Insurance Telematics Market Report 2026

The insurance telematics market size has grown rapidly in recent years. It will grow from $4.68 billion in 2025 to $5.48 billion in 2026 at a compound annual growth rate (CAGR) of 17%. The growth in the historic period can be attributed to rising vehicle ownership levels, growing availability of onboard diagnostics devices, expansion of mobile connectivity, increased insurer focus on risk segmentation, early adoption of pay-as-you-drive models.

The insurance telematics market size is expected to see rapid growth in the next few years. It will grow to $10.21 billion in 2030 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to expansion of connected car ecosystems, increasing adoption of electric and autonomous vehicles, growing demand for personalized insurance products, rising integration of AI-based risk analytics, increasing regulatory acceptance of telematics-based pricing. Major trends in the forecast period include increasing adoption of usage-based insurance models, rising integration of smartphone-based telematics, growing use of real-time driving behavior analytics, expansion of connected vehicle insurance platforms, enhanced focus on risk-based pricing.

The increasing adoption of connected cars is expected to drive the growth of the insurance telematics market in the coming years. Connected cars are vehicles equipped with advanced communication systems and internet connectivity, allowing them to interact with other devices, networks, and services both inside and outside the vehicle. Factors contributing to the rise of connected cars include ongoing advancements in mobile technology and their capability to collect and use data for predictive maintenance. Connected cars generate a wide range of real-time data on driving behavior, including speed, distance, location, braking, and acceleration. This information, gathered through connected car systems and telematics technology, enables insurers to accurately evaluate individual driving behavior, adjust insurance premiums based on actual driving patterns, and offer usage-based insurance (UBI) programs. For example, in January 2023, according to the IEEE Communications Society, a US-based technical professional organization, the global number of connected vehicles is projected to increase from 192 million in that year to more than 367 million by 2027. Therefore, the growing adoption of connected cars is fueling the expansion of the insurance telematics market.

Major companies in the insurance telematics market are concentrating on creating innovative solutions, such as app-based safe-driving platforms, to improve risk assessment, track driver behavior, and strengthen their competitive edge. App-based safe-driving platforms are mobile apps that utilize smartphone sensors and telematics to monitor driving behavior, deliver real-time feedback and alerts, and encourage safer driving practices for both drivers and insurers. For example, in February 2025, PT Lippo General Insurance Tbk, an Indonesia-based general insurance provider, introduced a telematics-enabled safe-driving application. The app leverages sensors to examine driving patterns, track vehicle movement, and promote safer driving habits. Users gain insights into their driving behavior, allowing them to enhance safety and lower road risks. The solution facilitates applications such as usage-based insurance models, driver performance analytics, and accident prevention, while providing advantages like better underwriting accuracy, decreased claims frequency, increased customer engagement, and safer driving outcomes.

In March 2023, PowerFleet, a US-based telematics and IoT solutions company, finalized the acquisition of Movingdots GmbH for an undisclosed sum. This strategic move significantly strengthens Powerfleet's position in the fleet management industry by granting access to cutting-edge insurance-approved telematics solutions, expanding its global footprint, and augmenting its talent pool. Consequently, the company is poised to offer even more comprehensive and advanced offerings focused on safety and sustainability. Movingdots GmbH, headquartered in Germany, specializes in developing fleet management solutions, including insurance telematics and sustainable mobility solutions.

Major companies operating in the insurance telematics market are Verizon Communications Inc., Axa SA, Vodafone Group Plc, AllState Insurance Company, Progressive Corporation, Liberty Mutual Insurance Company, Zurich Insurance Group, Unipolsai Assicurazioni S.p.A., Trimble Inc., LexisNexis Risk Solutions, Viasat Group, Agero Inc., TomTom International BV., Sierra Wireless Inc., MiX Telematics, Octo Telematics S.p.A., Meta System S.p.A., Intelligent Mechatronic Systems Inc., Masternaut Limited, Cambridge Mobile Telematics, Imertik Global Inc., Otonomo, Aplicom Oy, DriveQuant.

Europe was the largest region in the insurance telematics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance telematics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurance telematics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The insurance telematics market consists of revenues earned by entities by providing services such as claims management services, fleet management services, data aggregation and analytics services. The market value includes the value of related goods sold by the service provider or included within the service offering. The insurance telematics market also includes sales of telematics devices, GPS receivers, accelerometers, gyroscopes, batteries and dashboards. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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