Global Internet of Things (IoT) Insuretech Market Segmentation, By Type (Auto, Business, Health, Home, Specialty, Travel and Others), Service (Consulting, Support and Maintenance and Managed Services) – Industry Trends and Forecast to 2031.
Internet of Things (IoT) Insuretech Market Analysis
The Internet of Things (IoT) insurtech market is experiencing rapid growth, driven by advancements in data analytics, machine learning, and sensor technology. The latest method involves using IoT devices, such as smart home sensors, wearables, and connected vehicles, to gather real-time data. This data allows insurance companies to personalize policies, improve risk assessments, and offer usage-based insurance (UBI) models, aligning premiums with actual usage and behavior.
Telematics in auto insurance is a prominent instance, leveraging vehicle data to optimize premium calculations. Machine learning algorithms analyze this data, enabling insurers to predict risks more accurately, reduce fraud, and improve claim management. Blockchain technology is also being adopted to enhance transparency and reduce the administrative burden of policy processing.
Growth in this market is being fueled by rising IoT adoption, with connected devices projected to exceed 30 billion by 2025. Insurtech companies are capitalizing on the increasing consumer demand for personalized services and cost-saving solutions. These technologies not only enhance customer experience but also help insurers reduce operational costs and enhance profitability, contributing to significant market expansion.
Internet of Things (IoT) Insuretech Market Size
The global internet of things (IoT) insuretech market size was valued at USD 347.14 billion in 2023 and is projected to reach USD 755.02 billion by 2031, with a CAGR of 10.02% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Internet of Things (IoT) Insuretech Market Trends
“Integration of AI in IoT-Driven Insurtech”
A key trend driving growth in the IoT Insurtech market is the integration of artificial intelligence (AI). Insurers are increasingly leveraging AI to analyze real-time data from IoT devices, enabling more accurate risk assessments, dynamic policy adjustments, and personalized customer experiences. For instance, connected home devices such as smart thermostats and security systems help insurers offer tailored homeowner policies based on actual usage and risk factors. Similarly, in auto insurance, IoT-enabled telematics devices provide real-time driving data, allowing insurers to offer usage-based insurance (UBI) plans. These AI-powered insights are streamlining processes, reducing fraud, and fostering more customer-centric insurance models.
Report Scope and Internet of Things (IoT) Insuretech Market Segmentation
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Attributes
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Internet of Things (IoT) Insuretech Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Google LLC (U.S.), Lemonade Inc. (U.S.), SAP SE (Germany), IBM Corp. (U.S.), Cisco Systems, Inc. (U.S.), Oracle (U.S.), Accenture (Ireland), LexisNexis (U.S.), Capgemini (France), Allianz (Germany), Microsoft (U.S.), Zurich Insurance Group Ltd. (Switzerland), Hippo (U.S.), Concirrus (U.K.), Wipro Limited (India), Telit (U.K.), Aeris Group Ltd (U.S.), and Damco International A/S (Denmark)
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Market Opportunities
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Value Added Data Infosets
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In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
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Internet of Things (IoT) Insuretech Market Definition
Internet of Things (IoT) InsurTech refers to the integration of IoT technology into insurance services, enabling real-time data collection and analysis to enhance risk assessment, underwriting, and claims processes. IoT devices, such as smart home sensors, wearables, and connected vehicles, provide insurers with valuable insights into customer behavior and risk factors. This allows for personalized insurance policies, dynamic pricing models, and proactive risk management. By improving operational efficiency and offering tailored solutions, IoT InsurTech is transforming traditional insurance practices, offering better customer experiences and fostering innovation across the insurance industry.
Internet of Things (IoT) Insuretech Market Dynamics
Drivers
- Risk Management Optimization
Risk management optimization in IoT-driven InsureTech allows insurers to collect real-time data from devices such as wearables, telematics, and smart home systems. This data provides accurate risk profiles, enhancing underwriting processes. For instance, auto insurers can assess driving habits via telematics, offering lower premiums to safe drivers. Similarly, home insurers can use smart sensors to monitor fire risks, reducing claims. This capability drives the IoT InsureTech market by enabling more precise risk management.
- Smart Home Integration
Smart home devices such as fire detectors, water leak sensors, and security systems enhance home insurance by providing real-time alerts to both users and insurers about potential risks. This early detection reduces damage and claim costs, leading to lower premiums. For instance, insurers partnering with smart device manufacturers, such as State Farm with ADT, are using these technologies to lower risks, improving customer satisfaction and driving market growth.
Opportunities
- Fraud Detection and Prevention
IoT sensors enhance fraud detection in insurance by providing real-time data that reveals inconsistencies and anomalies in claims. For instance, telematics devices in vehicles can detect discrepancies between reported and actual driving behavior, flagging potential fraudulent claims. This capability helps insurers identify and prevent fraudulent activities, reducing losses and creating opportunities for more accurate and efficient fraud management solutions in the market.
- Telematics in Auto Insurance
Telematics technology, which gathers detailed driving data, is revolutionizing auto insurance by enabling usage-based insurance (UBI) models. For instance, Progressive's Snapshot program uses telematics to monitor driving behavior and adjust premiums accordingly, rewarding safe drivers with lower rates. This personalized approach not only offers cost savings but also encourages safer driving habits, creating significant opportunities for insurers to attract and retain customers through tailored insurance solutions.
Restraints/Challenges
- Data Privacy and Security Concerns
Data privacy and security concerns significantly hinder the IoT insurtech market. IoT devices gather extensive sensitive information, making robust security measures essential. Failure to protect this data can result in severe financial losses and damage to a company's reputation. High-profile breaches or misuse of personal data can erode consumer trust and lead to legal and regulatory consequences, further constraining market growth.
- High Implementation Costs
High implementation costs significantly hinder the IoT insurtech market. Deploying IoT technology involves substantial investment in hardware, software, and infrastructure. Smaller insurers, in particular, find these costs prohibitive, which restricts their ability to adopt and leverage IoT solutions. This financial barrier limits market growth and prevents broader adoption of advanced IoT technologies in the insurance sector.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Internet of Things (IoT) Insuretech Market Scope
The market is segmented on the basis of type and service. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Auto
- Business
- Health
- Home
- Specialty
- Travel
- Others
Service
- Consulting
- Support and Maintenance
- Managed Services
Internet of Things (IoT) Insuretech Market Regional Analysis
The market is analyzed and market size insights and trends are provided by type and service as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America is projected to dominate the Internet of Things (IoT) insuretech market due to its advanced infrastructure, significant financial resources, and early adoption of IoT technologies. The region's investment in emerging technologies such as IoT and Big Data will further drive growth, positioning it as a leader in the IoT insuretech sector.
Asia-Pacific is expected to observe significant growth in the Internet of Things (IoT) insurtech market due to rapid urbanization and industrialization. The increasing adoption of IoT devices, including drones, smartphones, and Wi-Fi dongles, is anticipated to drive market expansion in the region over the coming years.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Internet of Things (IoT) Insuretech Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Internet of Things (IoT) Insuretech Market Leaders Operating in the Market Are:
- Google LLC (U.S.)
- Lemonade Inc. (U.S.)
- SAP SE (Germany)
- IBM Corp. (U.S.)
- Cisco Systems, Inc. (U.S.)
- Oracle (U.S.)
- Accenture (Ireland)
- LexisNexis (U.S.)
- Capgemini (France)
- Allianz (Germany)
- Microsoft (U.S.)
- Zurich Insurance Group Ltd. (Switzerland)
- Hippo (U.S.)
- Concirrus (U.K.)
- Wipro Limited (India)
- Telit (U.K.)
- Aeris Group Ltd (U.S.)
- Damco International A/S (Denmark)
Latest Developments in Internet of Things (IoT) Insuretech Market
- In November 2022, IBM Corporation announced a partnership with Ablera and Bulgaria to enhance ABACUS, an AI-powered solution for insurance pricing and rating. This upgrade improves speed and accuracy, reducing manual errors and expanding usability. The enhanced ABACUS leverages advanced mathematical sophistication, allowing a broader range of users to benefit from its capabilities
- In August 2022, Telit, a leader in the Internet of Things (IoT), acquired assets from Mobilogix. This acquisition boosts Telit’s device engineering expertise, optimizing specifications for handoff to electronic manufacturing services, original device manufacturing, and achieving regulatory approvals and carrier certifications. The move strengthens Telit’s position in IoT and enhances its service offerings
- In May 2020, The Verisk Data Exchange Add-In became available on the Geotab Marketplace, integrating with Geotab’s connected car solutions. This allows Geotab’s fleet clients to share telematics data directly with insurers in the Verisk Data Exchange. This data exchange aims to enhance underwriting, rating, and other IoT-driven insurance services by providing detailed fleet risk insights
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