New York, USA, May 03, 2023 (GLOBE NEWSWIRE) — According to Research Dive, the global aviation insurance market is estimated to generate a revenue of $6,326.30 million by 2028 and grow at CAGR of 5.2% over the forecast period (2021 to 2028). The comprehensive report provides a summary of the present market scenario comprising key aspects of the market, such as growth factors, lucrative growth opportunities, and restraining factors. Besides, the report provides all the global market trends, COVID-19 impact on the market, and market estimations making it easier, helpful, and useful for the new participants to understand the market.
Market Dynamics
As per analysts at Research Dive, the increase in the number of airports across the globe and the flourishing global aviation industry are the major factors estimated to surge the growth of the global aviation insurance market during the forecast period from 2021 to 2028. In addition, the growing investment in technology to expand smart airports is another factor expected to bolster the growth of the market. Moreover, the rise in the number of air passengers and the increasing demand for the number of low-cost carriers (LCCs) are expected to provide enormous opportunities for the aviation insurance market by 2028. However, limited service providers and costly aviation insurance claims may hamper the growth of the market throughout the forecast period.
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COVID-19 Impact on the Aviation Insurance Market
The COVID-19 pandemic has had a negative impact on the aviation insurance market. This is mainly because the travel industry was paralyzed due to the lockdown restrictions on travel imposed by many countries across the globe to prevent the spread of the virus. Many airlines were effectively grounded owing to significantly reduced demand because of severe restrictions on air travel. The Asia-Pacific region is estimated to have recorded the largest revenue drop of $113 billion in 2020 in the airline business.
Segments of the Market
The report has divided the global aviation insurance market into a few segments based on tye of insurance, application, and region.
Public Liability Insurance Sub-segment to be Most Lucrative
The public liability insurance sub-segment of the type of insurance segment is expected to hold the largest market share and garner a revenue of $2,162.8 million by 2028. This is mainly because public liability insurance coverage is required by law as it provides coverage for property damage and third-party entities. Besides, the aviation-related business is increasing at a high pace as non-owned aviation companies are also participating, which is driving the sub-segment’s growth.
Commercial Aviation Sub-Segment to Hold Dominant Market Share
Among application, the commercial aviation sub-segment is projected to witness a steady growth and generate a revenue of $3,196.5 million throughout the estimated period. This is majorly due to the rising development of commercial aircraft to meet the need of growing air passenger traffic. Besides, the initiatives taken by many governments to connect secondary cities with main aviation hubs and increasing infrastructure investments across the globe are expected to drive the sub-segment’s growth.
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North America Region to Garner Highest Revenue
The North America aviation insurance market is expected to generate a revenue of $2,312.3 million by 2028 and witness significant growth during the forecast timeframe. This is mainly due to the increase in the number of aircraft procurements taking place in the region. In addition, the rising air passenger traffic, the increased R&D investment by government in aircrafts, and the procurement of advanced helicopters, fighter jets, and trainer aircraft in the region is predicted to drive the North America market growth in the coming years.
Key Market Players
Some of the top players of the global aviation insurance market are
- AXA Xl
- American International Group Inc
- Starr Aviation Insurance
- Avion insurance
- Marsh LLC
- Allianz
- ARTHUR J. GALLAGHER & CO.
- USAIG
- Great American Insurance Company (American Financial Group)
- London Aviation Underwriters Inc
These players are applying various strategies to gain a competitive edge and strong hold in the global industry.
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For instance, in October 2021, Tata AIG General Insurance Co. Ltd., an Indian general insurance company, launched its RPAS (Remotely Piloted Aircraft System) Insurance, which is a comprehensive product that covers Hull and Third-Party Liability risks that are faced by drone operators and owners.
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