Construction insurance market slated for 5.6% CAGR through 2029

The market is seen to bag $10.42b in four years.

The global construction project insurance market is expected to grow from $7.91b in 2024 to $8.38b in 2025, according to The Business Research Company.

This represents a compound annual growth rate (CAGR) of 6%.

The expansion has been driven by an increase in construction activity, urbanisation, infrastructure investments, rising housing demand, and wider adoption of compulsory insurance coverage.

The market is projected to continue its upward trend, reaching $10.42b by 2029, with a CAGR of 5.6%. 

Future growth is expected to come from the push for sustainable construction, stronger risk management practices, environmental concerns, expanding transport networks, and government initiatives.

Emerging trends in the sector include the use of digital platforms, AI-powered risk assessment tools, blockchain applications, and the integration of Internet-of-Things (IoT) sensors to improve project monitoring and underwriting.