India Internet of Things IoT Insurance Market Research Report By End User (Individual, Small and Medium Enterprises, Large Enterprises), By Type of Insurance (Health Insurance, Property Insurance, Liability Insurance, Cyber Insurance), By Technology Used (Wearables, Smart Home Devices, Connected Vehicles, Industrial IoT) and By Application (Telematics, Smart Home Monitoring, Health Monitoring, Asset Tracking)- Forecast to 2035

India Internet of Things IoT Insurance Market Overview

As per MRFR analysis, the India Internet of Things IoT Insurance Market Size was estimated at 153 (USD Million) in 2023.The India Internet of Things IoT Insurance Market Industry is expected to grow from 174.6(USD Million) in 2024 to 524 (USD Million) by 2035. The India Internet of Things IoT Insurance Market CAGR (growth rate) is expected to be around 10.507% during the forecast period (2025 - 2035).

Key India Internet of Things IoT Insurance Market Trends Highlighted

The India Internet of Things (IoT) Insurance Market is rising quickly because more people are using smart gadgets, and systems are becoming more linked. The expanding digital economy in India, which is being driven by government programs like Digital India, is a major factor in the industry. As more businesses and people use IoT technology in their daily lives and work, insurance companies can now use data analytics to create personalized insurance products. This makes policy pricing more efficient and more suited to each person's needs. This move toward making decisions based on data not only improves risk assessment but also encourages a more proactive approach to managing risk.

There are many chances to be had in this area. For example, IoT applications are starting to be used in agriculture, health, and home automation in rural parts of India. This gives insurers new markets to explore. Insurers can fill in coverage gaps that are common in less developed areas by offering new products that meet the needs of these growing industries. Usage-based insurance models, which are popular with tech-savvy customers, will also change the way plans are set up. Recent trends show that internet businesses and insurance companies are working together more and more, which creates an ecosystem that encourages new ideas.

Insurers are putting money into technology collaborations to build risk management tools that work with the Internet of Things. Regulatory frameworks are also changing to help the insurance industry adopt IoT while keeping consumer data safe. The Indian government is focusing on smart city projects, which will make IoT even more important in urban insurance solutions. This will make IoT even more important in changing the future of the insurance business in India.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Internet of Things IoT Insurance Market Drivers

Growth in the Internet of Things Adoption

The rapid increase in Internet of Things (IoT) adoption in India is a significant driver of the India Internet of Things IoT Insurance Market Industry. According to the Ministry of Electronics and Information Technology (MeitY) of the Government of India, India's IoT market is expected to grow from 5.6 USD Billion in 2020 to 15 USD Billion by 2025. This translates to a compound annual growth rate of 28.3%, indicating a burgeoning ecosystem of connected devices.As more devices become interconnected, insurers are prompted to develop specialized insurance products that cater to this growing segment. 

Established companies like ICICI Lombard and Bajaj Allianz are already launching tailored IoT-based insurance plans that leverage real-time data for risk assessment. With the rising penetration of IoT in sectors such as healthcare, automotive, and smart manufacturing, insurance companies are increasingly looking to adapt their offerings to mitigate emerging risks and opportunities arising from IoT integration.The growing demands for such personalized insurance products are significantly boosting the India Internet of Things IoT Insurance Market.

Increased Focus on Risk Management

In the wake of rapid technological advancements, there has been an increased emphasis on risk management solutions within the India Internet of Things IoT Insurance Market Industry. The Insurance Regulatory and Development Authority of India (IRDAI) has provided guidelines for insurers to incorporate data analytics into their risk assessment processes. 

For instance, the report indicates that 30% of firms in the manufacturing sector adopted preventive measures through IoT data to reduce fatalities and accidents. Companies like HDFC ERGO are innovating their offerings by utilizing real-time monitoring systems to provide dynamic coverage based on actual risk exposure. This not only enhances customer relationships but also decreases the overall claim volume, which creates a positive environment for market growth.

Government Initiatives and Support

The Indian government has launched several initiatives to propel the growth of the IoT sector, which subsequently impacts the India Internet of Things IoT Insurance Market Industry positively. Programs such as 'Digital India' aim to promote the implementation of digital technologies across sectors, enhancing connectivity and data availability. According to the Telecom Regulatory Authority of India (TRAI), internet penetration increased to 54% in 2021 from just 17% in 2014, underscoring the government's commitment to creating a digitally-savvy population.

Insurers are finding opportunities to innovate traditional products and introduce IoT-based solutions that meet the evolving demands of digitally connected customers. Insurers like Reliance General Insurance are actively engaging in partnerships with tech firms to enhance their IoT insurance solutions, showcasing the impact of government support on market dynamics.

India Internet of Things IoT Insurance Market Segment Insights

Internet of Things IoT Insurance Market End User Insights

The End User segment of the India Internet of Things IoT Insurance Market plays a crucial role in shaping the industry's landscape, catering to a diverse range of customers including Individuals, Small and Medium Enterprises (SMEs), and Large Enterprises. Each of these categories presents unique requirements and challenges, which drives demand for tailored IoT insurance solutions. Individuals are increasingly adopting smart technologies such as wearables and home automation devices, and as their reliance on connected devices grows, so does the need for comprehensive insurance coverage to safeguard against potential risks associated with data breaches and device malfunctions. 

This trend underscores the significance of the Individual segment in establishing a robust market presence. On the other hand, Small and Medium Enterprises are becoming significant contributors to the India Internet of Things IoT Insurance Market, owing to their rapid digital transformation and increasing adoption of IoT solutions for operational efficiency. SMEs face a different set of risks compared to larger organizations, often lacking the resources to manage complex insurance products effectively. Therefore, specialized insurance products catering to their specific operational contexts are essential. This segment’s growth is driven by SMEs' need for cybersecurity and asset protection to foster innovation and sustainability in their business models.In contrast, Large Enterprises represent a dominant force within the market, leveraging IoT technologies to enhance their operational capabilities and gain competitive advantages. 

These organizations often have extensive networks of connected devices and significant data management requirements, making them inherently more exposed to cyber threats and operational interruptions. Consequently, they require comprehensive risk management strategies, and specialized IoT insurance solutions become critical to mitigate the impact of potential disruptions. The increasing sophistication of cyber-attacks and regulatory compliance requirements further highlights the importance of insurance tailored to the complexities of large-scale IoT deployments. Overall, the End User segment reflects the growing integration of IoT into the fabric of society and business in India, driven by factors such as innovation, increasing connectivity, and the growing need for insurance solutions that cater to specified risks. 

Each category within this segment exhibits distinct characteristics, challenges, and opportunities, providing a multifaceted view of the market landscape. Understanding these dynamics is vital for stakeholders aiming to craft effective strategies and solutions tailored to the unique demands of diverse end users in the India Internet of Things IoT Insurance Market. As the market continues to evolve, it is likely that the interplay between technological advancement and insurance requirements will lead to further segmentation and development of specialized offerings, thereby enhancing the overall value proposition for each targeted group.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Internet of Things IoT Insurance Market Type of Insurance Insights

The India Internet of Things IoT Insurance Market is experiencing significant growth, particularly within the Type of Insurance segment, which comprises various important categories. Health Insurance is becoming increasingly vital as wearable technology and health tracking devices gain prevalence, enabling insurers to gather real-time health data, which enhances risk assessment and claims processing. Property Insurance is also evolving, leveraging IoT devices to monitor situations such as fire hazards or flooding, thereby reducing potential risks and claims for policyholders.

Liability Insurance, crucial in industries like construction and manufacturing, employs IoT devices to improve safety standards and minimize accidents, making it an essential aspect of operational risk management. Moreover, Cyber Insurance is gaining traction in response to the rising incidents of data breaches and cyber threats, emphasizing the importance of securing digital assets. These dynamics not only reflect the diverse applications of IoT in insurance but also highlight the overall trend towards more personalized and data-driven policies, which contribute to increasing efficiency and customer satisfaction in the India Internet of Things IoT Insurance Market.

Internet of Things IoT Insurance Market Technology Used Insights

The Technology Used segment of the India Internet of Things (IoT) Insurance Market showcases significant diversity and innovation, reflecting the rapid evolution of digital technologies. The market encapsulates various categories, including Wearables, Smart Home Devices, Connected Vehicles, and Industrial IoT, each contributing uniquely to the industry's growth. Wearables are becoming increasingly important as they facilitate real-time health monitoring and promote preventive healthcare, thereby influencing insurance products tailored for individuals.Smart Home Devices are gaining traction, providing increased security and energy efficiency, which enhances the attractiveness of insurance policies linked to home protection. 

Meanwhile, Connected Vehicles are revolutionizing transportation, enabling features such as accident detection and automatic claim filing, significantly streamlining insurance processes. Industrial IoT is pivotal in the commercial sector, allowing for risk management through predictive maintenance and operational efficiency, ultimately reducing insurance claims. The adoption of these technologies collectively drives the India Internet of Things IoT Insurance Market growth while addressing evolving consumer demands and increasing the need for comprehensive coverage solutions. Insights derived from industry data suggest that technological advancements in these segments will create substantial opportunities for InsurTech players to innovate and expand their service offerings.

Internet of Things IoT Insurance Market Application Insights

The India Internet of Things IoT Insurance Market is seeing a burgeoning interest in various applications that cater to specific needs within the industry. Telematics is notably transforming auto insurance by enabling real-time monitoring of driving behaviors, thus facilitating personalized premiums and risk assessment. Smart Home Monitoring is gaining traction as homeowners increasingly seek security and risk mitigation solutions, integrating IoT devices that monitor home conditions and prevent losses. 

Health Monitoring applications are also becoming significant, as the ongoing digitalization of healthcare allows insurers to manage risks and tailor offerings based on individual health data. Furthermore, Asset Tracking enables businesses to optimize resource allocation and minimize losses, playing an essential role across sectors. These application areas collectively enhance customer engagement and operational efficiency and address emerging risks, aligning with the robust growth trajectory of the India Internet of Things IoT Insurance Market, driven by evolving consumer expectations and technological advancements.

India Internet of Things IoT Insurance Market Key Players and Competitive Insights

The competitive landscape of the India Internet of Things IoT Insurance Market is characterized by rapid growth and technological innovation, driven by the increasing need for insurers to leverage data analytics and connected devices to enhance customer experiences and streamline operations. The proliferation of smart devices and the growing demand for customized insurance solutions are pushing companies to adopt IoT technologies. This shift has led to the emergence of various players offering distinct products and services tailored to specific insurance segments such as health, automotive, and property insurance. 

As the market evolves, organizations are focusing on integrating IoT solutions into their services, fostering partnerships and collaborations to enhance operational efficiencies, and exploring new business models that can support proactive risk management and improved underwriting processes.Tech Mahindra stands out in the India Internet of Things IoT Insurance Market due to its strategic focus on digital transformation and innovation. With its robust capabilities in technology and consulting, Tech Mahindra has been able to deliver comprehensive IoT solutions aimed at enhancing insurance processes and improving customer engagement. The company’s strength lies in its ability to leverage big data analytics and cloud technology to provide data-driven insights that can assist insurers in risk assessment and management. 

Its extensive experience in the technology realm allows it to create tailor-made applications that suit the specific needs of the insurance sector, thereby helping insurers to optimize their operational efficiency and adapt to the evolving market demands. Tech Mahindra's commitment to innovation and its customer-centric approach set it apart as a formidable player in the IoT insurance landscape.Cognizant has established a significant presence in the India Internet of Things IoT Insurance Market with a focus on delivering digital solutions that drive efficiency and agility within the insurance ecosystem. The company provides a suite of IoT services and products designed to improve decision-making through real-time analytics and enhanced data visibility. 

Strengths of Cognizant include its scalable technology platforms and strong security framework, which are essential for managing sensitive insurance data effectively. Additionally, Cognizant has engaged in several strategic partnerships and acquisitions to further strengthen its IoT capabilities, allowing it to offer advanced insurance solutions that address specific client needs in India. Key products and services offered by Cognizant in this segment aim to enhance customer experiences and streamline claims processing, thereby positioning the company as a leader in delivering innovative IoT solutions tailored to the Indian insurance market demands.

Key Companies in the India Internet of Things IoT Insurance Market Include:

• Tech Mahindra
• Cognizant
• Reliance Industries
• L&T Technology Services
• Wipro
• Infosys
• Accenture
• Bosch
• HCL Technologies
• Cisco Systems
• Tata Consultancy Services
• Mahindra Group
• SAS
• Zebra Technologies
• IBM

India Internet of Things IoT Insurance Industry Developments

The India Internet of Things (IoT) Insurance Market has witnessed significant developments in recent months, reflecting the increasing integration of technology within the insurance sector. In August 2023, Tech Mahindra announced a partnership with Cisco Systems to develop IoT-driven insurance solutions aimed at improving risk assessment and policy pricing strategies. 

Reliance Industries is also actively investing in IoT to enhance customer experiences and streamline operations, capitalizing on the digitization trend in the insurance space. Moreover, L&T Technology Services has launched innovative IoT applications for insurance claims processing, which are gaining traction among insurers for their efficiency. Mergers in the sector include Wipro's acquisition of a niche IoT firm in July 2023, promoting its footprint in connected insurance offerings. 

This strategic move aligns with recent growth trends, as major players like Tata Consultancy Services reported a compound annual growth rate of over 15% in their IoT service revenue over the past two years. The Indian government has been supporting IoT initiatives in the insurance sector through favorable policies, driving advancements and investments in smart technologies. Overall, these developments demonstrate a robust growth path for the IoT insurance market in India.

India Internet of Things IoT Insurance Market Segmentation Insights

Internet of Things IoT Insurance Market End User Outlook

• • Individual
  • Small and Medium Enterprises
  • Large Enterprises

Internet of Things IoT Insurance Market Type of Insurance Outlook

• • Health Insurance
  • Property Insurance
  • Liability Insurance
  • Cyber Insurance

Internet of Things IoT Insurance Market Technology Used Outlook

• • Wearables
  • Smart Home Devices
  • Connected Vehicles
  • Industrial IoT

Internet of Things IoT Insurance Market Application Outlook

• • Telematics
  • Smart Home Monitoring
  • Health Monitoring
  • Asset Tracking

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	153.0 (USD Million)
MARKET SIZE 2024	174.6 (USD Million)
MARKET SIZE 2035	524.0 (USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.507% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Tech Mahindra, Cognizant, Reliance Industries, L&T Technology Services, Wipro, Infosys, Accenture, Bosch, HCL Technologies, Cisco Systems, Tata Consultancy Services, Mahindra Group, SAS, Zebra Technologies, IBM
SEGMENTS COVERED	End User, Type of Insurance, Technology Used, Application
KEY MARKET OPPORTUNITIES	Data-driven personalized insurance products, Smart device integration for risk assessment, Real-time claims processing automation, Usage-based insurance models, Enhanced customer engagement through IoT.
KEY MARKET DYNAMICS	rising demand for personalized policies, data security and privacy concerns, regulatory compliance challenges, increased use of telematics, growing adoption of smart devices
COUNTRIES COVERED	India