China leads Asia telematics growth with insurer tech adoption

Global expansion is driven by the increased adoption of usage-based insurance.

The global insurance telematics market reached a value of $6.8b in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 18.9% between 2025 and 2034, according to Global Market Insights.

The global expansion is being driven by increased adoption of usage-based insurance (UBI) and rising vehicle connectivity, according to the latest industry data.

China is expected to lead growth in the Asia-Pacific region, driven by increased digitisation in the automotive sector, higher smartphone penetration, and a growing preference for UBI and behaviour-based models. 

The country’s large vehicle fleet and heightened road safety concerns are pushing insurers to integrate telematics into core pricing and risk strategies.

Major Chinese insurers including Ping An, PICC, and China Life are adopting advanced telematics systems combining GPS tracking, driver scoring, and AI-based analytics.

In 2024, the hardware segment led the global market, accounting for approximately 54% of total revenue. It is expected to grow at a CAGR of over 19% during the forecast period.

Passenger vehicles comprised 69% of the global telematics market demand and are projected to grow at a CAGR exceeding 20% from 2025 to 2034.