Market Size of IoT Insurance Industry
| 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 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 |
IoT Insurance Market Size Summary
The IoT insurance market is poised for significant growth, driven by the integration of advanced technologies such as data analytics, Big Data, sensors, and machine learning. These innovations are transforming the insurance sector by enabling the development of innovative insurance models that leverage IoT to minimize premium and risk-related costs. The market is further bolstered by the increasing adoption of internet-connected medical devices in the life and health insurance sectors, which are used to gather user data and monitor behaviors. Despite challenges related to security and privacy concerns, as well as the need for skilled personnel, the market is expected to expand as insurance providers increasingly embrace digital technologies for claim management and customer data collection.
North America stands out as a key region in the IoT insurance market, with companies like Liberty Mutual, Progressive, and State Farm harnessing IoT technologies to enhance risk assessment. The region's early adoption of IoT and a strong labor force are expected to drive further growth. The competitive landscape is characterized by the presence of both large and small businesses, with major players like IBM, Microsoft, and Intel leading the charge. Recent collaborations and acquisitions, such as SAP's partnership with NTT DATA and Telit's acquisition of Mobilogix assets, highlight the ongoing efforts to enhance IoT solutions for insurance applications. These developments underscore the market's dynamic nature and the potential for new revenue streams and closer customer relationships through IoT-enabled innovations.
IoT Insurance Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products and Services
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of the COVID-19 Impact on the Industry
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2. MARKET SEGMENTATION
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2.1 By End-User Industry
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2.1.1 Retail and Commercial
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2.1.2 Residential (Smart homes)
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2.1.3 Automotive
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2.1.4 Industrial
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2.1.5 Healthcare
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2.1.6 Other End-user Industries (Public Infrastructure, Logistics and Navigation)
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2.2 By Geography
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2.2.1 North America
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2.2.2 Europe
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2.2.3 Asia Pacific
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2.2.4 Latin America
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2.2.5 Middle East and Africa
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IoT Insurance Market Size 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.
