Table of Contents
Introduction
The global IoT insurance market is experiencing rapid expansion and is projected to grow from USD 55.1 billion in 2024 to an impressive USD 1,331.0 billion by 2034, at a staggering CAGR of 37.5% during the forecast period. This exponential rise is driven by the integration of IoT in health, automotive, and life insurance sectors, enabling real-time data collection, risk prediction, and personalized premium models.
In 2024, North America dominated the market with a 39.1% share, accounting for USD 21.5 billion in revenue, while the US alone contributed USD 17.4 billion and is expected to grow at a leading CAGR of 40.2%. The solution segment led the market with over 70.5% share, indicating high demand for IoT-powered platforms and analytics.
In terms of application, health and life insurance captured 46.3% market share, followed by automotive and transportation at 35.6%, emphasizing the role of connected devices in preventive healthcare and usage-based vehicle insurance.
With India’s insurance market opportunity estimated at USD 339 billion and global IoT spending projected to hit USD 1.1 trillion by 2025, the convergence of insurance and IoT technologies is reshaping the industry landscape, fostering a data-driven, proactive approach to risk assessment and policy customization.
US Tariff Impact on Market Analysis
The US IoT insurance market is being significantly influenced by evolving tariff policies that affect the global import and export of IoT devices and components. Tariffs on electronic goods and communication technologies increase hardware costs, which directly impacts the deployment of IoT infrastructure in the insurance industry.
This has slowed the pace of IoT adoption, particularly among smaller insurers. However, US-based firms are responding by investing in domestic IoT ecosystems, leveraging homegrown technologies, and securing supply chains through local partnerships. These adjustments are not only reducing tariff exposure but also fostering innovation within the US IoT insurance sector. Despite initial cost burdens, the market remains highly resilient.
Economic, Geographical, Business Impacts
- Economic Impact: Tariffs are inflating the cost of imported IoT devices, affecting insurers’ operational budgets and slowing product rollout cycles.
- Geographical Impact: North America maintains dominance but faces increasing competition from Asia-Pacific, where manufacturing costs remain lower and tariffs less restrictive.
- Business Impact: US insurers are shifting focus to locally developed IoT ecosystems, investing in proprietary platforms, and creating tariff-proof technology stacks, thus maintaining agility while minimizing external dependencies.
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Key Takeaways
- Global IoT insurance market to reach USD 1,331.0 billion by 2034
- CAGR of 37.5% during 2025–2034
- North America leads with 39.1% share; US at USD 17.4 billion in 2024
- Health and life insurance dominate with 46.3% share
- Automotive and transportation hold 35.6% market share
- Solution segment leads with 70.5% share
- US market CAGR outpaces global average at 40.2%
- India’s insurance opportunity at USD 339 billion fuels global expansion
Analyst Viewpoint
The present landscape of the IoT insurance market is marked by a dynamic shift toward preventive, real-time insurance models enabled by device connectivity and data intelligence. Insurers are embracing IoT tools to personalize premiums, enhance customer experience, and automate claims management. In the US, rapid innovation is being driven by high digital literacy, strong IoT infrastructure, and regulatory support.
The surge in connected health devices and telematics in vehicles has transformed traditional models into outcome-based insurance. Looking ahead, the future remains highly optimistic. As IoT ecosystems mature and 5G becomes more accessible, real-time monitoring, AI-powered underwriting, and smart contract automation will become standard practices.
Emerging markets like India are expected to play a vital role, supported by increased IoT spending and insurance penetration. Additionally, the rise of embedded insurance models, where coverage is built into devices or services, will open new revenue streams.
Global insurers who invest in cross-sector collaboration, data privacy, and scalable platforms will gain a competitive edge. With both mature and emerging economies showing strong growth indicators, the IoT insurance industry is well-positioned to redefine risk management, accelerate innovation, and deliver more adaptive and efficient coverage solutions in the years to come.
➤ 𝐇𝐮𝐫𝐫𝐲 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐅𝐨𝐫 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐏𝐞𝐫𝐢𝐨𝐝 @ https://market.us/purchase-report/?report_id=144192
Regional Analysis
North America remains the largest IoT insurance market due to its advanced digital ecosystem, strong adoption of connected devices, and a well-regulated insurance landscape. The US, in particular, benefits from high consumer awareness and a robust IoT infrastructure, leading to faster uptake of connected insurance models.
Meanwhile, Asia-Pacific is witnessing accelerated growth driven by increasing smartphone penetration, government-led digital transformation, and rising middle-class income. India’s vast untapped insurance potential and booming IoT spending are further pushing regional expansion. Europe, with its strict data protection laws and focus on smart mobility, is developing use-case-specific IoT insurance frameworks.
➤ 𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐞𝐝 𝐓𝐨𝐩𝐢𝐜𝐬
- North America Supply Chain Digital Twin Market
- Short-term Rental Apps Market
- Cold Shrink Cable Accessories Market
- Decentralized Social Network Market
Business Opportunities
Business opportunities in the IoT insurance space are expanding rapidly as insurers look to enhance underwriting precision, lower fraud risk, and improve policyholder engagement. Areas like connected health monitoring, usage-based vehicle insurance, and property surveillance systems offer lucrative prospects.
Tech firms, device manufacturers, and insurers are forming strategic alliances to co-develop bundled products. Emerging markets offer room for affordable IoT-driven microinsurance solutions. Insurers investing in proprietary platforms, AI-based analytics, and blockchain for claims management will enjoy competitive advantages. As consumers demand transparency and personalization, insurers who prioritize innovation, agility, and data-driven models will lead the next phase of market disruption.
Key Segmentation
The global IoT insurance market is segmented by type (solution, service), application (health and life insurance, automotive and transportation, property and casualty), and region (North America, Europe, Asia-Pacific, Rest of World). In 2024, the solution segment led with a 70.5% market share, while health and life insurance dominated applications with 46.3%, followed by automotive and transportation at 35.6%. North America held the largest regional share with 39.1%.
Key Player Analysis
Key players are focusing on expanding IoT-enabled offerings, integrating AI and analytics to refine risk profiles, and developing cloud-based platforms for real-time claims handling. They are entering strategic partnerships with tech companies and device manufacturers to create bundled insurance solutions. To ensure sustained growth, they are also enhancing cybersecurity, regulatory compliance, and customer-centric innovations across global markets.
Recent Developments
Recent developments include growing investment in US-based IoT startups, the launch of AI-powered smart insurance platforms, and strategic partnerships with wearable and telematics firms to improve data insights and accelerate underwriting decisions.
Conclusion
The IoT insurance market is on a path of exponential growth, driven by innovation, digital adoption, and rising global connectivity. Insurers who embrace technology and deliver value through real-time, data-driven solutions will be best positioned to lead in this evolving landscape.
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