The usage-based insurance (UBI) market in the Asia-Pacific region is projected to experience substantial growth, reaching $64.29 billion by 2030, according to a report by Allied Market Research (AMR).
This forecasted expansion represents a compound annual growth rate (CAGR) of 27.6% from 2021 to 2030, a significant increase from the $5.64 billion market size in 2020.
Drivers of Market Growth
Key factors fueling this growth include the rising adoption of advanced UBI technologies, such as smartphone-based and hybrid systems, alongside increasing global concerns over driver safety. These innovations are reshaping how insurance is approached and delivered in the region.
However, the market’s growth is not without challenges. High costs associated with telematics installation and concerns regarding data security present significant obstacles.
Impact of COVID-19
According to AMR, the COVID-19 pandemic has had a positive impact on the Asia-Pacific UBI market. Lockdowns and social distancing measures led to a reduction in the use of public transportation. This shift resulted in fewer car insurance claims and a subsequent boost to the UBI market, as more individuals relied on personal vehicles.
Market Segmentation
The Asia-Pacific UBI market is categorized by type, technology, vehicle age, vehicle type, and region.
- Technology: In 2020, the black-box segment dominated, holding over three-fifths of the market share. However, the smartphone segment is expected to grow at the highest CAGR of 30.1% during the forecast period.
- Vehicle Age: New vehicles comprised nearly three-fifths of the market share in 2020. The segment for used vehicles is projected to grow the fastest, with a CAGR of 28.7%.
- Geography: China held the largest market share in 2020, accounting for over two-fifths of the market. Singapore is anticipated to grow at the fastest CAGR of 30.2%.
Leading Market Players
AMR identifies several key players in the Asia-Pacific UBI market:
- ASSICURAZIONI GENERALI SPA
- Allianz SE
- Aviva
- AXA
- Liberty Mutual Insurance
- Mapfre SA
- TomTom International
- Octo Group SpA
- Sierra Wireless
- Vodafone Limited
About Allied Market Research
Based in Wilmington, Delaware, Allied Market Research is a market research and business consulting firm. It provides in-depth market research reports and business intelligence solutions globally, aiding companies in making strategic decisions and achieving sustainable growth.
