
Study Period | 2019 - 2030 |
Market Size (2025) | USD 53.95 Billion |
Market Size (2030) | USD 83.81 Billion |
CAGR (2025 - 2030) | 9.21 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Internet of Things (IoT) Insurance Market Analysis
The IoT Insurance Market size is estimated at USD 53.95 billion in 2025, and is expected to reach USD 83.81 billion by 2030, at a CAGR of 9.21% during the forecast period (2025-2030).
The insurance industry is undergoing a profound digital transformation driven by the convergence of the Internet of Things Insurance Industry, artificial intelligence, and advanced analytics capabilities. Insurance providers are increasingly leveraging connected devices and sensors to gather real-time data, enabling more accurate risk assessment and personalized coverage options. According to industry analysis, IoT Insurance Solutions can potentially reduce insurance claims processing costs by up to 30%, while IoT-enabled devices can help decrease premium costs by approximately 25%, demonstrating the significant operational and cost benefits of this technological integration. The integration of edge computing has notably addressed data latency challenges, while the deployment of 5G networks is enhancing the reliability and speed of data transmission for Connected Insurance solutions.
The automotive insurance sector has emerged as a primary beneficiary of IoT integration, with telematics and connected car ecosystems generating unprecedented insights into driver behavior and vehicle performance. Progressive Insurance's usage-based insurance program has accumulated over 1.7 trillion driver observations, enabling more accurate risk assessment based on actual driving patterns rather than traditional demographic factors. This shift towards data-driven insurance models is revolutionizing how risks are evaluated and premiums are calculated, with real-time monitoring capabilities enabling more dynamic and personalized coverage options.
The emergence of smart home technologies and connected healthcare devices is creating new opportunities for insurers to expand their service offerings and enhance customer engagement. Insurance providers are increasingly partnering with technology companies to develop innovative solutions that combine risk prevention with real-time monitoring capabilities. The industry is witnessing a significant shift towards preventive insurance models, where IoT in the Insurance Industry devices help identify and mitigate risks before they materialize into claims, fundamentally changing the insurer-customer relationship from reactive to proactive risk management.
The insurance industry is rapidly moving towards complete automation of claims processing, with projections indicating that 90% of personal and small business insurance claims will be fully automated by 2030. This automation is being driven by the integration of IoT sensors, artificial intelligence, and machine learning technologies that can collect and analyze data in real-time. Insurance companies are increasingly investing in digital platforms that can process and analyze vast amounts of IoT Insurance Data, enabling more efficient underwriting processes and faster claims settlement. The industry is also witnessing the emergence of new insurance products specifically designed for IoT-enabled devices and connected systems, reflecting the growing importance of technology in shaping the future of insurance services.
Internet of Things (IoT) Insurance Market Trends
Growth of Insurance Sector in Parallel with Innovative Insurance Models
The insurance sector is experiencing a fundamental transformation driven by the integration of IoT data for insurance technologies, which is revolutionizing traditional insurance models and creating new opportunities for both insurers and policyholders. Insurance companies are leveraging IoT data for insurance to develop more sophisticated and personalized insurance products. Industry analysis indicates that IoT-enabled devices can help decrease premium costs by up to 25% while reducing claims processing costs by approximately 30%. This technological evolution has particularly impacted usage-based insurance (UBI) models, where consumer demand has risen significantly to 51%, as insurers can now accurately assess risk based on real-time data rather than traditional static factors like demographics or credit scores.
The emergence of innovative insurance models is exemplified by major industry players implementing IoT solutions for insurance companies across various insurance segments. Progressive Insurance, for instance, has conducted over 1.7 trillion driver observations through their usage-based insurance telematics program, enabling them to price policies based on actual driving behavior rather than conventional factors. Similarly, property insurers are utilizing IoT sensors for proactive risk management, with applications ranging from water damage prevention to real-time monitoring of commercial buildings. These innovations are creating new revenue streams through data monetization and value-added services, while simultaneously enabling insurers to establish stronger relationships with their customers through continuous engagement and personalized risk assessment. The future of IoT in insurance is poised to further enhance these capabilities, driving growth in the IoT insurance market.
Segment Analysis: By End-User Industry
Automotive Segment in IoT Insurance Market
The automotive segment dominates the IoT and insurance market, commanding approximately 66% of the total market share in 2024. This significant market position is driven by the widespread adoption of connected car ecosystems and telematics solutions that enable insurance companies to monitor driving behavior and vehicle usage in real-time. The integration of advanced sensors in vehicles allows insurers to collect crucial data points, from speed and braking patterns to vehicle maintenance metrics, enabling more accurate risk assessment and personalized premium calculations. The segment's growth is further bolstered by the increasing penetration of 5G technology, which enables more sophisticated data collection and analysis capabilities for usage-based insurance programs. Major insurance providers are leveraging automotive IoT insurance solutions to offer innovative products like pay-as-you-drive insurance and behavior-based pricing models, which have gained significant traction among consumers seeking more personalized insurance options.

Healthcare Segment in IoT Insurance Market
The healthcare segment is emerging as the fastest-growing sector in the Internet of Things and insurance market, with an expected growth rate of approximately 54% during the forecast period 2024-2029. This remarkable growth is primarily driven by the increasing adoption of wearable devices, remote patient monitoring systems, and connected medical equipment in healthcare delivery. Insurance providers are increasingly integrating IoT-enabled health monitoring devices into their coverage plans, allowing for real-time health data collection and more accurate risk assessment. The segment's growth is further accelerated by the rising demand for personalized health insurance plans and preventive care programs. The integration of IoT solutions in healthcare insurance is enabling insurers to offer innovative products such as behavior-based health insurance premiums and wellness reward programs, which incentivize healthier lifestyles among policyholders.
Remaining Segments in IoT Insurance Market
The IoT insurtech market encompasses several other significant segments, including residential, retail and commercial, industrial, and other end-user industries. The residential segment has gained prominence through the integration of smart home technologies and connected devices for property protection and risk assessment. The retail and commercial segment focuses on leveraging insurance Internet of Things solutions for inventory management and property protection, while the industrial segment utilizes IoT for equipment monitoring and risk mitigation in manufacturing environments. These segments collectively contribute to the market's diversity by implementing various IoT applications such as environmental monitoring, security systems, and predictive maintenance solutions, each addressing specific insurance needs across different sectors.
IoT Insurance Market Geography Segment Analysis
IoT Insurance Market in North America
North America stands as a cornerstone market in the global IoT insurance market landscape, commanding approximately 34% of the global market share in 2024. The region's dominance is primarily driven by the rapid adoption of advanced IoT technologies across various insurance segments, particularly in the automotive and healthcare sectors. Insurance companies in the region are leveraging sophisticated Internet of Things insurance solutions for enhanced risk assessment and real-time monitoring capabilities. The presence of major technology providers and insurance companies has created a robust ecosystem for IoT insurance industry innovation. The region's advanced digital infrastructure, coupled with high consumer awareness and acceptance of IoT-enabled insurance products, continues to fuel market growth. Additionally, the increasing focus on usage-based insurance models and smart home integration has created new opportunities for market expansion. The regulatory environment in North America has also evolved to accommodate these technological advancements, further supporting market development.

IoT Insurance Market in Europe
Europe has demonstrated remarkable progress in the IoT insurance industry, achieving an impressive growth rate of approximately 27% during the period 2019-2024. The region's market development is characterized by strong adoption of IoT solutions across both commercial and residential insurance segments. European insurers have been particularly successful in implementing connected car technologies and smart home insurance solutions. The market has benefited from the region's strong focus on data privacy and security regulations, which has helped build consumer trust in IoT in insurance sector products. The integration of IoT in traditional insurance models has been particularly successful in countries like Germany, France, and the United Kingdom. European insurers have also shown significant innovation in developing personalized insurance products based on IoT data analytics. The region's strong emphasis on sustainable and smart city initiatives has created additional opportunities for IoT insurance applications.
IoT Insurance Market in Asia-Pacific
The Asia-Pacific region represents the most dynamic growth market for IoT insurance market, with a projected CAGR of approximately 46% during 2024-2029. This remarkable growth trajectory is supported by the region's rapid digital transformation and increasing adoption of IoT technologies across various sectors. The market is witnessing significant developments in both personal and commercial insurance segments, with particular emphasis on automotive and healthcare insurance solutions. The region's large population base and increasing middle-class demographics present substantial opportunities for market expansion. Countries like China, Japan, and India are leading the adoption of IoT-enabled insurance solutions, driven by their strong technological infrastructure and government support for digital initiatives. The increasing penetration of smartphones and connected devices has created a favorable environment for IoT insurance products. Insurance companies in the region are increasingly focusing on developing innovative, cost-effective solutions tailored to local market needs.
IoT Insurance Market in Latin America
Latin America is emerging as a promising market for IoT insurance market solutions, driven by increasing digitalization and growing awareness of technology-enabled insurance products. The region's insurance sector is undergoing significant transformation with the integration of IoT technologies, particularly in usage-based insurance and telematics applications. Insurance companies are focusing on developing affordable and accessible IoT-enabled solutions to cater to the region's diverse market needs. The growing middle-class population and increasing smartphone penetration are creating new opportunities for market expansion. Countries like Brazil, Mexico, and Chile are leading the adoption of IoT insurance solutions, supported by improving digital infrastructure and regulatory frameworks. The market is witnessing particular growth in automotive insurance telematics and connected health insurance solutions. Insurance providers are increasingly partnering with technology companies to develop localized solutions that address specific regional challenges.
IoT Insurance Market in Middle East & Africa
The Middle East & Africa region is demonstrating increasing potential in the IoT insurance market, driven by rapid technological advancement and digital transformation initiatives. The market is characterized by growing adoption of IoT solutions in both personal and commercial insurance segments. Government-led smart city initiatives, particularly in Gulf Cooperation Council countries, are creating new opportunities for IoT insurance applications. The region's insurance sector is witnessing significant modernization with the integration of digital technologies and IoT solutions. Insurance providers are focusing on developing innovative products that cater to the unique needs of the regional market. The increasing penetration of mobile devices and improving internet infrastructure are supporting market growth. The healthcare and automotive sectors are emerging as key growth areas for IoT insurance applications in the region. Insurance companies are also leveraging IoT solutions to improve risk assessment and customer engagement capabilities.
Internet of Things (IoT) Insurance Industry Overview
Top Companies in IoT Insurance Market
The IoT insurance market features prominent technology leaders and specialized insurtech providers working to transform the industry through digital innovation. Companies are heavily investing in research and development to enhance their IoT platforms, focusing on areas like telematics, connected homes, and wearable devices for usage-based insurance models. Strategic partnerships between technology providers and insurance companies have become increasingly common to combine technical expertise with industry knowledge. Market leaders are expanding their geographical presence through both organic growth and acquisitions, particularly in emerging markets. Product innovation is centered around developing more sophisticated risk assessment capabilities, predictive analytics, and personalized insurance solutions leveraging IoT data. Companies are also focusing on improving operational agility through cloud-based solutions and API-driven architectures to enable faster deployment and scaling of IoT solutions for insurance companies.
Market Consolidation Drives Industry Evolution Pattern
The competitive landscape is characterized by a mix of global technology conglomerates and specialized insurtech providers, creating a dynamic market environment. Large technology companies like IBM, Microsoft, and Oracle leverage their extensive resources and established customer relationships to provide comprehensive IoT insurance platforms, while specialized players like Concirrus and ForMotiv focus on developing niche solutions for specific insurance segments. The market is witnessing increasing consolidation through mergers and acquisitions, as larger players seek to acquire innovative startups to enhance their technological capabilities and market presence.
The market structure is evolving with increasing collaboration between traditional insurance providers and technology companies, creating new business models and revenue streams. Strategic partnerships and joint ventures are becoming common as companies seek to combine their strengths in technology implementation and insurance domain expertise. Regional players are emerging strongly in their local markets, particularly in Asia and Europe, by offering customized solutions that address specific regulatory requirements and market needs. The competitive intensity is heightened by the entry of new players with innovative solutions, driving established companies to continuously update their offerings and expand their service portfolios.
Innovation and Integration Drive Market Success
Success in the IoT insurance industry increasingly depends on companies' ability to deliver integrated solutions that combine data analytics, artificial intelligence, and IoT capabilities. Incumbent players are focusing on expanding their technological capabilities through internal development and strategic acquisitions, while also strengthening their distribution networks and customer relationships. Market leaders are investing in building comprehensive ecosystems that can support multiple insurance products and services, while also ensuring compliance with evolving data privacy and security regulations. Companies are also emphasizing the development of industry-specific solutions, particularly in high-growth segments like automotive, healthcare, and smart home insurance.
For new entrants and contenders, success lies in identifying and exploiting specific market niches where they can deliver superior value through specialized solutions. Companies need to focus on developing strong partnerships with both technology providers and insurance carriers to ensure effective market penetration. The ability to demonstrate a clear value proposition through reduced risk, improved customer experience, and operational efficiency is becoming crucial for market success. Future growth opportunities will be influenced by factors such as regulatory changes in data privacy, increasing adoption of connected devices, and evolving customer preferences for personalized insurance products. Companies must also address challenges related to data security, interoperability standards, and integration with legacy systems to maintain a competitive advantage.
Internet of Things (IoT) Insurance Market Leaders
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IBM Corporation
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Microsoft Corporation
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Intel Corporation
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Oracle Corporation
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Telit Communications PLC
- *Disclaimer: Major Players sorted in no particular order

Internet of Things (IoT) Insurance Market News
- November 2022 - IBM Corporation has announced a partnership with Ablera and Bulgaria to enhance ABACUS, a solution for insurance companies for pricing and rating processes powered by artificial intelligence, which brings next-level speed and accuracy to these processes, minimizing the error-prone, cumbersome manual efforts and allowing a more comprehensive range of users to work with the sophistication of applied mathematics.
- August 2022 - Telit, a global leader in the Internet of Things (IoT), has announced the acquisition of group assets from Mobilogix; acquisition adds comprehensive device engineering expertise and resources that focus on optimizing specifications for handoff to electronic manufacturing services, original device manufacturing, and the attainment of regulatory approvals and carrier certifications
Internet of Things (IoT) Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products and Services
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of the COVID-19 Impact on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growth of Insurance Sector in Parallel with Innovative Insurance Models
- 5.1.2 Growing Usage of IoT to Reduce the Premium and Risk-related Costs
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5.2 Market Restraint
- 5.2.1 High Risk for Privacy from the Collected Data
6. MARKET SEGMENTATION
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6.1 By End-User Industry
- 6.1.1 Retail and Commercial
- 6.1.2 Residential (Smart homes)
- 6.1.3 Automotive
- 6.1.4 Industrial
- 6.1.5 Healthcare
- 6.1.6 Other End-user Industries (Public Infrastructure, Logistics and Navigation)
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6.2 By Geography
- 6.2.1 North America
- 6.2.2 Europe
- 6.2.3 Asia Pacific
- 6.2.4 Latin America
- 6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 IBM Corporation
- 7.1.2 Microsoft Corporation
- 7.1.3 Intel Corporation
- 7.1.4 Oracle Corporation
- 7.1.5 Telit Communications PLC
- 7.1.6 Synechron Inc.
- 7.1.7 Verisk Analytics Inc.
- 7.1.8 Accenture PLC
- 7.1.9 Aeris Group
- 7.1.10 Concirrus Ltd
- 7.1.11 Allerin Pvt. Ltd
- 7.1.12 ForMotiv LLC
- 7.1.13 Wipro Corporation
- 7.1.14 Webfleet Solutions BV (Bridgestone Corp.)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Internet of Things (IoT) Insurance Industry Segmentation
IoT-connected insurance has opened up new scope for insurance companies and also for IoT solutions providers. The companies can utilize sensors to monitor the state of an insured risk and analyze it throughout the insurance value chain.
The IoT Insurance Market is segmented by End-user Industry (Retail and Commercial, Residential (Smart homes), Automotive, Industrial, Healthcare), and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle, East & Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
By End-User Industry | Retail and Commercial |
Residential (Smart homes) | |
Automotive | |
Industrial | |
Healthcare | |
Other End-user Industries (Public Infrastructure, Logistics and Navigation) | |
By Geography | North America |
Europe | |
Asia Pacific | |
Latin America | |
Middle East and Africa |
Internet of Things (IoT) Insurance Market Research FAQs
How big is the IoT Insurance Market?
The IoT Insurance Market size is expected to reach USD 53.95 billion in 2025 and grow at a CAGR of 9.21% to reach USD 83.81 billion by 2030.
What is the current IoT Insurance Market size?
In 2025, the IoT Insurance Market size is expected to reach USD 53.95 billion.
Who are the key players in IoT Insurance Market?
IBM Corporation, Microsoft Corporation, Intel Corporation, Oracle Corporation and Telit Communications PLC are the major companies operating in the IoT Insurance Market.
Which is the fastest growing region in IoT Insurance Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in IoT Insurance Market?
In 2025, the North America accounts for the largest market share in IoT Insurance Market.
What years does this IoT Insurance Market cover, and what was the market size in 2024?
In 2024, the IoT Insurance Market size was estimated at USD 48.98 billion. The report covers the IoT Insurance Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the IoT Insurance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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