Internet of Things (IoT) Insurance Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 49.40 Billion |
| Market Size (2029) | USD 76.73 Billion |
| CAGR (2024 - 2029) | 9.21 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Internet of Things (IoT) Insurance Market Analysis
The IoT Insurance Market size is estimated at USD 49.40 billion in 2024, and is expected to reach USD 76.73 billion by 2029, growing at a CAGR of 9.21% during the forecast period (2024-2029).
The growth of the insurance sector in parallel with innovative insurance models, with the growing usage of IoT to reduce premium and risk-related costs, further expand the studied market growth.
- Growth in data analytics, Big Data, sensors, and machine learning technologies further expands the studied market's growth. With smart grids envisioned to take over the entire energy industry, IoT utilities are expected to gain traction over the forecast period.
- Additionally, the global market for life and health insurance is predicted to grow significantly during the forecast period due to the rapid uptake of internet-connected medical devices like smartwatches, smartphones, and fitness trackers that are constantly used to gather user data and monitor their behavior or lifestyle.
- Increasing 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.
- However, concerns about the security and privacy of customers' personal information and a need for worker proficiency with IoT devices limit the growth of the IoT insurance business.
- COVID-19 is anticipated to have a favorable effect on the expansion of the IoT insurance sector. This is due to an increase in insurance provider businesses' embrace of digital technologies to collect client data for claim management. To provide COVID-19 insurance services to clients, IoT technology assists the insurance sector during the current COVID-19 outbreak by securely collecting patient health information via mobile phones, wearable devices, and sensors.
Internet of Things (IoT) Insurance Market Trends
Retail and Commercial is Expected to Hold Significant Share
- Digital disruptions are expected to impact commercial insurers, as the industry has been preparing to witness some significant transformation. IoT technology is expected to be at the core of various new initiatives. Insurance firms are trying to utilize IoT data to assess customers, reduce premiums, and provide real-time warnings.
- Commercial property insurers are expected to witness multiple opportunities to redraw their relationships with their clients. Technological advancements, such as IoT and cloud, are significantly creating vast amounts of data that can be used to deliver value to commercial customers, primarily enabling closer partnerships and new sources of revenue.
- Due mainly to the rapid rise of the global e-commerce market over the past few years, the retail sector has also seen enormous growth. As a result, retailers use IoT solutions to boost the customer experience and operational efficiency to gain a competitive edge. As a result, the need from customers for an improved shopping experience, the growing acceptance of smart payment solutions, and the declining cost of IoT-based sensors and connectivity are some of the key drivers influencing the adoption of IoT technology in the researched segment.
- IoT has been significantly contributing to process automation and improving the operational effectiveness of retail establishments. It offers energy efficiency, security and surveillance, inventory and supply chain optimization, and labor management. Additionally, IoT is developing its capabilities in the area of cold chain monitoring for perishable food and pharmaceutical products.
North America is Expected to Hold Major Share
- North America is regarded as one of the significant regions for the IoT insurance market due to the growing awareness and the faster adoption of IoT across the region. Many companies, such as Liberty Mutual, Progressive, and State Farm, are leveraging the region's IoT technologies to enhance their risk assessment efficiency.
- John Hancock, a major insurance company in the United States, was one of the first to utilize the power of wearable devices by partnering with Vitality, distributing free Fitbits to customers, and tracking their well-being, making them less at risk of filing a claim. Moreover, the United States is regarded as the headquarters of some major players who offer their IoT solutions for various insurance companies.
- Additionally, it is projected that factors like the early adoption of the web of things (IoT) and a robust regional labor force will accelerate the regional market's growth.
- Some key factors driving the adoption of IoT insurance solutions across the region include the expansion of the insurance industry, the creation of creative insurance models, and the expanding use of IoT technology to lower premium and risk-related expenses.
Internet of Things (IoT) Insurance Industry Overview
The IoT insurance market is highly competitive, due to the market's large and small businesses' existence, which allows them to compete on both domestic and global marketplaces. Due to the presence of so many technology behemoths, the market seems to be fragmented. IBM Corporation, Microsoft Corporation, Intel Corporation, and SAP SE are a few of the market's main participants.
- July 2022 - SAP and NTT DATA announced Co-Innovation Solution Connected Product to Track Fragile and Sensitive Cargo Shipments and Facilitate Insurance Procedures, where By enabling end-to-end, real-time monitoring of the transportation conditions, the solution can monitor all variables that could affect a shipment, and automatically trigger and execute insurance policies if goods are not transported under certain pre-defined conditions. Utilizing SAP Business Network for Logistics helps improve accountability for each stakeholder and makes transport insurance management easier.
Internet of Things (IoT) Insurance Market Leaders
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IBM Corporation
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Microsoft Corporation
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Intel Corporation
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Oracle Corporation
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Telit Communications PLC
*Disclaimer: Major Players sorted in no particular order
Internet of Things (IoT) Insurance Market News
- November 2022 - IBM Corporation has announced a partnership with Ablera and Bulgaria to enhance ABACUS, a solution for insurance companies for pricing and rating processes powered by artificial intelligence, which brings next-level speed and accuracy to these processes, minimizing the error-prone, cumbersome manual efforts and allowing a more comprehensive range of users to work with the sophistication of applied mathematics.
- August 2022 - Telit, a global leader in the Internet of Things (IoT), has announced the acquisition of group assets from Mobilogix; acquisition adds comprehensive device engineering expertise and resources that focus on optimizing specifications for handoff to electronic manufacturing services, original device manufacturing, and the attainment of regulatory approvals and carrier certifications
Internet of Things (IoT) Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products and Services
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the COVID-19 Impact on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth of Insurance Sector in Parallel with Innovative Insurance Models
5.1.2 Growing Usage of IoT to Reduce the Premium and Risk-related Costs
5.2 Market Restraint
5.2.1 High Risk for Privacy from the Collected Data
6. MARKET SEGMENTATION
6.1 By End-User Industry
6.1.1 Retail and Commercial
6.1.2 Residential (Smart homes)
6.1.3 Automotive
6.1.4 Industrial
6.1.5 Healthcare
6.1.6 Other End-user Industries (Public Infrastructure, Logistics and Navigation)
6.2 By Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia Pacific
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Microsoft Corporation
7.1.3 Intel Corporation
7.1.4 Oracle Corporation
7.1.5 Telit Communications PLC
7.1.6 Synechron Inc.
7.1.7 Verisk Analytics Inc.
7.1.8 Accenture PLC
7.1.9 Aeris Group
7.1.10 Concirrus Ltd
7.1.11 Allerin Pvt. Ltd
7.1.12 ForMotiv LLC
7.1.13 Wipro Corporation
7.1.14 Webfleet Solutions BV (Bridgestone Corp.)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Internet of Things (IoT) Insurance Industry Segmentation
IoT-connected insurance has opened up new scope for insurance companies and also for IoT solutions providers. The companies can utilize sensors to monitor the state of an insured risk and analyze it throughout the insurance value chain.
The IoT Insurance Market is segmented by End-user Industry (Retail and Commercial, Residential (Smart homes), Automotive, Industrial, Healthcare), and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle, East & Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By End-User Industry | |
| Retail and Commercial | |
| Residential (Smart homes) | |
| Automotive | |
| Industrial | |
| Healthcare | |
| Other End-user Industries (Public Infrastructure, Logistics and Navigation) |
| By Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
Internet of Things (IoT) Insurance Market Research FAQs
How big is the IoT Insurance Market?
The IoT Insurance Market size is expected to reach USD 49.40 billion in 2024 and grow at a CAGR of 9.21% to reach USD 76.73 billion by 2029.
What is the current IoT Insurance Market size?
In 2024, the IoT Insurance Market size is expected to reach USD 49.40 billion.
Who are the key players in IoT Insurance Market?
IBM Corporation, Microsoft Corporation, Intel Corporation, Oracle Corporation and Telit Communications PLC are the major companies operating in the IoT Insurance Market.
Which is the fastest growing region in IoT Insurance Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in IoT Insurance Market?
In 2024, the North America accounts for the largest market share in IoT Insurance Market.
What years does this IoT Insurance Market cover, and what was the market size in 2023?
In 2023, the IoT Insurance Market size was estimated at USD 45.23 billion. The report covers the IoT Insurance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IoT Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Internet of Things Insurance Industry Report
The Global Internet of Things (IoT) Insurance Market report provides an in-depth market analysis, highlighting the market size and market share across various sectors, including retail and commercial, residential (smart homes), automotive, industrial, and healthcare. The report offers a comprehensive market forecast, detailing the market trends and market growth expected in the coming years.
The industry report includes a detailed industry analysis, providing insights into the market leaders and their market strategies. The report also includes a market overview, offering a snapshot of the current market conditions and the industry outlook. The industry information is crucial for understanding the market segmentation and the market value of different segments.
Additionally, the report includes industry research, industry statistics, and industry trends, which are essential for making informed business decisions. The market data and market review sections provide a detailed analysis of the market performance, while the industry size and industry sales sections offer insights into the market's economic impact.
The report also includes a report example and a report PDF for further reference. Research companies can benefit from the detailed market predictions and market outlook provided in the report. The market forecast and market growth sections offer valuable information for planning future business strategies.
Overall, the Global IoT Insurance Market report is a comprehensive resource for understanding the market dynamics, industry trends, and growth rate of the IoT insurance market. It provides a thorough analysis of the market segmentation, market value, and market leaders, making it an essential tool for industry professionals and researchers.
