The Global Trade Credit Insurance Market size is expected to reach $15.5 billion by 2028, rising at a market growth of 11.5% CAGR during the forecast period.
Trade credit insurance is a sort of insurance created to shield firms against commercial and political risks that could have an impact on their financial health. It is a sort of property and liability insurance that is typically provided to corporate entities or private persons by for-profit health insurers and governmental export credit agencies.
Additionally, trade credit insurance is frequently used to shield receivables from damage brought on by credit risks such as prolonged default, insolvency, or bankruptcy. The market is experiencing significant growth because of the increased attention being paid to minimizing and guarding against non-payment risk across a variety of goods and services, as well as the expansion of trade in various locations that demand credit insurance.
Additionally, benefits given by credit insurance, such as support for sales and accounts receivable, are becoming important drivers of the market expansion for trade credit insurance. Numerous technical breakthroughs are taking place in the sector, including the introduction of AI-based apps and Internet of Things (IoT)-enabled insurance solutions. In addition, it is anticipated that rising protectionism and ambiguity in international trade will raise the need for trade credit insurance (TCI).
The global industry was impacted by the COVID-19 pandemic. The dynamics of international trade have been greatly changed. Due to the pandemic in 2020, governments were compelled to seal off international borders and temporarily close marketplaces, businesses, and other public areas. Businesses and money were lost as a result of the closure of manufacturing facilities. This had a negative financial impact on enterprises and caused numerous well-known firms to file for bankruptcy. The global market was badly impacted by the supply chain disruption, which significantly decreased demand for and sales of TCI in 2020.
The growth of trade in new areas has gained some traction in the market as a result of an increase in global export and import of products and services. The need for credit insurance has also expanded as a result of the growing commerce, which includes the issuance of letters of credit (LCs), receivables & invoice financing, and other activities. As a result, the need for trade credit insurance in the market has increased due to the surge in demand for products and services from one nation to another and the expansion of commerce in various locations.
In the modern global economic system, nations trade both final goods and intermediate inputs. As a result, a complex global network of economic relationships is created. Along with that, many companies are increasingly expanding their geographical footprints across different nations, which benefits the companies as well as the nations. The necessity for improving worldwide logistics and cargo tracking is growing along with the amount of international trade. Thus, rising international trade drives the growth of Trade Credit Insurance Market.
Varying laws have different norms and regulations across various jurisdictions, and financial hubs have adopted a more united approach to trade regulation. This becomes a key consideration for credit insurance businesses as they develop solutions, which creates an inter-regulatory dispute and restrains the market's expansion. For instance, Export Credit Insurance (ECI) in the United States guards against the risk of a foreign buyer's failure to make payment. As a result, one of the main factors impeding the expansion of the trade credit insurance industry is the requirement to satisfy the regulatory standards of the individual countries before offering trade credit insurance.
Based on Organization size, the market is divided into two categories as Large Enterprises and Small & Medium Enterprise. The large enterprise category led the market in terms of revenue share in 2021 and is anticipated to hold this position throughout the forecast period. This might be related to the rising interest in, and use of TCI by large businesses, who value not only the protection their credit insurance policy offers but also the knowledge their insurer can give them about the organizations in various regions of the world they wish to do business with.
Based on coverage, the market is classified into Whole Turnover and Single Buyer. In 2021, the whole turnover coverage category dominated the market and held the highest share. The market is anticipated to continue growing at continuous growth and maintain its dominance throughout the duration of the forecast. The fact that the full turnover coverage is less expensive and protects insurers from the initial high-probability credit losses can be attributed to the substantial share of this market.
Based on Application, the System Integrator Market is divided into Domestic and International. The domestic application segment is expected to attain a substantial revenue share in 2021. Due to an increase in the utilization of trade credit insurance for domestic accounts receivable coverage as well, this market's growth is accelerating. Because it gives businesses the security, they require when their client base shrinks, safeguarding them from significant risk and generating higher receivables from fewer consumers.
Based on Vertical, the System Integrator Market is divided into Food & Beverage, IT & Telecom, Healthcare, Energy, Automotive, and Others. During the forecast period, the automotive sector is anticipated to grow at a promising rate in 2021. The automotive business is another significant industry that faces difficulties because of quick technology improvements, shifting consumer preferences, governmental regulations, and comparative pricing. This sector's expansion can be ascribed to this.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 7.4 Billion |
| Market size forecast in 2028 | USD 15.5 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 11.5% from 2022 to 2028 |
| Number of Pages | 251 |
| Number of Tables | 442 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Coverage, Application, Organization Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on geography, the System Integrator Market is divided into North America, Europe, Asia Pacific, and LAMEA. The Europe region held with the major revenue share in 2021 is expected to remain in that position throughout the projection period. The main elements promoting the region's growth are the existence of significant market vendors and the increased adoption of cutting-edge technology in the area. Additionally, governments have started a variety of programs to aid businesses by supporting TCI.
Free Valuable Insights: Global Trade Credit Insurance Market size to reach USD 15.5 Billion by 2028
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; American International Group, Inc., Chubb Limited, Allianz Trade and Zurich Insurance Group Ltd., are the forerunners in the Trade Credit Insurance Market. Companies such as Great American Insurance Company, AON Plc, QBE Insurance Group Limited are some of the key innovators in Trade Credit Insurance Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Allianz Trade(Allianz Group), Atradius N.V., Coface SA, American International Group, Inc., Zurich Insurance Group Ltd., Chubb Limited, QBE Insurance Group Limited, Great American Insurance Company, and AON Plc.
By Coverage
By Application
By Organization Size
By Vertical
By Geography
The global Trade Credit Insurance Market size is expected to reach $15.5 billion by 2028.
Market Growth At A Rapid Pace In New Regions And Growing Commercial Threat are driving the market in coming years, however, Trade Credit Insurance Ignorance And Diverse And Conflicting Trade Regulations Among Different Jurisdictions restraints the growth of the market.
Allianz Trade(Allianz Group), Atradius N.V., Coface SA, American International Group, Inc., Zurich Insurance Group Ltd., Chubb Limited, QBE Insurance Group Limited, Great American Insurance Company, and AON Plc.
The International segment acquired maximum revenue share in the Global Trade Credit Insurance Market by Application in 2021 thereby, achieving a market value of $8.8 billion by 2028.
The Food & Beverage segment is leading the Global Trade Credit Insurance Market by Vertical in 2021 thereby, achieving a market value of $3.7 billion by 2028.
The Europe market dominated the Global Trade Credit Insurance Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $5.3 billion by 2028.
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