The global insurance telematics market, valued at $6.8 billion in 2024, is set to experience rapid growth, according to a new report from Global Market Insights. The industry is projected to expand at a compound annual growth rate (CAGR) of 18.9% between 2025 and 2034.
UBI and Vehicle Connectivity Fuel Global Expansion
Analysts say the main drivers behind the market’s growth are the increasing popularity of usage-based insurance (UBI) and a rise in vehicle connectivity worldwide. Telematics allows insurers to track real-time data on vehicle usage, enabling them to create more personalized pricing models based on driver behavior.
China Leads Asia-Pacific Growth
China is expected to dominate the Asia-Pacific region’s growth in this sector. The country’s strong digital infrastructure, rising smartphone usage, and growing adoption of UBI and behavior-based insurance models are key contributing factors.
With a large number of vehicles on the road and growing concerns over road safety, Chinese insurers are turning to telematics to improve pricing strategies and risk assessments. Major insurance providers such as Ping An, PICC, and China Life are investing in advanced telematics solutions. These include GPS tracking, driver scoring systems, and artificial intelligence-powered analytics.
Hardware Segment Dominates in 2024
In terms of components, the hardware segment is leading the global market. In 2024, it is expected to account for about 54% of the total revenue. This segment is forecasted to grow at a CAGR of more than 19% throughout the projection period.
Passenger Cars Drive Telematics Demand
Passenger vehicles are the largest contributors to global telematics demand. They represent about 69% of the market share in 2024. Experts predict that demand in this segment will grow at a CAGR of over 20% from 2025 to 2034.
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