According to a recent market study published by Growth Market Reports, titled, “Global Space Insurance Market” by Component, by Product Type, by Technology, by End-user and by Region: Size, Share, trends and opportunity Analysis, 2016-2031”, the market was valued at USD 1,869.4 Million in 2022 and is expected to grow at a growth rate of 2.9% by the year 2031.

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As per Growth Market Reports industry analyst Divjot Singh, “Global Space Insurance Market” is anticipated to witness significant growth during the forecast period 2023-2031.

Space insurance is a specialized branch of insurance that covers the unique risks faced by the space industry's various operations, such as satellite launches, in-orbit activities, and related projects. It aims to provide financial protection to stakeholders and cover potential losses due to accidents, damages, or failures caused by internal or external factors. The primary customers for space insurance are satellite operators, launch service providers, and satellite manufacturers who face multiple challenges like technical malfunctions and changing environmental conditions during pre-launch, launch, and in-orbit operations. Additionally, third parties may also seek coverage for loss or damages caused by space-related activities. Space insurance policies usually cover pre-launch, launch, and in-orbit phases. Pre-launch insurance would include risks involved in transportation and integration of satellites, while launch insurance comes into play when satellites are launched into space, covering potential mishaps like vehicle failure or collision. Lastly, in-orbit insurance provides coverage for satellite malfunctions, on-orbit collisions, or radio frequency interference throughout the satellite's operational life.

A company that creates insurance products to take on risks in return for the payment of premiums. Companies may be mutual (owned by a group of policyholders) or proprietary (owned by shareholders). (Also known as insurer or provider. There are several companies which provides insurance as well as reinsurance such as Munich RE, HDI Global, Allianz, and AXA. An insurance broker is a middleman between insurance companies and people who are in search of purchasing insurance policies. They are experts who help people in buying the suitable insurance policies as per their needs and requirements. The insurance brokers also suggest and guide businesses about the nitty-gritties of the policies which are beyond the understanding of the layman. Customers are a final step of the supply chain, where consumption takes place. The end customers of Space Insurance Market commercial and government space organizations.

Key factors that are anticipated to fuel the demand for the global space insurance market during the forecast period are Surging Space Exploration Missions and Mounting Satellite Launch Industry and Rising Investment by Private Companies in Space Sector. Conversely, Prevailing Complexity and Uncertainty of The Technical Aspect Between Insurers and Space Firm hamper the market growth of the space insurance market. Ongoing Development for Space Tourism and Commercialization creates opportunities in the market.

The primary as well as secondary research methodology is used for keen observation and study of the Global Space Insurance Market. The primary research methodology involves commercial agreements made with the primary respondents as well as consulting partners to extract critical information pertaining to the syndicated as well as consulting projects. Primary interviews were conducted with the stakeholders across industry verticals on regular intervals in line with the ongoing studies and to keep ourselves abreast with the latest market trends & developments. Validation of the estimated market size, current and future trends done from the key opinion leaders (KOLs). These KOLs are the CXO level people from leading companies in the industry and possess the experience of around 10-20 years in the industry. On the other-hand the secondary research methodology involves exhaustive desk research undertaken to understand the prevailing market trends & dynamics, market competition, customer insights and other KPIs. Company websites, their SEC filings, annual reports, broker & financial reports and investor presentations are scanned for understanding the competitive scenario, details and developments, and the overall competitive landscape. Regional government and statistical databases analyzed for macro & micro analysis. Research publications and paid data referred to obtain and validate the market estimations, budget, expenditure and other statistical insights.

COVID-19 has slightly negatively impacted the market due to the decrease in demand of Space Insurance from end use industry. The spread of COVID-19 had a negative impact on the operational and financial performance of the insurance market, The impact on insurers will vary depending on the products and types of coverage offered by the insurers. The pandemic has taken a toll on new premiums on certain lines of business, such as travel, events, and trade credit insurance, and losses from these lines of business may become significant. In some notable cases, GI insurers have offered credits and rebates to policy holders due to restrictions. Operationally, GI insurers have responded relatively well in the initial phase of the crisis with most workforces working remotely.

Key Takeaways from the Study:

  • The players include Allianz, American International Group, Inc., AXA, Beazley Group, Canopius, Global Aerospace, Inc., Hamilton Insurance Group, Ltd., HDI Global, Hiscox Ltd., Munich RE, SCOR, Sompo International Holdings Ltd., and STARR INTERNATIONAL COMPANY, INC.

  • Based on satellite type, the global space insurance market is segmented into geostationary equatorial orbit (GEO) satellite, medium Earth orbit (MEO) satellite, and low Earth orbit (LEO) satellite. The medium Earth orbit (MEO) satellite segment is expected to expand at a significant CAGR during the forecast period. Advances in satellite technology, propulsion systems, and miniaturization made it feasible to deploy and maintain MEO satellites, contributing to the growth of the segment.

  • Based on coverage type, the space insurance market is segmented into launch coverage, in-orbit coverage, third-party liability coverage, and post-launch coverage. The in-orbit coverage segment is expected to hold significant market share during the forecast period, due to factors such as the rising number of operational satellites, growing concerns about space debris & collisions, advancements in satellite technology, and the increasing reliance on satellite-based services such as communication, navigation, & Earth observation.

  • Based on end-user, the space insurance market is bifurcated into commercial and government. The government segment is expected to hold significant market share during the forecast period, as governments are increasingly engaged in space exploration, satellite launches, and other space-related activities for scientific research, national security, communication, and navigation. These endeavors become increasingly frequent and complex, and the need for comprehensive insurance coverage to mitigate potential financial risks rises.

  • Based on region, the Space Insurance market is segmented into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa region. The market in Asia Pacific is anticipated to expand at a significant CAGR during the forecast period. The driving factor for regional growth is Government spending on the space and satellite industries, particularly in emerging nations such as China and India. Thus, it is creating new prospects for space insurance providers in the APAC region.

Report Scope:

Report Metric

Details

Market Value in 2022

USD 1,869.4 Million

Market Growth Rate

2.9%

Historical Data

2016-2021

Base Year

2022

Forecast Period

2023-2031

Units Considered

Value (USD Million)

Market Segments

by Satellite type, by coverage type, by end-user, and by region

Key Companies Profiled

Allianz, American International Group, Inc., AXA, Beazley Group, Canopius, Global Aerospace, Inc., Hamilton Insurance Group, Ltd., HDI Global, Hiscox Ltd., Munich RE, SCOR, Sompo International Holdings Ltd., and STARR INTERNATIONAL COMPANY, INC.

Customization Scope

Report customization available on request

Pricing and Purchase Options

Avail tailor-made purchase options to meet your research requirements.

 

Target Audience:

•            Demand Side: Commercial companies and Government sectors.
•            Regulatory Side: Concerned government authorities, and other regulatory bodies.