IoT Insurance - Global Strategic Business Report

The global market for IoT Insurance was valued at US$21.1 Billion in 2024 and is projected to reach US$96.2 Billion by 2030, growing at a CAGR of 28.7% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

Global IoT Insurance Market - Key Trends & Drivers Summarized

Why Is IoT Insurance Revolutionizing the Insurance Industry?

IoT insurance is fundamentally transforming the insurance sector by leveraging real-time data from connected devices to enhance risk assessment, improve customer engagement, and enable dynamic policy offerings. This innovative approach utilizes sensors, wearables, telematics, and smart home devices to collect actionable insights that allow insurers to personalize policies and offer data-driven risk mitigation solutions. IoT insurance has proven particularly impactful in auto, home, health, and commercial insurance segments, where real-time monitoring can significantly reduce claims and prevent losses. For instance, in the auto insurance segment, telematics devices track driving behavior to determine premiums based on individual risk profiles, creating a fairer and more accurate pricing model. In home insurance, smart home devices such as water leak detectors and security systems alert homeowners and insurers to potential issues, preventing costly damages. The health insurance industry is increasingly adopting wearables and fitness trackers to monitor policyholders' activity levels and health metrics, incentivizing healthier lifestyles and reducing claims costs. These advancements are not only benefiting insurers by improving risk management but are also empowering customers by fostering transparency and delivering tailored services.

How Are Technological Advancements Elevating IoT Insurance Capabilities?

Technological innovations are at the heart of the IoT insurance revolution, enhancing its ability to provide real-time risk assessment and predictive analytics. Artificial intelligence (AI) and machine learning (ML) algorithms are enabling insurers to analyze vast amounts of IoT-generated data, uncovering patterns and anomalies that help predict and prevent potential risks. These technologies allow insurers to process claims faster, detect fraudulent activities, and optimize underwriting processes. Furthermore, the integration of blockchain technology ensures secure and transparent data sharing between policyholders and insurers, addressing privacy concerns and enhancing trust in IoT-powered insurance models. The adoption of 5G connectivity is another significant development, as it facilitates high-speed, low-latency data transmission, enabling real-time decision-making in critical scenarios. This is particularly important in applications such as autonomous vehicles and smart factories, where split-second decisions can mitigate catastrophic risks. Additionally, edge computing is emerging as a game-changer, allowing data to be processed closer to the source, reducing latency and ensuring faster response times. These advancements are expanding the scope and efficiency of IoT insurance, making it a cornerstone of future-ready insurance operations.

What Are the Key Application Areas of IoT Insurance?

IoT insurance is making its mark across multiple domains, with its applications becoming increasingly diverse and impactful. In the auto insurance sector, telematics-based usage-based insurance (UBI) policies are gaining popularity, enabling pay-as-you-drive or pay-how-you-drive models. These policies reward safe driving behaviors and provide real-time feedback to policyholders, reducing the likelihood of accidents. In the home insurance segment, IoT devices such as smart thermostats, smoke detectors, and surveillance cameras help insurers offer proactive risk mitigation services, significantly lowering the frequency and severity of claims. The healthcare industry is another major adopter, with insurers leveraging wearables and IoT-enabled medical devices to monitor chronic conditions, improve patient outcomes, and incentivize healthy behaviors through premium discounts. Commercial insurance applications include IoT deployments in industries like manufacturing and logistics, where connected devices monitor equipment performance, track shipments, and predict maintenance needs to prevent costly interruptions. Additionally, agriculture insurance is adopting IoT technologies like soil sensors and weather monitoring systems to mitigate risks associated with climate variability and crop failures. These applications illustrate the transformative impact of IoT insurance across sectors, driving its rapid adoption and growth.

What Factors Are Driving the Growth of the IoT Insurance Market?

The growth in the IoT insurance market is driven by several factors, including the increasing adoption of IoT devices across industries, advancements in data analytics technologies, and the rising demand for personalized insurance solutions. Insurers are capitalizing on the proliferation of connected devices to gain deeper insights into risks, enabling them to offer tailored policies that align with individual behaviors and needs. The growing emphasis on proactive risk management, supported by IoT-powered predictive analytics, is another key driver, as it allows insurers to prevent losses and reduce claims costs. End-use trends such as the rise of smart homes, autonomous vehicles, and wearable health technologies are further propelling the demand for IoT insurance. Governments and regulatory bodies are also playing a critical role by encouraging the adoption of telematics and IoT devices in sectors like automotive and healthcare to enhance safety and efficiency. The increasing integration of IoT insurance into emerging markets, supported by growing digitalization and consumer awareness, is expanding its reach and creating new opportunities for insurers. Together, these factors underscore the strategic importance of IoT insurance in reshaping the global insurance landscape and delivering enhanced value to both insurers and policyholders.

Scope of the Study

The report analyzes the IoT Insurance market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments:

Component (IoT Insurance Solutions, IoT Insurance Services); End-Use (Automotive & Transportation End-Use, Healthcare End-Use, Agricultural End-Use, Retail & Commercial End-Use, Other End-Uses).

Geographic Regions/Countries:

World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the IoT Insurance Solutions segment, which is expected to reach US$69.8 Billion by 2030 with a CAGR of a 26.4%. The IoT Insurance Services segment is also set to grow at 36.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $5.6 Billion in 2024, and China, forecasted to grow at an impressive 27.4% CAGR to reach $14.6 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of major players such as Allerin Tech Pvt Ltd., Capgemini SE, Cisco Systems, Inc., COFORGE, Embroker Insurance Services, LLC and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global IoT Insurance Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global IoT Insurance Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global IoT Insurance Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Some of the 48 companies featured in this IoT Insurance market report include:

• Allerin Tech Pvt Ltd.
• Capgemini SE
• Cisco Systems, Inc.
• COFORGE
• Embroker Insurance Services, LLC
• SAP SE
• Synechron, Inc.
• Telit Cinterion
• Wipro Ltd.
• WNS (Holdings) Ltd.