What Transformation Has the Drone Insurance Market Undergone?
The drone insurance market has seen considerable growth due to a variety of factors.
• In recent times, there has been a robust growth in the size of the drone insurance market. The market size is projected to escalate from $1.44 billion in 2024 to $1.57 billion in 2025, representing a compound annual growth rate (CAGR) of 9.0%.
The significant growth observed in the historical period can be tied back to the increased use of drones, compliance with regulations, the introduction of unique policies, and heightened risk awareness.
How Will The Drone Insurance Market Size Evolve In The Foreseeable Future?
The drone insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the drone insurance market is predicted to experience quick expansion in the upcoming years. The market is projected to reach $2.33 billion by 2029, growing at a compound annual growth rate (CAGR) of 10.3%.
Coming years growth is credited to industry collaboration, widening of commercial applications, and issues regarding cybersecurity. Key trends expected during this period include technological advancements, the incorporation of artificial intelligence and data analytics, customized insurance policies, the blending of Internet of Things and telematics, the rise of parametric insurance, solutions for drone fleet management, and market consolidation.
What Are The Essential Drivers Behind The Growth Of The Drone Insurance Market?
The escalating incidents of drone crashes are anticipated to propel the growth of the drone insurance market in the coming years. Drones are now being utilized in various fields that depend on aerial imagery, such as agriculture, insurance, manufacturing, and electricity sectors. The increasing prevalence of drones heightens the likelihood of catastrophic accidents. For instance, DroneSec, a drone threat intelligence firm, reported a significant surge in drone incidents throughout 2022, peaking at 223 incidents in November 2022. This is a substantial growth of 130% as compared to the numbers in January 2022. Hence, the rise in drone accidents contributes to the expansion of the drone insurance market.
How Is The Global Drone Insurance Market Divided Into Key Segments?
The drone insurance market covered in this report is segmented –
1) By Coverage Type: Liability Coverage, Hull Damage, Theft Coverage, Loss or Flyaway Coverage, Payload Coverage, Personal Injury Coverage, Ground Equipment Coverage, Other Coverage Types
2) By Pricing: Hourly, Monthly, Annually
3) By Application: Commercial, Personal, Other Applications
Subsegments:
1) By Liability Coverage: Third-Party Liability, Personal Injury Liability, Property Damage Liability
2) By Hull Damage: Physical Damage Coverage, Collision Coverage, Comprehensive Coverage
3) By Theft Coverage: Equipment Theft, Drone Theft
3) By Loss Or Flyaway Coverage: Total Loss Coverage, Flyaway Loss Coverage
4) By Payload Coverage: Payload Damage, Payload Theft,
5) By Personal Injury Coverage: Bodily Injury, Psychological Injury,
6) By Ground Equipment Coverage: Ground Control Equipment, Charging Equipment, Other Ground Equipment
7) By Other Coverage Types: Data Liability Coverage, Environmental Damage Coverage, Cyber Liability Coverage
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What Trends Are Reshaping The Future Of The Major Players Market?
The trend of introducing diverse and innovative insurance products is increasingly gaining traction in the global drone insurance market. Leading companies in the drone insurance industry are prioritizing the development of sophisticated solutions for drone insurance. To illustrate, New India Assurance Co. Ltd., a public-sector general insurance firm based in India, unveiled its (UAS/UAV/RPAS/drone) insurance in December 2022, becoming the first public sector entity to venture into this sector. The product includes over fifteen separate add-on covers such as physical damage, theft, and unintentional bodily injuries to third parties and/or damage to their property, all designed specifically to satisfy the requirements of the drone industry.
Who Are the Key Players in the Drone Insurance Market?
Major companies operating in the drone insurance market include:
• Allianz Global Corporate & Specialty SE
• American International Group Inc.
• Avion Insurance Agency Inc.
• Coverdrone Limited
• SkyWatch Space Applications Inc.
• Flock Inc.
• CapriCMW Insurance Services Ltd.
• Hub International Limited
• BWI Aviation Insurance Agency Inc.
• Thimble
• Global Aerospace Inc.
• DroneGuard Insurance
• EagleView Technology
• InsureMyDrone
• IFR Drones Ltd.
• Scott Sky Smith Specialty Insurance
• VOLANTE GLOBAL LIMITED
• U. S. Aviation Underwriters Inc.
• Liberty Mutual group
• Starr Insurance Companies
• Hanover Insurance Group Inc.
• Phoenix Air Unmanned LLC
• Pantaenius Holding Gmbh
• AON PLC
• QBE Insurance Group Limited
• Precision Autonomy Insurance
• Apollo Insurance
What are the Regional Insights into the Drone Insurance Market?
North America was the largest region in the drone insurance market in 2024.The regions covered in the drone insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
