Kathmandu. The global energy and electricity insurance market is expected to grow from $7.29 billion in 2024 to $7.82 billion in 2025. The sector is projected to reach $10.20 billion by 2029. This is expected to increase by an average of 6.9 percent annually during this period.
According to a commercial research company, the current growth has been driven by rising demand for coverage for conventional power plants, increased investment in fossil fuel infrastructure, expanding natural disaster protection and tighter regulations in the energy sector. Financing activity for energy projects has also supported the market.
The demand for insurance related to smart grid system and electric vehicle infrastructure is also expected to increase in the future. The study focuses on ongoing developments in risk modeling, digital claims processing, parametric insurance, and blockchain-based policy management.
North America was the largest market last year. The Asia Pacific region is expected to register the fastest growth during the forecast period.
