Global use of usage-based auto insurance will explode in the next 7 years, a new industry analysis asserts.

IHS Inc.’s IHS Automotive said that 142 million customers will sign up globally for the telematics-infused policies by 2023, up from nearly 12 million in 2015.

Usage-based auto insurance relies on a telematics system inside the vehicle that captures real-time information about how a driver fares and the road and the risks encountered along the way. Underscoring its popularity among younger drivers, 88 percent of millennials said in a Towers Watson survey last fall that they were interested in taking out a usage-based auto insurance policy, versus 74 percent among all other age groups.

Insurers including Allstate and Progressive have also been testing and gradually rolling out usage-based auto insurance coverage since the technology initially debuted about a decade ago.

IHS Automotive noted that use of the technology has grown slowly, due in part to “market stagnation and the reluctance of insurers to embrace the solution.” But that’s changing, according to the report, because of wide expansion as new insurers join the competition.

The study said that as insurers explore the best and strongest telematics business models, the U.S. – as the largest auto insurance market in the world – will lead the pack in terms of marketing and innovation. After all, 5 million of the current usage-based insurance policies in force are in play in the United States.

But IHS Automotive said it expects big growth in other markets too, including China, Italy (where usage based auto insurance already has a double-digit share), and the United Kingdom.

IHS Automotive, an auto industry consultancy, compiled its IHS Usage Based Insurance Report based on more than 40 interviews with insurance carriers, data aggregators, telecommunications companies and automotive original equipment manufacturers.

Source: IHS Automotive