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North America usage-based insurance market to witness augmented growth over 2018-2024, commercial vehicle segment to augment global industry revenues

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Rising number of automobiles on roads and surging insurance premiums have significantly propelled the global usage-based insurance (UBI) market expansion, in conjunction with rapidly developing supportive technologies. The ability to track aspects such as how a car is driven, behavior of the driver and the amount of distance travelled has enabled insurers to use UBI for predicting premium earnings, while vehicle owners are saving on insurance costs. The usage-based insurance industry has grown leaps and bounds as instruments like dashcams, Blackbox, on-board diagnostic tools and smartphone-based telematics solutions have experienced massive consumption over the last few years.

U.S. Usage-based Insurance (UBI) Market Revenue, By Technology, 2017 & 2024 (USD Million)
 U.S. Usage-based Insurance (UBI) Market Revenue, By Technology, 2017 & 2024 (USD Million)

One can easily argue that when the number of cars being driven increases, the probability of accidents also go up, depending on the general area trends. The importance of insurance can be surmised from the fact that in 2017, around 309,000 car accidents occurred in New York state, indicating considerable losses in terms of liability and property. Derived from the alarming frequency of mishaps in New York, the average car insurance rates in state ranged from US$2,428.24 to US$6,540.73 during the year. UBI can help safer drivers in such areas to take advantage of their favorable driving behavior and record to enjoy suitably lower premiums, underscoring the effectiveness of the usage-based insurance market.

Commercial insurance has been a major spending area for not only individual truck owners but also for fleet managers, dealerships and for services like taxi or ride-sharing. Fortuitously for the usage-based insurance industry, worldwide estimates suggest there would be tremendous growth in the commercial sector over the next few years, promising a large target segment. Commercial vehicle premiums for trucks could go quite high due to the vehicle’s value as well as greater risk and severity of damages. Although tightened rules regarding driver qualification and safety training have lowered the rate of accidents, trucks still contribute a large number to road-related deaths in North America.

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According to the Federal Motor Carrier Safety Administration, U.S., nearly 4,440 large trucks and busses had been involved in fatal accidents in 2016, while in total over 475,000 crashes involving large trucks in the year had been reported by the police. Essentially, these numbers represent the enormous amounts of insurance claims that may have been registered during the time, indirectly pushing the overall insurance market premiums higher. The North America usage-based insurance market can garner immense remunerations from commercial vehicle policies, as swelling premiums encourage customers to adopt relevant devices or telematics.

Citing a key example showcasing the usage-based insurance market penetration in North America, Intelligent Mechatronic Systems Inc., headquartered in Canada, offers effective UBI solution for commercial lines. Its telematics product helps fleet owners provide insights into the crucial vehicle data, assisting insurers in calculating premiums and retain customers. Such technology improves driver awareness and overall road safety, while insurers are able to know accurate behavior and causes of any accidents that happen. With numerous technology companies and start-ups based out of U.S. and Canada, the North America usage-based insurance industry is expected to witness remarkable growth in the imminent future, accounting for almost 35% of the global share by 2024.

A report unveiled by U.S. firm Aite Group suggests that about 2.5 million commercial insurance-related telematics devices were present in cars globally by 2017 end, and this number will reach 120 million by 2021. Fleets are significantly benefited by the usage-based insurance market, as they often consist of half a dozen to hundreds of vehicles. Progressive, one of the biggest motor insurers in the U.S., offers an UBI solution based on electronic logging device (ELD), which shaves of 3% of the premium at the time of signing up itself, and even more later on during the cover period. Consider these savings multiplied for a greater number of vehicles in the fleet, leading to huge improvements for the fleet’s bottom line.

All in all, with the continuously growing efforts by insurers to boost the adoption of telematics in commercial vehicles worldwide, the commercial vehicle segment in the global usage-based insurance market is anticipated to grow with a rate of 18% from 2018 to 2024. Allstate, Allianz, Axa, Generalli, Tom Tom, Liberty Mutual, Progressive, Nationwide and IMS are some key players constituting the competitive landscape of the usage-based insurance industry.

Author NamePankaj Singh

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Passenger-vehicle based automotive HMI market to amass substantial returns by 2024, surging use of digital technology in newly developed vehicles to fuel the product demand

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Automotive human-machine interface (HMI) market has lately emerged as one of the massive revenue generating spheres in the automotive sector with the shifting trends toward the adoption of smart vehicles. Traditionally, pertaining to the lack of advanced infotainment and digitalized internal car design, drivers had been unable to operate the vehicle efficiently. However, with the advent of new technology trends, the overall design structure of automobiles has changed considerably, paving the way for integrated human-machine interface in vehicles. The development of connected cars for decreasing the chances of accidents and enhancing the operability of vehicles has also helped propel automotive human machine interface industry share.

Europe Automotive HMI Market Size, By Product, 2017 & 2024 (USD Million)

Europe Automotive HMI Market Size, By Product, 2017 & 2024 (USD Million)

One of the most pivotal driving forces of automotive human-machine interface market is the emergence of smartphones, artificial intelligence, IoT (Internet of Things), and machine learning technologies that have substantially encouraged automakers to carry out product development activities for transforming the existing infotainment system of the vehicle. Validating the aforementioned fact, recently, the American automotive electronics supplier Visteon Corporation developed a next-generation cockpit controller, SmartCore that has been deployed in Daimler’s upcoming Mercedes-Benz A-Class vehicles. These will be the world’s first vehicles integrated with intelligent cockpit controllers with multiple central processing units. The deployment of such features in the interior design enhances a vehicle’s infotainment display and instrument cluster. Moreover, it also helps drivers personalize their experience by simply operating touchscreen and touchpad on the steering wheel.

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Increasing awareness among the regulators and regional governments about the surging need for vehicle security and safety has been driving the requirement of the instrument clusters and digital infotainment systems. The policymakers claim that the implementation of a human-machine interface will help the driver collect accurate information about the surrounding environment. In order to comply with the stringent regulatory compliances, most of the automakers, technology companies, manufacturers, and designers have been striving to innovate advanced solutions for passenger vehicles and connected cars. Indeed, passenger vehicles are expected to account for nearly 80% share of automotive human machine interface market by the end of 2024.

Speaking beyond the conventional vehicular systems, the increasing popularity of autonomous vehicles will have a notable influence on the automotive HMI market trends over the years ahead. Focusing on the shifting trends toward the growing adoption of autonomous vehicles across the globe, companies involved in the development of human-machine interfaces have been developing innovative software packages. For instance, a few days before, leading supplier of advanced semiconductor solutions, Renesas Electronics Corporation has introduced a new microprocessor unit to accelerate and simplify the development of modernized HMI and camera-based applications. The newly developed software interface can be used for operating video surveillance systems, fingerprint access control, information communication technology applications that have been deployed in automobiles. The growing popularity of HMI for managing vehicular systems in a highly sophisticated way is poised to stimulate the future product demand.

As of now, motorcycle manufacturers have also been integrating HMI technology in the vehicle for improving performance, driving experience, and safety. Few weeks before, the British electric motorbike manufacturer had launched a fully electric motorcycle with human-machine interface. The evolution of e-bikes for promoting high performance and energy security is poised to have a considerable impact on the demand for HMI. In addition, considering the future energy benefits and depleting fossil fuel resources, most of the regional governments have been implementing a supportive regulatory framework to enhance the deployment of e-vehicles that also will fuel the product demand.

The surging use of digital technology in vehicles for achieving better performance and sustainability will transform the future of the automotive industry. The extensive utilization of software for enabling numerous operational packages comprising functional safety, cybersecurity, and infotainment system will also stimulate industry trends. For the record, by the of 2024, automotive human machine interface (HMI) market will surpass a revenue collection of USD 27 billion.

Author NameSunil Hebbalkar