Asia-Pacific leads global engineering insurance growth at 12.4%

This would be the fastest growing region.

Asia-Pacific’s engineering insurance market is projected to average a compound annual growth rate (CAGR) of 12.4% from 2022 to 2032, driven by rapid urbanisation, industrial expansion, and government-backed infrastructure development, according to Allied Market Research.

This would be the fastest growing region, the report said. North America led the market in 2022, accounting for over one-third of global revenue. 

Its dominance is attributed to a mature construction sector, large infrastructure projects, and strong risk management practices.

The global engineering insurance market is projected to grow from $24.1b in 2022 to $56.7b by 2032.

Globally, the market is expected to expand at a CAGR of 9.2% during the forecast period.

Contractors All Risk (CAR) insurance held the largest share of the market in 2022, accounting for more than one-third of total revenue. 

CAR insurance is expected to remain the leading segment through 2032 due to its comprehensive coverage of construction-related risks.

Meanwhile, machinery breakdown insurance is forecast to post the highest growth, with a CAGR of 12.8% from 2023 to 2032. 

Rising reliance on complex and high-value machinery in engineering projects is driving demand for policies that cover repair and replacement costs in the event of equipment failure.