Takaful insurance market to grow at 9.41% CAGR

It was valued at $45.51b last year.

The takaful insurance market is projected to register a compound annual growth rate (CAGR) of 9.41% from $49.79b in 2025 to $111.89b in 2034, according to Market Research Future.

In 2024, the market was valued at $45.51b. The expansion is driven by rising awareness of Islamic insurance principles, growing demand for ethical financial products, and the expanding global Muslim population.  

The increasing preference for Sharia-compliant financial solutions amongst individuals and businesses is a significant factor contributing to market growth. 

Additionally, the expansion of Islamic banking worldwide is positively impacting the Takaful market, as financial institutions promote and integrate Takaful products into their offerings.

Government support and favourable regulatory frameworks in Muslim-majority countries are also fostering a stable and transparent market environment.

Moreover, Takaful insurance is gaining traction beyond traditional Muslim markets as non-Muslim consumers and businesses seek ethical alternatives. 

Regionally, Asia-Pacific region is the fastest-growing, with key markets in Malaysia, Indonesia, and Pakistan.