Crop weather index insurance market to hit $3.3b by 2029

Growth has been supported by greater climate unpredictability.

The global crop weather index insurance market is expected to grow from $1.81b in 2024 to $2.04b in 2025, reflecting a compound annual growth rate (CAGR) of 13%, according to The Business Research Company.

Growth has been supported by greater climate unpredictability, increased farmer awareness, rising climate-related crop losses, and stronger government support programs.

By 2029, the market is projected to reach $3.30b, growing at a 12.8% CAGR. Expansion will be driven by wider use of advanced weather technologies, government initiatives, investment in climate resilience, and the integration of digital platforms in insurance delivery.

Key trends include the use of satellite and IoT technologies for data collection, AI-based risk modeling, blockchain-enabled claims processing, and mobile-first insurance platforms. 

The continued rise in extreme weather events such as floods, droughts, and storms is expected to remain a key factor supporting market growth.