Hard-working. The global electric power insurance market is expected to reach $5 billion in the next five years. The Business Research Company has made this estimate.
According to the company, the electric power insurance market is expected to grow from $3.42 billion in 2024 to $3.70 billion in 2025. This will be achieved at a growth rate of 8.1 percent.
This growth will be driven by increased reliance on power infrastructure, increased appliance failure rates, demand for risk mitigation, stricter regulations on energy reliability, and increased investment in energy assets. The market is expected to grow at a CAGR of 7.7% to reach $4.97 billion by 2029.
North America is expected to lead the electric energy insurance market in 2024. The Asia-Pacific region is projected to experience the fastest growth in the coming years.
Key factors include demand for grid stability, more complex energy supply chains, widespread use of smart grids, stricter compliance regulations and greater awareness of financial risk coverage. The trends shaping this market include data-driven risk models, climate risk underwriting tools, real-time monitoring, predictive damage prevention, and blockchain-based claims processing.
The expansion of renewable energy is expected to play a major role in this. According to the International Energy Agency, renewable energy capacity has increased by 50 percent from 338 gigawatts in 2022 to 507 gigawatts in 2023.
Insurance products covering operational risks, grid disruptions, and equipment failures are helping to boost investor confidence in these projects.
