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Juniper Research: Vehicle-Based Payments to Propel Financial IoT to $410 Billion in Transactions by 2023

November 13, 2018

BASINGSTOKE, England--(BUSINESS WIRE)--Nov 13, 2018--A new report from Juniper Research has found that the IoT payments market will grow at an average of 75% per annum over the next 5 years; reaching $410 billion by 2023. This is up from an estimated $24.5 billion in 2018; the biggest growth will come from in-vehicle payments.

The new research, IoT in Finance: Payments, Insurance & Banking Opportunities, Transaction Forecasts 2018-2023, has found that the automotive sector will become the most lucrative IoT platform by 2021; accounting for $63 billion in transactions that year, 55% of the overall market, compared to just over $50 billion for connected home devices, including smart speakers and TVs. However, car-based spend will mostly be payments for fuel and tolls, but with little increase in spend overall.

For more insights into how the IoT will enhance financial services, download our free whitepaper, .

Voice Payments to Reach $51 billion in Transactions

Meanwhile, smart speaker voice-enabled commerce transactions are forecast to reach $51 billion annually by 2023. Goods purchased through these devices will account for just under 12% of connected home transactions by volume over the next 5 years. The majority of purchases will be for digital content, typically made through connected TVs.

“Full financial service products will be slow to come to voice commerce, as the automated processes need to satisfy compliance requirements”, remarked research author James Moar. “However, with voice assistants already supplying advisory and finance updates, there will be much data to draw on once the regulatory requirements are met.”

Caution Needed as Insurers Implement IoT

The research found a significant opportunity for players in the IoT-enabled insurance market which will exceed $334 billion by 2023, primarily through telematics-based motor policies. However, this will reduce premiums; impacting insurers’ gross revenues. Juniper believes that this decline in premiums will be offset by improved overall profitability due to reduced costs per claim; this will become more immediately evident in home insurance, with automated accident prevention through the IoT.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181113005155/en/

CONTACT: Juniper Research

Sam Smith

Press Relations

T: +44(0)1256 830002

E:sam.smith@juniperresearch.com

KEYWORD: UNITED KINGDOM EUROPE

INDUSTRY KEYWORD: TECHNOLOGY TRANSPORT OTHER TRANSPORT MOBILE/WIRELESS AUTOMOTIVE PROFESSIONAL SERVICES BANKING FINANCE OTHER AUTOMOTIVE RESEARCH SCIENCE

SOURCE: Juniper Research

Copyright Business Wire 2018.

PUB: 11/13/2018 04:30 AM/DISC: 11/13/2018 04:30 AM

http://www.businesswire.com/news/home/20181113005155/en

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