Internet of Things

Internet of Things Insurance Market Size Forecasted to Reach Valuation of USD 775.65 Billion In 2028

By Biswas Debanjan

Posted on November 15, 2021

The global Internet of Things (IoT) market size is expected to reach USD 775.65 billion in 2028 and register a robust CAGR of 62.2% during the forecast period. Growing demand for IoT devices in insurance sector for enhancing customer experience is an essential factor supporting growth of IoT insurance market.

Internet of things (IoT) enables interconnection of devices to internet to attain desirable information. In recent years, insurers have adopted IoT-based services and devices linked through internet where they can interact with customers and get insights regarding existing services and products. This helps in minimizing risks in real-time and reduces claim payouts which leave the policyholders highly satisfied. IoT insurance allows insurance providers to monetize risks and collaborate with automobiles, appliances and other manufacturers is driving the market growth.

However, growing concerns about IoT device data security and breach are expected to hamper the market growth during the forecast period.

Internet of Things Insurance Market

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Some key highlights in the report:

The property & casualty insurance segment is expected to reach USD 266.05 billion in 2028 and lead in context to revenue contribution to the global market. Property & casualty insurance obtains information from IoT-based smart systems to ease the insurance costs and effective risk management.
The health insurance segment is projected to register a significantly higher revenue CAGR over the forecast period. Increasing utilization of IoT-enabled fitness bands and wearable devices helps in collecting wellbeing information to help insurers monetize wellbeing and sell the insurance.
The connected car segment is expected to account for largest market revenue share during the forecast period owing to the rapid adoption of IoT-enabled monitoring devices and sensors in V2X connected vehicles. In case of automobile insurance, telematics combines vehicle sensors with mobile applications to monitor driver activity for insurer evaluation.
The connected lines segment revenue is likely to expand with a high CAGR between 2021 and 2028 owing to rising adoption of IoT-driven smart systems and devices in various manufacturing sectors.
North America contributed to the largest revenue share in the global IoT insurance market. Technological developments coupled with rapid adoption of IoT in various sectors has contributed to high market revenue in this region. Moreover, increasing rate of startups is projected to open new opportunities for market growth throughout the forecast period.
Furthermore, robust presence of international players in countries in the region such as Google LLC, Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, and Cisco Systems, Inc., among others, is expected to propel growth of the North America IoT in insurance market during the forecast period.
Asia Pacific is expected to register a fast revenue CAGR during the forecast period. Increasing implementation of IoT-enabled fitness bands and wearable devices, favorable insurance privileges, and growing adoption of IoT devices in logistics sector for better package delivery is expected to surge the market growth in this region.
Key market participants include Google LLC, Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, Cisco Systems, Inc., SAP SE, Accenture PLC, Concirrus Ltd., Wipro Ltd., and Capgemini SE.
Concirrus launched a marine insurance offering for Asia Pacific in January 2021. Concirrus’ market position in Asia Pacific will be boosted by the launch of marine insurance offerings.

For the purpose of this report, Emergen Research has segmented the global Internet of Things (IoT) insurance market on the basis of insurance type, application, end-use, and region.

Insurance Type Outlook (Revenue, USD Billion; 2018–2028)