Electric Vehicle (EV) Insurance Market to Reach USD 687.62 billion by 2029; Direct Line Partners with Zoom EV to Boost Insurance Sales: Fortune Business Insights
Pune, India, March 01, 2023 (GLOBE NEWSWIRE) — The global Electric Vehicle (EV) Insurance market size was USD 40.27 billion in 2021. The market is expected to grow from USD 64.18 billion in 2022 to USD 687.62 billion by 2029 at a CAGR of 40.33% in the 2022-2029 period. This information is provided by Fortune Business Insights, in its report titled, “Electric Vehicle (EV) Insurance Market, 2022-2029.”
The demand for electric vehicles is increasing rapidly due to growing fossil fuel prices, concerns regarding the environment, and government initiatives to boost EV adoption. However, electric vehicles are expensive as compared to fossil fuel powered alternatives owing to the high cost of lithium-ion batteries, which generate demand for EV insurance.
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Market Drivers & Restraints:
Increasing awareness and easy availability of Electric Vehicle (EV) insurance are the primary factors driving the Electric Vehicle (EV) insurance market growth in the coming years. Most of the insurance companies offer car insurance for electric vehicles nowadays. Insurance providers are focusing on providing programs and policies to satisfy consumer requirements. Leading EV manufacturers such as Tesla have also started offering insurance on electric vehicles. The above-mentioned factors will stimulate market expansion in the coming years.
On the other hand, high costs of insuring EVs as compared to gas or diesel-powered vehicles will act as a challenge for businesses operating in this domain.
EV Insurance Market Scope:
|Forecast Period 2022 to 2029 CAGR||40.33%|
|2029 Value Projection||USD 687.62 Billion|
|Market Size in 2021||USD 40.27 Billion|
|Historical Data for||2018-2020|
|No. of Pages||151|
|Segments covered||Electric Vehicle (EV) Insurance Market Size, Share & COVID-19 Impact Analysis, By Propulsion Type (Battery Electric Vehicles (BEV) and Hybrid), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Coverage Type (Accidental Damage, Theft or Malicious Damage, Car Battery & Auto Parts Replacement, and Others)|
|Growth Drivers||Increasing Awareness and Demand for Electric Vehicle (EV) Insurance to Escalate the Market Progress|
|Rapid Electrification of Vehicles to Promote Asia Pacific Market Augmentation|
High Demand and Sales of EVs Amid the Pandemic Propelled Market Expansion
The implementation of stringent lockdowns and closure of manufacturing facilities worldwide due to the surging number of COVID-19 cases worldwide affected the automotive industry negatively as prices of raw materials increased. However, increased demand and sales of EVs amid the pandemic boosted the market. Rising concerns regarding pollution and environmental health, supportive government policies, and need for private transport elevated EV sales, which further propelled the demand for EV insurance worldwide.
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Segmentation of Report:
Rising Adoption of Emission-free Vehicles to Boost Demand for BEVs
As per propulsion type, the market is bifurcated into hybrid and BEV. The BEV segment dominated the market in 2021 owing to surging demand for emission-free vehicles and stringent emission norms announced by regulatory bodies. These norms will boost the adoption of pure electric vehicles, thus increasing the demand for EV insurance services.
Passengers Cars Segment to Lead Backed by Surging Demand for Private Transport
Based on vehicle type, the market is divided into commercial vehicles and passenger cars. The passenger cars segment captured the largest market share in 2021 owing to rising demand for private transport after the pandemic. The launch of passenger EVs is also escalating the adoption of EV insurance designed specifically for private transport.
Accidental Damage Segment to Grow Stoked by Increasing Road Traffic Congestion
According to coverage type, the market is split into accidental damage, theft or malicious damage, car battery & auto parts replacement, and others. Among these, the accidental damage segment held a major market share in 2021. Rising number of road crashes reported coupled with growing traffic congestion has accelerated the demand for accidental damage coverage, thus contributing to the growth of this segment.
Geographically, the market is segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Rapid Electrification of Vehicles to Promote Asia Pacific Market Augmentation
Asia Pacific held majority of the global Electric Vehicle (EV) insurance market share and was gauged at USD 19.40 billion in 2021. Rapid electrification of commercial and passenger transport in countries such as Japan, China, South Korea, and India is a key attributor to market expansion in this region. The development of EV infrastructure and rising EV sales in China will also facilitate market growth in Asia Pacific.
The Electric Vehicle (EV) insurance domain in Europe is predicted to expand rapidly in the coming years due to stringent emission norms enforced by the European Union and rising EV sales due to subsidies and incentives on EV purchases.
North America is projected to grow substantially over the forecast timeframe owing to increasing adoption of User-Based Insurance (UBI) in the region. The presence of leading manufacturers and well-developed EV infrastructure in the region is boosting the adoption of commercial EVs and aiding market growth in the region.
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Key Players Announce Partnerships to Support Market Growth
Industry leaders often make strategic decisions such as collaborations, mergers & acquisitions, and product launches to generate massive revenues and profits. One such move is partnering with other leading companies to improve geographical reach or enhance product offerings to escalate profit generation. In August 2022, Liberty Mutual Insurance Company partnered with Autonomy, an EV subscription company, to launch a digital month-to-month auto insurance offering for EV users. This partnership will enable onboard, evaluate, and qualify a subscriber for auto insurance coverage on a monthly basis. This deal will also create seamless and easy access to electric vehicles for users.
September 2022: Aviva launched standalone insurance products for EV charging points owing to the surge in demand for EVs in the U.K. The insurance product offers Erection All Risks (EAR) and Operational All Risks (OAR) cover for EV chargers, which is aimed at targeting business customers, including car park operators, contractors, local authorities, asset managers, and forecourt operators. The policies will cover businesses against the risk of fire, flood, and malicious or accidental damage and will be available for single chargers.
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List of Key Players Covered in the Electric Vehicle (EV) Insurance Market Report
- Allianz (Germany)
- AXA (France)
- Zurich Insurance Group (Switzerland)
- Liberty Mutual Insurance Company (U.S.)
- Aviva (U.K.)
- Direct Line Insurance Group plc (U.K.)
- The Progressive Corporation (U.S.)
- GEICO (U.S.)
- Allstate Insurance Company (U.S.)
- State Farm Mutual Automobile Insurance Company (U.S.)
Electric Vehicle (EV) Insurance Market Segmentation:
By Propulsion Type
- Battery Electric Vehicles (BEV)
By Vehicle Type
- Passenger Cars
- Commercial Vehicles
By Coverage Type
- Accidental Damage
- Theft or Malicious Damage
- Car Battery & Auto Parts Replacement
Table of Content:
1.1. Research Scope
1.2. Market Segmentation
1.3. Research Methodology
1.4. Definitions and Assumptions
2. Executive Summary
3. Market Dynamics
3.1. Market Drivers
3.2. Market Restraints
3.3. Market Opportunities
3.4. Market Trends
4. Key Insights
4.1 Key Industry Developments – Merger, Acquisitions, and Partnerships
4.2 Porter’s Five Forces Analysis
4.3 PEST Analysis
4.4 Technological Developments
4.5 Impact of COVID-19
5. Global Electric Vehicles (EV) Insurance Market Analysis, Insights and Forecast, 2018-2029
5.1. Key Findings / Summary
5.2. Market Analysis, Insights and Forecast – By Propulsion Type
5.2.1 Battery Electric Vehicle (BEV)
5.3. Market Analysis, Insights and Forecast – By Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4. Market Analysis, Insights and Forecast – By Coverage Type
5.4.1 Accidental Damage
5.4.2 Theft or Malicious Damage
5.4.3 Car Battery & Auto Parts Replacement
5.5. Market Analysis, Insights and Forecast – By Region
5.5.1 North America
5.5.3 Asia Pacific
5.5.4 Rest of the World
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