The Europe Insurance in Connected Devices market is experiencing robust growth owing to technological advancements, increased adoption of IoT, and a dynamic regulatory landscape. The market size was valued at USD 4,160 Million in 2025 and is projected to reach USD 14,980 Million by 2035, expanding at a CAGR of 12.7% from 2024 to 2035.
The economic impact of tariffs on "Europe Insurance in Connected Devices".
Market Growth Drivers
Increasing Adoption of IoT-enabled Devices: The widespread use of smart devices such as wearables, connected vehicles, and home automation systems is fueling the demand for specialized insurance products. Companies like Allianz SE have launched tailored policies that cover dynamic risks associated with connected devices, leveraging real-time data. With IoT expansion, insurers are utilizing telematics and real-time monitoring to offer personalized premiums, risk assessment, and fast claim settlements, enhancing customer engagement and satisfaction.
Strategic Partnerships and Product Innovation: Insurers are partnering with tech firms to integrate advanced risk analytics and automation capabilities. For example, AXA has collaborated with Vodafone to offer insurance coverage for IoT devices used in smart homes and vehicles. Such collaborations foster product innovation, providing seamless customer experiences through embedded insurance within device purchase journeys, further driving market growth across Europe.
Key Market Trends
Growth of Usage-Based Insurance (UBI): Connected devices enable insurers to collect real-time usage data. This is particularly evident in the automotive sector, where companies like Generali have expanded UBI products using telematics to incentivize safer driving. Usage-based models are extending to health and home insurance, creating new avenues for personalized coverage and premium discounts based on user behavior and device data.
Integration of Artificial Intelligence and Blockchain: Insurtech companies like Lemonade and Zurich Insurance are leveraging AI for automated claims processing, fraud detection, and customer service enhancements. Additionally, blockchain technology is being piloted to ensure secure and transparent device data records, thus reducing claim disputes and improving trust in digital insurance ecosystems.
Market Opportunities
Expansion into Smart Health Insurance: Companies such as Allianz are exploring insurance offerings linked to health wearables and remote monitoring devices. The growing acceptance of remote healthcare solutions opens lucrative opportunities for customized health insurance products, underpinned by real-time health data.
Growth Potential in Connected Home Ecosystems: As smart home device adoption increases, insurers like AXA are positioned to offer tailored protection products for homeowners. Bundling device coverage with property insurance presents cross-selling opportunities, driving both customer value and revenue growth.
Europe Insurance in Connected Devices Market Revenue (USD Million), 2020-2035
The market revenue chart from 2020 to 2035 illustrates a strong upward trajectory for Europe Insurance in Connected Devices. Starting at USD 1,300 Million in 2020, the market climbs steadily, surpassing USD 4,160 Million in 2025, and expected to reach USD 14,980 Million by 2035. This growth reflects an increasing reliance on smart connected devices across sectors, rapid digitalization, and enhancing insurance products catering to device-specific risks. Sustained investments in insurtech and robust consumer adoption are key contributors to this positive trend.
Europe Insurance in Connected Devices Market by Regions Share (%), 2025
In 2025, Western Europe leads the Europe Insurance in Connected Devices market with a 38% share, propelled by advanced digital infrastructure and rapid adoption of IoT. Northern Europe follows with a 25% share, benefiting from high smart device penetration. Southern Europe accounts for 15%, while Eastern Europe contributes 13% due to increasing smart home integration. The Benelux region makes up 9%, showing growth through regional tech innovation. The pie chart highlights the regional skew, underlining the significance of digital maturity and regulatory support across Western and Northern Europe.
Recent Market Developments
In April 2024, AXA announced the integration of AI-enabled analytics platforms with its existing IoT insurance products for smart homes and vehicles. This integration aims to streamline risk detection and claims management, providing customers with instant, personalized mitigation recommendations. The launch is expected to accelerate AXA’s customer adoption in the connected insurance market, especially among tech-savvy homeowners and smart mobility service providers.
In May 2024, Generali entered a strategic partnership with Siemens to pilot insurance solutions covering industrial IoT devices. The collaboration will focus on deploying real-time risk assessment and predictive maintenance coverage across manufacturing firms in Germany and Italy. This initiative positions Generali as a frontrunner in embedded insurance for Industry 4.0, boosting cross-industry adoption and enhancing risk transparency for enterprise clients.
In March 2024, Zurich Insurance acquired a majority stake in a UK-based insurtech startup that specializes in blockchain-secured data sharing for connected devices. The acquisition is set to improve claims authenticity and data integrity for Zurich’s smart device insurance portfolio. By leveraging blockchain, Zurich aims to minimize fraudulent claims while enhancing transparency and customer trust in Europe’s digital insurance landscape.
Press Releases