Global Aerospace Insurance Market Size, Forecast, and Trend Highlights Over 2025-2037
Aerospace Insurance Market size was valued at USD 897 million in 2024 and is likely to cross USD 1.3 billion by 2037, registering more than 3.2% CAGR during the forecast period, i.e., 2025-2037. In 2025, the industry size of the aerospace insurance is estimated at USD 925.7 million.
The aerospace insurance market is predicted to witness significant growth, on account of various factors such as the increasing number of passengers, who prefer to travel by aircraft, from all over the world. According to a report published by the International Air Transport Association (IATA) in May 2024, over 12.5 million people are transported through 128,000 flights between more than 21,000 distinguished city pairs daily. This is generating plenty of opportunities for global leaders in this sector, depending on the subsidies available in individual operational air transport facilities. Furthermore, the requirement for maintenance of associated airports and aircraft is driving demand for adequate reimbursement and insurance policies.
The future propagation of the market is also attributable to the rapid expansion of the airline industry and increased international activities. As global air connectivity becomes more efficient and accessible, the cash flow in this field is increasingly magnifying. On this note, IATA predicted the amount of global-scale profit generation from the airline industry to be USD 25.7 billion in 2024. It also calculated the air passenger revenue to be valued at USD 642
billion during the same timeline. These figures indicate a lucrative future and great possibilities for this field, attracting more pioneers and financial ventures to invest and participate.
Aerospace Insurance Sector: Growth Drivers and Challenges
Growth Drivers
- Fleet expansion to cope with the passenger traffic: According to the Civil Aviation Authority, the number of operational aircraft in the world is projected to increase from 28,400 in 2024 to 36,400 by 2034, causing a 28% expansion in commercial aviation fleets. It also forecasted the size of the global aviation aftermarket industry to surpass USD 124 billion by 2034. Considering various chances of risk occurrences such as air accidents, natural disasters, and others, a majority of such business fleets are opting for a reliable financial backup availed by the aerospace insurance market. Both of these factors are accumulatively causing inflation in capital influx and extension in the consumer base.
- Accelerated urbanization and air mobility: In June 2024, the United Nations Population Fund reported that over 5 billion people around the globe are expected to live in urban areas by 2030. This implies continuous urban infrastructure development, including air transport. In addition, several private and governing bodies are showing interest in investing in building smart cities, filled with adequate accommodations, which is creating new business opportunities for the aerospace insurance market. Furthermore, the emergence of eVTOLS and drone-based delivery systems in this landscape is constructing lucrative avenues for global leaders in this sector.
Challenges
- Systematic, international, and financial volatilities: The aerospace insurance market is subjected to various limitations such as low levels of awareness and client dissatisfaction, which may develop a disinterest and lack of trust in choosing accommodations for selected air transportation. The insurance claims are processed at a leisurely pace, as they pass through various public departments for getting processed in foreign nations, which often dissuades investors. Furthermore, the worldwide airline sector is becoming surrounded by uncertainty and unpredictability due to several geopolitical and economic disruptions, creating inconsistency in the rate of new subscriptions and registrations from service providers and operators.
Aerospace Insurance Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
3.2% |
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Base Year Market Size (2024) |
USD 897 million |
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Forecast Year Market Size (2037) |
USD 1.3 billion |
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Regional Scope |
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Aerospace Insurance Segmentation
End user (Service Providers, Airport Operators, Others)
The airport operators segment is anticipated to occupy a significant aerospace insurance market share over the assessed timeline. The rising number of commercial airports across several regions of the world is securing a leading position for this category of consumer base. In addition, the direct association of airport operators with the management and financial output of aircraft makes insurance coverage necessary for them. Particularly, the emergence of countries with higher rates of tourism, such as Malaysia, Thailand, China, Japan, India, Saudi Arabia, and Others, is emphasizing the need for investment in this field. In this regard, the Civil Aviation Authority estimated the aviation-oriented maintenance, repair, and operations industry in the Middle East to attain USD 16 billion by 2034.
Insurance Type (Passenger Liability Insurance, Public Liability Insurance, In-Flight Insurance, Ground Risk Hull Insurance Not in Motion, Ground Risk Hull Insurance in Motion)
The public liability insurance segment is projected to capture a significant share of the aerospace insurance market by 2037. This sub-type is intended to cover aircraft-caused damage of third-party individuals or entities, such as property, people on the ground, and other aircraft. The complications faced by both parties from different regions or nations during a collision most often become the worst due to the differences in public law enforcement policies. On the other hand, public liability coverage simplifies the whole process of reimbursement and damage compensation, which makes it a priority segment for operators, particularly from international divisions. Additionally, the financial output of such flights is significantly higher than domestic ones, which ensures a greater revenue generation in this segment.
Our in-depth analysis of the global aerospace insurance market includes the following segments:
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End user |
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Insurance Type |
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Customize this ReportAerospace Insurance Industry - Regional Synopsis
APAC Market Forecast
The aerospace insurance market in Asia Pacific is anticipated to register the highest share of 37% throughout the discussed timeframe. The heightened number of commercial airports and general accessibility are positioning this region at the forefront of the global landscape. Particularly in emerging economies, such as China and India, are significantly contributing to the region’s leadership. On this note, the Civil Aviation Authority reported that the volume of commercial aviation fleets in India is predicted to enlarge its volume by 2.5 times by 2034, that of 600 planes in 2024. In addition, the air passenger traffic in APAC registered the highest growth of 18.5% among other regions in the world till October 2024 (IATA).
According to IATA, the domestic revenue passenger kilometers (RPK) in China witnessed a year-on-year growth of 17.6% and 35.1% in March and February 2024, respectively. Additionally, rapid urbanization and global business expansion are accumulatively contributing to the country’s enlarging consumer base for the aerospace insurance market. On the other hand, the nation’s economic progress and increasing disposal income are pushing citizens to invest in personal requirements, including traveling and business trips. For instance, the per capita disposable income in China was USD 1,624.5 in 2024, which further increased by 5.5% and accounted for USD 1,688 in 2025 (The State Council Information Office).
North America Market Statistics
North America is poised to register a notable pace of growth in the aerospace insurance market by the end of 2037. Economic stability and industrial globalization are a few of the major growth drivers in this landscape. Additionally, the remarkable financial output of this category is making it a priority field of investment. In this regard, the North America Airport Council International revealed that employment & GDP contributions of airports in the U.S. and Canada were 11.5 million & USD 1.4 trillion and 405,000 & USD 25.3 billion in 2024. Additionally, the growing demand for both outbound and inbound passenger traffic is also fueling the region’s proprietorship and attracting global pioneers to participate in this landscape.
In 2022, annual air passenger traffic in the U.S. increased by 89% from 2019, accounting for 937 million, showcasing one of the most significant recoveries from the pandemic situations in the world (ScienceDirect). This, coupled with the overseas business expansion, is resulting in higher traffic in air transportation spread across the country, fueling the aerospace insurance market. The country’s lucrative engagement can also be testified by frequent service upgrades. For instance, in August 2024, Skyward Specialty Insurance Group allied with Acceleration Aviation Underwriters to create comprehensive coverage solutions for every aviation-related business. The coverage includes: commercial and general aviation aircraft, fixed-based operators, flight schools, public and private airports, and other aviation enterprises.
Companies Dominating the Aerospace Insurance Landscape
- Marsh & McLennan Companies, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- American International Group, Inc.
- Global Aerospace, Inc.
- Allianz SE
- Arthur J Gallagher & Co.
- Axa SA
- Old Republic Aerospace, Inc.
- Willis Towers Watson PLC
- Hallmark Financial Services, Inc.
- Hiscox Limited
- Rokstone Group
- Ryanair
Key players in the aerospace insurance market are continuously expanding their territory and field of operation overseas to garner greater revenue. Their efforts to establish a strong network of capital resources and cash inflows are further increasing activity and engagement in this sector. For instance, in December 2024, Redline Underwriting, in collaboration with Allianz Commercial, unveiled its General Aviation Insurance solution for the marketplaces in Latin America and the Caribbean. The new pipeline offers coverage for private, pleasure, and business fixed and rotor wing aircraft, extending the company’s distribution network while addressing the unmet needs of small and medium aircraft operators. Such key players are:
In the News
- In March 2025, Rokstone announced its plans to launch a new mid-market aviation program by April to offer access to Lloyd’s capacity for brokers. This new insurance model is crafted to expand the company’s aviation underwriting capabilities in the U.S., covering hull capacity and liability up to USD 10 million and USD 50 million, respectively.
- In March 2025, Ryanair introduced an annual USD 85 subscription service, prime, for reserved seating, insurance, and access to monthly seat sales. Its pilot phase allowed a maximum of 250,000 memberships, which is expected to generate USD 22.3 million in revenue for the company each year.
Author Credits: Parul Atri
- Report ID: 2207
- Published Date: May 14, 2025
- Report Format: PDF, PPT
