The electric vehicle insurance market size is expected to grow from US$ 52.3 billion in 2023 to US$ 243.5 billion by 2031; it is anticipated to expand at a CAGR of 21.2% from 2024 to 2031. The market's expansion can be attributed to several key factors, including the rising demand for convenient and environmentally friendly transportation solutions. Additionally, there is a global trend towards sustainability and a reduction in carbon emissions, which is further fueling the electric vehicle insurance market growth.
The electric vehicle insurance market growth is driven by the increasing adoption of electric vehicles. The growing embrace of EVs by consumers, propelled by environmental awareness, government incentives, and technological advancements, has resulted in a surge in demand for customized insurance products that cater specifically to the unique requirements of electric vehicle owners.
The scope of the electric vehicle insurance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific is experiencing rapid growth and is anticipated to hold a significant electric vehicle insurance market share in 2023. The rapid electrification of passenger and commercial transport, particularly in China, Japan, South Korea, and India, is expected to drive the growth of the global EV insurance market. In China, the government's initiatives to limit conventional car sales, coupled with the development of EV infrastructure and connectivity, are accelerating the adoption of EVs and increasing the demand for EV insurance. Similarly, the increasing penetration of EVs in developing economies like India is anticipated to boost the demand for this type of insurance in the coming years. These factors, combined with the mandatory requirement of third-party liability coverage under the Motor Vehicles Act, create a favorable environment for the growth of the EV insurance market in the region.
The regional trends and factors influencing the Electric Vehicle Insurance Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Electric Vehicle Insurance Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 52.3 Billion |
| Market Size by 2031 | US$ 243.5 Billion |
| Global CAGR (2024 - 2031) | 21.2% |
| Historical Data | 2022-2024 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Application
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Electric Vehicle Insurance Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Electric Vehicle Insurance Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The "Electric Vehicle Insurance Market Analysis" was carried out based on coverage type, distribution channel, application, and geography. Based on coverage type, the market is segmented into first party liability coverage, third party liability coverage, and comprehensive. Based on distribution channel, the market is segmented into insurance companies, banks, insurance agents/ brokers, and others. Based on application, the market is segmented into new vehicles and used vehicles. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the electric vehicle insurance market. A few recent key market developments are listed below:
[Source: BYD, Company Website]
[Source: Singlife, Company Website]
The market report on “Electric Vehicle Insurance Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
The electric vehicle insurance industry has experienced significant growth in recent years, primarily driven by the increasing focus on sustainability and the expansion of eco-friendly modes of transportation, which are among the major factors that propel the global electric vehicle insurance market.
The electric vehicle insurance market size is expected to grow from US$ 52.3 billion in 2023 to US$ 243.5 billion by 2031; it is anticipated to expand at a CAGR of 21.2% from 2024 to 2031.
The emergence of EV-specific insurance policies is impacting electric vehicle insurance, which is anticipated to play a significant role in the global electric vehicle insurance market in the coming years.
The key players holding majority shares in the global electric vehicle insurance market are HDFC ERGO, Beinsure Digital Media, Bajaj Allianz General Insurance Company, Lemonade, Inc., and AXA.
The global electric vehicle insurance market is expected to reach US$ 243.5 billion by 2031.