Electric energy insurance market to hit $4.97b by 2029

Asia-Pacific is forecast to record the fastest growth in the coming years.

The electric energy insurance market is set for steady growth, rising from $3.42b in 2024 to $3.70b in 2025, at a compound annual growth rate (CAGR) of 8.1%, according to The Business Research Company. 

This growth has been driven by greater reliance on power infrastructure, rising equipment breakdowns, demand for risk reduction, tighter regulations on energy reliability, and higher investment in energy assets.

By 2029, the market is projected to reach $4.97b, growing at a CAGR of 7.7%. 

North America led the market in 2024, whilst Asia-Pacific is forecast to record the fastest growth in the coming years.

Key factors include demand for grid stability, more complex energy supply chains, wider use of smart grids, stricter compliance rules, and stronger awareness of financial risk coverage. 

Trends shaping the sector include data-driven risk models, climate risk underwriting tools, real-time monitoring, predictive loss prevention, and blockchain-based claims processes.

The expansion of renewable energy is expected to play a major role. 

According to the International Energy Agency, renewable energy capacity rose 50% in 2023, reaching 507 gigawatts from 338 GW in 2022. 

Insurance products that cover operational risks, grid interruptions, and equipment failures are helping boost investor confidence in these projects.