The commercial auto insurance market, valued at $52.8 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of over 6% from 2024 to 2032, according to a report by Global Market Insights.
One of the primary factors driving this growth is the increasing adoption of telematics and Internet of Things (IoT) devices in commercial vehicles. These technologies enhance vehicle tracking, monitoring, and risk management, making insurance policies more tailored and efficient.
In the Asia-Pacific (APAC) region, the commercial auto insurance sector is experiencing rapid expansion, spurred by economic growth and a surge in trade activity. However, insurers face the challenge of adapting to the diverse regulatory landscapes and cultural differences across key markets such as China, India, Japan, and Australia.
The global market is segmented by vehicle type into trucks and trailers, vans and pickups, and buses. In 2023, the trucks and trailers segment accounted for over $17 billion of the market, driven by the rising demand for specialized coverage due to the growing cargo transportation industry and regulatory compliance needs.
In terms of coverage, the market is divided into several types, including liability, collision, comprehensive, uninsured motorist, and underinsured motorist coverage. The liability coverage segment is expected to see a growth rate of over 5.5% CAGR throughout the forecast period.
Insurers are also adjusting their policies to address emerging risks such as cyber liability and the legal complexities surrounding autonomous vehicles, ensuring they stay ahead of evolving market demands.
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