The global on-demand insurance market is projected to grow from $6.85b in 2025 to $24.60b by 2035.
This represents a compound annual growth rate of 13.60% between 2026 and 2035, according to data from SNS Insider.
Regionally, the Asia-Pacific region is set to register the fastest overall growth rate through to 2035. China accounted for 38.60% of regional revenue in 2025, whilst India and South East Asia are expanding rapidly through online insurance ecosystems, ride-hailing platforms, and e-commerce integrations.
The global market expansion is being propelled by increasing consumer and commercial demand for flexible, activation-based cover that applies only when needed.
Mobile platforms enable policyholders to turn insurance on or off for specific trips, asset uses, or events. Key catalysts behind this shift include higher participation in the gig economy, growing smartphone usage, and the adoption of telematics-based pricing models
Auto insurance remained the largest market segment in 2025, capturing roughly 34.60% of total revenue.
This was largely driven by pay-as-you-drive and telematics products used by ride-sharing drivers, car rental customers, and private motorists. Travel insurance is expected to be the fastest-growing sector, expanding at a CAGR of 18.90% through to 2035, supported by rising tourism and single-trip cover bundled into travel bookings.
In terms of distribution, insurtech mobile platforms held the largest revenue share at 46.80% in 2025, owing to instant policy activation and fast claims processing.
Embedded insurance is set to experience the fastest growth at 19.60% CAGR, as policies are directly integrated into e-commerce, mobility, and financial technology platforms.
By coverage model, pay-as-you-go led the market in 2025 with a 48.30% share due to simple time-based activation.
Event- or trigger-based coverage is expected to grow the fastest at an annual rate of 18.70%, using real-time data to automatically issue policies or payouts for events like flight delays and severe weather.
Individual consumers accounted for 63.90% of end-user demand in 2025, driven by lower costs for short-term cover.
However, gig economy workers are expected to form the fastest-growing category, with a projected CAGR of 19.30% between 2026 and 2035, as self-employed individuals seek protection tailored strictly to active working hours.