NEW YORK, USA, May 03, 2023 (GLOBE NEWSWIRE) — According to Research Dive, global aviation insurance market expected to generate revenue of $6,326.30 million from 2028 and growing at a CAGR of 5.2% during the forecast period (2021 until 2028). The comprehensive report provides an overview of the current market scenario, including key aspects of the market such as growth drivers, lucrative growth opportunities, and restraining factors. Furthermore, the report provides all the global market trends, impact of COVID-19 on the market and market estimates, making it easier, useful and useful for the new entrants to understand the market.
According to analysts at Research Dive, the increase in the number of airports worldwide and the booming global aviation industry are the major factors expected to accelerate the growth of the global aviation insurance market during the forecast period of 2021 to 2028. In addition, increasing investment in technology for the expansion of smart airports is another factor expected to support the growth of the market. Moreover, the growth in air passenger numbers and increasing demand for the number of low-cost carriers (LCCs) are expected to provide huge opportunities for the aviation insurance market by 2028. However, limited service providers and expensive aviation insurance claims may hinder market growth throughout the forecast period.
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Impact of COVID-19 on Aviation insurance market
The COVID-19 pandemic has had a negative impact on the aviation insurance market. This is mainly because the tourism industry has been paralyzed due to the travel ban restrictions imposed by many countries around the world to prevent the spread of the virus. Many airlines were effectively grounded due to greatly reduced demand due to severe air travel restrictions. The Asia-Pacific region is believed to have recorded the largest drop in revenue at $113 billion in 2020 in airlines.
The report divides the global aviation insurance market into several segments based on insurance type, application, and region.
Ppublic liability insurance The sub-segment to be the most profitable
The public liability insurance sub-segment of the type insurance segment is expected to hold the largest market share and garner revenue of $2,162.8 million by 2028. This is mainly because public liability insurance coverage is required by law, as providing coverage for property damage and third party entities. In addition, aviation-related business is increasing at a high rate as non-owned airlines are also involved, which is driving the growth of the sub-segment.
Communicatorercial Aviation Subsegment to Hold a dominant market share
Among applications, the commercial aviation sub-segment is expected to witness steady growth and generate revenue of $3,196.5 million during the forecast period. This is mainly due to the increasing development of commercial aircraft to meet the need of increasing air passenger traffic. Additionally, initiatives taken by many governments to connect secondary cities with major aviation hubs and increasing infrastructure investments across the globe are expected to drive the growth of the sub-segment.
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Region North America to Garner Highest earnings
The aviation insurance market in North America is expected to generate a revenue of $2312.3 million by 2028 and witness significant growth during the forecast period. This was mainly due to the increase in the number of aircraft orders placed in the region. In addition, growing air passenger traffic, increased government investment in aircraft research and development, and the purchase of advanced helicopters, combat aircraft, and trainer aircraft in the region are projected to drive the growth of the North American market in the coming years.
Key Market players
Some of the top players in the global aviation insurance market are
- AXA Xl
- American International Group Inc
- Starr Aviation Insurance
- Airplane insurance
- Marsh LLC
- ARTHUR J. GALLAGHER & CO.
- Great American Insurance Company (American Financial Group)
- London Aviation Underwriters Inc
These players are implementing various strategies to gain competitive advantage and strong position in the global industry.
Request customization on request to specific segments or regions of the aviation insurance market
For example, in October 2021 Tata AIG General Insurance Co. Ltd., an Indian general insurance company, has launched its RPAS (Remotely Piloted Aviation System) insurance, which is a comprehensive product that covers comprehensive and third-party liability risks faced by drone operators and owners.
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