Dublin, April 13, 2023 (GLOBE NEWSWIRE) -- The "EV Insurance Market By Coverage, By Distribution Channel, By Vehicle Age, By Application: Global Opportunity Analysis and Industry Forecast, 2021-2031" report has been added to ResearchAndMarkets.com's offering.
According to this report the EV insurance market was valued at $51.4 billion in 2021, and is estimated to reach $210.4 billion by 2031, growing at a CAGR of 15.5% from 2022 to 2031.
Key Market Players
- Beinsure Digital Media
- Allianz SE
- Allstate Insurance Company
- AXA
- Esure Group plc
- HDFC ERGO
- Progressive Casualty Insurance Company
- ACKO GENERAL INSURANCE LIMITED
- Lemonade, Inc.
- Bajaj Allianz General Insurance Company
Electric vehicle insurance is a type of motor insurance where it helps to protect electric cars from a number of potential damages and losses, such as those that might happen in the case of accidents, natural calamities, or fire. Moreover, it is a legal contract between the insurer and the electric car owner. It protects the electric car owner from any unexpected incident leading to damage.
The spread of internet access to every corner of the globe has resulted in a surge in the online segment which has facilitated a rapid growth prospect for the EV insurance. In the twenty-first century, smartphones have also become an indispensable part of many people's lives.
The increasing use of devices such as smartphones and tablets, as well as access to the internet via 4G, 5G, and other technologies, has accelerated the adoption of digital technology. Moreover, Surge in demand for EV vehicle insurance and several instances of electric bikes and cars catching fire have come to light in recent months but there is no stopping this vehicle segment from picking up speed.
Though it is still at a nascent stage therefore, general insurance companies are turning their attention to the segment, recognizing its growing potential. Therefore, these are some of the factors that propel the growth of EV insurance market. However, enforcement of strong rules by banks and financial institutions for providing vehicle finance has put up a strong restriction.
This restriction has been implemented by a number of banks and financial service providers to offer car finance services, which restricts the growth of the market across the globe.
The market also offers growth opportunities to the key players in the market. There has been a significant increase in the awareness about the importance of insurance policies among the customers. Many banks and financial institutions, can leverage on this opportunity by offering various types of EV vehicle insurance policies to the customers.
Furthermore, banks are partnering with insurance companies to provide EV insurance policies to increase their customer satisfaction and with the rise in demand for insurance policies, insurance companies are approaching banks to sell their products to the customers.
Therefore, the demand for EV insurance services will also increase in the upcoming years, with the growing demand for EV vehicles policies among customers. Thus, it will provide major lucrative opportunities for the growth of the EV market.
Market Dynamics
Drivers
- Rise in penetration of internet & mobile devices across the world
- Surge in demand for EV vehicle insurance
Restraints
- Enforcement of strong rules by banks and financial institutions for providing car finance
- Prices of EV vehicles are expensive
Opportunities
- Growth in demand for EV insurance policies
Key Market Insights
- By coverage, the third-party liability coverage segment was the highest revenue contributor to the market, and is estimated to reach $84300.77 million by 2031, with a CAGR of 13.4%. However, the first party liability coverage segment is estimated to be the fastest growing segment with the CAGR of 16.4% during the forecast period.
- By distribution, the insurance companies segment dominated the global market, and is estimated to reach $62081.47 million by 2031, with a CAGR of 14.7%. However, the bank segment is expected to be the fastest growing segment during the EV insurance market forecast.
- Based on vehicle age, the new vehicle segment was the highest revenue contributor to the market, with $39524.63 million in 2021, and is estimated to reach $147783.41 million by 2031, with a CAGR of 14.5%.
- Based on application, the personal segment was the highest revenue contributor to the market, with $36888.66 million in 2021, and is estimated to reach $138331.2 million by 2031, with a CAGR of 14.5%.
- Based on region, Asia-Pacific was the highest revenue contributor, accounting for $19772.19 million in 2021, and is estimated to reach $97665.32 million by 2031, with a CAGR of 17.7%.
Key Market Segments
By Coverage
- First Party Liability Coverage
- Third Party Liability Coverage
By Distribution Channel
- Insurance Companies
- Banks
- Insurance Agents/ Brokers
By Vehicle Age
- New Vehicle
- Used Vehicle
By Application
- Personal
- Commercial
For more information about this report visit https://www.researchandmarkets.com/r/avn3nk
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