The Asia Pacific Automotive UBI market accounted for US$ 1.71 Bn in 2018 and is expected to grow at a CAGR of 25.9% over the forecast period 2019-2027, to account for US$ 13.57 Bn in 2027. The increasing demand for mobility-as-a-service (MaaS) and various type of insurance premium policies is the key driver that is propelling the growth of the automotive UBI market. Moreover, the strategic partnerships among insurance companies and telematics companies are expected to boost the automotive UBI market growth in the forecast period. The insurance companies offering telematics insurance is constantly leveraging on various factors to enhance the solutions and deliver their customers with better schemes. One of the significant trends in the automotive UBI market is the increasing number of partnerships among telematics companies and insurance companies. These partnerships are nourishing the UBI ecosystems in various countries, and the same trend is anticipated to proliferate the market size in the coming years. For instance, Allianz, a prominent insurance brokerage company, extended its partnership with Marmalade, a British insurance company. The agenda of this partnership was to offer the insurance policyholders a smart digital customer interaction platform through new mobile application and portal. In addition, GrabTaxi, a taxi service provider based in Singapore collaborated with AXA, an insurance provider, to introduce UBI policies in the country. The telematics companies are seeking interest in the automotive industry in developing regions worldwide, which is also pacing up the revenue generation stream of the automotive UBI market. Further, the automotive UBI market players are focusing on various initiatives to enhance their capabilities and boost its position in the market.
The automotive UBI market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the automotive UBI market further. For instance, APAC is one of the fastest growing IoT in the automotive market globally. The key countries such as China, Japan, and India are greatly adopting IoT at a rapid pace that is propelling the adoption of IoT in APAC automotive market as well. Rising pollution in the APAC countries, particularly in China, is a major concern. Thus, the governments of several countries are focusing on less CO2 emission as well as fuel efficient solutions. Owing to this, several companies are seeking to integrate the telematics and IoT enabled navigation that plays a vital role to reduce carbon emission and offer real-time emission data. Recently, Maruti Suzuki launched ?Suzuki Connect,? advanced telematics solution for its customers? in India. Also, the Ministry of Industry and Information Technology and the Standardization Administration of China together issued Guidelines for Developing the Standards System of the Telematics Industry (Intelligent and Connected Vehicles). Such initiates would result in the growth of vehicle telematics, thus, driving the growth of automotive UBI during the forecast period.
On the basis of policy type, the PAYD segment is expected to grow at the highest CAGR during the forecast period. Pay-as-you-drive (PAYD) insurance is a method that calculates rates on a constant basis, generally monthly. These rates are based on the information gathered on how much you drive. Therefore, changes in driving patterns on a monthly basis are reflected in customers? premium. If a customer has driven long distances in a particular month, then, a higher rate is expected. This type of UBI is dynamic in nature and reflects changes in behavior quickly. One of the biggest restraint for PAYD market growth is the installation of the GPS device in the vehicle. The installation of the device results in sharing information with the insurance provider; thus, several customers consider it as an invasion of their privacy. However, the increasing trend for mobility-as-a-service is expected to drive the PAYD market growth.
The overall automotive UBI market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the automotive UBI market. It also provides an overview and forecast for the automotive UBI market based on all the segmentation provided with respect to the Asia Pacific region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive UBI market. Some of the players present in automotive UBI market are Allianz SE, Assicurazioni Generali S.p.A., AXA SA, Liberty Mutual Insurance Company, MS&AD Insurance Group Holdings, Inc., Octo Telematics S.p.A., Sierra Wireless, Inc., TomTom Telematics BV, Unipolsai Assicurazioni S.p.A., and Vodafone Automotive S.P.A among others.