Internet of Things (IoT) Insurance Market Overview
Internet of Things (IoT) Insurance Market Size was valued at USD 42.76 billion in 2022. The IoT Insurance industry is projected to grow from USD 70.93 Billion in 2023 to USD 2,452.45 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 55.72% during the forecast period (2023 - 2030).
IoT in insurance is the term used to describe the usage of IoT devices by insurance businesses to gather, transmit, and share important data of insurers. The use of IoT devices also enables insurance service providers to increase employee and organizational efficiency and their understanding of risk management. Additionally, it offers many advantages to end users, such as enhanced claim management services, quick risk management services, and decreased operating costs of the company during claim settlement management services. Moreover an increasing trend of IoT in health insurance, IoT marine insurance is adopted across the globe.
Figure 1: IoT Insurance Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Internet of Things (IoT) Insurance Market Trends
Increasing Investment by Insurance Companies in IoT Technology
The rise in IoT product adoption among businesses to receive data from a number of sources and the rise in adoption of telematics devices among the automotive and transportation sectors are some of the significant reasons that boost the IoT insurance market.
Additionally, the expansion of insurance companies' investments in IoT technology to enhance their operational effectiveness fuels the market. However, concerns about the security and privacy of customers' personal information as well as a lack of worker proficiency with IoT devices are limiting the growth of the IoT for insurance business. Contrarily, throughout the forecast period, it is anticipated that increased adoption of cutting-edge technologies in the insurance sector, such as machine learning and artificial intelligence, would present lucrative potential for the growth of the worldwide IoT insurance market.
Internet of Things (IoT) Insurance Market Segment Insights
IoT Insurance Type Insights
The property and casualty insurance segment dominated the IoT insurance market in 2022 and is expected to maintain its dominance during the forecast period. This is owing to the use of connected and telematics devices by the automotive and travel industries is expected to increase, and P&C insurance service providers are expected to quickly adopt IoT technology in order to increase their revenue opportunities. This is increasing the IoT in property insurance during the forecast period.
In May 2020, The Verisk Data Exchange Add-In is now accessible on the Geotab Marketplace, according to a press release from Verisk and Geotab. Through this new integration, fleet clients of Geotab, which offers connected car solutions for better fleet management to more than two million subscribers, can now decide to directly exchange their telematics data with insurers taking part in the Verisk Data Exchange. In order to improve underwriting, rating, and other prospective IoT driven insurance services for participating policyholders, the data will assist commercial vehicle insurers in gaining more detailed insights into fleet risks.
In April 2020, Parsyl, Inc., a US-based supply chain data platform, has introduced ColdCover by Parsyl Insurance, a line of linked cargo insurance solutions by using its IoT data platform, for perishable commodities.
Figure 2: IOT INSURANCE MARKET, BY TYPE, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
IoT Insurance Region Insights
North America dominated the IoT insurance market on a regional level in 2022 and is anticipated to continue doing so over the course of the forecast period. This is linked to insurance companies becoming more aware of smart devices and to the United States' quicker adoption of IoT products. Additionally, a number of significant insurance providers, like Liberty Mutual, Progressive, and State Farm, have been utilising IoT technologies to increase the effectiveness of their risk assessment processes.
However, Asia-Pacific is anticipated to have considerable growth during the forecast period due to an increase in end-user adoption of IoT devices including drones, Wi-Fi dongles, wearable technology, and devices with built-in sensors that give insightful data.
Figure 3: IOT INSURANCE MARKET, BY REGION, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Internet of Things (IoT) Insurance Key Market Players & Competitive Insights
Due to the enormous number of local and foreign competitors, both large and small, engaging in the IoT insurance industry, it is extremely competitive. Due to the presence of so many technology in insurance, the market seems to be fragmented. IBM Corporation, Microsoft Corporation, Intel Corporation, and SAP SE are a few of the market's main participants.
Key Companies in the IoT Insurance market include
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Intel Corporation (US)
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General Electric (US)
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Google Inc. (US)
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Amazon Web Services Inc. (US)
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International Business Machine (IBM) Corporation (US)
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Microsoft Corporation (US)
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Oracle Corporation (US)
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SAP SE (Walldorf, Germany)
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PTC Inc. (US)
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Cisco Systems, Inc. (US)
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Hewlett-Packard Enterprise (US)
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Bosch Software Innovation GmbH (Germany)
Internet of Things (IoT) Insurance Industry Developments
Accenture plc, on October 18th, 2023, announced the purchase of ON SERVICE GROUP, a major provider of business process services specializing in insurance operations. The transaction enhances Accenture’s ability to run the supply chain while enabling customers to drive operational efficiencies, be nimbler, and boost growth through digital avenues.
November 2022: International Business Machines Corporation (IBM) has entered into a partnership with Bulgaria and Ablera regarding enhancements for ABACUS – a full-circle answer to pricing and rating processes for insurance companies using artificial intelligence (AI), which is more rapid and accurate in these processes as compared to their cumbersome manual versions and allows for more people working with applied mathematics sophistication.
HBF Health Ltd introduced Oracle Health Insurance in April 2020 to help achieve this purpose as part of a broader initiative aimed at streamlining systems and activities. By making Oracle Health Insurance its main platform across all its health insurance offerings, HBF aims to enhance its membership numbers and expand coverage across Australia.
IBM Corporation announced in November 2022 that it is partnering with Bulgaria and Ablera to develop ABACUS – an AI-driven pricing and rating system tailored specifically for insurance firms. This agreement would enable ABACUS to work faster yet more accurately than ever before, thereby eliminating the need for laborious manual tasks that are prone to errors while allowing advanced applied mathematics applications to be employed by a larger population of users.
Telit, an international leader in IoT, completed the acquisition of certain assets from Mobilogix on August 31st, 2022. The acquisition would provide significant expertise in equipment design, focusing on original equipment manufacturing, regulatory approvals, operational certificates, and optimizing EMS migration.
July 2022- SAP, in collaboration with NTT DATA, has launched a Co-Innovation Solution Connected to a Product that monitors Fragile & Sensitive Cargo Shipments, Facilitating Insurance Procedures where A real-time monitoring of transportation conditions end-to-end enables such solution to monitor all variables that could affect a shipment, and to automatically trigger and execute insurance policies if goods are not transported under certain pre-defined conditions. SAP Business Network for Logistics is used to improve the accountability of each stakeholder and simplify transport insurance management services.
Internet of Things (IoT) Insurance Market Segmentation
IoT Insurance Type Outlook
IoT Insurance End User Outlook
IoT Insurance Regional Outlook
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North Americas
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
| Attribute/Metric |
Details |
| Market Size 2022 |
USD 42.76 Billion |
| Market Size 2022 |
USD 70.93 Billion |
| Market Size 2030 |
USD 2,452.45 Billion |
| Compound Annual Growth Rate (CAGR) |
55.72% (2023-2030) |
| Base Year |
2022 |
| Forecast Period |
2023-2030 |
| Historical Data |
2019 & 2021 |
| Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, End User and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered |
U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea. |
| Key Companies Profiled |
Intel Corporation (US), General Electric (US), Amazon Web Services Inc. (US), Google Inc. (US), International Business Machine (IBM) Corporation (US), Microsoft Corporation (US), SAP SE (Walldorf, Germany), Cisco Systems, Inc. (US), Oracle Corporation (US), PTC Inc. (US), Hewlett-Packard Enterprise (US), Bosch Software Innovation GmbH (Germany) |
| Key Market Opportunities |
The need for insurance for various IoT is growing in both developed and developing economies. |
| Key Market Dynamics |
Increasing Investment by Insurance Companies in IoT Technology |
Frequently Asked Questions (FAQ) :
The market was valued at USD 42.76 Billion in 2022.
The Internet of Things (IoT) insurance market is poised to strike a 55.72% CAGR over the forecast period.
North America has the largest share of the market.
The key players in the market are Intel Corporation (US), General Electric (US), Amazon Web Services Inc. (US), Google Inc. (US), International Business Machine (IBM) Corporation (US), Microsoft Corporation (US), SAP SE (Walldorf, Germany), Cisco Systems, Inc. (US), Oracle Corporation (US), PTC Inc. (US), Hewlett-Packard Enterprise (US), Bosch.
IoT is being used in the insurance industry to improve underwriting and risk assessment processes, as well as to create dynamic rating models that allow insurers to offer more tailored and cost-effective coverage.
