Kathmandu. The Asia Pacific region’s contribution to the global engineering insurance market continues to grow.
According to Allied Market Research, the Asia Pacific region is playing a leading role in the global engineering insurance market after 2022. The engineering insurance market in the Asia Pacific region is projected to grow at an average of 12.4% year-on-year from 2022 to 2032. This growth will be due to rapid urbanization, industrial expansion and government-backed infrastructure development.
According to the report, Asia-Pacific will be the fastest growing region. North America led the global engineering insurance market in 2022. It accounted for more than a third of global revenue.
North America’s dominance was due to the mature construction sector, large infrastructure projects, and strong risk management practices.
The global engineering insurance market is projected to grow from $24.1 billion in 2022 to $56.7 billion by 2032. Globally, the market is expected to expand with an average annual growth of 9.2 per cent during the forecast period.
Contractor All Risk (CAR) insurance had the largest market share in 2022. Which accounted for more than one-third of the total income.
Car insurance will remain the leading sector until 2032 due to its wide coverage of construction-related risks, the report said.
Meanwhile, machinery breakdown insurance is projected to grow the most from 2023 to 2032 with an annual average growth rate of 12.8 per cent. The increasing reliance on complex and high-value machinery in engineering projects is fuelling the demand for insurance to cover maintenance and replacement costs in the event of equipment breakdown.
