Commercial auto insurance sector slated for 6% CAGR by 2032

In APAC, the market is expanding rapidly thanks to increased trade.

The commercial auto insurance market size was valued at $52.8b in 2023, and is projected to ink a compound annual growth rate (CAGR) of more than 6% from 2024 to 2032, according to Global Market Insights.

Key drivers of this CAGR are the increased adoption of telematics and IoT devices in commercial vehicles. 

In the Asia-Pacific region, the market is expanding rapidly due to economic growth and increased trade activity. 

Insurers face challenges in adapting to varied regulatory environments and cultural differences in key markets such as China, India, Japan, and Australia. 

The global market is segmented by vehicle type into trucks & trailers, vans & pickups, and buses. The trucks & trailers segment, valued at over $17b in 2023, is seeing rising demand for specialized coverage due to the growth of cargo transportation and regulatory compliance requirements.  

By coverage type, the market is divided into liability coverage, collision coverage, comprehensive coverage, uninsured motorist coverage, and underinsured motorist coverage. 

The liability coverage segment is expected to grow at a CAGR of over 5.5% during the forecast period. 
Insurers are adjusting policies to address emerging risks such as cyber liability and legal issues related to autonomous vehicles.