The global IoT insurance market is predicted to reach USD 57.34 billion in 2024 and USD 266.77 billion by 2029, growing at a CAGR of 36% during the forecast period..
Insurers partner with companies to provide the latest cross-industry products and services that leverage IoT technologies, which in turn can deliver several benefits, such as frequent customer interactions using telematics applications. Insurance companies, with the help of IoT, can develop new business models by monitoring customer behavior patterns related to driving, fitness, etc., so that various companies health and auto insurance can inspire customers to recognize the achievement of their goals. This can improve the relationship between the customer and the business, which is a key factor for any insurance company.
Internet of Things (IoT) insurance has transformed the insurance industry, giving customers access to options with a variety of products. You improve customer relationships and gain an accurate understanding of your customers and their changing needs. Thus, as a result, the insurance model improves, and the demand for new related technologies increases.
P&C is expected to have a significant market share due to the huge amount of data collected by this segment. This segment includes auto insurance, large commercial properties, home and contents, and accident insurance.
Auto insurers used to set premiums using various proxy indicators, such as the age and address of the driver. Today, with the help of IoT, various data can be monitored, such as driver behavior and use of a vehicle, the speed at which it is driven, and the duration of the trip. This allows insurers to assess risks more accurately.
Progressive, an auto insurer, uses its usage-based insurance (UBI) telematics program to monitor the driving behavior of its customers. As a result, the company gets better information about the driver's performance and can set more accurate prices individually. Plus, it also rewards the safest drivers with a reduced premium.
The insurance model has improved, and a hike in the number of start-ups is expected to act as an engine for the global IoT Insurance market growth. There is an increase in adoption in developed and developing economies that is also stimulating the market. The surge in the demand for value-added services and the new cloud platforms are expected to act as a determining aspect in the international market growth.
On the contrary, data privacy risks are considered as a principal factor that is expected to act as a limitation to this market boom.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
36% |
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Segments Covered |
By Type, Application, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Apple Inc. (US), Telefonaktiebolaget LM Ericsson (Europe), Google Inc. (US), Microsoft (US), Broadcom (US), Gbrmpa, HERE, Qualcomm Technologies, Inc. (US), Senion (Europe), Zebra Technologies Corp., STMicroelectronics (Switzerland), AeroScout Industrial, Ekahau, Hewlett Packard Enterprise Development LP, AISLE411 ( USA), Glopos Technologies, IndoorAtlas Ltd., Navizon Inc (USA), Near Now, Sensewhere and Others. |
The type segment is further divided into health insurance, life insurance, property and casualty insurance (P&C), and others. P&C Insurance has a good market share thanks to the data collected by this segment. This segment applies to auto, large commercial property, home and contents, and liability insurance. A large amount of data is generated that is used to analyze it and make it beneficial for both the insurance company and the policyholders. The increasing use of IoT-enabled wearable devices is also one reason this segment is growing. These portable accessories help generate data and get discounts for your customers.
According to the application, the IoT market is segmented into agriculture, automotive and transportation, commerce and business, consumer electronics and industrial machinery, residential and commercial buildings, life and health, travel, and others. Consumer electronics has the maximum market share in this segment due to the maximum use of IoT in these devices. These electronic devices use sensors that can be guaranteed and, therefore, attract more customers. The installed sensors constantly send information in the form of data that is collected and monitored by the insurance company to develop its business.
Geographically, the regional analysis of the global Internet of Things (IoT) insurance is being reviewed for regions such as Asia Pacific, North America, Europe, and the rest of the world. North America is expected to have the highest market share in the IoT insurance market due to the growing awareness and growing adoption of IoT in this region.
North America has been observed to dominate the Internet of Things (IoT) insurance market due to many factors, such as the presence of developed economies such as the United States and Canada, early adoption, and the high investment power of the Internet of Things. Apart from this, the development of new technologies such as IoT, Big Data, and others by many organizations will have a positive impact on the global IoT insurance market in this area. The Asia Pacific region is expected to show a sudden rebound in the global IoT insurance market due to the increasing penetration of the Internet of Things and the increasing number of wearable devices, drones, and the like.
Some of the main competitors currently working in the global IoT insurance market are Google Inc. (USA), Lemonade Inc. (USA), SAP SE (Germany), IBM Corporation (USA), Cisco Systems, Inc. (United States), Oracle Corporation (United States), Zonoff Inc. (United States), Accenture PLC (Ireland), LexisNexis (United States), Capgemini (France), Hippo Insurance (United States), Lemonade Inc. (United States) ) Microsoft Inc. (U.S). Zurich Insurance Group Ltd. (Swiss). Berkshire Hathaway Inc. (United States), Allianz (Germany), Concirrus (United Kingdom), Genpact (United States) and others.
By Type
By Application
By Region
Frequently Asked Questions
IoT technology benefits the insurance industry by providing real-time data, improving risk assessment, reducing fraud, enhancing customer experience, and enabling preventive measures. For example, smart home devices can alert homeowners and insurers to potential hazards, reducing claims and losses.
North America and Europe are leading the adoption of IoT in insurance, driven by high penetration of connected devices, advanced data analytics capabilities, and supportive regulatory environments. Asia-Pacific is also showing significant growth due to rapid technological advancements and increasing insurance penetration.
Challenges include data privacy and security concerns, high initial investment costs, interoperability issues between different IoT devices and platforms, regulatory hurdles, and the need for robust data analytics infrastructure to handle the vast amount of data generated by IoT devices.
Future developments in the IoT insurance market include wider adoption of AI and machine learning for predictive analytics, increased use of blockchain for secure data sharing, expansion of IoT applications in new insurance sectors, and greater collaboration between tech companies and insurers to innovate and develop new IoT-driven insurance products.
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