IoT insurance Market Projected to Grow at a CAGR of 54.4% and Generate a Revenue of $ 402,990.0 Million by 2028Download Sample Reports Overview
The global IoT insurance market is predicted to be valued at $ 402,990.0 million by 2028, surging from $13,540.0 million in 2020 at a noteworthy CAGR of 54.4%.
Impact Analysis of COVID-19 on the IoT Insurance Market
The coronavirus outbreak impacted the IoT insurance market positively. Most of the places were shut down due to the spread of the coronavirus. The fear of coronavirus among the people increased the demand of insurance, which is predicted to boost the IoT insurance market at the time of pandemic. Most of the insurance organizations have also implemented cloud services to a huge extent to track customer health with the help of connected devices. All these factors are predicted to boost the IoT insurance market during the pandemic.
Global IoT Insurance Market Analysis
Most of the businesses rely on IT and networks vastly. The funds required to maintain these networks cost too much for the organizations. At present, the organizations outsource the maintenance of these materials to stakeholders who work using cloud services. Developments in cloud services with the help of connected devices is predicted to be the major driving factor for the global IoT insurance market in the estimated period. Moreover, increase in the adoption of IoT in banking and finance sector is predicted to be the major driving factor for the global market in the estimated period.
However, the lack of skilled operators to monitor and manage IoT insurances is predicted to hinder the market in the projected timeframe. Moreover, cost factor is also considered as one of the major restraints for the global IoT insurance market in the estimated period.
Global IoT Insurance Market, Segmentation
The global IoT insurance market is segmented based on type, application, and region.
The insurance type segment is further classified into life insurance, property & casualty (P&C) insurance, health insurance and others. Among these, the life insurance sub-segment is anticipated to have the maximum growth rate in the forecast period. It has been estimated that the sub-segment will grow with a CAGR of 55.2% by generating a revenue of $99,950.6 million by 2028. Increasing demand of life insurance for securing the life and securing the family future is predicted to be the major driving factor for the sub-segment market in the estimated period.
The application segment is further divided into automotive transportation & logistics, life & health, commercial & residential buildings, business & enterprise, agriculture, and others. The life & health sub-segment is anticipated to have the highest growth rate in the global market. It has been estimated that the market will grow with at a CAGR of 55.2% by generating a revenue of $ 96,821.8 million by 2028. Health and life insurance helps pay for medical expenses such as doctor's visits, hospital stays, medications, tests, and procedures.
The IoT insurance market for the Asia-Pacific region is projected to witness rapid growth. This market is projected to generate a revenue of $102,359.5 million by 2028 with a CAGR of 55.5% in the estimated period. Asia-Pacific region market is predicted to be the biggest market for the IoT insurance market in the forecast period. Shifting of majority of companies to Asia-Pacific region is predicted to drive the market in the estimated period. Moreover, low labor cost, highly skilled labor, and various government initiatives are predicted to boost the region market in the estimated period.
Key Players in the Global IoT Insurance Market
- SAP SE
- Cisco Systems Inc.
- International Business Machines Corporation
- Accenture PLC
- Microsoft Corporation
- Oracle Corporation
- Aeris Group Ltd
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global IoT Insurance Market:
- Bargaining Power of Suppliers: The switching cost from one supplier to another is projected to be low.
Thus, the bargaining power suppliers is low.
- Bargaining Power of Buyers: In this market, the concentration of buyers is high.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: Huge investment is required to adopt the technological advancements in building automation system.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: There are very less numerous alternative products in the IoT Insurance market.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: Due to the presence of large number of manufacturers there is huge competitive rivalry among the suppliers and manufacturers.
Therefore, competitive rivalry in the market is high.