Enjoy complimentary customisation on priority with our Enterprise License!
Aerospace Insurance Market size is estimated to grow by USD 763.67 million between 2022 and 2027 accelerating at a CAGR of 4.36% during the forecast period. The growth of the market depends on several factors, including the expansion and construction of new airports, the increase in air passenger traffic and the expansion of existing fleets, and the launch of new airlines.
This aerospace insurance market research report extensively covers market segmentation by end-user (service providers, airport operators, and others), type (in-flight insurance, public liability insurance, passenger liability insurance, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
To learn more about this report, Request Free Sample
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Aerospace Insurance Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The expansion and construction of new airports are driving market growth. The aviation industry is experiencing a significant increase in passenger traffic. Therefore, the demand for additional aircraft has gained momentum. This development has created a demand for the expansion of existing terminals. Moreover, several countries are investing in the development of new airports, especially in the fast-growing countries of APAC, the Middle East, and Africa, to avoid congestion in the existing airports and cater to the rising passenger traffic.
Several countries are expanding and modernizing their existing airports by increasing the number of terminals to meet the growing demand for air travel. Several new airports are being constructed or planned to cater to the rising air passenger traffic. The increasing number of airports, advances in technology, and the growing demand for modern services are driving the global aerospace insurance market. Aerospace insurers may get opportunities for growth, with the market expecting to get much-needed support from the establishment of new airports.
The evolution of non-airline aviation services is a key trend in the market. Commercial airlines are facing several challenges, such as long time duration for security checks, frequent cancellations, lengthy delays, and routes that do not cover smaller airports. Moreover, several new aircraft have been grounded for safety issues. This has increased passengers' disappointment with commercial passenger airlines, which has led to a significant impact on the insurance market for commercial airlines.
Many corporate travelers prefer non-airline aviation services, which has boosted the growth of this market. Business travelers that avail of charter flights are often insured, and the price is included in the ticket price. High-net-worth individuals buy flight cards provided by charter aircraft companies such as NetJets. This drives the growth of the global aerospace insurance market. The aerospace insurance sector has abundant underwriting capacity due to the fall in prices of insurance policies and the number of insurance claims. Thus, the evolution of non-airline aviation services will support market growth during the forecast period.
The growing risk of accidents in the aviation industry is challenging market growth. Aviation accidents can lead to significant property damage and a large number of fatalities. This increases insurance costs and premiums. High-value hull losses have increased the number of claims in the past few years and reduced the value of premiums. However, as underwriting profitability is a factor of participation and risk-taking, the increasing competition in reinsurance is expected to push vendors toward subsidizing the high premium values by increasing the share of aerospace risks. Furthermore, underwriters have varying identification of general aviation risk constituents. In addition, insurance companies evaluate the capacity of risk, especially when the aircraft is old, a high liability limit is proposed, the operating infrastructure is considered immature, and the airline exhibits a poor loss record.
Insurance premium rates for airlines are expected to increase in the coming years because of recent events such as attacks on airports, crashes, and similar events. As a result, the war risk premium is expected to increase in the coming years. Moreover, operators may reduce the number of flights to and from war-sensitive zones, which will be a challenge for insurance companies. Airlines may collaborate with local carriers to cover a part of a long flight and maintain their usual service in the safer regions. Thus, the growing risk of accidents can challenge market growth during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Avion Insurance Agency Inc. - The company offers aerospace insurance services such as customized coverage options for aircraft, including hull and liability insurance, hangar insurance, and aviation workers' compensation. It also offers insurance services for jets, aircraft, helicopters, drones, and UAVs.
Allianz SE - The company offers aerospace insurance services such as comprehensive coverage for aviation risks, including aircraft hull and liability insurance, aviation products liability, and aviation workers' compensation.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The service providers segment will account for a significant share of market growth. This segment comprises insurance availed by airlines, helicopters, and business jet operators. Airline risk is attractive to underwriters due to the large premium levels generated. This helps underwriters in achieving their income targets. Large losses are rare and impact relatively few underwriters. Therefore, the potential profitability represented by this category of risk is extremely attractive to insurers.
Get a Customised Report as per your requirements for FREE!
The service providers segment was valued at USD 2,534.20 million in 2017 and continued to grow until 2021. Increasing fleet values and passenger growth will push the value of risk exposure in the future. Improvements in aviation technology, such as the collision avoidance system and terrain awareness and warning system, have increased the safety of the most critical flight phases, such as approach and landing. In-flight entertainment and connectivity and connected crew seats are further enhancing safety in aviation. Therefore, increasing fleet values and a rise in passenger numbers are expected to increase the value of risk exposure. Such factors are expected to drive the growth of the service providers segment in the global aerospace insurance market during the forecast period.
The in-flight insurance segment will account for a significant share of market growth during the forecast period. In-flight insurance covers damage that might occur in-flight or in every other situation on the ground. This type of insurance is comparatively expensive insurance for buyers. Insurers provide different coverage schemes for in-flight insurance at high premium rates. In-flight insurance covers any damages that may be sustained while the plane is in motion. The demand for in-flight insurance is rising significantly due to the increasing incorporation of high-tech avionics and in-flight systems. Pilots have access to information, including more accurate and up-to-date weather data. Thus, with the increase in demand for in-flight insurance, the segment in the global aerospace insurance market is expected to witness growth during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
Europe is estimated to contribute 64% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the aerospace insurance market share during the forecast period.
Airlines are competing in terms of cost as well as insurance with the rise in passenger traffic. Europe has a mature aerospace industry, with advanced technological knowledge, research, and production capabilities. This is attributed to the continuous R&D investments in the aerospace domain. To cater to the growing demand, airlines in the region are investing in modern avionics and maintaining low operational costs. Major insurance providers in Europe, such as Aon Plc, Swiss Re Ltd., and Zurich Insurance Co. Ltd., are focusing on business strategies such as M&A deals with emerging firms for business expansion and consolidation. Key vendors in the region are expected to focus on regionalization and adopt specialization strategies during the forecast period. These factors will improve the efficiency of services, enable product and service innovations, and improve the business scalability of vendors.
In 2020, the aerospace insurance market in Europe declined due to COVID-19. The pandemic compelled governments to impose travel restrictions in major countries across the region. These restrictions led to a halt in domestic and international flights and hindered the revenue generated by the aviation industry in 2020. Therefore, the decline in the growth of the aviation industry negatively impacted the growth of the aerospace insurance market in Europe in 2020. However, the lockdown restrictions were removed in the second half of 2020 owing to large-scale vaccination drives, which led to the resumption of domestic and international flights in Europe, which helped the market recover in the first half of 2021. In addition, the pandemic increased awareness regarding the importance of insurance. Such factors are expected to drive the growth of the aerospace insurance market in Europe during the forecast period.
The aerospace insurance market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Aerospace Insurance Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
181 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
|
Market growth 2023-2027 |
USD 763.67 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
4.1 |
|
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
Europe at 64% |
|
Key countries |
US, China, Japan, UK, and France |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Ace Aviation, Allianz SE, American Financial Group Inc., American International Group Inc., Aon plc, Arthur J. Gallagher and Co., Avion Insurance Agency Inc., AXA Group, Berkshire Hathaway Inc., BWI Aviation Insurance Agency Inc., Chubb Ltd., Global Aerospace Underwriting Managers Ltd., Hallmark Financial Services Inc., London Aviation Underwriters Inc., Marsh and McLennan Companies Inc., Munich Reinsurance Co., Starr International Co. Inc., Tokio Marine Holdings Inc., Wells Fargo and Co., and Willis Towers Watson Public Ltd. Co. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
