.2.2 UBI Offers Better Pricing and Feature Flexibility for End Users
1.1.2.3 Growing Number of Fraud Claims and Increasing Insurance Premiums
1.1.3 Market Restraints
1.1.3.1 Data Management and Security
1.1.3.2 Automotive Insurance Market Resistance toward Digital Solution
1.1.3.3 Automotive telematics insurance Market has a low penetration
1.1.3.4 Myths about Automotive Telematics Insurance
1.1.4 Market Opportunities
1.1.4.1 Growth in Autonomous Driving Systems
1.1.4.2 Growing Focus on Safe Driving Habits and Vehicle Health Management

2 Competitive Insights
2.1 Introduction
2.2 Key Developments and Strategies
2.2.1 Market Position of Key Players

3 Industry Insights
3.1 Supply Chain
3.2 Business Models
3.2.1 Telematics Data in Usage-based Insurance Business

4 Global Automotive Telematics Insurance Market (by DeviceType)
4.1 Assumptions and Limitations for Market Size Calculations
4.2 Overview
4.2.1 Market Analysis and Forecast
4.3 Hardwired
4.4 On-board Device (OBD)
4.5 Smartphone
4.6 Embedded

5 Global Automotive Telematics Insurance Market (by Distribution Channels)
5.1 Overview
5.1.1 Market Analysis and Forecast
5.2 Aftermarket
5.3 OEM

6 Global Automotive Telematics Insurance Market (by Vehicle Type)
6.1 Overview
6.1.1 Factors Defining Vehicle Type
6.1.2 Market Analysis and Forecast
6.2 Passenger Vehicle
6.2.1 Case Study
6.3 Commercial Vehicle
6.3.1 Case Study

7 Global Automotive Telematics Insurance Market (by Region)

8 Company Profiles

  • Agero Inc.
  • Amodo Ltd.
  • AXA Group
  • Baseline Telematics
  • CalAmp Corp.
  • Cambridge Mobile Telematics
  • Insure Telematics Solutions
  • Intelligent Mechatronic Systems
  • Octo Telematics Ltd
  • The Floow Limited
  • The Progressive Corporation
  • TomTom
  • Trakm8 Group
  • TrueMotion Inc.
  • Verizon Communications, Inc.

For more information about this report visit https://www.researchandmarkets.com/research/t4p4zz/global_automotive?w=5

Media Contact:

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Cision View original content:http://www.prnewswire.com/news-releases/global-automotive-telematics-insurance-market-to-2022---market-to-reach-169-million-units-300695901.html

SOURCE Research and Markets

View Comments and Join the Discussion!